Gujarat High Court
Hasmukhbhai Bhagwanbhai Patel vs Husenali Anwarali Charaniya on 25 September, 2023
NEUTRAL CITATION
C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023
undefined
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/FIRST APPEAL NO. 2172 of 2023
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE J. C. DOSHI
==========================================================
1 Whether Reporters of Local Papers may be allowed
to see the judgment ?
2 To be referred to the Reporter or not ?
3 Whether their Lordships wish to see the fair copy
of the judgment ?
4 Whether this case involves a substantial question
of law as to the interpretation of the Constitution
of India or any order made thereunder ?
==========================================================
HASMUKHBHAI BHAGWANBHAI PATEL
Versus
HUSENALI ANWARALI CHARANIYA
==========================================================
Appearance:
MR RH BHANSALI for MS RUSHVI N SHAH(5881) for the Appellant
MR SAIFULLA for MR KISHAN R CHAKWAWALA(9846) for the Respondent
==========================================================
CORAM:HONOURABLE MR. JUSTICE J. C. DOSHI
Date : 25/09/2023
CAV JUDGMENT
1. Upon request and with consent of learned advocates for both the sides, present appeal is taken up for final hearing.
2. By way of this first appeal filed u/s 96 of the Code of Civil Page 1 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023 NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined Procedure, 1908 (in short "CPC"), the appellant challenges judgment and order dated 18.4.2023 passed by the learned 3 rd Additional District Judge, Dahod below applications Exhs.9 and 10 in Trademark Suit No.1 of 2023, whereby the learned Additional District Judge rejected plaint under Order 7 Rule 11 of the CPC inter alia on the ground of lack of jurisdiction.
3. The appellant is the plaintiff and the respondent is the defendant. For brevity, they are referred herein as per their original status before the learned Court below.
4. The plaintiff has filed trademark suit No.1 of 2023 before the District Court, Dahod for relief of permanent injunction, accounts of profit and damages under the Trademarks Act, 1999 (in short "the Act") and Copyright Act, 1957, claiming following relief:-
"(A) THAT the Hon'ble Court be pleased to restrain the defendant its proprietor, partners, sister concerns, associates, servants, agents retailers stockiest dealers distributors printers and publishers by an order of permanent injunction from using mark/ label KRANTI KAKA and/or other mark, which may be identical with and/or deceptively similar with the plaintiff's said mark/label KANTI KAKA restrain them from manufacturing and marketing impugned goods namely Betel Nut (Supari) by using impugned mark/label in any manner thereby restrain them from committing an act of passing off and enable others to pass off impugned goods as and for said goods namely Betel Nut (Supari) of the plaintiff with said mark/label and restrain the defendant, its partners, sister concerns, associates, servants, agents, retailers, stockiest dealers, distributors, printers and publishers from diluting the immense reputation and goodwill of said mark/label of the plaintiff.
(B) THAT the Hon'ble Court be pleased to restrain the defendant, its proprietor, partners, sister concerns, associates, servants agents, retailers stockiest, dealers, distributors printers and publishers by order of permanent injunction from printing publishing and using mark/art work/label KRANTI KAKA and/or any other mark/art work/label, which may be substantial and Page 2 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023 NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined material reproduction of the plaintiff's mark/art work/label KANTI KAKA- and thereby, restrain the defendant, its proprietor, partners, sister concerns associates, servants, agents, retailers, stockiest dealers, distributors printers and publishers from committing an act of infringement of copyright of the plaintiff. (C) THAT, the Hon'ble Court be pleased to restrain the defendant, its proprietor, partners, sister concerns, associates, servants, agents, retailers, stockiest, dealers, distributors, printers and publishers by order of permanent injunction from using similar packaging/trade dress KRANTI KAKA and/or for impugned goods namely, Betel Nut (Supari) and/or any other packaging/trade dress which, may be identical and deceptively similar with said packaging/trade dress KANTI KAKA for said goods namely, Betel Nut (Supari) of the plaintiff.
(D) THAT, the Hon'ble Court be pleased to direct the defendant to render true and correct account of the goods manufactured, marketed and sold under impugned mark/label KRANTI KAKA and after verifying the books of accounts and ascertaining the profit made by the defendant, the Hon'ble Court be pleased to direct the defendant to pay said amount of profit with interest at the rate of 18 per cent per annum to the plaintiff from the date of the plaint/suit till the realization.
(E) THAT, the Hon'ble Court be pleased to order the defendant to hand over all goods, logo, labels, blocks, dyes, stencils, stationery material, printing materials, advertising materials, packing materials etc. containing and/or consisting of impugned mark/label KRANTI KAKA and/or any other mark/label, which may be identical with and/or deceptively similar and/or substantial and material reproduction of the plaintiff's said mark/ label KANTI KAKA.
(F) THAT, the Hon'ble Court be pleased to order the defendant to pay the -cost of the present proceeding.
(G) THAT, any other and further relief, that may be deemed fit and proper, looking to the facts and circumstances of the case, may be granted in favour of the plaintiff."
5. The above reliefs were claimed by the plaintiff in background of the facts that the plaintiff is a sole proprietor of M/s. Uma Sales and M/s. H.M. Gruh Udhyog and is carrying on the business activity as a leading firm at the address given in the cause title of the plaint. The plaintiff is engaged in the business of manufacturing, marketing and processing of betel nut with distinctive and fancy trademark "Kanti Kaka" (Word Per Se) with label mark. It is further the case of the plaintiff that plaintiff is in Page 3 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023 NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined business since long and has acquired good reputation with its trademark 'Kanti Kaka'. It is further the case of the plaintiff that the trademark label of the plaintiff acquired tremendous reputation and goodwill in the open market as plaintiff is doing business extensively and continuously throughout India.
6. It is further the case of the plaintiff that the defendant is also engaged in the same business of manufacturing, marketing and processing of the goods, namely betel nut. The defendant has dishonestly adopted the trademark "Kranti Kaka", which can deceive the ordinary people, and the goods may be passed on the ordinary people, believing that it is goods of the plaintiff. It is further the case that the defendant is a habitual offender and is set with mala fide and criminal mindset. The case of the plaintiff further exposes that word "Kanti Kaka" has been derived under the name of uncle of the plaintiff and coined as trademark "Kanti Kaka" in the year 2016 and since then, the plaintiff is using this unique and distinct mark of " Kanti Kaka" (Word Per Se), whereas, the label is used since 2018.
7. The plaintiff has averred about unique feature of this mark "Kanti Kaka" in para 7 of the plaint. Upon such and other averments, the plaintiff came out with the case that the defendant since trying to pass on its goods as goods of the plaintiff and infringed the trademark and copyright of the plaintiff, the plaintiff was entitled for the relief stated hereinabove. The plaintiff further averred that the cause of action for the suit arose only in second week of December 2022, when the plaintiff found that the defendant is manufacturing, Page 4 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023 NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined marketing and processing betel nut with the identical but deceptive mark within the territorial jurisdiction of the District Court, Dahod and further when the plaintiff found that the defendant is selling betel nut with the imitated trademark within the territorial jurisdiction of the District Court, Dahod, the plaintiff has filed the suit seeking above relief.
8. Summons was served to the other side. The defendant appeared and filed application under Order 7 Rule 11 of the CPC at Exh.9 and 10 for rejection of the plaint. The District Court Dahod, by impugned judgment and order, believed the contention raised by the defendant and rejected the plaint on the ground that the District Court, Dahod has no territorial jurisdiction to decide the dispute raised by the plaintiff and consequential order was also passed below Exh.1 to reject the plaint. Decree was also drawn.
9. Being aggrieved and dissatisfied with the orders passed below Exh.9 and 10 as well as Exh.1, in trademark suit No.1 of 2023, the plaintiff filed this first appeal, inter alia on the ground mentioned in the appeal memo.
10. Learned advocate Mr. RH Bhansali for learned advocate Ms. Rushvi Shah for the plaintiff submits that the learned District Court has committed grave error in rejecting the plaint without noticing true purport of section 134 of the Act, section 62 of the Copyright Act and section 20 of the CPC. He would further submit that when the issue of jurisdiction of the court under Order 7 Rule 11 of the CPC is involved, the court is Page 5 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023 NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined required to see the averments made in the plaint and to consider those elements as true and correct, and then to decide that whether the suit is maintainable or not, he would further submit that the defence of the defendant cannot be seen or considered while deciding the application under Order 7 Rule 11 of the CPC. He has relied upon the judgment in case of Mayar (H.K.) Ltd. and others Vs. Owners and Parties, Vessel M.V. Fortune Express and others reported in 2006(3) SCC 100.
11. To buttress such contention, learned advocate Mr. Bhansali would further submit that so long the plaint discloses with some of the cause of action which requires to be determined by the court, mere fact that in the opinion of the court, the plaintiff may not succeed in particular jurisdiction cannot be a ground for rejection of the plaint. He would further submit that cause of action is bundle of facts and this bundle of facts cannot be decided at threshold, but has to be addressed during the trial. He would further submit that in the present case, the learned District Court has assessed and examined the bundle of facts being cause of action at threshold to believe that it has no territorial jurisdiction to decide the issue raised before it, as such, learned District Court has erred. He would further submit that the plaintiff has clearly narrated about the cause of action and how the District Court, Dahod has jurisdiction to try and decide the suit.
12. Referring to para 52 and 53 of the plaint, Learned advocate Mr. Bhansali would submit that clear averments on the part of the plaintiff are made to the effect that cause of action or part Page 6 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023 NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined thereof has been arisen within the territorial jurisdiction of the District Court, Dahod and in view of section 134 of the Act read with section 62 of the Copyright Act as well as further reading of section 20 of the CPC, the District Court, Dahod enjoys jurisdiction to try and decide the suit. He would further submit that the defendant has applied for the registration of his own trademark "Kranti Kaka" similar to the trademark of the plaintiff. He would submit that along with said application, the defendant has filed the invoices indicating that he is selling betel nut under the deceptive trademark in the territorial jurisdiction of the District Court, Dahod. The said invoices are extracted from the website of the trademark registry and were produced before the learned District Court along with the plaint as to show the mischief of infringement of the trademark as copyright, but the learned District Court has failed to understand this aspect. He would further submit that the plaintiff has also produced the invoices which indicate that the plaintiff is also selling the betel nut under the trademark name "Kanti Kaka" within the territorial jurisdiction of the District Court, Dahod. Referring to section 20 of the CPC, he would submit that since the infringement and copyright of the trademark of the plaintiff took place within the territorial jurisdiction of the District Court, Dahod. The concerned District Court was holding the territorial jurisdiction, but this aspect was not properly understood by the court below, and as such, error has crept. Learned advocate Mr. Bhansali would further submit that the learned District Court has not considered the material, but admitted fact that the defendant has not denied or disputed the sale invoices, which indicate that the defendant is selling betel nut within the Page 7 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023 NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined territorial jurisdiction of the District Court, Dahod and as such, has infringed the trademark and copyright of the plaintiff nor has he denied that those invoices filed along with the plaint are not belonging to the defendant. He would further submit that the learned District Court has totally failed to consider this aspect.
13. To buttress his submission, learned advocate Mr. Bhansali has relied upon following judgments.
1. CRA No.286 of 2017 (Guj. HC) Patel Enterprise V/s. Gujarat Tea Depot Company
2. FAO (Comm) No.43 of 2023 (Delhi. HC) (DB) Sonal Kanodia V/s. Shri Ram Gupta
3. 2022 SCC Online Del 4142 (DelhiHC) (DB) Puma Se V/s. D. K. Arora
4. FAO (Comm) No.128 of 2021 (Delhi. HC) (DB) Chandra Kishore Chaurasia V/s. R A Perfumery Works Pvt. Ltd.
5. CRP-IPD No.3 of 2022 (Delhi. HC) Shyam Lal Mulwani V/s. ABC Cashmewale LLP
6. 2012 (8) SCC 701) Bhau Ram V/sJanak Singh
14. The above arguments are canvassed to allow this appeal and to quash and set aside the impugned order and to restore the trademark suit before the District Court, Dahod for further hearing.
15. Per contra, learned advocate Mr. Saifullah appearing for learned advocate Mr. Chakwawala for the defendant, referring to section 134 of the Act, section 62 of the Copyright Act and section 20 of the CPC submits that for the plaintiff, the cause of Page 8 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023 NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined action for filing the trademark suit before the District Court, Dahod was never arisen. He would submit that admittedly, plaintiff is not residing in Dahod nor the defendant. In such circumstances, neither CPC nor Trademark Act nor the Copyright Act is giving any reason to the plaintiff for filing the trademark suit at far-flung place - Dahod. He would further submit that even without considering the aspect that whether the plaintiff is entitled to seek relief prayed in the plaint, plain reading of para 52 and 53 of the plaint itself suggests that the plaintiff has made misleading statement for the territorial jurisdiction. The plaintiff is not manufacturing, marketing and processing the goods betel nut with the mark and label within the territorial jurisdiction of the District Court, Dahod. He would further submit that merely producing invoices of the plaintiff or the defendant would not give rise the cause of action, more particularly, when the plaintiff is doing his business for gain at the address given in the plaint i.e. at Surat. He would further submit that section 62 of the Copyright Act as well as section 134 of the Act is giving additional right to the plaintiff for filing the suit where the plaintiff is residing or engaged in the business. Section 20 of the CPC is giving right to the plaintiff to institute the suit where the defendant resides or cause of action arose. He would further submit that neither the plaintiff nor the defendant are residing within the territorial jurisdiction of the District Court, Dahod and therefore, no cause of action has been arisen within the territorial jurisdiction of the District Court, Dahod and therefore, the learned District Court has rightly rejected the suit. To strengthen his submission, learned advocate Mr. Saifulla has relied upon the judgment of the Page 9 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023 NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined Hon'ble Apex Court in case of Indian Performing Rights Society Ltd. Vs. Sanjay Dalia and another reported in 2015(10) SCC 161 to contend that the Hon'ble Apex Court has analyzed this issue comprehensively and put the purposive construction on section 34 of the Act and section 62 of the Copyright Act to balance the interest of the parties. The issue raised before this Court is squarely covered up by the decision in Indian Performing Rights Society Ltd. (supra). Thus, he would submit that the learned District Court has not committed any error in reaching to the conclusion that it has no territorial jurisdiction to decide the suit. Thus, he submits to dismiss this appeal.
16. Heard learned advocates appearing for the respective parties. Also paid anxious thought to rival submissions of both the sides.
17. At the outset, to be noted that while considering application under Order 7 Rule 11 of the CPC, in view of settled principles of law, the Court is required to examine the averments made in the plaint and the plea taken by the defendant in its written statement or even in application under Order 7 Rule 11 of the CPC are wholly irrelevant. The law is settled by the Hon'ble Apex Court in various decisions. The Hon'ble Apex Court in case of Bhau Ram (supra), referring to various authorities on this aspect, held in para 8 as under:-
"8. The law has been settled by this Court in various decisions that while considering an application under Order VII Rule 11 CPC, the Court has to examine the averments in the plaint and the pleas taken by the defendants in its written statements would be irrelevant. [vide C. Natrajan vs. Ashim Bai and Another, (2007) 14 SCC 183, Ram Prakash Gupta vs. Rajiv Kumar Gupta and Others, (2007) 10 SCC 59, Hardesh Ores (P) Ltd. vs. Hede and Page 10 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023 NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined Company, (2007) 5 SCC 614, Mayar (H.K.) Ltd. and Others vs. 35 Owners & Parties, Vessel M.V. Fortune Express and others, (2006) 3 SCC 100, Sopan Sukhdeo Sable and Others vs. Assistant Charity Commissioner and Others, (2004) 3 SCC 137, Saleem Bhai and Others vs. State of Maharashtra and Others, (2003) 1 SCC 557]. The above view has been once again reiterated in the recent decision of this Court in The Church of Christ Charitable Trust & Educational Charitable Society, 40 represented by its Chairman vs. M/s Ponniamman Educational Trust represented by its Chairperson/Managing Trustee, 2012 (6) JT 149.
18. Before I advert to decide the issue raised in this appeal, certain admitted facts are required to be noted.
19. The plaintiff is residing at Surat having factory at village Koshad - Amroli within the Surat district. The defendant is living at Wadhwan, Dist: Surendranagar and carrying on his business at Moraiya and also at Ahmedabad. The suit is filed at Dahod by the plaintiff claiming that part of cause of action arose in the territorial jurisdiction of the District Court, Dahod. At this juncture, it is necessary to refer para 52 and 53 of the plaint, whereby the plaintiff has averred cause of action of the suit and also made averment in regard to territorial jurisdiction of the District Court, Dahod.
"(52) THAT, the plaintiff submits that cause of action for the present suit arose only in second week of December, 2022, when the plaintiff has found that the defendant is manufacturing, marketing and processing impugned goods with impugned mark/label within the territorial jurisdiction of this Hon'ble Court and when the plaintiff has found that the defendant is manufacturing, processing and selling impugned goods with impugned mark/label on commercial scale within the jurisdiction of this Hon'ble Court, and when the plaintiff has found that they defendant is selling impugned goods with impugned mark/label without issuing legal bills within the territorial jurisdiction of this Hon'ble Court, and when the plaintiff has issued ceased and desist notice to the defendant, and when the defendant has given false, frivolous and vexatious reply to said ceased and desist Page 11 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023 NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined notice of the plaintiff, and when the defendant has requested the plaintiff to settled the matter amicably, and when the plaintiff has issued rejoinder notice to the defendant, and when the defendant has stopped the use of impugned matk/label, and when the defendant has restarted the use of impugned mark/label, as and when the plaintiff has initiated criminal actions against the defendant, as and when the plaintiff has come to know about the filing of Impugned trade mark application by the defendant for impugned mark/label, as and when the plaintiff has come to know about the filing of forged, concocted and manipulated sales invoices in impugned trade mark application by the defendant for impugned mark/label, as and when the plaintiff has come to know about the filing of sales invoices of Dahod and nearby area i.e. district of Dahod in Impugned trade mark application by the defendant in support of impugned mark/label, and when the plaintiff come to know about the illegal activities of the defendant about the adoption and use of impugned mark/label/art work/trade dress/packaging with similar colour combination, and when the plaintiff has found that the defendant is not the registered proprietor of impugned mark/label, and subsequently thereafter, the defendant has continued his illegal activities for impugned goods with impugned mark/label within the territorial jurisdiction of this Hon'ble Court. The plaintiff submits that cause of action is recurring and continued to arise day to day, as the defendant has continued his unlawful activityThe defendant is manufacturing, processing and marketing and carrying his unlawful activity within the territorial jurisdiction of this Hon'ble Court with impugned mark/label for impugned goods. The defendant's impugned goods with impugned mark and similar label/trade dress/packing with similar colour combination are also sold and marketed within the territorial jurisdiction of this Hon'ble Court therefore, the cause of action and part of cause of action for instituting the present plaint/suit arose within the territorial jurisdiction of this Hon'ble Court. The defendant is also committing the acts of infringement of copyright and passing off within the jurisdiction of this Hon'ble Court therefore, as the cause of action and also part of cause of action has been arisen within the territorial jurisdiction of this Hon'ble Court and this Hon'ble Court is empowered to entertain the present suit and grant relief as prayed herein.
(53) THAT, the plaintiff is also working for gain within the territorial jurisdiction of this Hon'ble CourtThe plaintiff is true and lawful proprietor/owner of said mark/label. The plaintiff is selling said goods under said mark/label within the territorial jurisdiction of this Hon'ble Court. The plaintiff further submits that the defendant is carrying on business and working for gain within the territorial jurisdiction of this Hon'ble Court. The defendant is selling impugned goods with impugned mark/label on commercial scale to dealer, distributors, retailers etc. within the territorial jurisdiction of this Hon'ble CourtThe plaintiff Page 12 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023 NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined specifically submits that the defendant's impugned goods with impugned mark/label are also available within the territorial jurisdiction of this Hon'ble Court. The defendant is passing. off impugned goods with impugned mark/label within the territorial jurisdiction of this Hon'ble Court. Hence, under the provisions of Section 134 of The Trade Marks Act, 1999, this Hon'ble Court is empowered to entertain and try the present suit and grant relief under the provisions of Section-135 of The Trade- Marks Act, 1999, as prayed herein. The defendant is also infringing copyright of the plaintiff said mark/label by making substantial and material reproduction of art work with impugned mark/label within the territorial jurisdiction of this Hon'ble Court. Hence, under the provisions of Section 62 of The Copyright Act, 1957, this Hon'ble Court is empowered to entertain and try the present suit and grant relief under the provisions of Section 55 of The Copyright Act, 1957, as prayed herein. The plaintiff submits that cause of action and the part of cause of action has also been arisen within the territorial jurisdiction of this Hon'ble Court and also the defendant is also residing carrying on business and also working for gain within the territorial jurisdiction of this Hon'ble Court thereby, as per the provisions of Section 20 of the Code of Civil Procedure, 1908, this Hon'ble Court is empowered to entertain the-present plaint/suit and grant relief as prayed for.
Further, it is submitted that the plaintiff is working for gain and also carrying on business within the territorial jurisdiction of this Hon'ble Court and the defendant is also working for gain and also carrying on business within the territorial jurisdiction of this Hon'ble Court thereby, as per provision of Section 134 of The Trade Marks Act, 1999 and under the provisions of Section 62 of The Copyright Act, 1957, this Hon'ble Court is empowered to entertain the present plaint/suit and grant relief as prayed for."
20. On plain and simple reading of para 52 and 53 of the plaint, some incorrect facts are found. Admittedly, the defendant is not manufacturing, marketing and processing betel nut within the territorial jurisdiction of the District Court, Dahod. To establish issue of territorial jurisdiction, the plaintiff relied on some of the invoices said to have been extracted from the website of the Trademark Registry, by which, it is alleged that the defendant is selling the betel nut within the territorial jurisdiction of the District Court, Dahod. According to the plaintiff, these sale invoices were produced by the defendant Page 13 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023 NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined before the Registry of Trademark in its own application. It is claimed that since these invoices of the defendant prove that the defendant is selling betel nut at Dahod, the cause of action arose in Dahod and therefore, the District Court, Dahod has territorial jurisdiction to try and decide the suit.
21. Both the learned advocates appearing for the respective parties have heavily relied upon the provisions of the Trademark Act, Copyright Act and CPC for the purpose of ascertaining the issue of territorial jurisdiction.
22. Let refer section 134 of the Trademark Act along with section 62 of the Copyright Act as well as section 20 of the CPC so as to understand the submission.
23. Section 134 of the Trademark Act reads as under:-
"134. Suit for infringement, etc., to be instituted before District Court.-(1) No suit-
(a) for the infringement of a registered trade mark; or
(b) relating to any right in a registered trade mark; or
(c) for passing off arising out of the use by the defendant of any trade mark which is identical with or deceptively similar to the plaintiff's trade mark, whether registered or unregistered, shall be instituted in any court inferior to a District Court having jurisdiction to try the suit. (2) For the purpose of clauses (a) and (b) of sub-section (1), a "District Court having jurisdiction" shall, notwithstanding anything contained in the Code of Civil Procedure, 1908 (5 of 1908) or any other law for the time being in force, include a District Court within the local limits of whose jurisdiction, at the time of the institution of the suit or other proceeding, the person instituting the suit or proceeding, or, where there are more than one such persons any of them, actually and Page 14 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023 NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined voluntarily resides or carries on business or personally works for gain.
Explanation. For the purposes of sub-section (2), "person" includes the registered proprietor and the registered user."
24. Section 62 of the Copyright Act reads as under:-
62. Documents to be presented in the annual General Body meeting.- Every copyright society shall place before its annual General Body meeting the following documents, namely:-
(i) an up-to-date list of the authors and other owners of right or the set of rights in the specific categories of works for which the copyright society has been authorised to issue or grant licences, their names and addresses as recorded in the Register of Authors and Owners maintained by the copyright society, as provided in sub-rule (i) of rule 64;
(ii) audited accounts of the society for the previous year;
(iii) the Tariff Scheme and the Distribution Scheme or any other scheme including the decision of the Copyright Board on the said Schemes, if any;
(iv) annual report as approved by the Governing Council, giving full and detailed account of all its activities during the previous years;
(v) Budget estimates along with programme of action as approved by the Governing Council for the succeeding year;
(vi) the agreements, if any entered with foreign copyright societies under sub-section (2) section 34 of the Act;
(vii) any changes made in the instrument of registration of the society; and (viii) any other document relating to the society that require approval of the General Body.Page 15 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023
NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined [(ix) The annual transparency report as provided under rule 65A.]"
25. Section 20 of the CPC reads as under:-
20. Other suits to be instituted where defendants reside or cause of action arises. Subject to the limitations aforesaid, every suit shall be i Court within the local limits of whose jurisdiction-
(a) the defendant, or each of the defendants where there are more t one, at the time of the commencement of the suit, actually a voluntarily resides, or carries on business, or personally works gain; or
b) any of the defendants, where there are more than one, at the time the commencement of the suit, actually and voluntarily resides, or carries on business, or personally works for gain, provided that in such case either the leave of the Court is given, or the defendants who do not reside, or carry on business, or personally work for gain, as aforesaid, acquiesce in such institution; or
(c) the cause of action, wholly or in part, arises.
[Explanation].-A corporation shall be deemed to carry on business at its sole principal office in ³[India] or, in respect of any cause of action arising at any ce where it has also a subordinate office, at such place."
26. The plain reading of the provisions of law and taking note of their inter-play, what appears that section 134 of the Act and section 62 of the Copyright Act are almost pari materia. The Legislature has used term "notwithstanding" and including in section 134 of the Act and section 62 of the Copyright Act. Thus, it could be gathered as well as in that, the provisions providing territorial jurisdiction for institution of the suit are in addition to what is provided in section 20 of the CPC. Section 20 Page 16 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023 NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined of the CPC indicates that suit can be instituted at the place where the defendant resides or carries out business for personal work for gain and the place where cause of action or any part thereof arose. Section 134 of the Act read with section 62 of the Copyright Act permits the plaintiff to file the suit within the local limits/jurisdiction of the District Court, where the plaintiff resides or carries out business or personal work for gain.
27. Qua issue of territorial jurisdiction in the suit for infringement under the Trademark Act or Copyright Act, perusal of provisions of law, it ambiguously established that section 134 of the Act as well as section 62 of the Copyright Act gives additional ground of territorial jurisdiction to the plaintiff over and above grounds available in section 20 of the CPC. Thus, section 134 of the Act as well as section 62 of the Copyright Act expand the bandwidth of territorial jurisdiction.
28. Indepth and exhaustive analysis has been done by the Hon'ble Court in case of Indian Performing Rights Society Ltd. (supra). The relevant paras reads following:-
"8. On the other hand, on behalf of the respondents, it was submitted that abuse of provisions of section 62 of the Copyright Act and section 134 of the Trade Marks Act cannot be permitted at the Page 6 6 hands of multi-national corporations to harass the defendant/s. With respect to the suit being filed by the Corporation, section 20 is not inapplicable. 'Carrying on business' cannot be defined subjectively. Reliance has been placed upon Patel Roadways Ltd., Bombay v. Prasad Trading Co. [1991 (4) SCC 270]. The object of the Parliament behind enacting section 62 of the Copyright Act and section 134 of the Trade Page 17 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023 NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined Marks Act has to be taken into consideration while interpreting the said provisions. The mischief rule of Heydon has been pressed into service so as to prevent harassment of the defendants and abuse of the said provisions. Court is duty-bound to avoid disproportionate counter mischief while interpreting a provision. Public policy and convenience to parties have to be taken into consideration. The interpretation of provisions must be such so as to avoid hardship and absurdity. The decisions relied upon by the appellants have been sought to be distinguished.
9. The Code of Civil Procedure, 1908 contains the provisions under section 20 with respect to institution of the suits where defendant resides or cause of action arose. Section 20 of the Code of Civil Procedure reads thus :
"Section 20 - Other suits to be instituted where defendants reside or cause of action arises. -- Subject to the limitations aforesaid, every suit shall be instituted in a Court within the local limits of whose jurisdiction --
(a) the defendant, or each of the defendants where there are more than one, at the time of the commencement of the suit, actually and voluntarily resides, or carries on business, or personally works for gain; or
(b) any of the defendants, where there are more than one, at the time of the commencement of the suit, actually and voluntarily resides, or carries on business, or personally works for gain, provided that in such case either the leave of the Court is given, or the defendants who do not reside, or carry on business, or personally work for gain, as aforesaid, acquiesce in such institution; or
(c) the cause of action, wholly or in part, arises.
[Explanation]. : A corporation shall be deemed to carry on business at its sole or principal office in India or, in respect of any cause of action arising at any place where it has also a subordinate office, at such place."
Page 18 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined
10. In order to amend and consolidate the law relating to copyrights, the matter was referred to a Joint Committee. The Joint Committee of the Houses submitted the report which contained the object of the provisions of section 62 is that many authors are deterred from instituting infringement proceedings because the court in which the proceedings are to be instituted are at a considerable distance from the place of their ordinary residence. Such impediments should be removed and the proceedings may be instituted in the local court where the person instituting the proceedings ordinarily resides, carries on business etc. Clause 61 of the Report of the said Committee is extracted below :
"Clause 61 (Original clause 65). --Sub-clause (2) of the original clause 65 has been omitted and replaced by a new sub-clause. The Committee feels that the provisions of the original sub- clause (2) would virtually make registration of copyright compulsory and would be an undue restriction on the owner of the copyright to exercise his rights. In the opinion of the Committee many authors are deterred from instituting infringement proceedings because the court in which such proceedings are to be instituted is situated at a considerable distance from the place of their ordinary residence. The Committee feels that this impediment should be removed and the new sub-clause (2) accordingly provides that infringement proceedings may be instituted in the district court within the local limits of whose jurisdiction the person instituting the proceedings ordinarily resides, carries on business, etc." (emphasis supplied by us) Section 62 of the Copyright Act is extracted below :
"62. Jurisdiction of court over matters arising under this Chapter. -- (1) Every suit or other civil proceeding arising under this Chapter in respect of the infringement of copyright in any work or the infringement of any other right conferred by this Act shall be instituted in the Page 19 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023 NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined district court having jurisdiction. (2) For the purpose of sub-section (1), a "district court having jurisdiction" shall, notwithstanding anything contained in the Code of Civil Procedure, 1908 (5 of 1908), or any other law for the time being in force, include a district court within the local limits of whose jurisdiction, at the time of the institution of the suit or other proceeding, the person instituting the suit or other proceeding or, where there are more than one such persons, any of them actually and voluntarily resides or carries on business or personally works for gain."
Section 134 of the Trade Marks Act is also extracted below :
"134. Suit for infringement, etc., to be instituted before District Court. -- (1) No suit--
(a) for the infringement of a registered trade mark; or
(b) relating to any right in a registered trade mark; or
(c) for passing off arising out of the use by the defendant of any trade mark which is identical with or deceptively similar to the plaintiff's trade mark, whether registered or unregistered, shall be instituted in any court inferior to a District Court having jurisdiction to try the suit. (2) For the purpose of clauses (a) and (b) of sub-
section (1), a "District Court having jurisdiction"
shall, notwithstanding anything contained in the Code of Civil Procedure, 1908 (5 of 1908) or any other law for the time being in force, include a District Court within the local limits of whose jurisdiction, at the time of the institution of the suit or other proceeding, the person instituting the suit or proceeding, or, where there are more than one such persons any of them, actually and voluntarily resides or carries on business or personally works for gain.
Explanation.--For the purposes of sub-section (2), "person" includes the registered proprietor and the registered user."Page 20 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023
NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined
11. Following portion of the Parliamentary Debates as to Copyright Act has been relied upon :
"Shri P. Trikamdas: Ordinarily it should fall within the jurisdiction of the court where the infringing copy was published. But there is nothing to prevent Parliament from making a law, as for instance in the case of divorce, and saying that the cause of action may also arise at any place where the author resides or where the original publication took place, so that you could drag the infringer to that court. Instead of making the another run all over the country facing the infringer, the right may be given to the injured party-the author-to sue the main in the place where the author resides or where the first copy was published.
Dr. Raghubir Sinh: So you agree to that?
Shri P. Trikamdas: Yes, and I am obliged to you for asking me that question.
Dr. Raghubir Sinh: Does Mr. Masani also approve of it?
Shri Masani : Yes.
Shri P. Trikamdas: It is desirable, also because it may act as a deterrent on the infringer when he knows that he may have to go a few hundred miles off to a High Court where the author lives or where the book got published first."
12. Considering the very language of section 62 of the Copyright Act and section 134 of the Trade Marks Act, an additional forum has been provided by including a District Court within whose limits the plaintiff actually and voluntarily resides or carries on business or personally works for gain. The object of the provisions was to enable the plaintiff to institute a suit at a place where he or they resided or carried on business, not to enable them to drag defendant further away from such a place also as is being done in the instant cases. In our opinion, the expression "notwithstanding anything contained in the Code of Civil Procedure" does not oust the applicability of the provisions of section 20 of the Code of Civil Procedure and it is clear that additional remedy has been Page 21 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023 NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined provided to the plaintiff so as to file a suit where he is residing or carrying on business etc., as the case may be. Section 20 of the Code of Civil Procedure enables a plaintiff to file a suit where the defendant resides or where cause of action arose. Section 20(a) and section 20(b) usually provides the venue where the defendant or any of them resides, carries on business or personally works for gain. Section 20(c) of the Code of Civil Procedure enables a plaintiff to institute a suit where the cause of action wholly or in part, arises. The Explanation to Section 20 C.P.C. has been added to the effect that Corporation shall be deemed to carry on business at its sole or principal office in India or in respect of any cause of action arising at any place where it has subordinate office at such place. Thus, 'corporation' can be sued at a place having its sole or principal office and where cause of action wholly or in part, arises at a place where it has also a subordinate office at such place.
13. Learned author Mulla in the Code of Civil Procedure, 18th Edn., has observed that under clauses (a) to (c) of section 20, plaintiff has a choice of forum to institute a suit. The intendment of the Explanation to section 20 of the Code of Civil Procedure is that once the corporation has a subordinate office in the place where the cause of action arises wholly or in part, it cannot be heard to say that it cannot be sued there because it did not carry on business at that place. The linking of the place with the cause of action in the Explanation where subordinate office of the corporation is situated is reflective of the intention of the Legislature and such a place has to be the place of the filing of the suit and not the principal place of business. Ordinarily the suit has to be filed at the place where there is principal place of business of the corporation.
14. 'Corporation' in the Explanation would mean not only the statutory corporation but companies registered under the Companies Act, as held by this Court in Patel Roadways Ltd., Bombay v. Prasad Trading Co. etc. [1991 (4) SCC 270] and New Moga Transport Co., through its Proprietor v. United India Insurance Co. Ltd. & Ors. [2004 (4) SCC 677]. The Page 22 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023 NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined domicile of the company is fixed by the situation of its principal place of business as held in Jones v. Scottish Accident Insurance Co. (1886) 17 QBD 421. In the case of companies registered under the Companies Act, the controlling power is, as a fact, generally exercised at the registered office, and that office is therefore not only for the purposes of the Act, but for other purposes, the principal place of business, as held in Watkins v. Scottish Imperial Insurance Co. (1889) 23 QBD 285. A company may have subordinate or branch offices in fifty different jurisdictions and it may be sued in any one of such jurisdictions in respect of a cause of action arising there, has been held in Peoples' Insurance Co. v. Benoy Bhushan [AIR 1943 Cal. 190]; Home Insurance Co. v. Jagatjit Sugar Mills Co. [AIR 1952 Page 13 13 Punj. 142]; and Prag Oil Mils Depot v. Transport Corpn. of India [AIR 1978 Ori. 167].
15. Accrual of cause of action is a sine qua non for a suit to be filed. Cause of action is a bundle of facts which is required to be proved to grant relief to the plaintiff. Cause of action not only refers to the infringement but also the material facts on which right is founded. Section 20 of the CPC recognises the territorial jurisdiction of the courts inter alia where the cause of action wholly or in part arises. It has to be decided in each case whether cause of action wholly or in part arises at a particular place. As held by this Court in Rajasthan High Court Advocates Association v. Union of India & Ors. [AIR 2001 SC 416]. Thus, a plaintiff can also file a suit where the cause of action wholly or in part arises.
16. On a due and anxious consideration of the provisions contained in section 20 of the CPC, section 62 of the Copyright Act and section 134 of the Trade Marks Act, and the object with which the latter provisions have been enacted, it is clear that if a cause of action has arisen wholly or in part, where the plaintiff is residing or having its principal office/carries on business or personally works for gain, the suit can be filed at such place/s. Plaintiff(s) can also institute a suit at a place where he is residing, carrying on business or personally works for Page 23 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023 NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined gain de hors the fact that the cause of action has not arisen at a place where he/they are residing or any one of them is residing, carries on business or personally works for gain. However, this right to institute suit at such a place has to be read subject to certain restrictions, such as in case plaintiff is residing or carrying on business at a particular place/having its head office and at such place cause of action has also arisen wholly or in part, plaintiff cannot ignore such a place under the guise that he is carrying on business at other far flung places also. The very intendment of the insertion of provision in the Copyright Act and Trade Marks Act is the convenience of the plaintiff. The rule of convenience of the parties has been given a statutory expression in section 20 of the CPC as well. The interpretation of provisions has to be such which prevents the mischief of causing inconvenience to parties.
17. The intendment of the aforesaid provisions inserted in the Copyright Act and the Trade Marks Act is to provide a forum to the plaintiff where he is residing, carrying on business or personally works for gain. The object is to ensure that the plaintiff is not deterred from instituting infringement proceedings "because the court in which proceedings are to be instituted is at a considerable distance from the place of their ordinary residence". The impediment created to the plaintiff by section 20 C.P.C. of going to a place where it was not having ordinary residence or principal place of business was sought to be removed by virtue of the aforesaid provisions of the Copyright Act and the Trade Marks Act. Where the Corporation is having ordinary residence/principal place of business and cause of action has also arisen at that place, it has to institute a suit at the said place and not at other places. The provisions of section 62 of the Copyright Act and section 134 of the Trade Marks Act never intended to operate in the field where the plaintiff is having its principal place of business at a particular place and the cause of action has also arisen at that place so as to enable it to file a suit at a distant place where its subordinate office is situated though at such place no cause of action has arisen.
Page 24 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined Such interpretation would cause great harm and would be juxtaposed to the very legislative intendment of the provisions so enacted.
18. In our opinion, in a case where cause of action has arisen at a place where the plaintiff is residing or where there are more than one such persons, any of them actually or voluntarily resides or carries on business or personally works for gain would oust the jurisdiction of other place where the cause of action has not arisen though at such a place, by virtue of having subordinate office, the plaintiff instituting a suit or other proceedings might be carrying on business or personally works for gain.
19. At the same time, the provisions of section 62 of the Copyright Act and section 134 of the Trade Marks Act have removed the embargo of suing at place of accrual of cause of action wholly or in part, with regard to a place where the plaintiff or any of them ordinarily resides, carries on business or personally works for gain. We agree to the aforesaid extent the impediment imposed under section 20 of the CPC to a plaintiff to institute a suit in a court where the defendant resides or carries on business or where the cause of action wholly or in part arises, has been removed. But the right is subject to the rider in case plaintiff resides or has its principal place of business/carries on business or personally works for gain at a place where cause of action has also arisen, suit should be filed at that place not at other places where plaintiff is having branch offices etc.
20. There is no doubt about it that the words used in section 62 of the Copyright Act and section 134 of the Trade Marks Act, 'notwithstanding anything contained in CPC or any other law for the time being in force', emphasise that the requirement of section 20 of the CPC would not have to be complied with by the plaintiff if he resides or carries on business in the local limits of the court where he has filed the suit but, in our view, at the same time, as the provision providing for an additional forum, cannot be interpreted in the manner that it has authorised the plaintiff to institute a suit at a different place other Page 25 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023 NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined than the place where he is ordinarily residing or having principal office and incidentally where the cause of action wholly or in part has also arisen. The impugned judgments, in our considered view, do not take away the additional forum and fundamental basis of conferring the right and advantage to the authors of the Copyright Act and the Trade Marks Act provided under the aforesaid provisions.
21. The provisions of section 62(2) of the Copyright Act and section 134 of the Trade Marks Act are pari materia. Section 134(2) of the Trade Marks Act is applicable to clauses (a) and (b) of section 134(1) of the Trade Marks Act. Thus, a procedure to institute suit with respect to section 134(1)(c) in respect of "passing off" continues to be governed by section 20 of CPC.
22. If the interpretation suggested by the appellant is accepted, several mischiefs may result, intention is that the plaintiff should not go to far flung places than that of residence or where he carries on business or works for gain in order to deprive defendant a remedy and harass him by dragging to distant place. It is settled proposition of law that the interpretation of the provisions has to be such which prevents mischief. The said principle was explained in Heydon's case [76 ER 637]. According to the mischief rule, four points are required to be taken into consideration. While interpreting a statute, the problem or mischief that the statute was designed to remedy should first be identified and then a construction that suppresses the problem and advances the remedy should be adopted. The Heydon's mischief rule has been referred to in Interpretation of Statutes by Justice G.P. Singh, 12th Edn., at pp. 124-125 thus :
"(b) Rule in Heydon's case; purposive construction: mischief rule When the material words are capable of bearing two or more constructions the most firmly established rule for construction of such words "of all statutes in general (be they penal or beneficial, restrictive or enlarging of the common law)" is the rule laid down in Heydon's Page 26 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023 NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined case (76 ER 637) which has "now attained the status of a classic [Kanailal Sur v. Paramnidhi Sadhukhan AIR 1957 SC 907]. The rule which is also known as 'purposive construction' or 'mischief rule' [Anderton v. Ryan 1985 2 ALL ER 355], enables consideration of four matters in construing an Act: (i) What was the law before the making of the Act, (ii) What was the mischief or defect for which the law did not provide, (iii) What is the remedy that the Act has provided, and (iv) What is the reason of the remedy. The rule then directs that the courts must adopt that construction which "shall suppress the mischief and advance the remedy". The rule was explained in the Bengal Immunity Co. v. State of Bihar [AIR 1955 SC 661] by S.R. DAS, CJI as follows: "It is a sound rule of construction of a statute firmly established in England as far back as 1584 when Heydon's case (supra) was decided that for the sure and true interpretation of all Statutes in general (be they penal or beneficial, restrictive or enlarging of the common law) four things are to be discerned and considered:
1st - What was the common law before the making of the Act?
2nd - What was the mischief and defect for which the common law did not provide? 3rd - What remedy the Parliament hath resolved and appointed to cure the disease of the commonwealth, and 4th - The true reason of the remedy;
and then the office of all the judges is always to make such construction as shall suppress the mischief, and advance the remedy, and to suppress subtle inventions and evasions for continuance of the mischief, and pro private commodo, and to add force and life to the cure and remedy, according to the true intent of the makers of the Act, pro bono publico. [Bengal Immunity Co. v. State of Bihar (supra)]."
23. Considering the first aspect of aforesaid principle, the common law which was existing before the Page 27 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023 NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined provisions of law were passed was section 20 of the CPC. It did not provide for the plaintiff to institute a suit except in accordance with the provisions contained in section 20. The defect in existing law was inconvenience/deterrence caused to the authors suffering from financial constraints on account of having to vindicate their intellectual property rights at a place far away from their residence or the place of their business. The said mischief or defect in the existing law which did not provide for the plaintiff to sue at a place where he ordinarily resides or carries on Page 20 20 business or personally works for gain, was sought to be removed. Hence, the remedy was provided incorporating the provisions of section 62 of the Copyright Act. The provisions enabled the plaintiff or any of them to file a suit at the aforesaid places. But if they were residing or carrying on business or personally worked for gain already at such place, where cause of action has arisen, wholly or in part, the said provisions have not provided additional remedy to them to file a suit at a different place. The said provisions never intended to operate in that field. The operation of the provisions was limited and their objective was clearly to enable the plaintiff to file a suit at the place where he is ordinarily residing or carrying on business etc., as enumerated above, not to go away from such places. The Legislature has never intended that the plaintiff should not institute the suit where he ordinarily resides or at its Head Office or registered office or where he otherwise carries on business or personally works for gain where the cause of action too has arisen and should drag the defendant to a subordinate office or other place of business which is at a far distant place under the guise of the fact that the plaintiff/corporation is carrying on business through branch or otherwise at such other place also. If such an interpretation is permitted, as rightly submitted on behalf of the respondents, the abuse of the provision will take place. Corporations and big conglomerates etc. might be having several subordinate offices throughout the country. Interpretation otherwise would permit them to Page 28 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023 NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined institute infringement proceedings at a far flung place and at unconnected place as compared to a place where plaintiff is carrying on their business, and at such place, cause of action too has arisen. In the instant cases, the principal place of business is, admittedly, in Mumbai and the cause of action has also arisen in Mumbai. Thus, the provisions of section 62 of the Copyright Act and section 134 of the Trade Marks Act cannot be interpreted in a manner so as to confer jurisdiction on the Delhi court in the aforesaid circumstances to entertain such suits. The Delhi court would have no territorial jurisdiction to entertain it.
24. The avoidance of counter mischief to the defendant is also necessary while giving the remedy to the plaintiff under the provisions in question. It was never visualised by the law makers that both the parties would be made to travel to a distant place in spite of the fact that the plaintiff has a remedy of suing at the place where the cause of action has arisen where he is having head office/carrying on business etc. The provisions of the Copyright Act and the Trade Marks Act provide for the authors/trade marks holders to sue at their ordinary residence or where they carry on their business. The said provisions of law never intended to be oppressive to the defendant. Parliamentary Debate quoted above has to be understood in the manner that suit can be filed where the plaintiff ordinarily resides or carries on business or personally works for gain. Discussion was to provide remedy to plaintiff at convenient place; he is not to travel away. Debate was not to enable plaintiff to take defendant to farther place, leaving behind his place of residence/business etc. The right to remedy given is not unbriddled and is subject to the prevention of abuse of the aforesaid provisions, as discussed above. Parliament never intended that the subject provisions to be abused by the plaintiff by instituting suit in wholly unconnected jurisdiction. In the instant cases, as the principal place of business is at Mumbai the cause of action is also at Mumbai but still the place for suing has been chosen at Delhi. There may be a case where plaintiff is carrying on the Page 29 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023 NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined business at Mumbai and cause of action has arisen in Mumbai. Plaintiff is having branch offices at Kanyakumari and also at Port Blair, if interpretation suggested by appellants is acceptable, mischief may be caused by such plaintiff to drag a defendant to Port Blair or Kanyakumari. The provisions cannot be interpreted in the said manner devoid of the object of the Act.
25. It was also submitted that Heydon's rule is not applicable where the words of the statute are clear. Reliance has been placed on Page 23 23 M/s. Hiralal Rattanlal etc. etc. v. State of U.P. and Anr. etc. [1973 (1) SCC 216] in which it has been observed that when the provision is unambiguous and if from the provision legislative intent is clear, the court need not call into aid the other rule of construction of statutes such as that of 'mischief'. However, we opine, when two interpretations are possible, the court has to adopt the one which furthers the object as provided in the statute itself.
26. Reliance has been placed on Padmasundara Rao (Dead) & Ors.v. State of Tamil Nadu and Ors. [AIR 2002 SC 1334] in which it has been observed that the intention of the Legislature must be found in the words used by the Legislature itself. Reliance has also been placed on Grasim Industries Ltd. v. Collector of Customs, Bombay [2002 (4) SCC 297] in which it has been observed that wherever the language is clear, the intention of the Legislature is to be gathered from the language used. While doing so, what has been said as also what has not been said, has to be noted. There is no dispute with the aforesaid proposition. However, the object of the Act and the intention of the Legislature is clear which is to the otherwise."
29. The observations and the ratio laid down by the Hon'ble Apex Court in the above case are squarely applicable to the facts of the present case. The plaintiff argued that the plaintiff and the defendant both are carrying on business through their Page 30 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023 NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined agents at Dahod or within the territorial jurisdiction of District Court, Dahod and therefore, part of cause of action arose in Dahod and in that way, the District Court, Dahod has territorial jurisdiction. If such interpretation is permitted, it is abuse of the provision. The plaintiff or the defendant might be selling their products at various places, may be at far-flung place. If the suits for infringement are instituted at far-flung and unconnected places as compared to the place where the plaintiff or the defendant are residing or carrying on their business, which are typical places where the cause of action usually arisen, then it would be absurd interpretation of the provisions of law.
30. In the instance case, the plaintiff, who is residing at Surat and also carrying on his business at Surat did not explain that why he did not file the suit for infringement of trademark and copyright at Surat. Further, the plaintiff, who is taking shelter of section 20 of the CPC, has not explained that why he has not filed the suit at District Court, Surendranagar where the defendant is residing or carrying on business for gain. The jurisdiction of these two courts are ordinarily available to the plaintiff if the plaintiff intends to press section 134 of the Act r/ w section 62 of the Copyright Act or pressing into service section 20 of the CPC. There is no reason to file the suit at District Court, Dahod when both the parties are not living at Dahod nor carrying on business at Dahod. The plaintiff has remedy to sue the defendant either at District Court, Surendragar or at District Court, Surat. The law makers were never intended to make the parties to travel to a distant place for agitating their grievance in Page 31 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023 NEUTRAL CITATION C/FA/2172/2023 CAV JUDGMENT DATED: 25/09/2023 undefined respect of the fact that the plaintiff has remedy of suing the defendant at the place where cause of action arisen in view of section 134 of the Act r/w section 62 of the Copyright Act or as per section 20 of the CPC.
31. On perusal of the impugned judgment and order, it appears that the learned District Court has taken all pain to discuss these aspects and to reject the plaint. No error much less an error of understanding the facts or provisions of law could be pointed out by learned advocate for the plaintiff.
32. In view of this, present first appeal sans any merit.
33. For the foregoing reasons, this first appeal fails and stands dismissed. Impugned judgment and order is confirmed. No order as to costs.
(J. C. DOSHI,J) SHEKHAR P. BARVE Page 32 of 32 Downloaded on : Tue Sep 26 20:43:39 IST 2023