Delhi High Court - Orders
Khandelwal Laboratories P Ltd vs Nava Healthcare P Ltd on 27 May, 2022
Author: Prathiba M. Singh
Bench: Prathiba M. Singh
$~6
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ CS(COMM) 531/2021 & I.A. 8627/2022
KHANDELWAL LABORATORIES P LTD ..... Plaintiff
Through: Mr. Pallav Mongia & Mr. Ankush &
Mr. Ankush Mangal, Advocates (M-
7999673998)
versus
NAVA HEALTHCARE P LTD ..... Defendant
Through: Mr. Gaganmeet Singh Sachdeva, Ms.
H.S Sachdeva & Ms. Himali
Chaudhary, Advocates (M-
9582055425)
CORAM:
JUSTICE PRATHIBA M. SINGH
ORDER
% 27.05.2022
1. This hearing has been done through hybrid mode.
2. The present suit has been filed seeking permanent injunction restraining the infringement of trademark, passing off, unfair competition, damages and delivery up. The Plaintiff is engaged in the manufacturing and marketing of pharmaceutical products, in India and abroad. As stated in the Plaint, the Plaintiff is the proprietor of the following trade marks:
Signature Not Verified Digitally Signed CS(COMM) 531/2021 Page 1 of 5 By:DEVANSHU JOSHI3. It is the case of the Plaintiff that the Defendant is also dealing in medicinal and pharmaceutical products, and has been using the words "under collaboration with Khandelwal Laboratories Pvt. Ltd.", as also, the logo " " (K Lab) on the packaging of its medicinal products.
4. The parties have settled their disputes amicably. Accordingly, an application under Order XXIII Rule 3 CPC has been filed by both the parties jointly. The application is signed by the ld. Counsels and is accompanied by their affidavits. As per the terms of the said settlement, the Defendant is willing to suffer a permanent injunction.
5. The Defendant has acknowledged the Plaintiff's rights in the impugned marks 'KHANDELWAL' and 'KLAB'. The Defendant has also confirmed that he has stopped the manufacture and procurement of fresh stocks using the said two impugned marks, as of 28th October, 2021. The Defendant further undertakes that no manufacturing under the impugned marks shall be done by the Defendant, in future.
6. The Defendant has also confirmed that the total value of the stock lying with it is Rs.9,91,85,778.91/-. The batch details of the said stock have been furnished to the Plaintiff. The said stock would be disposed of by 30th September, 2022. If the stocks are not disposed of by 30th September, 2022, the remaining unsold stock shall be disposed of by 31st March, 2023, and a sum of Rs.7 lakhs shall be paid to the Plaintiff per month, for such an additional period.
7. As per the minutes of the meeting dated 28th July, 2021, the Defendant has admitted an outstanding liability of Rs.1.51 crores to be paid to the Plaintiff. The amount of Rs.1 crore, in terms of the settlement, has Signature Not Verified Digitally Signed CS(COMM) 531/2021 Page 2 of 5 By:DEVANSHU JOSHI been handed over in the form of cheques. The Defendant undertakes to ensure that the said cheques are honoured. In addition, a sum of Rs.4 lakhs shall be paid by the Defendant by 30th September, 2022.
8. The terms of the settlement are contained in paragraphs 2(i) to 2(x) of the said application. The same are extracted hereinbelow:
"i. The Defendant above named hereby recognizes the Plaintiff to be the proprietor of the trade mark Khandelwal and (K Lab) Logo having the exclusive rights to the use of the aforementioned trade mark in respect of pharmaceutical and medicinal preparations;
ii. The Defendant confirms that he has already seized manufacturing or procurement of fresh stocks containing the trade mark/trading name 'Khandelwal' and/or 'KLAB' logo as on 28.10.2021. He undertakes that he shall not get any further manufacturing done, which shall containing the trade mark/trading name 'Khandelwal' and/or 'KLAB' logo. The Defendant has further confirmed that it has a total remaining stock of value Rs. 9,91,85,778.91 as per its affidavit dated 29.03.2022. The batch details of the said stock was furnished by way of an excel sheet sent by the counsel for the Defendant over email on 14.05.2022 to the counsel for the Plaintiff. Copy of email dated 14.05.2022 with excel sheet attachment is attached herewith as Document 1. The Defendant in terms of order dt. 12.04.2022 and subject to monthly payments of outstanding amounts, shall dispose of the aforementioned stocks having the trade mark/trading name 'Khandelwal' and/or 'KLAB' logo within a period by 30 the September 2022;
iii. The Defendant has deposited cheques drawn on Punjab National Bank under no. 903222-903226 with the Plaintiff in compliance of order dated Signature Not Verified Digitally Signed CS(COMM) 531/2021 Page 3 of 5 By:DEVANSHU JOSHI 12.04.2022 and undertakes before this Hon'ble Court that the same shall be honoured at the time of their presentation of those cheques;
iv. If the aforementioned stocks are not disposed off by 30th September 2022, the Defendant shall positively ensure that such unsold stock shall be disposed off latest by 31st March 2023. The Defendants shall pay a sum of Rs. 7 lacs per month for any such additional period consumed by the Defendant to sell off such stocks i.e. during the period 1st October 2022 till 31st March 2023;
v. Save for para 2 (ii & iii) of this application, the Defendant undertakes to refrain itself, its directors, its assignees in business, as the case may be, its distributors, dealers, stockists, retailers/chemists, servants and agents from dealing in medicinal preparations by using the trade mark/trading name 'Khandelwal' and/or 'KLAB' logo or under any other mark/logo as may be deceptively similar to the Plaintiffs registered trade marks and passing off of the Defendant's goods and business for those of the Plaintiff's;
vi. As per minutes of the meeting dated 28.07.2021, the Defendant has admitted an outstanding liability of Rs.1.51 Crores to be paid to the Plaintiff. The Defendant has undertaken to pay a sum of Rs.1 crore to the Plaintiff in 6 instalments within 6 months as has been Order dated 12.04.2022. After adjusting the security amount of Rs. 25 lacs plus the accrued interest of Rs 22 lacs, which is currently lying with the Plaintiff, the Defendant shall pay the remaining amount of Rs. 4 lacs latest by 30th September 2022;
vii. The Defendant also, in terms of Para 7 (C) of the Order dated 16.03.2022, undertakes to file the monthly affidavits qua the account of sales along with Signature Not Verified Digitally Signed CS(COMM) 531/2021 Page 4 of 5 By:DEVANSHU JOSHI the details of products sold from various locations;
viii. The Defendant confirm that they shall not file any application for registration of any trade mark, which is deceptively similar to the Plaintiff's trade mark/trading name 'Khandelwal' and/or 'KLAB' logo and will not challenge the rights of the Plaintiff in its trade mark/ labels either directly or indirectly;
ix. The Defendant hereby agree that the Plaintiff shall not be liable in any manner whatsoever, whether legal or otherwise arising from the goods provided by the Defendant under the impugned mark and the Defendant shall indemnify and hold harmless the Plaintiff from any cost or claim of damages arising from it;
x. The abovementioned undertakings have been tendered by Hemant Suri on behalf of the Defendant and the same shall be binding on the Defendant, its directors, its assignees in business, as the case may be, its distributors, dealers, stockists, retailers/chemists, servants and agents for all times to come."
9. This Court has perused the terms of the settlement. The same are lawful. There is no impediment in recording the settlement. The terms of the settlement shall be binding on the parties and all others acting for and on their behalf.
10. Accordingly, the present suit is decreed in terms of the paragraph 2(i) to 2(x) of the application under Order XXIII Rule 3 CPC. All pending applications are also disposed of.
11. Next date of hearing stands cancelled.
PRATHIBA M. SINGH, J.
MAY 27, 2022 Rahul/MS Signature Not Verified Digitally Signed CS(COMM) 531/2021 Page 5 of 5 By:DEVANSHU JOSHI