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Delhi High Court

M/S Vest Pharma Pvt Ltd vs M/S Vets Farma Ltd & Anr on 16 August, 2023

Author: Prathiba M. Singh

Bench: Prathiba M. Singh

                          $~8 & 9
                          *    IN THE HIGH COURT OF DELHI AT NEW DELHI
                                                            Date of decision:16th August, 2023.
                          +                C.O. (COMM.IPD-TM) 79/2022
                               M/S VEST PHARMA PVT LTD                       ..... Petitioner
                                                 Through: Mr. Umesh Mishra, Advocate.
                                                          (M. 9868401295)
                                                 versus
                               M/S VETS FARMA LTD & ANR                      ..... Respondents
                                                 Through: Mr. Amit Jain, Mr. Nakul Mehta and
                                                          Ms. Ishita Suri, Advocates.
                                                          (M. 9818558690)
                          9                      AND
                          +                C.O. (COMM.IPD-TM) 554/2022
                               VETS FARMA LTD.                               ..... Petitioner
                                                 Through: Mr. Amit Jain, Mr. Nakul Mehta and
                                                          Ms. Ishita Suri, Advocates. (M.
                                                          9818558690)
                                                 versus
                               VEST PHARMA PVT. LTD. AND ANR.                ..... Respondents
                                                 Through: Mr. Umesh Mishra, Advocate for R-1
                                                          (M. 9868401295)
                               CORAM:
                               JUSTICE PRATHIBA M. SINGH
                          Prathiba M. Singh (Oral)

                          1.     This hearing has been done through hybrid mode.
                          2.     The present two cancellation petitions seeking cancellation of the
                          following two trademarks:
                          Petition No.                   Mark                     Application Class
                                                                                  No.
                          C.O. (COMM.IPD-TM)             CALPHO - Registered in 1212278       31
                                                         favour of Respondent M/s
                          79/2022
                                                         Vets Farma Ltd
                          C.O. (COMM.IPD-TM)             CALFOS AD3 PLUS -             1399331   05
                                                         Regd. in favour of Petitioner
                          554/2022
                                                         M/s.Vest Pharma Pvt Ltd


Signature Not Verified
Digitally Signed          C.O. (COMM.IPD-TM) 79/2022 & C.O. (COMM.IPD-TM) 554/2022               Page 1 of 8
By:RAHUL
Signing Date:19.08.2023
16:48:36
                           3.      These two petitions before the Court, C.O. (COMM.IPD-TM) 79/2022
                          and C.O. (COMM.IPD-TM) 554/2022 were initially filed before the IPAB in
                          2013 and 2012 respectively. They have been transferred to this Court upon
                          the enactment of Tribunal Reforms Act, 2021. A tabular representation of
                          the Petitioner and Respondent in both the Petitions is set out below:
                          Petition No.                 Petitioner                     Respondent
                          C.O. (COMM.IPD-TM) M/s Vest Pharma Pvt M/s Vets Farma Ltd
                          79/2022                      Ltd
                          C.O. (COMM.IPD-TM) M/s Vets Farma Ltd                       M/s Vest Pharma Pvt
                          554/2022                                                    Ltd

                          For the sake of clarity and consistency, M/s. Vest Pharma Pvt Ltd is referred
                          to as `Petitioner' and M/s. Vets Farma Ltd is referred to as `Respondent'.
                          4.      From the above table, it is clear that the two petitions are cross
                          petitions which were filed by the parties. Disputes had arisen between the
                          parties resulting in filing of civil and criminal proceedings. The promoters of
                          the Respondent were convicted by the Court of the Chief Judicial
                          Magistrate, Jalandhar vide order dated 4th December, 2010 and the said
                          conviction was upheld by the Additional Sessions Judge, Jalandhar vide
                          order     dated   12th    September,      2012     in      Criminal   Appeal    No.
                          CRA/020000/2011 titled Vets Farma Private. Limited & Ors. v. State of
                          Punjab & Ors.
                          5.      Civil litigation also ensued between the parties and in CS 17/2010
                          titled Vest Pharma Pvt Limited v. M/S Vets Farm Ltd, final judgement was
                          passed by the Additional District Judge, Jalandhar, dated 23rd March, 2011.



Signature Not Verified
Digitally Signed          C.O. (COMM.IPD-TM) 79/2022 & C.O. (COMM.IPD-TM) 554/2022                       Page 2 of 8
By:RAHUL
Signing Date:19.08.2023
16:48:36
                           By the said order, the Respondent has been injuncted in the following terms:
                                     "34.       In view of my above said findings on the issues,
                                     the suit of the plaintiff for Permanent Injunction is
                                     decreed with costs, to the effect that the defendant is
                                     restrained from infringing the aforesaid three Trade
                                     Marks CALFOS AD3, GALFOS AD3 PLUS and ANIMIN
                                     of the plaintiff either themselves or through any of their
                                     agents and also passing off goods under such Trade
                                     Marks in any manner and further to destroy all the
                                     materials such as advertisements etc. claiming the
                                     aforesaid trade mark to be its own. Preliminary decree
                                     for rendition of account is also passed in favour of the
                                     plaintiff. Decree sheet be drawn accordingly and the file
                                     be consigned to the Record Room."
                          6.     The said decree/order was upheld by the Punjab & Haryana High
                          Court vide decision dated 17th August, 2022 passed in RFA 4412/2011 titled
                          M/ s Vets Farma Ltd. v. Vest Pharma Pvt. Ltd. The Punjab & Haryana
                          High Court has also upheld the assignment of the trade marks in favour of
                          the Petitioner and observed as under:
                                     "23.      It may be noted here that although, the
                                     alleged deed of cancellation of assignment has not
                                     been brought on record, however, even if it is assumed
                                     that there is cancellation, the same shall be hit by
                                     Section 202 of the Indian Contract Act, 1872, which
                                     debars the principal from terminating the agency
                                     where the agent has an interest in the subject matter.
                                     On a careful reading of memorandum of understanding
                                     dated 07.02.1998, and various other documents placed
                                     on file, it is evident that the deed of assignment was
                                     signed after receipt of certain amount. It was agreed
                                     that the total consideration for assignment of
                                     trademarks shall be Rs. 1,60,000/- Apart therefrom,
                                     Rs. 25,000/- was agreed to be paid to sign and transfer
                                     the copyrights of the products CALFOS AD3 PLUS
                                     and GALFOS AD3 PLUS, in favour of the plaintiff. It


Signature Not Verified
Digitally Signed          C.O. (COMM.IPD-TM) 79/2022 & C.O. (COMM.IPD-TM) 554/2022                 Page 3 of 8
By:RAHUL
Signing Date:19.08.2023
16:48:36
                                      has also come in evidence that the payment has been
                                     made and memorandum of settlement was given effect
                                     to as Sh. H.R. Gupta resigned from Vets Farma Pvt.
                                     Ltd. Immediately after signing the memorandum of
                                     settlement. The memorandum of settlement dated
                                     07.02.1998 itself recognizes that such assignment of
                                     trademarks is irrevocable and final and all the rights
                                     shall absolutely vest with the assignee company subject
                                     to Clause 8 of the memorandum of settlement.
                                     24.      Consequently, finding no merit the Regular
                                     First Appeal is dismissed. Decree on the ground that
                                     the present appeal is pending. Now, since the appeal
                                     stands decided, therefore, the revision petition is
                                     rendered infructuous."

                          7.     An SLP was also preferred before the Supreme Court by the
                          Respondent bearing SLP (C) Diary No. 41108/2022 titled M/s Vets Farma
                          Ltd v. M/s Vest Pharma Pvt. Ltd. against the said order of the Punjab and
                          Haryana High Court, which was dismissed as withdrawn on 27th February,
                          2023 in the following terms:
                                     "Learned counsel for the petitioner contends that there
                                     is an apparent error on the face of the record in the
                                     impugned order as it proceeds on the basis that the
                                     Trademark Act, 1999 had come into force but the fact
                                     is that the said Act comes in force only on 15.09.2003
                                     while the transaction in question was also not of 1999
                                     but 2000. He further rests his case on Section 124 of
                                     the Act.
                                         We consider appropriate to permit the petitioner to
                                     withdraw the petition and file a review application
                                     before the Learned judge of the High Court with liberty
                                     to approach this Court in case of an adverse order.
                                         The special leave petition is dismissed as
                                     withdrawn in terms aforesaid.
                                         Pending applications stand disposed of."



Signature Not Verified
Digitally Signed          C.O. (COMM.IPD-TM) 79/2022 & C.O. (COMM.IPD-TM) 554/2022             Page 4 of 8
By:RAHUL
Signing Date:19.08.2023
16:48:36
                           8.     In the second suit, before the ld. ADJ, Jalandhar relating to the marks
                          'CALFOS AD3 PLUS', 'GALFOS AD3 PLUS' and 'ANIMIN' in class 31
                          and 'CALFOS AD3 PLUS' in class 5, in CS 56516/2013 titled Vest Pharma
                          Pvt Limited v. M/S Vets Farma Ltd, vide order dated 24th February, 2020
                          the ld. ADJ, Jalandhar has finally decreed the suit in the following terms:
                                     "98.      In view of my findings on the aforesaid issues,
                                     the suit of the plaintiff partly succeeds and the same is
                                     hereby partly decreed with proportionate costs:
                                     For declaration to the effect that the plaintiff is the
                                     owner of the copy right design colour combination of
                                     the wrappers/labels/pouches/jars, used by the plaintiff
                                     for marketing its products under the trademark
                                     CALFOS AD3 PLUS, GALFOS AD3 PLUS and
                                     ANIMIN. The suit of the plaintiff is further decreed for
                                     declaration to the effect that the plaintiff is the
                                     proprietor of the trade mark CALFOS AD3 PLUS.
                                     99.       The suit of the plaintiff is further decreed for
                                     permanent injunction, restraining the defendant, their
                                     agents,      employees,       representatives,    dealers,
                                     distributors and all other persons claiming through the
                                     defendant from infringing the aforesaid copy right of
                                     the plaintiff by using any wrappers/labels/ pouches,
                                     jars for making or passing off product name identical,
                                     similar or deceptively similar to the trademarks CALFOS
                                     AD3 PLUS, GALFOS AD3 PLUS and ANIMIN.
                                         And further for permanent injunction, restraining the
                                     defendant,     their    agents,    servants,    employees,
                                     representatives, dealers, distributors and our other
                                     persons claiming through the defendant from infringing
                                     the trademarks of the plaintiff, by manufacturing,
                                     marketing or selling and passing of any product under
                                     the trademarks CALPHO, CALIPHO AD3 PLUS,
                                     CALFOS, AND CALFOS FORTE, It is further made
                                     clear that, the decree is subject to the decision of any
                                     superior court on the subject matter between the parties.
                                     Decree sheet be prepared accordingly. File be consigned



Signature Not Verified
Digitally Signed          C.O. (COMM.IPD-TM) 79/2022 & C.O. (COMM.IPD-TM) 554/2022                  Page 5 of 8
By:RAHUL
Signing Date:19.08.2023
16:48:36
                                      to the record room."

                          9.     This judgment/decree has attained finality.
                          10.    From the above background it is clear that the Respondent has been
                          injuncted in two civil suits filed by the Petitioner. Even criminal proceedings
                          have resulted in conviction of the Directors of the Respondent.
                          11.    As captured above, the present two petitions relate to the trademarks
                          CALFOS and CALFOS AD3 PLUS. The first petition has been filed by the
                          Petitioner- M/s M/s Vest Pharma Pvt. Ltd. seeking cancellation of trademark
                          number 1212278. Vide judgment dated 23rd March, 2011, insofar as the use
                          of the trademark 'CALPHO' is concerned, the same has already been
                          injuncted by the Court against the Respondent. The present cancellation is
                          based on this decision dated 24th February, 2020 which has attained finality.
                          12.    In view of this, the Respondent cannot continue to be the registered
                          proprietor of the mark 'CALPHO' in class 31. Accordingly, the
                          Respondent's mark CALPHO bearing no. 1212278 is directed to be
                          removed/cancelled from the Register of Trade Marks.
                          13.    In the second petition, the prayer of the Respondent - M/s Vets Farma
                          Ltd. is for cancellation of the mark 139931 in class 5 registered by the


                          Petitioner for the mark 'CALFOS AD3 PLUS                                        .
                          The status of the said mark is set out below:




Signature Not Verified
Digitally Signed          C.O. (COMM.IPD-TM) 79/2022 & C.O. (COMM.IPD-TM) 554/2022                  Page 6 of 8
By:RAHUL
Signing Date:19.08.2023
16:48:36
                           "As on Date : 14/08/2023
                          Status       : Registered                       View TM Application
                          TM Application No. 1399431
                          Class                   5
                          Date of Application 16/11/2005
                          Appropriate Office      DELHI
                          State                   PUNJAB
                          Country                 India
                          Filing Mode             Branch Office
                          TM Applied for          CALFOS AD3 PLUS
                          TM Category             TRADE MARK
                          Trade Mark Type         DEVICE
                          User Detail             09/04/1997
                          Certificate Detail      Certificate No. 628162 Dated : 28/03/2007
                          Valid upto/ Renewed 16/11/2025
                          upto
                          Proprietor name         (1) VEST PHARMA PVT LTD
                                                  Trading As : VEST PHARMA PVT LTD
                                                  Body Incorporate
                          Proprietor Address      605,    PARK      ROAD,    MODEL     TOWN,
                                                  JALANDHAR- 144003 PB
                          Email Id
                          Agent name              MAHTTA & CO. [252]
                          Agent Address           43- B/3, MAHTTA HOUSE, UDHAM SINGH
                                                  NAGAR, LUDHIANA - 141 001, (PUNJAB).
                          Goods & Service [CLASS : 5]
                          Details                 MEDICINAL          &    PHARMACEUTICALS
                                                  PREPARATIONS
                          Publication Details Published in Journal No. : 1351-0       Dated :
                                                  01/09/2006
                                                      Trade Mark Image:




Signature Not Verified
Digitally Signed          C.O. (COMM.IPD-TM) 79/2022 & C.O. (COMM.IPD-TM) 554/2022              Page 7 of 8
By:RAHUL
Signing Date:19.08.2023
16:48:36
                           14.    A perusal of the above would show that the mark is registered since 16th
                          November, 2005. Since the Respondent itself has been injuncted from using the
                          CALFO AD3 PLUS and the finding of the Court is in favour of the Petitioner
                          in respect of this mark, the Respondent being an infringer against whom the
                          injunction has been upheld till the Supreme Court, would not be entitled to
                          maintain the present cancellation petition at this stage.
                          15.    The above order is with one caveat. A perusal of the Supreme Court's
                          order dated 27th February, 2023 would show that the Respondent was permitted
                          to file a review before the Punjab & Haryana High Court and liberty was
                          granted to the Respondent to approach the Supreme Court in case if there was
                          any adverse order. The said order dismissing the review petition was passed by
                          the Punjab & Haryana High Court on 26th April, 2023. Till date, the
                          Respondent has not filed any SLP against the said order.
                          16.    Under these circumstances, the second cancellation petition, i.e., C.O.
                          (COMM.IPD-TM) 554/2022 of the Respondent against the Petitioner is
                          rejected.
                          17.    It is made clear that the above order shall however, be subject to any
                          order passed by the Supreme Court in the SLP, if any, which may be filed by
                          the Respondent challenging the order dated 26th April, 2023 passed in the
                          review petition by the Punjab & Haryana High Court.
                          18.    Both these cancellation petitions are accordingly disposed of in the
                          above terms. All pending applications are also disposed of.
                          19.    The Registry is directed to supply a copy of the present order to the
                          office of the Controller General of Patents, Designs & Trademarks of India on
                          the e- mail- [email protected] for compliance of this order.

                                                                                PRATHIBA M. SINGH, J.

AUGUST 16, 2023/Rahul/am Signature Not Verified Digitally Signed C.O. (COMM.IPD-TM) 79/2022 & C.O. (COMM.IPD-TM) 554/2022 Page 8 of 8 By:RAHUL Signing Date:19.08.2023 16:48:36