Delhi High Court - Orders
M/S Shree Vallabh Metals vs M/S Cello Plastic Industrial Works & Ors on 24 May, 2024
Author: Sanjeev Narula
Bench: Sanjeev Narula
$~27
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ CS(COMM) 747/2023
M/S SHREE VALLABH METALS ..... Plaintiff
Through: Mr. Anirudh Bakhru, Mr. Amit Jain,
Ms. Ekta Nayyar Saini, Ms. Zeba
Tarannum, Ms. Sheril Bhatia, Ms.
Archita Mahlawat, Ms. Pragya
Choudhary and Ms. Deeksha Gulati,
Advocates.
versus
M/S CELLO PLASTIC INDUSTRIAL WORKS & ORS.
..... Defendants
Through: Mr. Chander M. Lall, Senior
Advocate with Mr. Gautam Panchal,
Advocate.
CORAM:
HON'BLE MR. JUSTICE SANJEEV NARULA
ORDER
% 24.05.2024 I.A. 29529/2024(under Order XXXIX Rule 2A of CPC)
1. In terms of the directions issued on 17th May, 2024, Mr. Chander M. Lall, Senior Counsel for Defendants, submits that Defendants have filed their statement of stock of "CELLO MAX FRESH" products pending as on 01st May, 2024. However, the same is not on the Court's file. A copy thereof has been handed over, which is taken on record.
2. As regards the direction concerning disclosure of the impugned goods manufactured after 21st October, 2023 along with the GST returns, Mr. Lall states that the affidavit is under preparation, and shall be filed within two This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 25/05/2024 at 03:28:32 weeks from today, with a copy to the counsel for the Plaintiff.
3. Mr. Mukesh Kothari, Chief Operating Officer of Defendant No. 2, is present in Court today. He submits that in compliance with the undertaking given to the Court, the Defendants ceased manufacturing operations under the impugned mark "CELLO MAX FRESH" in October, 2023. He states that the instances of purported violation brought forth by the Plaintiff in the present application pertain to goods that were produced before October, 2023. However, since the finished products were finally assembled on a subsequent date, the cardboard box containing the said goods, bears a date later than October, 2023. In fact, he submits that the Defendants have adopted a different trademark "CELLO MF," which is in use since 01st April, 2024. Considering that the impugned mark is no longer in use, Mr. Kothari states that the suit itself can be disposed of. Mr. Kothari's statement on oath is recorded separately and shall bind the Defendants. A copy of the of the statement shall also be provided to the counsel for Plaintiff under signatures of the Court Master.
4. Mr. Anirudh Bakhru, counsel for Plaintiff, submits that the Defendants must also support their stance with relevant documents. In response, Mr. Lall assures that the same shall be furnished to the Plaintiff along with the affidavit of disclosure within two weeks from today.
5. Mr. Bakhru also requests that the Plaintiff be permitted to inspect the Defendants' premises where the goods in question are manufactured to inspect and verify whether the information disclosed in the statement of pending stock as on 01st May, 2024 is correct. Mr. Lall has no objection to the above suggestion. Accordingly, the Authorized Representative of the Plaintiff along with their counsel, are permitted to visit the Defendants' This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 25/05/2024 at 03:28:32 factory situated at Cello Household Products Private Limited, Plot No. 712, Somnath Road, Daman (U.T.) for inspection of unsold stock of Defendants' impugned goods, on 28th May, 2024.
6. Mr. Bakhru states that he will take instructions if the suit can be resolved on the basis of Defendants' statement.
7. Re-notify on 09th August, 2024.
SANJEEV NARULA, J MAY 24, 2024 d.negi This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 25/05/2024 at 03:28:33 CS(COMM) 747/2023 M/S SHREE VALLABH METALS versus M/S CELLO PLASTIC INDUSTRIAL WORKS & ORS.
Statement of Mr. Mukesh Kothari, S/o Mr. Kundan Mal, R/o A-4001, 40th floor, Oberoi Esquire, Oberoi Garden City, CIB Road, Goregaon (E), Mumbai- 400063.
On S.A. I am the Chief Operating Officer of Cello Household Private Limited and state as follows:
For the goods in question, two types of manufacturing take place - the plastic moulded container and the outer carton/ jackets/ boxes. Defendant No. 2 being a plastic moulding company, manufactures all plastic moulded products and lunch boxes in-house. Hence, all containers under the trademarks "CELLO" and/ or "MAX FRESH" are manufactured in-house by Defendant No. 2. These boxes, produced by Defendant No. 2, are carried by the customers in an outer carton/ jacket. These outer jackets are outsourced by Defendant No. 2 from third-party vendors/ manufacturers.
No fresh manufacture of either the moulding or of outer jackets under the mark "CELLO MAX FRESH" has taken place since 20th October, 2023.
The statement of pending stock of "CELLO MAX FRESH" products as on 17th October, 2023 given to the Court, has two columns - one for 'manufactured goods' and other for goods that are 'ready to move.' 'Manufactured goods' include the moulded containers, the outside jackets and the printed boxes i.e., outer packaging cartons. The manufacturing date, This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 25/05/2024 at 03:28:33 mentioned on the outer cartons is the date when the moulded containers are collated and put into the outer jacket and packed for dispatch for sale to end consumers and/ or distributors. Defendant No. 2 has been selling only those goods that were manufactured till 17th October, 2023, with no fresh manufacturing, as understood above, having taken place.
The current statement of unsold stock has been furnished to the Court today. All this stock is presently stored at Cello Household Products Private Limited, Plot No. 712, Somnath Road, Daman (U.T.) and at no other place. This can be verified by physical inspection by Plaintiff at the above address. Additionally, Defendants have now adopted "CELLO MF" as their revised brand and are only manufacturing and selling "CELLO MF" products since 01st April, 2024.
The Defendants, without prejudice to their rights and contentions and with the intent to resolve the suit amicably, are ready and willing to suffer a decree of permanent injunction as sought by Plaintiff in the present suit as it has no further desire to manufacture any products under the mark "MAX FRESH" or any other similar mark, provided the Plaintiff is willing to give up its claim for damages and costs.
I state that the above statement has been made by me of my own free will and without any duress or coercion.
R.O. & A.C. SANJEEV NARULA, J.
(Mr. Mukesh Kothari)
May 24, 2024/d.negi
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 25/05/2024 at 03:28:33