R K Copper And Alloy Llp vs Union Of India And 3 Ors on 28 January, 2022
In this regard, the Defendants relied upon
the Judgments of the Hon'ble Supreme Court in R.C. Cooper v. Union of
India, 1970 SCR (3) 530, and CIT v. B.C. Srinivasa Setty, (1981) 2 SCC
460 and contended that goodwill is intangible and encompasses the benefits
arising from the connections formed and reputation acquired by a business
over the period of existence. According to the Defendants, this certainly
includes the corporate name/trademark “Beardsell”. However, it should be
reiterated that the scope of the MoU was limited to the transfer of the EPS
business in the Eastern Region. Although the EPS business in the Eastern
Region was transferred, the Plaintiff retained the EPS business in all other
areas. If the intention of the Plaintiff was to assign the trademark/corporate
name Beardsell to the fourth Defendant, the MoU would have provided for
the same. Instead, the MoU merely imposes an obligation on the Plaintiff to
facilitate the incorporation of a company by the fourth Defendant to conduct
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https://www.mhc.tn.gov.in/judis
Page No.13 of 28
C.S.No.828 of 2016
the acquired business. From the above, the only reasonable inference is that
the corporate name was not assigned or transferred under the MoU. Thus,
Issue No.1 is decided in favour of the Plaintiff and against the Defendants.