Atomberg Technologies Private Limited vs Eureka Forbes Limited
- Neutral2025 INSC 1253
Ratio decidendi
The rule this decision rests on
A suit for groundless threats of patent infringement under Section 106 of the Patents Act, 1970 has an independent cause of action, distinct from and not dependent upon a suit for infringement under Sections 104 and 108 of the same Act, because the proviso in Section 36 of the Patents Act, 1911—which would have made a threat suit inapplicable if an infringement suit was commenced and prosecuted with due diligence—was deliberately deleted when Section 106 was enacted in the 1970 Act. Where two suits between substantially the same parties involve substantially overlapping questions of fact and law, and one suit is prior in time and involves issues and evidence substantially common to both, the later-filed suit should be transferred to the forum where the first suit is pending to avoid duplication of evidence, multiplicity of proceedings, conflicting judgments, and wastage of judicial resources, even where the later suit invokes jurisdiction through a minimal connection such as online purchase and delivery of goods.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
2025 INSC 1253 REPORTABLE
IN THE SUPREME COURT OF INDIA CIVIL ORIGINAL JURISDICTION
TRANSFER PETITION (C) NO(S). 1983 OF 2025
ATOMBERG TECHNOLOGIES PRIVATE LTD. ...PETITIONER(S)
VERSUS
EUREKA FORBES LIMITED & ANR. …RESPONDENT(S)
WITH TRANSFER PETITION (C) NO(S). 2174 OF 2025
JUDGMENT
1. The petitioner in Transfer Petition (Civil) No. 1983 of 2025,
seeks transfer of the Suit for Infringement 1 (Delhi Suit) instituted by
the respondent no.1 before the High Court of Delhi to the High Court
of Judicature at Bombay, where the petitioner’s Suit for Groundless
Threat of Infringement is pending adjudication. Respondent no.1 also
filed Transfer Petition (Civil) No. 2174 of 2025, seeking transfer of the
Suit for the Groundless Threat of Infringement 2 (Bombay Suit) Signature Not Verified Digitally signed by KAPIL TANDON Date: 2025.10.17 18:14:47 IST Reason: 1 CS (COMM) NO. 663 of 2025 2 COMMERCIAL IP (L) No. 19837 of 2025
1 instituted by the petitioner before the High Court of Judicature at
Bombay to the High Court of Delhi
2. The petitioner, engaged in the manufacturing and selling of
home and kitchen appliances, launched a water purifier under the
unique and distinctive mark "Atomberg Intellon" on June 20, 2025.
Soon after the launch, the petitioner became aware that respondent
no. 1, a competitor in the manufacturing of water purifiers, allegedly
made groundless and unjustified oral communications to the
petitioner’s distributors and retailers, claiming that the petitioner's
product infringed their patents and threatened legal proceedings.
These threats caused apprehension and fear among the petitioner's
customers and distributors, affecting the petitioner's business. In
response to these groundless threats of patent infringement, the
petitioner instituted the Bombay Suit on 01.07.2025, under Section
106 of the Patents Act, 1970, seeking relief from such threats made
by respondent no. 1.
3. The respondent no.1, who is also engaged in the manufacturing
and selling of home and kitchen appliances, including water
purifiers, allegedly discovered that the petitioner had launched
"Atomberg Intellon" water purifiers on June 20, 2025, featuring
2 patented technologies owned by them. It is alleged by respondent
no.1 that petitioner’s product included customizable taste and TDS
adjustment modes, which mirror the respondent no.1’s patented
innovations. It is further alleged that respondent no.2, Ronch
Polymers Pvt. Ltd, which is the petitioner’s manufacturer, had
previously served as the respondent no.1’s contract manufacturer,
giving them access to confidential product knowledge. When
respondent no.1 came to know about the product of the petitioner, it
purchased the petitioner’s product by placing an order online and
received the delivery of the product in Delhi. Upon technical analysis
of the delivered product, it is alleged that the patent infringement was
confirmed. Consequently, the respondent no.1 instituted the Delhi
Suit for patent infringement under Section 104 of the Patents Act,
1970, along with an application for injunction seeking to restrain the
petitioner from patent infringement.
4. Thus, we have two competing transfer petitions, where, while
the petitioner seeks the Transfer of the respondent no.1’s suit for
infringement instituted before the Delhi High Court to the Bombay
High Court, respondent no. 1 seeks the transfer of the suit for
3 Groundless Threat of Infringement instituted before the Bombay
High Court to the Delhi High Court.
5. We have heard the learned counsel for the parties and perused
the material on record.
6. The learned senior counsel for the petitioner submits that the
Delhi Suit should be transferred to the Bombay High Court for the
following reasons.
i. The suit filed by the petitioner for groundless threats of
patent infringement in Bombay was instituted prior to the
suit instituted by the respondent no.1 in Delhi for patent
infringement.
ii. The petitioner and respondent no.1, have their registered
offices in Mumbai, which is within the territorial
jurisdiction of the Bombay High Court, making it the most
appropriate forum for adjudication.
iii. The respondent is deliberately engaging in forum shopping
by filing the subsequent suit in Delhi. This attempt to
invoke jurisdiction in Delhi is based solely on online
purchases and delivery of the product to Delhi, which is an
insufficient ground to create jurisdiction, especially when
4 the parties have a longstanding business presence and
offices in Mumbai. Such conduct has been consistently
disapproved by courts as an abuse of the judicial process.
iv. The issues involved in both suits substantially overlap. The
Delhi Suit and the Bombay Suit raise identical questions of
law and fact, especially concerning the alleged infringement
of the patents in relation to the petitioner’s water purifier
product.
v. The multiple proceedings on the same issues and parties
before two different courts lead to the risk of conflicting
judgments, unnecessary duplication, and wastage of
judicial resources.
vi. The Bombay Suit not only predates the Delhi Suit but was
also served upon the respondent no. 1 well in advance,
placing them on notice of the dispute. The burden of proving
patent infringement lies on the respondent no.1 in both
suits, making the hearing of both suits by the same forum
prudent to ensure consistency, prevent multiplicity, and
avoid prejudice to the petitioner.
5
7. Per contra, the learned senior counsel for the respondent no.1
submits that
i. The suit pending before the Delhi High Court is the
substantive suit and should be retained there for
adjudication.
ii. The Delhi Suit concerns the core issue of patent
infringement, which involves detailed factual and technical
determination, and therefore demands the exercise of
jurisdiction by the court having prima facie cause of action
within its territorial limits.
iii. It is further submitted that the Bombay Suit instituted by
the petitioner for groundless threats is procedural and
limited in scope, merely seeking declarations and
injunctions against threats without delving into the full
merits of patent validity or infringement.
iv. The Bombay Suit is ancillary and cannot substitute the
substantive relief sought in the Delhi Suit.
v. It is further submitted that the respondent has not indulged
in forum shopping, as the cause of action for infringement
arose within the jurisdiction of the Delhi High Court. The
6 online purchase and delivery of the petitioner’s product at
Delhi suffices to confer territorial jurisdiction, consistent
with legal principles governing patent infringement suits
under Section 104 of the Patents Act and Section 20 of the
Code of Civil Procedure. Moreover, the respondent no.1
points out that the petitioner has entered appearance and
raised objections in the Delhi Suit, indicating acceptance of
jurisdiction and the suitability of the forum.
vi. Given the technical complexity and the reliefs claimed in
the infringement suit, the Delhi High Court is the
appropriate forum to try such matters.
8. Analysis: In view of the limited scope vested in this Court while
exercising its jurisdiction under Section 25 of CPC, we will not enter
into the question of determination as to which of the two suits has a
wider scope.
9. The petitioner’s suit for Groundless Threat of Infringement is
governed by Section 106 of the Patents Act,1970. Prior to the
enactment of the Patents Act, 1970, the law relating to patents was
governed by the Indian Patents and Designs Act, 1911 (hereinafter,
the 1911 Act), which, vide Section 162 of the Patents Act, 1970, was
7 repealed insofar as it related to patents. Section 36 of the 1911 Act
titled Remedy in case of groundless threats of legal proceedings, while
enabling a person to institute a suit to obtain an injunction against
the continuance of threat of legal proceedings or liability in respect
of an alleged infringement of patent, in proviso thereto provided that
the said provision shall not apply if any action for infringement of the
patent was commenced and prosecuted with due diligence. The same
was thus at par with the provisions in the other statutes governing
the intellectual property rights of Trade Mark and Copyright.
However, while enacting the 1970 Act and providing Section 106
therein, the proviso as existed to the pari materia provision in the
1911 Act, was deleted. 3 Thus, it is clear that with the enactment of
the 1970 Act, the negatory provision that was present in the 1911
Act has been done away with, meaning thereby that the petitioner’s
suit for Groundless Threat of Infringement governed by Section 106
of the Patents Act, 1970, has an independent cause of action from
that of a suit for infringement instituted by the respondent no.1,
governed by Sections 104 and 108 of the Patents Act, 1970.
3 Excerpt from Order dated 23.01.2020 passed in CS(COMM)-342/2019 by the Delhi High Court
8
10. From the careful examination of the pleadings and the
submissions before us, it is evident that:
i. The suit for groundless threat of infringement instituted by
the petitioner before the Bombay High Court on 01.07.2025
is prior in time to the institution of the suit for infringement
by the respondent no.1 on 07.07.2025.
ii. Jurisdiction at Delhi was invoked by the respondent no.1
by purchasing the product from an online portal and getting
it delivered in Delhi.
iii. The question of fact, law, and the issues to be determined
in the suit for groundless threat of infringement instituted
by the petitioner and the suit for infringement instituted by
the respondent no. 1 are substantially overlapping.
11. This Court in Chitivalasa Jute Mills v. Jaypee Rewa Cement4:
while allowing a Transfer Petition observed:
“9. On the facts averred in the two plaints filed by the two parties before two different courts, it is clear that the parties are substantially the same. …... The fact remains that the cause of action alleged in the two plaints refers to the same period and the same transactions…… What is the cause of action alleged by one party as foundation for the relief prayed for and the decree sought for in one case is the
4 (2004) 3 SCC 85
9 ground of defence in the other case. The issues arising for decision would be substantially common. Almost the same set of oral and documentary evidence would be needed to be adduced for the purpose of determining the issues of facts and law arising for decision in the two Suits before two different courts. Thus, there will be duplication of recording of evidence if separate trials are held. The two courts would be writing two judgments. The possibility that the two courts may record findings inconsistent with each other and conflicting decrees may come to be passed cannot be ruled out.
11. The transfer petition is allowed….”
12. In the light of the facts, submissions, materials on record and
the foregoing discussion, in the interest of saving precious judicial
time and to avoid duplication and multiplicity of proceedings, it
would be expedient to transfer the suit for infringement instituted by
the respondent no.1 pending before the Delhi High Court to the
Bombay High Court where the suit instituted by the petitioner for
Groundless Threat of Infringement is pending.
13. For the reasons, we allow the Transfer Petition (Civil) No. 1983
of 2025 and direct the transfer of the Delhi Suit being CS (COMM)
No. 663 of 2025 titled “Eureka Forbes Limited Versus Atomberg
Technologies Private Limited And Anr”, pending in the High Court of
Delhi at New Delhi, to the Bombay High Court to be tried along with
Commercial IP (L) No. 19837 of 2025 filed by the petitioner. The
10 injunction applications in the suit may be taken up and disposed of
expeditiously.
14. Consequently, Transfer Petition (Civil) No. 2174 of 2025 filed by
the respondent no.1 is dismissed.
15. Pending applications, if any, shall stand disposed of.
………………………………....J. [PAMIDIGHANTAM SRI NARASIMHA]
………………………………....J. [ATUL S. CHANDURKAR]
NEW DELHI;
October 17, 2025
11
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