Bajaj Auto Ltd vs Tvs Motor Company Ltd

2

3. It appears that a suit bearing No. C.S. No.1111 of 2007 had

been filed by the appellant herein before the learned Single

Judge of the Madras High Court alleging infringement of its

patent No.195904 under the Indian Patents Act, 1973 ( for

short 'the Act').

4. The learned Single Judge granted an interim injunction

on 16th February, 2008.

5. Challenging the said interim order dated 16th February,

2008, an appeal was filed by the respondent-defendant before the

Division Bench of the Madras High Court which allowed the appeal

by the impugned order dated 18.5.2009.

6. Hence, this appeal before us by special leave.

7. It is evident that the suit is still pending before the

learned Single Judge of the Madras High Court. We are unhappy

that the matter has been pending in the High Court at the 3

interlocutory stage for such a long time as the suit was filed

in December, 2007 and yet even written statement has not been

filed.

8. Recently, we have held in Special Leave Petition(C)

No.21594 of 2009 decided on 07th September, 2009 in the case of

M/s. Shree Vardhman Rice & Gen Mills vs. M/s Amar Singh

Chawalwala as follows:

"...Without going into the merits of the controversy, we are of the opinion that the matters relating to trademarks, copyrights and patents should be finally decided very expeditiously by the Trial Court instead of merely granting or refusing to grant injunction.

Experience shows that in the matters of trademarks, copyrights and patents, litigation is mainly fought between the parties about the temporary injunction and that goes on for years and years and the result is that the suit is hardly decided finally. This is not proper.

Proviso (a)to Order XVII Rule 1(2)C.P.C. states that when the hearing of the suit has commenced, it shall be continued from day-to-day until all the witnesses in attendance have been examined, unless the Court finds that, for exceptional reasons to be recorded by it the adjournment of the hearing beyond the following day is necessary. The Court should also observe clauses

(b) to (e) of the said proviso.

4 In our opinion, in matters relating to trademarks, copyright and patents the proviso to Order XVII Rule 1(2) C.P.C. should be strictly complied with by all the Courts, and the hearing of the suit in such matters should proceed on day to day basis and the final judgment should be given normally within four months from the date of the filing of the suit."

9. As has been observed by us in the aforesaid case,

experience has shown that in our country, suits relating to the

matters of patents, trademarks and copyrights are pending for

years and years and litigation is mainly fought between the

parties about the temporary injunction. This is a very

unsatisfactory state of affairs, and hence we had passed the

above quoted order in the above-mentioned case to serve the ends

of justice. We direct that the directions in the aforesaid order

be carried out by all courts and tribunals in this country

punctually and faithfully.

10. In the present case, although arguments were advanced at

some length by the learned counsel for both the parties, we are

of the opinion that instead of deciding the case at the 5

interlocutory stage, the suit itself should be disposed of

finally at a very early date.

11. Hence, without going into the merits of the controversy,

we direct the respondent-defendant to file written statement in

the suit, if not already filed, on or before the last date for

closing of the Madras High Court for Dussehra holidays. We would

request the learned Single Judge who is trying the suit to

commence the hearing of the suit on the re-opening of the Madras

High Court after Dussehra holidays and then carry it on a day to

day basis. No adjournment whatsoever ordinarily will be granted

and the suit shall be finally disposed of on or before 30th

November, 2009.

12. The interim orders of this Court dated 08th June, 2009 and

31st August, 2009 are vacated and substituted by the following

directions.

13. The respondent shall be entitled to sell its product but

it shall maintain an accurate records/accounts of its all India

and export sales.We are appointing a Receiver to whom the records

of such sale shall be furnished every fortnight by the respondent 6

and the same shall be signed and authenticated by a responsible

officer of the respondent. A copy of the same shall be given to

the appellant also. We are requesting the Hon'ble the Chief

Justice of the Madras High Court to forthwith nominate a Receiver

in the matter to whom the sale records/accounts will be submitted

by the respondent fortnightly, and the Receiver will verify the

said sale records/accounts and thereafter submit his Report to

the learned Bench of Madras High Court where the suit is pending.

A copy of the same will be sent to the parties also. This

direction will continue till the pendency of the suit. The

remuneration of the Receiver will be fixed by the Hon'ble Chief

Justice.

14. We make it clear that we are not making any observations

on the merits of the case. The learned Single Judge shall decide

the suit without being influenced by this order or by any

observations made in the impugned order of the Division Bench or

in the order of the learned Single Judge granting temporary

injunction in favour of the appellant herein. 7

15. The Secretary General of this Court is directed to send a

copy of this judgment forthwith to the Registrar General of the

Madras High Court who shall place the same before Hon'ble the

Chief Justice for obtaining the appropriate directions.

16. Copy of this order be given to the parties today itself.

17. The Appeal is disposed of accordingly. No costs.

Civil Appeal No.6310 of 2009 @ S.L.P.(C) No.14039 of 2009

18. Leave granted.

19. In view of our judgment in Civil Appeal arising from

S.L.P.(C) No.13933 of 2009, this appeal is also disposed of on

the same terms. No costs.

............................J. [MARKANDEY KATJU]

............................J. [ASOK KUMAR GANGULY] 8

Ne w Delhi:

September 16 th,2009