M/S TRDP HAPPY WORLD PVT. LTD Vs SHRI BALAJI CHEMFOOD INDUSTRIES
- Citation2025 SCC OnLine Del 2733
Ratio decidendi
The rule this decision rests on
1. Where a defendant fails to file a written statement within the condonable period and subsequently fails to file a reply to an application under Order VIII Rule 10 of the Code of Civil Procedure, 1908, despite multiple opportunities and notice, all averments in the plaint are deemed admitted, and the suit is capable of being decided without trial. 2. Where a defendant's mark comprises identical word elements, similar font and colour scheme (white lettering on red background), and replicates distinctive artistic elements such as a device mark from the plaintiff's registered trademark, and the products, consumer class, and channels of trade overlap, a clear case of trademark infringement is established. 3. The artistic elements of product packaging, including layout, placement of design elements, text, and depicted items, can constitute part of a protected artistic work under copyright law where the elements are original and distinctive to the plaintiff's mark. 4. A defendant's dishonest adoption of another's registered trademark without permission, combined with the taking of unfair advantage of the plaintiff's reputation and goodwill and the deception of consumers regarding association with the plaintiff's goods, establishes the tort of passing off. 5. A Local Commissioner's report may be read into evidence under Order XXVI Rule 10(2) of the Code of Civil Procedure, 1908, where it is not challenged by any party, and evidence of destruction or concealment of infringing goods found during commission execution may support an inference of mala fide conduct by the defendant. 6. Evidence of a defendant's mala fide conduct, including deliberate destruction of infringing packaging and obstruction of investigation by withholding critical business records, coupled with failure to contest the suit despite multiple opportunities, warrants the imposition of compensatory damages and costs in addition to injunctive relief.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
The present suit has been filed seeking relief of permanent injunction
restraining the defendants from infringing the trademarks and copyright of the plaintiff, passing off along with other ancillary reliefs. CASE SETUP IN THE PLAINT 2.
The plaintiff, M/s TRDP Happy World Private Limited, is a company
engaged in the business of manufacturing and trading of rusks, biscuits, cakes, instant noodles, etc. 3.
In 2011, the plaintiff adopted the trade mark ‘MARIO’/ ‘TRDP
MARIO’ through its predecessor and since 2015, the plaintiff has been continuously using the said marks for its goods such as rusks, biscuits, cakes, etc. Along with the word mark, the plaintiff also adopted a device mark with
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a moustache. The device mark adopted by the plaintiff is given below:
4.
The plaintiff also obtained registrations of the word mark and the
device mark ‘MARIO’, which are valid and subsisting. The details of the registrations obtained by the plaintiff are given below: Trade Mark
TRDP MARIO
Application Date
of Class Status
Number
Application
2202242
08.09.2011 30
REGISTERED
2204543
13.09.2011 31
REGISTERED
3013159 IN 21.07.2015 30
REGISTERED
3250622 IN 04.05.2016 30
REGISTERED
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TRDP MARIO
MARIO
3305785 IN 11.07.2016 30
REGISTERED
3305788 IN 11.07.2016 30
REGISTERED
3492908 IN 27.02.2017 30
REGISTERED
3497050 IN 02.03.2017 30
REGISTERED
3497052
02.03.2017 30
REGISTERED
21.05.2019 30
REGISTERED
03.06.2019 30
REGISTERED
21.07.2015 31
REGISTERED
31.08.2016 31
REGISTERED
02.03.2017 31
REGISTERED
IN MARIO BRIKS
4181866 IN
MARIO TALKIES
4195281 IN
TRDP MARIO
3013160 IN
TRDP MARIO
3349735 IN 3497051 IN
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3184018
12.02.2016 29
REGISTERED
12.02.2016 43
REGISTERED
IN 3184029 IN
5.
Along with the aforesaid marks, the plaintiff has filed and obtained the
registration of its mark ‘TRDP MARIO’ across multiple jurisdictions internationally. The details of the aforesaid registrations are given in paragraph 12 of the plaint. The plaintiff also has a sachet packaging which bears the mark ‘MARIO’ on it. The packaging of the plaintiff is given below:
6.
It is stated that the artistic work contained in the device mark ‘MARIO’/
‘TRDP MARIO’ of the plaintiff qualifies to be an original artistic work under the provisions of the Copyright Act, 1957. Further, the plaintiff has obtained multiple copyright registrations, which are given in the table below: S. No. 1.
Copyright
Title of the Artistic Work
A-115640/2016
TRDP MARIO SUJI TOAST LABEL
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2.
A-15713/2016
TRDP
MARIO
INSTANT
MARIO
NOODLES LABEL
3.
A-120610/2017
TRDP MARIO SUJI TOAST LABEL
4.
A-119244/2017
TRDP MARIO SUJI TOAST LABEL
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5.
A-120903/2017
TRDP MARIO SUJI TOAST LABEL
6.
A-118538/2017
TRDP MARIO SUJI TOAST
7.
A-119203/2017
TRDP MARIO SUJI TOAST LABEL
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8.
A-131018/2019
TRDP MARIO PREMIUM HONEY RUSK LABEL
9.
A-134808/2020
TRDP MARIO FRENCH SPIKES TAMGY TOMATO
10. A-135615/2020
TRDP MARIO ENGLISH SQUARES
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7.
11. A-136815/2021
TRDP MARIO KHUS RUSK
12. A-138494/2021
TRDP MARIO POPCORN BUTTER
It is stated that the plaintiff sells its goods under the ‘MARIO’/ ‘TRDP
MARIO’/
/
/
marks and has acquired
goodwill and reputation among the Indian public. The plaintiff has provided its annual sales and promotional figures for the period of 2015-2022 in
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paragraph 8 of the plaint. It is noted that in the year 2021-2022, the sales figure of the plaintiff in India was to the tune of Rs. 329,74,67,772.45/-.
8.
The plaintiff also widely advertises its goods under the ‘MARIO’/
‘TRDP MARIO’/
/
/
marks. The
details of the promotional expenses incurred by the plaintiff are given in paragraph 9 of the plaint. In Delhi, the plaintiff’s advertisements appear at prominent places such as Chirag Delhi, Sheikh Sarai Phase- 11, Red Fort, Greater Kailash and Metro Enclave. It is stated that because of the extensive use, the plaintiff’s marks have become distinctive and are associated exclusively with the goods of the plaintiff. 9.
Defendant, M/s Shri Balaji Chemfood Industries, is an entity which has
adopted an identical mark ‘MARIO’ and deceptively similar label and
packaging ‘MARIO’ /
for its goods, i.e., salts. It is stated
that the marks adopted by the defendant are identical to the plaintiff’s mark, and the plaintiff has not permitted the defendant to use the said marks on its goods. 10.
In March 2023, the plaintiff discovered the dishonest adoption of the
‘MARIO’ label and marks by the defendant. The plaintiff found that the defendant had copied the plaintiff’s ‘MARIO’ mark/label in its entirety. 11.
Being aggrieved by the aforesaid activities, the plaintiff filed the
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present suit against the defendants. PROCEEDINGS IN THE SUIT 12.
On 10th April 2023, this Court issued summons in the suit and notice in
the interim injunction application. Further, the court granted an ad-interim injunction in favour of the plaintiff and against the defendant, by way of which the defendant and all others acting on its behalf were restrained from manufacturing, exporting, selling, offering for sale, advertising, exhibiting, directly or indirectly goods, being salt or any other goods similar to those of the plaintiff's goods under the impugned mark/label/packaging/artistic work
and/or any other mark/label/packaging/artistic works. Since the defendant entered appearance on advance service, the Court appointed a Local Commissioner to visit the premises of the defendant and to inventorize the infringing goods. 13.
On 12th July 2024, it was stated that the written statement was filed on
behalf of the defendant. However, the same was not on record, and the matter was adjourned. 14.
Since the written statement was filed beyond the maximum
condonable period, the court vide order dated 19th November 2024, made the ad-interim injunction permanent and disposed of the application for interim injunction. On the same date, the Court issued notice in the application filed by the plaintiff under Order VIII Rule 10 of the Code of Civil Procedure, 1908 (‘CPC’). 15.
On 14th February 2025, an amount was proposed to the counsel for the
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defendant to settle the matter between the plaintiff. 16.
On 27th February 2025, Counsel for the defendant stated that the
defendant was not willing to pay the aforesaid amount. Counsel further stated that a reply to the application under Order VIII Rule 10 of CPC has been filed. Since the reply was not on record, the matter was adjourned. 17.
On 12th March 2025, the reply filed by the defendant was again not on
record. It was also noted in the order that if the reply is not on record on the next date of hearing, the matter would proceed even if the reply is not on record. 18.
When the matter was taken up on 16th April 2024, the reply was not on
record, and the matter is being decided on merits. ANALYSIS AND FINDINGS 19.
I have heard the submissions of the counsel for the parties and also
perused the material on record. 20.
The plaint has been duly verified and is also supported by the affidavit
of the plaintiff. In view of the fact that no written statement has been filed on behalf of the defendant, all the averments made in the plaint have to be taken to be admitted. Further, since no affidavit of admission/denial has been filed on behalf of the defendant in respect of the documents filed with the plaint, in terms of Rule 3 of the Delhi High Court (Original Side) Rules 2018, the same are deemed to have been admitted. Therefore, in my opinion, this suit does not merit trial, and the suit is capable of being decreed in terms of Order VIII Rule 10 of CPC. 21.
From the averments made in the plaint, the plaintiff has been able to
prove that the plaintiff is the registered proprietor of the ‘MARIO’/ ‘TRDP
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MARIO’/ 22.
/
/
marks.
A comparison between the plaintiff’s marks and the impugned marks,
along with products bearing the plaintiff’s marks and the impugned marks used by the defendant, is set out below: PLAINTIFF’S MARKS/ GOODS
DEFENDANT’S IMPUGNED MARK/ GOODS
23.
A perusal of the aforesaid comparison would show that the defendant
has dishonestly copied the plaintiff’s ‘MARIO’ trademark. The plaintiff has adopted the word ‘MARIO’ in a similar font, white lettering on a red background, which is similar to the plaintiff’s mark. Additionally, the defendant has adopted the same red, yellow, and white colour combination and replicated the plaintiff’s distinctive device of a chef with a moustache.
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The overall layout in both the packaging, including the placement of the chef, text, and food items, is similar to each other. 24.
Based on the discussion above, a clear case of infringement of
trademarks and copyright is made out. Since the artistic elements of the rival marks are similar, the class of consumers targeted by both parties directly overlaps, and the channels of trade, both online and physical stores, are identical. Consequently, there exists a likelihood that consumers may mistakenly associate the defendant’s infringing goods with the plaintiff or perceive them as goods sold by the plaintiff, causing irreparable harm to the plaintiff’s goodwill and reputation. 25.
The defendant has taken an unfair advantage of the reputation and
goodwill of the plaintiff’s trademarks/artistic works and has also deceived the unwary consumers of their association with the plaintiff by dishonestly adopting the plaintiff’s registered marks without any plausible explanation. Therefore, the plaintiff has established a case of passing off as well. 26.
At this stage, it may be relevant to note that despite being given
multiple opportunities, the defendant failed to bring on record its written statement and failed to file a reply to the application under Order VIII Rule 10 of CPC. 27.
Since the defendant has failed to take any requisite steps to contest the
present suit, despite having suffered an ad interim injunction order, it is evident that the defendant has no defence to put forth on merits. 28.
Accordingly, the plaintiff is entitled to the reliefs claimed in the plaint.
29.
Counsel for the plaintiff also presses for relief of compensatory
damages and costs.
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30.
It is a settled position of law that the Local Commissioner’s report can
be read into evidence in the terms of provisions of Order XXVI Rule 10 (2) Code of Civil Procedure, 1908 (‘CPC’) where it is not challenged by any party. (Please refer: Aero Club v. M/s Sahara Belts1, Puma Se v. Ashok Kumar 2 ). A perusal of the Local Commissioner’s report would show that during the execution of the Commission, the Local Commissioner found a half-burnt wrapper of the defendant’s goods at the labour quarters. Further, a half-burnt package bearing the ‘MARIO’ trademark/label was recovered from the vacant plot across from the defendant’s premises. It is also to be noted that during the execution of the commission, the Local Commissioner was not given the Loading register for FY 2021-2022 and FY 2022-23. The Local Commissioner in his report has noted he was informed by one of the defendant’s officials that the free-flowing salt plant was installed by the defendant around the Diwali of 2022, as a result, the stock and loading registers for the FY 2022-2023 were critically important. 31.
In my view, the conduct of the defendant is malafide as the defendant
deliberately burnt the impugned packaging. Further, no contest has been put forth by the defendant to the averments made in the plaint as well as to the report filed by the Local Commissioner. Despite being given multiple opportunities, the defendant did not file a reply to the application under Order VIII Rule 10 of CPC. In light of the foregoing analysis, this Court concludes that the defendant’s dubious conduct not only warrants but also necessitates the imposition of both damages and costs.
1 2
2023 SCC OnLine Del 7466 2023 SCC OnLine Del 6764
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32.
In Hindustan Unilever Limited v. Reckitt Benckiser India Limited3, a
Division Bench of this Court outlined the principle of ‘rough and ready calculations’ for awarding damages. 33.
Taking into account the entire facts and circumstances presented in this
case, this Court also awards damages and costs amounting to Rs. 5,00,000/in favour of the plaintiff and against the defendant. RELIEF 34.
In view of the foregoing analysis, a decree of permanent injunction is
passed in favour of the plaintiff and against the defendant in terms of prayer clauses 38 (a), (b), (c), (d) and (e) of the plaint. 35.
Insofar as the relief of damages and costs sought in prayer clause 38 (g)
is concerned, the plaintiff is awarded a sum of Rs 5,00,000/- towards damages and costs. 36.
Counsel for the plaintiff does not press for the remaining reliefs prayed
for in the plaint. 37.
Let the decree sheet be drawn up.
38.
The pending application stands disposed of. AMIT BANSAL, J
APRIL 16, 2025 at
3
ILR (2014) 2 Del 1288
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