Dr. Reddys Laboratories Limited v. Rikon Pharmaceuticals Pvt. Ltd.

Delhi High Court · 06 Mar 2023 · 2023:DHC:1693
C. Hari Shankar
CS(COMM) 495/2022
2023:DHC:1693
civil settled

AI Summary

The Delhi High Court disposed of a trademark infringement suit by recording a binding settlement wherein the defendant ceased use of infringing marks and acknowledged the plaintiff's exclusive rights.

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Neutral Citation Number : 2023/DHC/001693
CS(COMM) 495/2022
HIGH COURT OF DELHI
CS(COMM) 495/2022 & I.A. 11373/2022
DR. REDDYS LABORATORIES LIMITED ..... Plaintiff
Through: Mr. Ranjan Narula and Mr. Shashi Pratap Ojha, Advs.
VERSUS
RIKON PHARMACEUTICALS PVT. LTD. ..... Defendant
Through: Ms. Shalya Agarwal, Adv.
CORAM:
HON'BLE MR. JUSTICE C.HARI SHANKAR
JUDGMENT
(O R A L)
06.03.2023
I.A. 11373/2022 (under Order XXXIX Rules 1 and 2 of the CPC)

1. The dispute between the parties stand settled with the intervention of the Delhi High Court Mediation and Conciliation Centre. The settlement agreement dated 13th February 2023 has been placed on record. The terms of settlement read thus:

“1. That Second Party hereby recognizes and acknowledges the First Party's exclusive proprietary rights in the trademark NISE and not to challenge First Party s statutory and proprietary rights directly or indirectly at any time in future in India and globally. 2. The Second Party their directors, confirm and undertake that as per the directions passed by the Hon'ble High Court of Delhi vide order dated 22/07/2022 in CS (COMM) No. 495 of 2022, the Second Party has stopped manufacturing and using the mark ‘RIKONISE-P’ or 'NISE-P', directly or indirectly in medicinal and pharmaceutical preparations of suspension syrups for domestic sale in India and or for export. The Second Party confirms that the last batch of ‘RIKONISE-P’ products manufactured by them were as per details below:
S. No. Manufacturing date Batch No. Month of Expiry
1. December 2021 RL-025 11/23
3. That in the integrum, Second Party in its bonafide has also brought to the knowledge of First Party the fact of manufacturing tablets, capsules, under the mark 'RIKONISE -P TABLETS' for domestic sale in India.
4. The Second party confirms that the order of permanent injunction was granted by the Hon'ble High Court of Delhi only with regard to manufacture and use of ‘RIKO NISE-P’ which is a suspension syrup. However, the Second Party in its own good faith has agreed to also stop the manufacture and use of tablets under the mark 'RIKONISE-P TABLETS'.
5. The Second Party confirms that after executing the present Settlement Agreement, the Second Party shall stop/ refrain from manufacturing the said 'RIKONISE -P TABLETS' for domestic sale in India or export.
6. The First Party agrees and confirms that it will not interfere with sale of 'RIKONISE' and ‘RIKO NISE-P’ products that have already been manufactured and already sold. The Second Party undertakes and confirms that no fresh batch of products bearing the mark ‘RIKO NISE- P’ and 'RIKONISE -P TABLETS' will be made by them. The Second Party declares and confirms that any further production will make them liable for cost and damages.
7. The Second Party confirms they do not have in stock further products, packaging, printed material bearing the mark 'RIKONISE -P TABLETS' and ‘RIKO NISE-P’ in India. Any unused printed material shall be destroyed by the Second Party at its own cost.
8. The Second Party agrees not to use in future any mark containing the mark NISE or NICE.
9. The Second Party undertakes to apply to cancel its registration for the mark RIKONISE in class 5 within30 days of recording of these settlement terms.
10. The Second Party undertakes not to adopt any mark in future whether for sale in domestic market or for export any mark that is identical or deceptively similar to the First Party's mark NISE or carry out any such activities as may be likely to cause confusion or deception amounting to, passing off their goods under captioned Trademark as and for that of the First Party.
11. That both the parties confirm and understand that in case of any violation of the terms of the Settlement terms as set out above they shall be liable for legal proceedings.
12. That in view of the aforesaid undertaking given by the Second Party, the First Party agrees to forego its claim of rendition of account/ damages/punitive damages against the Second Party including account/damages/punitive damages as stated in paragraph No. 30 (iv),
(v) and (vi) of the plaint and the parties agree that in view of the above undertakings and acknowledgements, a decree may be passed in terms of the mediation settlement agreement.”
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2. Mr. Narula, learned Counsel for the plaintiff and Ms. Shalya Agarwal, learned Counsel for the defendant are present on behalf of their respective clients. They undertake on behalf of their respective clients to be bound by the terms of settlement.

3. As such, nothing survives for adjudication in the suit.

4. The suit is accordingly decreed in terms of the settlement agreement which shall be binding on the parties.

5. The Registry is directed to draw up a decree sheet accordingly. The plaintiff would be entitled to refund of court fees, if any, deposited by it.

C.HARI SHANKAR, J MARCH 6, 2023