Aktiebolaget Volvo v. Edel Assurance LLP

Delhi High Court · 05 Dec 2022 · 2022:DHC:5351
C. Hari Shankar
CS(COMM) 841/2022
2022:DHC:5351
civil settled

AI Summary

The Delhi High Court accepted the defendant's affidavit removing the plaintiff's trademark use and incorporating disclaimers, leading to a settlement and decree in favor of the plaintiff without further trial.

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Neutral Citation Number : 2022/DHC/005351
CS(COMM) 841/2022
HIGH COURT OF DELHI
CS(COMM) 841/2022 & I.A. 20456/2022, I.A. 20457/2022, I.A.
20458/2022, I.A. 20459/2022, I.A. 20460/2022 AKTIEBOLAGET VOLVO & ORS. ..... Plaintiff
Through: Mr. Pravin Anand, Ms. Vaishali Mittal, Mr. Siddhant Chamoca and Mr. Karan Kamra, Advs.
VERSUS
EDEL ASSURANCE LLP & ANR. ..... Defendant
Through: Mr. Sachin Gupta, Adv. with Mr. Shaurya Mitra Tomar, Mr. Kartikey Nayyar &
Mr. Peeyush Agarwal, Advs. for D 1 & 2
CORAM:
HON'BLE MR. JUSTICE C.HARI SHANKAR
JUDGMENT

1. The plaintiff Aktiebolaget Volvo (hereinafter “Volvo”) claims to be one of the most reputed Automotive Companies in the world. The defendant is a car assurance company. It provides services, inter alia, of warranty coverage for servicing of premium and luxury vehicles availed by the owners of such vehicles from service stations located across the country.

JUDGMENT

% 05.12.2022

2. The plaintiff, in the suit, has clearly stated that it has no objection to the defendant providing such car assurance services, even in respect of vehicles manufactured by the plaintiff and authorised service stations. However, the plaintiff objects to the graphical and other descriptions employed by the defendant while advertising its services which, according to the plaintiff, may leave unwary customers to believe that the services are provided by the plaintiff itself, especially as the plaintiff also provides insurance service for its vehicles for a specified number of years.

3. Specifically, the objection of the plaintiff is to the use, by the defendant, of the plaintiff’s registered trademark. It is alleged in the plaint that the manner in which the said mark is employed by the defendant is likely to deceive customers of such vehicles, who seek to service their vehicles, into believing that the assurance services provided by the defendant emanate from the plaintiff.

4. In para 41 of the plaint, it is averred thus: “The Defendants would claim that they use the VOLVO logo to inform customers that their services cover Volvo branded cars. However, it is settled law that the use of the logo is not necessary to provide such information to customers. Furthermore, while use of the word Volvo may be acceptable as a defence to infringement, it needs to be accompanied by a disclaimer that the Defendants are not associated with the Plaintiffs. As stated above, the Defendants do not incorporate such disclaimers in their advertising, either in print, audiovisual or oral formats (i.e., direct interactions with customers).”

5. Further, para 45 of the plaint specifically states that “while the plaintiffs do not have grievance with the defendants’ business model, or that their warranty services cover VOLVO cars, the defendants ought to inform customers that they have no association whatsoever with the plaintiffs.

6. The defendant has placed on record an affidavit which would, according to the defendant, assuage the plaintiff’s grievances. The plaintiff has suggested certain changes in the affidavit. I have interacted with learned Counsel for the plaintiff and the defendant and have perused the affidavit and, the parties have jointly agreed to the affidavit being in the following terms: “I, Sujeet Nair, son of Sh. T. Muraleedharan Nair; aged 34 years; resident of 2001, Amman Solitaire, Chandavarkar Road, Borivali West, Mumbai 400092; Director of Edel Assurance LLP having its registered office at 1214/1215, 12th

1. That I am Defendant No. 2 in the captioned matter, and also, a Director of the Defendant No. 1. Accordingly, I am well versed with the facts of the matter and competent to swear upon this Affidavit. Floor, Hubtown Solaris, Professor N.S. Phadke Marg, Vijay Nagar, Andheri East, Mumbai, Maharashtra – 400069, do hereby solemnly declare and affirm as under:

2. I say that by virtue of my position as a Director in Defendant NO. 1, I am in-charge of the business and operations of Defendant NO. 1.

3. I say that I have not received any legal notice till date from the Plaintiff concerning the grievances raised by it in the Plaint. Nor has any representative of the Plaintiff ever approached me regarding the same.

4. I say that there was no misrepresentation on part of Defendants to pass-off their products and services as being associated with those of Plaintiff’s nor was there any such intent to pass-off the products and services with those of the Plaintiff’s.

5. I say that I have removed the Plaintiff’s registered Trademarks viz. the registered VOLVO logo from the Defendant’s website, and from Defendant’s all social media accounts on websites such as Facebook, Twitter and Linkedin etc. I undertake that any graphical representation to a Volvo vehicle on the website and/or social media platforms of the Defendant No. 1 shall be such that the VOLVO logo is redacted or blurred.

6. I say that I have stopped the circulation and destroyed all the brochures which carried the Plaintiff’s or third parties’ registered Trademarks.

7. I say that a disclaimer has been incorporated on the Defendant’s website clarifying that Defendant is not associated with the Plaintiff. I further say that this disclaimer shall form part of all future campaigns and communications and no representations regarding association with the Volvo group shall be made to third parties. The disclaimer has been added to the Defendant No. 1’s website in the following manner: ****

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9. I say that I am aware that for any false statement or concealment, I shall be liable for action taken against under the law.”

7. It is pointed out at this stage that the aforesaid affidavit was signed and verified at Bombay yesterday and a scanned copy has been placed on record.

8. Learned Counsel for the defendant is directed to ensure that the original copy of the affidavit is filed before this Court as soon as possible.

9. Learned Counsel for the defendant had some misgivings as to whether the sentence “I undertake that any graphical representation to a Volvo vehicle on the website and/or social media platforms of the Defendant No. 1 shall be such that the VOLVO logo is redacted or blurred” in para 5 of the affidavit might be read to mean that the defendant could not even depict the Volvo vehicle on its social media accounts etc. To my mind, no such impression would flow from the afore-extracted sentence. Clearly, what the plaintiff requires is that, even if the defendant were to represent a Volvo vehicle, the VOLVO mark and logo on such vehicle should be redacted or blurred. There is no wholesale objection to the depiction of the vehicle itself so long as the VOLVO mark and logo is not visible.

10. Additionally, the learned Counsel for the parties ad idem agreed that a disclaimer, disclaiming all association with the plaintiff, shall be incorporated in the brochures of Defendant 1, and that the amended brochures in the said terms would be provided to the plaintiff within two weeks from today.

11. Learned Counsel for the plaintiff submits that, in these circumstances, as the dispute has been resolved on the very first day, they would not be pressing for costs and damages.

12. As such, nothing survives for adjudication in the present case. The aforesaid affidavit is taken on record and shall form part of the present order.

13. Both parties shall remain bound by the terms of the affidavit.

14. The suit stands decreed in terms of the aforesaid affidavit and the order passed today. The registry is directed to draw up a decree in terms thereof.

15. The plaintiff is entitled to be refunded the Court fees, if any, deposited by him.

C. HARI SHANKAR, J

DECEMBER 5, 2022