M/S GLOBUS SPIRITS LTD. v. WILD BERRIES BOTTLING PVT. LTD.

Delhi High Court · 08 Aug 2022 · 2022:DHC:3083
Prathiba M. Singh
CS (COMM) 435/2022
2022:DHC:3083
civil appeal_dismissed Significant

AI Summary

The Delhi High Court granted interim injunction restraining use of infringing marks 'WILD LAKE' and 'WHITE LACE' and permitted the defendant to adopt a new mark, referring the parties to mediation for settlement.

Full Text
Translation output
CS (COMM) 435/2022
HIGH COURT OF DELHI
Date of Decision: 08th August, 2022
CS (COMM) 435/2022 & I.A. 12275/2022
M/S GLOBUS SPIRITS LTD. ..... Plaintiff
Through: Mr. Shailen Bhatia & Mr. Amit Jain, Advocates (M-9818558690)
VERSUS
WILD BERRIES BOTTLING PVT. LTD. ..... Defendant
Through: Ms. Ridhima Purohit, Mr. Saubhagy Agarwal & Mr. Kartik Gupta, Advocates (M-9588845275)
CORAM:
JUSTICE PRATHIBA M. SINGH Prathiba M. Singh, J. (Oral)
JUDGMENT

1. This hearing has been done through hybrid mode.

2. The present suit has been filed seeking permanent injunction restraining the infringement of trademark, design, and copyright, passing off, damages, delivery up, and other reliefs. The Plaintiff – M/s. Globus Spirits Ltd. is engaged in the business of manufacture, marketing and sale of industry alcohol comprising rectified spirit and extra-neutral alcohol country liquor and Indian Made Foreign Liquor (IMFL), such as whisky, brandy, rum, gin, vodka, wine, etc. The Plaintiff has a brand portfolio of its own in the country liquor segment such as ‘WHITE LACE’ Gin, ‘WHITE LACE’ Vodka, etc.

3. The case of the Plaintiff is that it has coined and adopted the mark ‘WHITE LACE’ for gin in the year 2000. The said mark was also adopted for its vodka products in the year 2019. The Plaintiff is stated to be selling its goods bearing the mark ‘WHITE LACE’ in Delhi, Haryana and 2022:DHC:3083 Rajasthan. On account of the long, continuous and extensive use of the trade mark ‘WHITE LACE’ in relation to alcoholic beverages, it is submitted that the Plaintiff has attained immense goodwill and reputation for its mark ‘WHITE LACE’. In the year 2021-22, the Plaintiff is stated to have sold 94,050 cases of 750 ml. liquor and 25,81,102 cases of 180 ml. liquor. The Plaintiff has also obtained various registrations in respect of the trademark/label ‘WHITE LACE’ without and in conjunction with other words. The details of the said registrations have been set out in the Plaint.

4. The Plaintiff claims rights in the distinctive label for its products branded under the mark ‘WHITE LACE’. The said label has been set out below:

5. On the other hand, the Defendant – Wild Berries Bottling Pvt. Limited is engaged in the identical business of marketing and sale of alcoholic beverages. It is the case of the Plaintiff that the Defendant has been selling its identical products under the impugned marks ‘WILD LAKE’ and ‘WHITE LACE’ which are identical and deceptively similar to the Plaintiff’s registered mark ‘WHITE LACE’. The Defendant’s impugned product label is depicted below:

6. The Defendant applied for the mark ‘WHITE LACE’, vide Trademark Application No.4960980 in Class 33, in respect of “Alcoholic beverages (except beer) being Goods included in Class 33” on a ‘proposed-to-be-used basis’. The said application has been opposed. The Defendant further applied for the mark ‘WILD LAKE’, vide Trademark Application No.4979638 in Class 33, in respect of “Alcoholic beverages (except beer) being Goods included in Class 33” on a ‘proposed-to-be-used basis’. The said application has also been opposed by the Plaintiff.

7. Vide order dated 15th June, 2022, an ex parte ad-interim injunction was granted in the present suit. On the said date, a Local Commissioner was also appointed to visit the premises of the Defendant. The relevant portion of the order dated 15th June, 2022 is set out below:

“24. Having heard learned counsel for the Plaintiff, this Court is of the view that Plaintiff has made out a prima facie case for grant of ex parte ad-interim injunction. Balance of convenience lies in favour of the Plaintiff and it is likely to suffer irreparable harm in case the injunction, as prayed for, is not granted. 25. Accordingly, Defendant, its officers, servants, agents, dealers, distributors and all other are restrained from manufacturing, exporting, selling, offering for sale, exhibiting, advertising, directly or indirectly dealing in goods bearing the trademarks WILD LACE and WILD LAKE or from doing any other thing as is likely to lead to confusion or deception, thereby resulting in infringement of Plaintiffs registered trademarks bearing registration nos. 1565317, 4215690, 4949964, 4956373 and 5224218 in class 33.
26. Defendant, its officers, servants, agents, dealers, distributors and all other are further or indirectly dealing in goods such as Whisky, Brandy, Rum, Gin, Vodka, Wine, and other Alcohol Beverages and other cognate/allied goods under the trademark WILD LACE or WILD LAKE or any other identical/deceptively similar trademark to the Plaintiff s trademark WHITE LACE or from doing any other thing as is likely to lead to confusion or deception thereby resulting in passing off of the Defendant's goods as those of the Plaintiff.
27. Defendant, its officers, servants, agents, dealers, distributors and all other are further or indirectly dealing in goods bearing the trademarks WILD LACE and WILD LAKE or from doing any other thing as is likely to lead to confusion or deception thereby resulting in infringement of copyright of the label. xxx xxx xxx
31. Accordingly, Mr. Amit Acharya, Advocate (Mobile No. 9873024619) is appointed as Local Commissioner, who shall visit the premises of the Defendant at the following address:- M/s Wild Berries Bottling Pvt. Ltd. E-16, 16-A, 17 Ricco Industrial Area, Sotnala, Behror, Distt, Alwar Rajasthan, 301701
32. Local Commissioner shall visit the aforesaid premises, search and take into custody the infringing products bearing the Plaintiff s registered trademarks, in finished or unfinished condition, including packaging material, label, printing material, etc. and make an inventory of the same.”

8. Thereafter, the Defendant filed an application under Order XXXIX Rule 4 CPC seeking the setting aside of the ex parte ad-interim order dated 15th June, 2022. On the last date of hearing i.e., 3rd August, 2022, notice was issued in the said application and the Defendant was directed to file a statement of the existing stock lying with it.

9. Pursuant to the order dated 3rd August, 2022, a stock statement as to the existing stock lying with the Defendant has been produced by the Defendant, as per which, the Defendant currently is in possession of a stock worth Rs.2,44,550/- only. In addition, the Defendant is stated to have a stock of around 97,000 caps.

10. There is a substantial stock lying with the Rajasthan State Ganganagar Sugar Mills Ltd., which is the procurer on behalf of the local government. The said stock is permitted to be cleared by the said company, which has already been billed by the Defendant.

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11. In addition, the Defendant has also suggested a new proposed label and mark ‘WILD BERIES ORANGE VODKA’ which the Defendant intends to adopt. The same has been handed over to the Court and is set out hereinbelow:

12. Accordingly, in respect of the existing stock lying with the Defendant, the new label and mark shall be used. The Defendant is further permitted to proceed with the manufacture and sale of its orange vodka product, under the new mark and label.

13. It is submitted that the parties wish to explore an amicable resolution of the disputes and discuss the settlement terms. Accordingly, the matter is referred to the Delhi High Court Mediation and Conciliation Centre.

14. Parties to appear before the Mediation Centre, either virtually or physically, subject to convenience of all concerned. It shall be ensured that competent officials on behalf of the Plaintiff and the Defendant shall be present in the mediation proceedings.

15. I.A.12275/2022 is disposed of, in the above terms, permitting the Defendant to adopt the new mark ‘WILD BERIES ORANGE VODKA’ along with the new label handed over to the Court today, which is extracted above, subject to deposit of Rs.[5] lakhs, with the Registrar General of this Court, within four weeks. The said amount be retained in FDR on autorenewal mode.

16. Let the new label, set out hereinabove, which the Defendant intends to adopt be tagged along with the ‘Pleadings’ file in the court record.

17. List before the Delhi High Court Mediation and Conciliation Centre on 18th August, 2022 at 3:00 p.m.

18. List before the Joint Registrar on 12th September, 2022.

19. List before the Court on 7th October, 2022.

20. The date already fixed i.e., on 31st August, 2022 stands cancelled.

PRATHIBA M. SINGH JUDGE AUGUST 8, 2022 Rahul/ad (corrected & released on 16th August, 2022)