Recently, the Delhi High Court dealt with multiple applications concerning a suit filed by plaintiffs seeking protection of their trademark and related rights against fraudulent activities.

The Court addressed various requests, including exemptions from filing certain documents and undergoing pre-institution mediation, ultimately granting the requested exemptions while ensuring that the plaintiffs would still fulfil necessary obligations.

The suit primarily involves allegations of trademark infringement and fraudulent misrepresentation related to the trademark “Master Trust”.

Brief Facts:

The plaintiffs filed an application under Section 151 of the Code of Civil Procedure, seeking exemption from filing certified copies of documents, which the court granted with the condition that clear and translated copies would be provided before the next hearing. In another application under Section 12A of the Commercial Courts Act, the plaintiffs sought exemption from undergoing pre-institution mediation, which was granted in light of a Supreme Court judgement and a relevant decision from this Court. The plaintiffs also requested exemption from advance service to the first defendant, citing risk of the defendant altering ownership details of a contested website if notified in advance, the court granted this request as well.

The core of the case revolves around claims against unidentified individuals collectively referred to as defendant no.1, who allegedly misused the plaintiffs’ trademark to deceive the public through  fraudulent investment schemes. The plaintiffs detailed their history, establishing the reputation and goodwill associated with their trademark “Master Trust”, which they have used since 1992. They highlighted concerns regarding fraudulent activities linked to various WhatsApp groups that misrepresented their brand, leading to significant financial losses for victims and tarnishing the plaintiffs’ reputation.

Observation of the Court:

The Court observed the gravity of the allegations concerning fraudulent use of the trademark and the potential harm to the plaintiffs’ business reputation. The court stated that, “Exemption is granted, subject to all just exceptions”, emphasising the need for clarity in documentation. Regarding pre-institution mediation, the court noted, “exemption from attempting Pre-Institution Mediation is granted”, recognizing the case’s peculiar circumstances. On the issue of advance service, the Court remarked, “exemption from effecting advance service upon the defendant no.1 is granted”, highlighting the urgency posed by potential fraudulent activities.

The Court also emphasized the significance of the plaintiffs’ trademark rights, asserting, “the registered trade mark ‘master trust’ has acquired enormous reputation and goodwill all over India”. Additionally, the Court recognized the negative impact of the defendants’ actions, stating, “A doubt was casted on the longstanding reputation and trust garnered by plaintiffs from their customers”.

Case Title: Master Capital Services Limited & Anr. v. John Doe & Ors.

Citation: CS(COMM) 832/2024, I.A. 40513/2024, I.A. 40514/2024, I.A. 40515/2024 & I.A. 40516/2024

Coram: Justice Mini Pushkarna

Advocate for Petitioner: Adv. Swathi Sukumar, Rohit Jain, Neha Khanduri, Ritik Radhuwanshi, Komal Sharma

Advocate for Respondent: None

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Picture Source :

 
Siddharth Raghuvanshi