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Burger King Corporation vs Gurpreet Singh Sekhon & Ors.
2016 Latest Caselaw 6831 Del

Citation : 2016 Latest Caselaw 6831 Del
Judgement Date : 7 November, 2016

Delhi High Court
Burger King Corporation vs Gurpreet Singh Sekhon & Ors. on 7 November, 2016
$~18.
*     IN THE HIGH COURT OF DELHI AT NEW DELHI
+        CS(OS) 959/2015
%                                        Judgment dated 07thNovember, 2016

         BURGER KING CORPORATION                  ..... Plaintiff
                      Through : Mr. Pravin Anand, Mr. Raunaq Kamath
                                and Ms. Anjana Ahluwalia, Advocates.

                            versus

         GURPREET SINGH SEKHON & ORS.                        ..... Defendants
                      Through: None

CORAM:
   HON'BLE MR. JUSTICE G.S.SISTANI

G.S.SISTANI, J (ORAL)

I.A. 13385/2016
    1.   This is an application filed under Order VIII Rule 10 of the Code of
         Civil Code, 1908 by the plaintiff for passing of a decree of permanent
         injunction in the default of the defendants to file written statement.
         None is present on behalf of the defendants despite service.
    2.   Summons in the present matter were issued on 10.04.2015; on the same
         date an ex parte ad interim injunction was also granted in favour of the
         plaintiff and against the defendants. The defendants were duly served
         and the defendants had also entered appearance through counsel on the
         next date of hearing, i.e. 29.07.2015. Thereafter, none has appeared for
         the defendants, nor has any written statement been filed on their behalf.
    3.   The plaintiff has filed the present suit for permanent injunction
         restraining the infringement of trademark, passing off, rendition of
         accounts, delivery up, damages etc. against the defendants.               The

CS (OS) 959/2015                                                    Page 1 of 18
        plaintiff seeks protection of its trademarks „BURGER KING‟ and



       „HUNGRY JACK‟S‟ and their logos, i.e. „                 ‟ and „             ‟; it
       further seeksprotection of its catchphrase „HAVE IT YOUR WAY‟.
 4.    As per the plaint, the plaintiff corporation was founded in 1954 when it
       commenced its business with one restaurant in Miami, Florida, United
       States trading under the name and style of „BURGER KING‟. The
       plaintiff‟s very first advertisement was aired in 1958 on Miami‟s local
       station while the plaintiff‟s first franchisee outlet was started in 1959.
       Since its inception, the plaintiff had plans of global expansion and
       opened its first „Burger King‟ restaurant outside the United States of
       America in Puerto Rico in 1963. By 1967, the plaintiff already owned
       and operated 275 „Burger King‟ restaurants.           Owing to its swift
       expansion, today the plaintiff manages and operates a worldwide chain
       of over 13,000 fast food restaurants serving more than 11 million
       customers daily in 100 countries and U.S. territories. The plaintiff
       claims to be the second largest fast food hamburger company
       employing more than 30,300 people. It had opened the first „Burger
       King‟ franchisee restaurant in Asia in 1982 and there are currently over
       1,200 of these restaurants in Asia-Pacific Region.
 5.    As per the plaint, the other chain of restaurants of the plaintiff is in the
       name of „HUNGRY JACK‟S‟. The first such franchisee restaurant was
       opened in Perth, Australia on 18.04.1971. Thereafter, the chain was
       expanded rapidly and by 1981, the plaintiff had launched 26 „Hungry
       Jack‟s‟ across three states in Australia; today, there are more than 340
       stores across Australia.



CS (OS) 959/2015                                                    Page 2 of 18
  6.    Accordingly, the plaintiff claims proprietary rights in the marks
       „Burger King‟ and „Hungry Jack‟s‟ since the years 1954 and 1971
       respectively.
 7.    As per the plaintiff, the plaintiff‟s „Burger King‟ mark has been
       depicted in a variety of logos, which have acquired significant global
       reputation and have come to be solely associated with the plaintiff. In
       1969, the plaintiff adopted a logo comprising a depiction of a
       hamburger enclosing its registered trade mark/ name „Burger King‟ in
       red font. The same is referred to as the „Hamburger Design Logo‟,
       which is as under:




 8.    The plaintiff also claims to have adopted the Hamburger Design Logo
       in relation to its „Hungry Jack's‟ mark in 1971. The mark „Hungry
       Jack's‟ is similarly represented in a logo comprising a depiction of a
       hamburger enclosing the plaintiff‟s mark in red font; as shown below:




 9.    The plaintiff‟s trademarks are registered in its favor in over 122
       countries of the world including 22 countries in the Asia Pacific and
       South-East Asia regions including India. In India, the plaintiff is the
       registered proprietor of the trade mark „Burger King‟ (word)since 1979.
       The details of registrations in India are as under:


CS (OS) 959/2015                                                Page 3 of 18
  Trade Mark        Reg. No. Class      Date               Goods

                                               Paper and paper products
BURGER KING        348560    16     25.04.1979 included in class 16,
                                               printed matter

                                               Meat, Fish, Milk and other
BURGER KING        348561    29     25.04.1979 dairy products, edible oils,
                                               fats and pickles.

                                               Coffee, tea, cocoa, sugar,
                                               coffee substitutes, breads,
BURGER KING        348562    30     25.04.1979
                                               pastry, ices, mustard,
                                               pepper and sauces.

                                               Beer, ale and porter,
                                               mineral and aerated waters
                                               and other non-alcoholic
BURGER KING        348563    32     25.04.1979
                                               drinks, syrups and other
                                               preparations for making
                                               beverages

                                               Paper goods and printed
                                               matter, paper, cardboard
                                               and goods made from
                   828558    16     20.11.1998 these materials including
                                               BKCs           packaging,
                                               advertising, promotional
                                               items.

                                               Meat and processed foods,
                                               meat, fish, poultry and
                                               game,    meat      extracts,
                                               preserved,    dried     and
                   828559    29     20.11.1998 cooked      fruits      and
                                               vegetables, jellies, jams,
                                               fruit sauces, eggs, milk
                                               and milk products, edible
                                               oils and fats, including

CS (OS) 959/2015                                             Page 4 of 18
                                               meat, fish, poultry, eggs
                                              used in sandwiches.

                                            Staple foods, coffees, tea,
                                            cocoa, sugar, rice, tapioca,
                                            sago, artificial coffee,
                                            flour and preparations
                                            made from cereals, bread,
                   828560   30   20.11.1998 pastry and confectionery,
                                            ices, honey, treacle, yeast,
                                            baking    powder,       salt,
                                            mustard, including bkcs
                                            sandwich products and
                                            coffee and tea drinks.

                                            Light beverages, beers,
                                            mineral and aerated waters
                                            and other non-alcoholic
BURGER KING        828561   32   20.11.1998 drinks, fruit drinks and
                                            fruit juices, syrups and
                                            other preparations for
                                            making beverages

BURGER KING 1494246         42   06.10.2006      Restaurant Services

                                            Hamburger
                                            sanwiches;chicken
                                            sandwiches;              fish
                                            sandwiches;        breakfast
                                            sandwiches; bakery goods;
                                            fruits pies; coffee, rice,
                                            pasta; cereals and cereal
                   927122   30   31.03.2009 preparations; tea, coffee,
                                            cocoa; coffee essence,
                                            coffee extracts, mixtures
                                            of coffee and chicory,
                                            chicory      and     chicory
                                            mixture, all for use as
                                            substitutes for coffee; non-
                                            medicated confectionery;

CS (OS) 959/2015                                           Page 5 of 18
                                                       pastries, cakes, biscuits,
                                                      ices, ice cream, ice cream
                                                      products,            frozen
                                                      confections;        chilled
                                                      desserts, mousses, sorbets;
                                                      bread; pastry; drinks,
                                                      fillings; sweet s


 10. In addition to the aforegoing registrations in India, the plaintiff has also
       been granted registration of the mark „Burger King‟ across the globe.
       The mark „Hungry Jack‟s‟ has been granted registration in few
       jurisdictions, excluding India. The details of international registrations
       have been extracted in paragraph 10 of the plaint.
 11. The plaintiff claims that its marks had achieved trans-border reputation
       in India owing to their extensive use across the world even prior to their
       introduction in India. The plaintiff has brand visibility in India through
       trade shows (such as the USDA India Trade Mission 2009), presence of
       their „Burger King‟ products in the embassy of the United States of
       America in India, import of the samples under the mark BURGER
       KING in India etc. Additionally, the Plaintiff has tie-ups with the
       entertainment industry and its „Burger King‟ products/ brand have been
       advertised in popular movies such as The Fantastic Four (2005),
       Transformers (2007), Iron Man (2008), The Twilight Saga - New
       Moon (2009) etc. These movies were released in India and the Indian
       public was exposed to the products of the plaintiff carrying its
       trademarks and logos. Further there are numrous write-ups about the
       products of the plaintiff in publications having circulation in India.
 12. The plaintiff further claims extensive online presence with the domain
       name „www.burgerking.com‟ having been registered as far back as
       14.11.1994. The plaintiff also owns the domains „www.bk.com‟ and

CS (OS) 959/2015                                                   Page 6 of 18
        „www.hungryjacks.com.au‟; which have lead to the marks gaining
       tremendous goodwill in India.
 13. As per the plaintiff, on account of the inclusion of „beef‟ in the
       plaintiff‟s burgers, which in the Indian context would have previously
       made the conduct of the plaintiff‟s business unviable, the plaintiff had
       not launched a „Burger King‟restaurant in India till recently. However,
       owing to globalization and transformation in the Indian development
       and consequent to conducting exhaustive feasibility studies which have
       indicated the readiness of the Indian market for the p laintiff‟s world-
       renowned restaurants; in 2013, the p laintiff entered into a Joint Venture
       with Everstone Group, a leading private equity and real estate firm in
       India and South East Asia, to set up a supply chain in India and
       establish „Burger King‟ restaurants across the country.The entry into
       India received wide spread press coverage both in the form of articles
       as well as through social media. The p laintiff‟s first Indian „Burger
       King‟restaurant was opened in New Delhi on 09.11.2014. Since then,
       the plaintiff has launched 4 more „Burger King‟ restaurants in New
       Delhi/ NCR with an additional 5 „Burger King‟ restaurants operating in
       Mumbai and has plans of further expansion with several more outlets
       scheduled to open in India.
 14. The plaintiff also claims that its „Burger King‟ restaurants generate
       tremendous sales across the globe. The details of plaintiff‟s revenue
       and promotional efforts have been extracted in paragraphs 19 and 20 of
       the plaint.
 15. In addition to the Hamburger Design Logos, the plaintiff has also
       sought protection of its catchphrase/mark „Have It Your Way‟ which
       was launched in 1973. Plaintiff has founded a US-based non-profit
       foundation with multiple focuses on hunger alleviation, disease

CS (OS) 959/2015                                                  Page 7 of 18
        prevention and community education through scholarship programs at
       colleges in the US known as the „Have It Your Way Foundation‟,
       which has awarded millions of dollars worth of scholarships to students
       in the last few years alone.
 16. As per the documents placed on record, the slogan „Have It Your Way‟
       was initially adopted in order to sum up the difference of the „Burger
       King‟ chain with its prime rival „McDonald‟s‟. The slogan was later
       abandoned in favour of other slogans, but the „Have It Your Way‟
       slogan was returned in 2004 in TV advertisements of the plaintiff
       corporation.
 17. Accordingly, the plaintiff claims that owing to the long, continuous and
       ubiquitous use of the „Burger King‟ (since 1954) and „Hungry Jack's‟
       (since 1971) trademarks/ service marks, the Hamburger Design Logo
       (since 1969) and the „Have It Your Way‟ catch phrase (since 1973),
       coupled with extensive sales and promotional efforts, the plaintiff has
       acquired significant common law rights in the said marks, logo and
       catch phrase across the world including India and is, thus, entitled to
       the exclusive use thereof.
 18. It is the case of the plaintiff, that in December 2014, the plaintiff learnt
       that the defendants had filed an application for registration of the mark




       „                  ‟ in Class 30 filed by defendants.                 Upon
       investigation, the plaintiff claims to have learnt that the defendants
       were planning to open a restaurant in Patiala, Punjab under the said
       mark and the logo had been prominently displayed across the
       defendants‟ premises as well as signages and promotional material.
CS (OS) 959/2015                                                  Page 8 of 18
        The defendants‟ were also using a similar catchphrase, i.e. „Have it
       Kings Way‟.
 19. The investigation also revealed that the defendants are operating a
       website under the impugned domain name „www.hungry-king.com‟. A
       visit to the defendants‟ website revealed that the impugned mark/ name

       „Hungry King‟ and the impugned logo          adopted by the defendants
       was prominently displayed. The defendants‟ website is an interactive
       one which allows visitors to purposefully avail of their services under
       the impugned trading style of „Hungry King‟. A search of the Whois
       Information Lookup Database conducted by the plaintiff confirmed that
       the impugned domain name was created on 26.06.2013.                      The
       defendants are also operating a page on the social media forum
       „www.facebook.com‟ where it has prominently depicted a picture of its

       packaging bearing the impugned mark and logo         in conjunction with
       the impugned catch phrase „Have It Kings Way‟.
 20. The plaintiff had also sent a cease and desist notice by email on
       18.02.2015, which has not been replied to; this has lead to the filing of
       the present suit.
 21. I have heard the learned counsel for the plaintiff and examined the
       contents of the plaint which are duly supported by an affidavit of the
       plaintiff and documents placed on record. Summons in the present suit
       were issued on 10.04.2015, when an ad interim ex parte injunction was
       also granted against the defendants. Thereafter, on the next date of
       hearing 29.07.2015, the defendants had entered appearance through
       counsel. Since 29.07.2015, none has been appearing on behalf of the
       defendants. On 26.02.2016, this court observed that the defendants had
       failed to file their written statement and adjourned the matter to enable
       the plaintiff to file an application under Order VIII Rule 10. The
CS (OS) 959/2015                                                 Page 9 of 18
        plaintiff had even filed an application under Order XXXIX Rule 2A,
       being IA 4645/2016, as the defendants had failed to comply with the
       ad interim ex parte injunction granted by this court. The interim order
       dated 10.04.2015 was also made absolute on 29.08.2016. On the same
       date, it was noticed that the application bearing IA No. 4645/2016
       could not be served and the service report stated „firm sold‟. Thereafter
       on 01.09.2016, a local commissioner was appointed inspect the
       premises of the defendants‟ and also remove all hoardings,
       advertisements, etc. The report of the local commissioner is also on
       record.
 22. Recently, I had examined the scope of Order VIII Rule 10 of the Code
       of Civil Procedure particularly in the background of the new
       Commercial Courts, Commercial Division and Commercial Appellate
       Division of High Courts Act, 2015 in Nirog Pharma Pvt. Ltd. v.
       Umesh Gupta & Anr., CS (OS) 2517/2015 dated 21.10.2016. The
       relevant paragraphs read as under:
             "11. Order VIII Rule 10 has been inserted by the legislature to
             expedite the process of justice. The courts can invoke its
             provisions to curb dilatory tactic, often resorted to by
             defendants, by not filing the written statement by pronouncing
             judgment against it. At the same time, the courts must be
             cautious and judge the contents of the plaint and documents on
             record as being of an unimpeachable character, not requiring
             any evidence to be led to prove its contents. ...
             ...

28. The present suit is also a commercial suit within the definition of the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 and it was the clear intention of the legislature that such cases should be decided expeditiously and should not be allowed to linger on. Accordingly, if the defendant fails to persue his case or does so in a lackadaisical manner by not filing his written statement, the courts should invoke the provisions of Order VIII Rule 10 to decree such cases."

23. In the present case, the plaintiff is aggrieved by the adoption of the mark „Hungry King‟ by the defendants which is claimed to be mix of the two marks of the plaintiff, being „Hungry Jack‟s‟ and „Burger King‟. The defendants have also imitated to Hamburger Design Logos of the said marks. The catchphrase/slogan is also similar. To sum up, the marks of the parties are as under:

                    Plaintiff's Marks                    Defendants' Mark
          HUNGRYJACK'S + BURGERKING                       HUNGRY KING




                             +
                   HAVE IT YOUR WAY                   HAVE IT KINGS WAY


24. Additionally, the plaintiff claims that the adoption of the domain name „www.hungry-king.com‟ amounts to an infringement of the registered trademarks of the plaintiff, as detailed in paragraph 9 aforegoing. The plaintiff has also submitted that the website is a slavish imitation of the website of the plaintiff‟s website „www.hungryjacks.com.au‟. A comparative analysis has also been given in paragraph 31 of the plaint.

25. I have perused the Report of the Local Commissioner dated 25.10.2016. The local commissioner had inspected the premises of the defendants and learnt that the premises had been sold to one, Mr. J.P. Arora, on 25.02.2016; who had since changed the name of the restaurant to „Sabik‟ and had nothing to do with „Hungry King‟. All the remaining banners, hoardings, advertisements have also been defaced by the local commissioner.

26. The learned counsel has also handed over in a Judgment of the Punjab and Haryana High Court being Gurpreet Singh Sekhon v. State of Punjab, CRM No. M-36297/2014dated 19.11.2014; wherein anticipatory bail was granted to defendant no.1 herein. In the said judgment, the counsel for the defendant no.1 had mentioned that the defendant nos 1 and 2 had initially planned to open a franchisee of the plaintiff‟s „Burger King‟ restaurant only. Since the same did not materialize for one reason or another, the defendants opened a restaurant in the name of „Hungry King‟ and ran the same for about one and a half years. The learned counsel has submitted that the same clearly establishes the intention of the defendants to pass off their products as that of the plaintiff.

27. It has been repeated held by the Supreme Court and this Court that in proceeding under Order VIII Rule 10 of the Code of Civil Procedure, the courts should not act blindly; but must consider the contents of the plaint. It has been held in Balraj Taneja & Anr. v. Sunil Madan & Anr., AIR1999SC3381that even a judgment passed on the failure of the defendant to file its written statement, the requirements of Order XX Rule 4(2) should be fulfilled. This has been reiterated numerous times and recently in C.N. Ramappa Gowda v.C.C. Chandregowda (Dead) by L.Rs. and Anr., (2012)5SCC265.

PASSING OFF

28. Passing Off action arises out of common law and is not pre-conditioned on registration. The term „passing off‟ was explained by James, L.J. in Singer Manufacturing Co. v. Loog, (1880) 18 ChD 395 as under:

"...I have often endeavoured to express what I am going to express now (and probably I have said it in the same words, because it is very difficult to find other words in which to express it) -- that is, that no man is entitled to represent his

goods as being the goods of another man; and no man is permitted to use any mark, sign or symbol, device or other means, whereby, without making a direct false representation himself to a purchaser who purchases from him, he enables such purchaser to tell a lie or to make a false representation to somebody else who is the ultimate customer."

(Emphasis Supplied)

29. Lord Diplock in Erven Warnink Besloten Vennootschap v. J.

Townend & Sons (Hull) Ltd.,[1979] A.C 731 had identified five essentials to establish an action of passing off. The relevant excerpt is as under:

"My Lords, A.G Spalding and Brothers v. A. W. Gamage Ltd., 84 L.J.Ch 449, and the later cases make it possible to identify five characteristics which must be present in order to create a valid cause of action for passing off: (1) a misrepresentation, (2) made by a trader in the course of trade, (3) to propsective customers of his or ultimate consumers of goods or services supplied by him, (4) which is calculated to injure the business or goodwill of another trader (in the sense that this is a reasonably foreseeable consequence) and (5) which causes actual damage to a business or goodwill of the trader by whom the action is brought or (in a quia timet action) will probably do so."

(Emphasis Supplied)

30. The aforegoing essentials have been accepted by the Supreme Court in Cadila Health Care Ltd.v.Cadila Pharmaceuticals Ltd., (2001) 5 SCC 73 and Heinz Italiav. Dabur India Ltd., (2007) 6 SCC 1. In Cadila Health Care Ltd. (Supra), the Supreme Court had further laid down the following decisive tests for checking deceptive similarity:

"35. Broadly stated, in an action for passing-off on the basis of unregistered trade mark generally for deciding the question of deceptive similarity the following factors are to be considered:

(a) The nature of the marks i.e. whether the marks are word marks or label marks or composite marks i.e. both words and label works.

(b) The degree of resembleness between the marks, phonetically similar and hence similar in idea.

(c) The nature of the goods in respect of which they are used as trade marks.

(d) The similarity in the nature, character and performance of the goods of the rival traders.

(e) The class of purchasers who are likely to buy the goods bearing the marks they require, on their education and intelligence and a degree of care they are likely to exercise in purchasing and/or using the goods.

(f) The mode of purchasing the goods or placing orders for the goods.

(g) Any other surrounding circumstances which may be relevant in the extent of dissimilarity between the competing marks.

36. Weightage to be given to each of the aforesaid factors depending upon facts of each case and the same weightage cannot be given to each factor in every case."

(Emphasis Supplied)

31. In the present case, the mark of the defendants is extremely similar to the marks of the plaintiff. Infact, it is a blend of the two marks of the plaintiff. The same is further aggravated by the fact that the Hamburger Design Logo has also been copied. A comparison of the marks has already been given in paragraph 23 aforegoing. In order to further potray their products as that of the plaintiff, the defendants have even adopted a slavish imitation of the slogan of the plaintiff.

32. Accordingly, applying the aforegoing test I am of the view that the defendants have tried to dupe the general public by portraying their products in a manner that they originate from the plaintiff. Such usage would inevitably lead to loss of revenue as also that of goodwill.

Accordingly, the defendants have indulged into the offence of passing off.

33. Having held that the defendants have committed the act of passing off, the only other issue which remains in the present suit is damages.

34. A coordinate bench of this court in the case of Relaxo Rubber Limited & Anr.v.Selection Footwear & Anr., AIR2000 Del 60 which while granting injunction also granted damages under Order VIII Rule 10 in a case for infringement of copyright and trade mark. PUNITIVE DAMAGES

35. With regard to the relief of damages as claimed by the plaintiffs in paragraph40 g) of the plaint, the plaintiffs relied in Time Incorporated v. Lokesh Srivastava & Anr., 2005 (30) PTC 3 (Del): 2005 (116) DLT 599, while awarding punitive damages of Rs. 5 lakhs in addition to compensatory damages also of Rs. 5 lakhs, Justice R.C. Chopra observed as under:

"8. This Court has no hesitation on saying that the time has come when the Courts dealing actions for infringement of trade marks, copy rights, patents etc. should not only grant compensatory damages but award punitive damages also with a view to discourage and dishearten law-breakers who indulge in violations with impunity out of lust for money so that they realise that in case they are caught, they would be liable not only to reimburse the aggrieved party but would be liable to pay punitive damages also, which may spell financial disaster for them. In Mathias v. Accor Economy Lodging Inc., 347 F.3d 672 (7th Cir. 2003) the factors underlying the grant of punitive damages were discussed and it was observed that one function of punitive damages is to relieve the pressure on an overloaded system of criminal justice by providing a civil alternative to criminal prosecution of minor crimes. It was further observed that the award of punitive damages serves the additional purpose of limiting the defendant's ability to profit from its fraud by escaping detection and prosecution. If a torfeasor is caught only half the time he commits torts, then

when he is caught he should be punished twice as heavily in order to make up for the times he gets away.This Court feels that this approach is necessitated further for the reason that it is very difficult for a plaintiff to give proof of actual damages suffered by him as the defendants who indulge in such activities never maintain proper accounts of their transactions since they know that the same are objectionable and unlawful. In the present case, the claim of punitive damages is of Rs. 5 lacs only which can be safely awarded. Had it been higher even, this Court would not have hesitated in awarding the same. This Court is of the view that the punitive damages should be really punitive and not flea bite and quantum thereof should depend upon the flagrancy of infringement."

(Emphasis Supplied)

36. This Court in the case of Microsoft Corporation v. Rajendra Pawar & Anr., reported at 2008 (36) PTC 697 (Del.), has held:

"22. Perhaps it has now become a trend of sorts, especially in matters pertaining to passing off, for the defending party to evade Court proceedings in a systematic attempt to jettison the relief sought by the Plaintiff. Such flagrancy of the Defendant's conduct is strictly deprecatory, and those who recklessly indulge in such shenanigans must do so at their peril, for it is now an inherited wisdom that evasion of Court proceedings does not de facto tantamount to escape from liability. Judicial Process has its own way of bringing to task such erring parties whilst at the same time ensuring that the aggrieved party who has knocked the doors of the Court in anticipation of justice is afforded with adequate relief, both in law and in equity. It is here that the concept of awarding punitive damages comes into perspective.

23. Punitive damages are a manifestation of equitable relief granted to an aggrieved party, which, owing to its inability to prove actual damages, etc., could not be adequately compensated by the Court. Theoretically as well as practically, the practice of awarding of punitive damages may be rationalized as preventing under-compensation of the aggrieved party, allowing redress for undetectable torts and taking some strain away from the criminal justice system. Where the conduct of the erring party is found to be

egregiously invidious and calculated to mint profits for his own self, awarding punitive damages prevents the erring party from taking advantage of its own wrong by escaping prosecution or detection."

(Emphasis Supplied)

37. A coordinate bench of this court in the case of The Heels v. Mr. V.K Abrol and Anr., CS(OS) NO.1385 of 2005 decided on 29.03.2006has held:

"11. This court has taken a view that where a defendant deliberately stays away from the proceedings with the result that an enquiry into the accounts of the defendant for determination of damages cannot take place, the plaintiff cannot be deprived of the claim for damages as that would amount to a premium on the conduct of such defendant. The result would be that parties who appear before the court and contest the matter would be liable to damages while the parties who choose to stay away from the court after having infringed the right of the plaintiff, would go scotfree. This position cannot be acceptable.

12. No doubt it is not possible to give an exact figure of damages on the basis of actual loss, but certain token amounts on the basis of the sales of the plaintiff can certainly be made. The plaintiff is unnecessarily dragged into litigation and the defendants must bear consequences thereof. In fact in such a case both compensatory and punitive damages ought to be granted apart from the costs incurred by the plaintiff on such litigation.In view of the given sales figure of the plaintiff, I consider it appropriate to grant a decree of damages in favor of the plaintiff and against the defendants for a sum of Rs 3 lakh apart from costs of the suit."

38. In view of the facts of the present case, this Court is of the opinion that in the present case rupeestwo lakhs as punitive damages be granted in favour of the plaintiff and against the defendant in terms of 26 (h) of the plaint.

39. Resultantly, having been satisfied with the averments made and duly supported by documents, report of the local commissioner and no written statement being on record, I deem it a fit case to for invoking the provisions of Order VIII Rule 10 of the Code of Civil Procedure.

40. Accordingly, the present suit is decreed in favour of the plaintiff and against the defendants in terms of paragraphs 40b), c) and f) along with damages of rupeestwo lakhs. No other relief is pressed.

41. I.A. 13385/2016 stands disposed of.

I.A. 4645/2015 (under Order XXXIX Rule2A CPC)

42. In view of the judgment passed in the suit, the application stands disposed of.

G.S.SISTANI, J NOVEMBER 07, 2016 //pst

 
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