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Eureka Forbes Ltd vs Hindustan Lever Limited
2021 Latest Caselaw 11023 Mad

Citation : 2021 Latest Caselaw 11023 Mad
Judgement Date : 29 April, 2021

Madras High Court
Eureka Forbes Ltd vs Hindustan Lever Limited on 29 April, 2021
                                                                          C.S.Nos.156 of 2005 & 423 of 2007
                                                                and A.No.2377 of 2006 & O.A.No. 191 of 2005

                                   IN THE HIGH COURT OF JUDICATURE AT MADRAS
                                                  DATED: 29.04.2021
                                                       CORAM:
                                   THE HONOURABLE MR.JUSTICE R.SUBRAMANIAN
                                           C.S.Nos.156 of 2005 & 423 of 2007
                                                          and
                                        A.No.2377 of 2006 & O.A.No.191 of 2005

                     C.S.No.156 of 2005

                     Eureka Forbes Ltd.,
                     Anmol Palani, C & D-5, Level IV,
                     No.88, G.N.Chetty Road,
                     rep. By its Regional Head – Accounts(South),
                     Mr.N.Muralidhar Rao                                                      ...Plaintiff

                                                          Vs.

                     Hindustan Lever Limited.,
                     No.121, Santhome High Road,
                     (Entrance from South Canal Bank Road),
                     Chennai – 600 028.                                                    ...Defendant


                     Prayer: Plaint filed under Order IV Rule I of the Original Side Rules r/w.
                     Order VII Rule I of C.P.C., praying as follows:-
                                   a) a permanent injunction restraining the defendant, their
                     directors, executives, distributors, marketers, franchises, dealers, agents,
                     stockists, representatives, advertisers, successors-in-business, assigns or any
                     one claiming through or under them from referring to plaintiff's AquaSure


                     1/12


https://www.mhc.tn.gov.in/judis/
                                                                          C.S.Nos.156 of 2005 & 423 of 2007
                                                                and A.No.2377 of 2006 & O.A.No. 191 of 2005

                     Storage Water Purifier, in any manner, either directly or indirectly, by means
                     of any allusion of insinuation in their Television Commercials, Newspapers
                     advertisement, Internet website publication, handouts, brochures, user
                     manual or any other promotional literature and/or publicity materials by
                     comparison of their Pureit Water purifying system with the plaintiff's
                     AquaSure water purifier by making indirect reference using the words
                     'leading storage based iodine filter' in the comparative data or any other
                     product of the plaintiff, amounting to disparagement of in any other manner
                     whatsoever.
                                   b) a permanent injunction restraining the defendant, their
                     directors, executives, distributors, marketers, franchisees, dealers, agents,
                     stockists, representatives, advertisers, successors-in-business, assigns or any
                     one claiming through or under them from referring to plaintiff's AquaSure
                     Storage Water Purifier, in any manner, either directly or indirectly, by means
                     of any allusion of insinuation in their Television Commercials, Newspaper
                     advertisement, Internet website publication, handouts, brochures, user
                     manual or any other promotional literature and / or publicity materials, by
                     making comparison importing indirect reference as leading storage based
                     iodine filter thereby conveying a message to the public that the plaintiff's
                     AquaSure storage water purifier does not have the features, advantages,
                     efficiency of killing / removing viruses and bacteria or in any other manner
                     whatsoever.
                                   c) the defendant be ordered to pay to the plaintiff a sum of


                     2/12


https://www.mhc.tn.gov.in/judis/
                                                                             C.S.Nos.156 of 2005 & 423 of 2007
                                                                   and A.No.2377 of 2006 & O.A.No. 191 of 2005

                     Rs.10,05,000/- as liquidated damages on account of the unfair business
                     practices adopted by it against a competitor namely, the plaintiff and drop in
                     sales of the plaintiff.
                                   d) the defendant be ordered to surrender to the plaintiff for
                     destruction brochure, hand outs, user manuals, advertisements, CD's, print
                     materials, pamphlets, screen prints, promotional literature / schemes in any
                     media and such other materials containing the disputed comparison table.
                                   e) the defendants be directed to render true and faithful accounts
                     of profits made by sale of Pureit water purifiers consequent to the
                     publishing of comparison table, which is complained by the plaintiff and a
                     final decree be passed in the favour of the plaintiff for the amount of profits
                     thus found to have been made by the defendant, after the latter rendered
                     accounts.
                                   d) for costs of the suit.
                                              For Plaintiff       : Mr.K.S.Saravanan
                                              For Defendant       : Mr.Madhan Babu for
                                                                            Mr.Sathish Parasaran


                     C.S.No.423 of 2007

                     M/s.Hindustan Lever Limited.,
                     No.101, Santhome High Road,
                     (Entrance from South Canal Bank Road),
                     Chennai – 600 028.                                                          ...Plaintiff



                     3/12


https://www.mhc.tn.gov.in/judis/
                                                                            C.S.Nos.156 of 2005 & 423 of 2007
                                                                  and A.No.2377 of 2006 & O.A.No. 191 of 2005

                                                            Vs.

                     1.

Eureka Forbes Ltd., Anmol Palani, C & D-5, Level IV, No.88, G.N.Chetty Road, T.Nagar, Chennai – 600 017.

2.Swastik Agencies, 342, Nethaji Road, Opp. Periyar Mandram, Erode – 638 001. ...Defendants

Prayer: Plaint filed under Order IV Rule I of the Original Side Rules r/w. Order VII Rule I of C.P.C., praying as follows:-

a) a perpetual injunction, restraining the defendants, their directors, executives, distributors, marketers, franchisees, dealers, agents, stockists, representatives, advertisers, successors-in-business, assigns or any one claiming through or under them from in any manner referring to plaintiff's 'Pureit' water purification system, either directly or indirectly, by means of any allusion or insinuation in their Television Commercials, Newspaper advertisement, Internet website publication, handouts, brochures, user manual or any other promotional literature and / or publicity materials by comparison of their 'Aquasure'water purifying system with the plaintiff's 'Pureit' water purification system by making any direct or indirect reference to the plaintiff's 'Pureit' Water Purifier, amounting to disparagement or in any other manner whatsoever;

b) a perpetual injunction restraining the defendants, their

https://www.mhc.tn.gov.in/judis/ C.S.Nos.156 of 2005 & 423 of 2007 and A.No.2377 of 2006 & O.A.No. 191 of 2005

directors, executives, distributors, marketers, franchisees, dealers, agents, stockists, representatives, advertisers, successors-in-business, assigns or any one claiming through or under them from in any manner referring to plaintiff's 'Pureit' Water Purifier either directly or indirectly, by means of any allusion or insinuation in their Television Commercials, Newspaper advertisement, Internet website publication, handouts, brochures, user manual or any otther promotional literature and / or publicity materials, by making comparison, importing direct or indirect reference to the plaintiff's 'Pureit' Water Purifier, thereby conveying a message to the public that the plaintiff's 'Pureit' water purification system does not have the features, advantages, efficiency of technology, purification process, direct contact, long term consumption, killing microbes, warranty, product endorsement, sales service network etc., or in any other manner whatsoever;

c) a perpetual injunction restraining the defendants, their directors, executives, distributors, marketers, franchisees, dealers, agents, stockists, representatives, advertisers, successors-in-business, assigns or any one claiming through or under them from in any manner referring to the plaintiff either directly or indirectly, by means of any allusion of insinuation in their Television commercials, Newspaper advertisement, Internet website publication, handouts, brochures, user manual or any other promotional literature and / or publicity materials or in any other manner whatsoever, so as to defame the reputation of the plaintiff and / or its goods, or in any other manner whatsoever;

https://www.mhc.tn.gov.in/judis/ C.S.Nos.156 of 2005 & 423 of 2007 and A.No.2377 of 2006 & O.A.No. 191 of 2005

d) direction directing the defendants to surrender to the plaintiff for destruction all CD's, brochures, handouts, user manual, print materials, pamphlets, screen prints, promotional literature / schemes in any media advertisement, and other promotional literature and / or publicity materials containing any direct or indirect reference to the plaintiff and / or its 'Pureit' Water Purifier;

e) a preliminary decree be passed in favour of the plaintiff directing the defendants to render and proper accounts of sales made by sale of 'Aquasure' Water Purifier pursuant to the publication / circulation of the impugned advertisement / comparison and a final decree be passed in favour of the plaintiff for the amount of sales generated found to have been made by the defendants after the latter have rendered accounts;

f) the defendants be ordered and decreed to pay to the plaintiff a sum of Rs.50,00,000/- as damages for acts of disparagement committed by the defendants;

g) for costs.

                                             For Plaintiff        : Mr.Madhan Babu for
                                                                            Mr.Sathish Parasaran
                                             For Defendants       : Mr.K.S.Saravanan




                                              COMMON JUDGMENT





https://www.mhc.tn.gov.in/judis/
                                                                          C.S.Nos.156 of 2005 & 423 of 2007

and A.No.2377 of 2006 & O.A.No. 191 of 2005

Heard Mr.K.S.Saravanan, learned counsel appearing for the

plaintiff in C.S.No.156 of 2005 and for the defendants in C.S.No.423 of

2007 and Mr.Madhan Babu, learned counsel appearing for the defendant in

C.S.No.156 of 2005 and for the plaintiff in C.S.No.423 of 2007.

2.The parties have filed a memorandum of compromise. Both the

counsel would submit that the decree may be passed in terms of the

compromise.

3.Hence, both the suits are decreed in terms of compromise.

Consequently, connected applications are closed. No costs.

29.04.2021 kkn

Internet:Yes Index:No Non-Speaking

https://www.mhc.tn.gov.in/judis/ C.S.Nos.156 of 2005 & 423 of 2007 and A.No.2377 of 2006 & O.A.No. 191 of 2005

List of witness and documents filed on the side of the plaintiff in C.S.No.156 of 2005:

Nil

List of witness and documents filed on the side of the defendant in C.S.No.156 of 2005:

Nil

List of witness marked on the side of the plaintiff in C.S.No.423 of 2007:

P.W.1 – Srishti Dhir

List of documents marked on the side of the plaintiff in C.S.No.423 of 2007:

                      S.No         Exihibits.                           Documents marked
                                      No
                         1           Ex.P1      The original letter of authorisation dated 16.08.2017.
                         2           Ex.P2      The Notarized copy of the Power of Attorney dated 26.06.2017
                                                under which Ex.P1 has been issued.
                         3           Ex.P3      The Notarized copy of the certificate dated 16.08.2004 issued by

National Institue for Cholera and Enteric Diseases. 4 Ex.P4 The Notarized copy of the certificate dated 02.09.2004 issued by S.R.Ranbaxy.

5 Ex.P5 The Notarized copy of the certificate dated 06.09.2004 issued by the National Environmental Engineering Research Institute. 6 Ex.P6 The Notarized copy of the certificate dated 15.09.2004 issued by Scottish Parasite Diagnostic Laboratory.

https://www.mhc.tn.gov.in/judis/ C.S.Nos.156 of 2005 & 423 of 2007 and A.No.2377 of 2006 & O.A.No. 191 of 2005

S.No Exihibits. Documents marked No 7 Ex.P7 The Notarized copy of the certificate dated 30.09.2004 issued by Apollo Hospitals, Chennai.

8 Ex.P8 The Notarized copy of the certificate dated 30.11.2004 issued by Central Food Technological Research Institute, Mysore. 9 Ex.P9 The Notarized copy of the certificate dated 04.02.2005 issued by King Institute of Preventive Medicine, Guindy.

10. Ex.P10 The Notarized copy of the certificate dated 18.03.2005 issued by Institute of Public Health Engineers, India. 11 Ex.P11 The Notarized copy of the certificate dated 15.04.2005 issued by London School of Hygiene and Tropical Medicine. 12 Ex.P12 The Notarized copy of the certificate dated 17.04.2005 issued by Indian Public Health Association.

13 Ex.P13 The Notarized copy of the certificate issued by Sundaram Medical Foundation.

14 Ex.P14 The Notarized copy of the Hand out employed by the plaintiff forming subject matter of C.S.No.156 of 2005. 15 Ex.P15 The Notarized copy of the Hand out employed by the plaintiff forming subject matter of C.S.No.156 of 2005. 16 Ex.P16 The Notarized copy of the plaint in C.S.No.156 of 2005 filed by the 1st defendant.

17 Ex.P17 The Notarized copy of the plaint in C.S.No.370 of 2005 filed by the 1st defendant.

18 Ex.P18 The Notarized copy of the decreetal order dated 15.07.2005 passed in C.S.No.370 of 2005.

19 Ex.P19 The Notarized copy of the plaint in C.S.No.1053 of 2005 filed by the 1st defendant.

20 Ex.P20 The Notarized copy of the counter affidavit filed by the plaintiff in O.A.No.1125 of 2005 in C.S.No.1053 of 2005. 21 Ex.P21 The letter received by the plaintiff from G.Ranganatha Gopal. 22 Ex.P22 The letter received by the plaintiff from S.Selvi. 23 Ex.P23 The letter received by the plaintiff from M.Kaja Mohideen dated 05.03.2007.

https://www.mhc.tn.gov.in/judis/ C.S.Nos.156 of 2005 & 423 of 2007 and A.No.2377 of 2006 & O.A.No. 191 of 2005

S.No Exihibits. Documents marked No 24 Ex.P24 The letter received by the plaintiff from Karthik dated 10.03.2007. 25 Ex.P25 The letter received by the plaintiff from S.Raja Sekaran dated 12.03.2007.

26 Ex.P26 The letter received by the plaintiff from Rafia dated 14.03.2007. 27 Ex.P27 The Disparaging advertisement materials and charts circulated by the Defendants.

List of witness and documents filed on the side of the defendants in C.S.No.423 of 2007:

Nil

29.04.2021 kkn

https://www.mhc.tn.gov.in/judis/ C.S.Nos.156 of 2005 & 423 of 2007 and A.No.2377 of 2006 & O.A.No. 191 of 2005

R.SUBRAMANIAN, J.

KKN

C.S.Nos.156 of 2005 & 423 of 2007 and

https://www.mhc.tn.gov.in/judis/ C.S.Nos.156 of 2005 & 423 of 2007 and A.No.2377 of 2006 & O.A.No. 191 of 2005

A.No.2377 of 2006 & O.A.No.191 of 2005

29.04.2021

https://www.mhc.tn.gov.in/judis/

 
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