Recently, the Delhi High Court granted a decree of permanent injunction and awarded damages against five restaurant businesses for infringing upon the trademark and copyright of 'Veerji Malai Chaap Wale'. The Court held that the defendants had adopted deceptively similar marks with malafide intent, causing confusion among the public and unfairly benefiting from the plaintiff’s goodwill. In a significant observation, the Court reiterated that summary judgment can be granted where the defendant has no real prospect of defending the claim.
Brief Facts:
The plaintiff, initially operating as a proprietorship, later incorporated as a company running the popular restaurant chain 'Veerji Malai Chaap Wale'. The business adopted the trademark 'VEERJI' in 2016 and subsequently expanded across India with around 70 branches, establishing a strong online presence and engaging in wide promotional activities. The plaintiff claimed to own both trademark and copyright registrations over its brand.
In September 2023, the plaintiff discovered that several restaurants across various cities were using similar or identical names and marks such as "VEER JI MALAI CHAAP WALE" and "VEERE DI MALAI CHAAP & KATHI KABAB". Despite issuing a cease-and-desist notice to one of the defendants, no response was received, prompting the plaintiff to file the present suit seeking injunctive and other reliefs.
Contentions of the Plaintiff:
The plaintiff contended that it had built significant goodwill and reputation under the mark 'VEERJI MALAI CHAAP WALE' and the impugned marks used by the defendants were identical or deceptively similar, thereby amounting to trademark and copyright infringement as well as passing off. It was submitted that the defendants copied not only the word marks but also the artistic elements of the label, all while engaging in the same line of business.
Observations of the Court:
The Court noted that the defendants had failed to file any written statement or respond to the suit despite due service, leading to the deemed admission of the plaintiff’s averments. It held, "The plaintiff has established a clear case of infringement of trade mark and copyright as well as passing off of the impugned services as those of the plaintiff."
Further, while analyzing the applicability of Order XIII-A CPC, the Court cited Su-Kam Power Systems Ltd. v. Kunwer Sachdev and held, "Order XIIIA, CPC would be attracted if the Court, while hearing such an application, can make the necessary finding of fact, apply the law to the facts and the same is a proportionate, more expeditious and less expensive means of achieving a fair and just result."
The Court also emphasized the defendants’ deliberate evasion and refusal to appear or contest the matter, relying on the precedent in M/s Inter Ikea Systems BV v. Imtiaz Ahamed & Anr to award damages.
The decision of the Court:
The Court decreed the suit in terms of the plaintiff’s prayers against defendants no.2 to 6, restraining them from further infringing use of the marks and label. Additionally, the Court awarded damages and costs amounting to Rs. 5,00,000/- in favour of the plaintiff, with each defendant directed to pay Rs. 1,00,000/- individually. All pending applications were disposed of accordingly.
Case Title: MS Veerji Restaurant Private Limited vs. Yash Rai & Ors.
Case No.: CS(COMM) 862/2023
Coram: Justice Amit Bansal
Advocate for Petitioner: Adv. S. Nithin
Advocate for Respondent: None
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