Delhi High Court in Steelbird Hi-Tech India Ltd. v. Asia Fibre Glass Products & Anr., passed a decree in favour of the plaintiff for recovery of damages in the sum of Rs.96,08,625/-; and recovery of incurred expenses of about ₹3,15,000/- in the litigation
Facts of the case are that the defendants were found to be engaged in manufacturing and selling helmets bearing the design identical to the plaintiff’s design. The plaintiff’s product under the said design has met with substantial success and came to be exclusively identified by members of trade and public in general with the plaintiff and the plaintiff has substantial goodwill and reputation with respect to that design. The product of the defendants with the design of the plaintiff is known as “Monarch”
Delhi High Court held that since no one appeared for the defendants, the defendants having been proceeded against ex-parte and having not led any evidence, the issues, onus whereof was on the defendants, have to be decided against the defendants and in favour of the plaintiff.
Justice Rajiv Sahai further enquired from the counsel for the plaintiff, how the plaintiff can be entitled by way of damages to the entire sale proceeds of the subject helmet from the defendants in as much as the said sale proceeds are inclusive of costs of manufacture and sale. The counsel for the plaintiff agreed that the plaintiff would be entitled only to the profits earned by the defendants. On enquiry as to the component of profit in the aforesaid volume of sales, the counsel for the plaintiff stated that the element of profit would be to the extent of 15% to 20% of the gross sales and thus would be ₹96,08,625/- @ of 15% per annum.
Therefore, on the basis of ex parte unrebutted evidence of the plaintiff, Court assessed the damages to which the plaintiff is entitled, at ₹96,08,625/-.
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