BABBAR WRECKERS PRIVATE LTD Vs. ASHOK LEYLAND LTD

JUDGEMENT

(1.) The plaintiff (hereafter referred to as "Babbar Wreckers") seeks a decree for permanent injunction against the defendants (the first defendant is hereafter called "Ashok Leyland"; the second defendant is hereafter called "Perfect" and the third defendant is hereafter called "Niles"), to restrain the manufacturing, fabrication, sale and offering for sale light recovery vehicles (LRVs) using, or reproducing in any manner engineering drawings which are the subject matter of the technical specification Nos. CQA (QFV)/VEH/STLN/003/2005 and CQA (QFV)/VEH/STLN/003/2001 (hereafter called as 2005 and 2001 specifications) and other injunctive reliefs including a decree for mandatory injunction to direct Ashok Leyland to take delivery of 50 LRVs fabricated by Babbar Wreckers. Consequential money decrees and a decree for rendition of accounts in respect of the sale of superstructure mounted on Stallion 4X4 vehicles of Ashok Leyland produced in accordance with 2005 and the 2001 specifications, are claimed.

(2.) The Court had initially granted the ex parte injunction on 4.5.2009 restraining the use of the drawings pertaining to the two specifications or even from manufacture and supply to the fourth defendant i.e. Central Government. The defendants had carried the matter in appeal; the Division Bench disposed of the appeal recording that Ashok Leyland would move an application for vacation of the interim order. Accordingly, I.A. No. 8163/2009 was filed by Ashok Leyland on which notice was served. This order proposes to dispose of the plaintiff's interim injunction application - I.A. No. 5916/2009 and the defendant's application for vacation of the interim order, I.A. No. 8163/2009.

(3.) The brief facts necessary for the case according to the suit averments are that the Babbar Wreckers claims to be engaged in manufacturing and designing wreckers (also known as LRVs) for more than 40 years and to having supplied them to various Government departments. The equipments are reliable and easy to operate and are mounted on suitable commercial vehicles. Babbar Wreckers claims to have earned substantial reputation and goodwill for the performance of its wrecker equipment and also claims to have spent considerable money in designing and development them having regard to their functionality. It is submitted that in 1980-85, one model of a wrecker known as "Babbar Model GN-7 Medium Recovery Breakdown" (BWGN-7) was designed. An application for trademark registration was made on 28.7.1983. Babbar Wreckers claims to have participated in 1995 in the India International Trade Fair and demonstrated its equipments mounted on TATA 1210D LPT to various vendees. It is submitted that in September, 1995, Central Government through the Ministry of Defence was looking for supply of LRVs and the first defendant submitted its specifications to Army Headquarters with regard to development and supply of LRV on 5/7.5 Ton Stallion MK-II on Ashok Leyland Chassis for procurement of purchase order. It is stated that this was rejected by the Ministry of Defence. Subsequently, on 9.1.1996, a technical group of the Army Headquarters wrote to the Director General, EME (Eqpt), informing that preliminary assessment of the specifications submitted by the Ashok Leyland for development of LRV on 5/7.5 Ton Stallion MK-II was found untenable. It is stated that the same letter recommended the plaintiff for development of LRVs of 7.5 Ton capacity. The plaintiff's name was recommended to Ashok Leyland. The said letter reads as follows: