MEDIA TRANSASIA INDIA LIMITED Vs. INDIAN AIRLINES LIMITED

JUDGEMENT

(1.) This application under Order 39 Rules 1 & 2 read with Section 151 of the Code of Civil Procedure is for grant of ad interim injunction in favour of the plaintiffs to restrain the defendants from placing on board of Indian Airlines and Alliance Air Flights, their offices and in lounges at various Airports in the country, any other in flight magazine except the plaintiffs magazine named "SWAGAT". In the course of the arguments, however, Shri Gopal Subramanium, Sr. Advocate for the plaintiffs has limited his prayer to interim injunction for restraining the defendant No.1 from putting on the flights of Indian Air Lines only the proposed Magazine "DARPAN" which is being printed by defendant No.3 for defendant No.2, Alliance Air.

(2.) The facts relevant for the disposal of this application, briefly stated, are that the plaintiffs have filed a suit for declaration and permanent injunction against the defendants alleging that the plaintiffs had entered into an Agreement dated 14.5.1998 with defendant No.1 in regard to the publication of an In flight Magazine titled "SWAGAT". According to the plaintiffs all over world an in-flight Magazine is exclusive in character and is identified as the brand ambassador of the concerned Airlines and as such has exclusivity. According to the plaintiffs their agreement of 1998 subsists upto 2004, in terms of which the plaintiffs are printing and supplying 60,000/- copies of the magazine "SWAGAT" to defendant No.1 every month for placing the same on board the flights of Indian Airlines defendant No.1 and the Alliance Air-defendant No.2. The plaintiffs are not only supplying 60,000 copies every month free of cost but in addition are paying a royalty also of Rs.8,75,000/- per month to defendant No.1 for the privilege of exclusive circulation rights. They are also providing free advertising space worth of Rs. 5,20,000/- to defendant No.1 by giving it two full page advertisements. Under the Agreement the ratio of the editorials and advertising space is fixed and the only benefit that the plaintiffs derive out of the Agreement is by way of the advertisements which they receive for the magazine.

(3.) The plaintiffs allege that in or about October, 2001 they were shocked to see an advertisement in "Times of India" by which the defendant No.2, Alliance Air, had issued a tender seeking bids for appointing an agency to undertake designing and printing of its in-flight monthly magazine. The plaintiffs made efforts to obtain details about this advertisement and sought clarification from defendant No.1 also but there was no response. In the month of May 2002 the plaintiffs discovered that defendant No.3 was openly interviewing people in the travel and hospitality industry in connection with its new in-flight Magazine to be printed for defendant No.2 Alliance Air. It was being represented that the said in-flight Magazine was meant for distribution in Indian Airlines as well as Alliance Air flights. According to the plaintiffs the impugned action on the part of the defendants was in violation of the plaintiffs rights and privileges in regard to the exclusivity of printing and circulating "SWAGAT" on Indian Airlines flights and was in violation of the agreement dated 14.2.1998. On 3.6.2002 the defendant No.3 announced the launch of its new in-flight magazine for Alliance Air and Indian Airlines and the letters issued by defendant No.3 invited proposals for advertising space in its proposed magazine. On 10.6.2002 the plaintiffs wrote a letter to the Chairman cum-Managing Director of defendant No.1 seeking clarifications on the matter but there was no response. On 13.6.2002 and 14.6.2002 the plaintiffs wrote two more letters to defendant No.1. Only on 26-6-2002, a letter was received from defendant No.1 in which a stand was taken that the contract between the plaintiffs and defendant No.1 in no way gave exclusivity of circulation to plaintiffs magazine "SWAGAT". The plaintiffs alleged that the Agreement between defendants No.2 and 3, in regard to the printing and publication of another in flight magazine was in violation of the Agreement between the plaintiffs and defendant No.1 as defendants had no right to put any other inflight magazine on Indian Airlines Flight and was aimed at causing huge financial loss to the plaintiffs. The application under Order 39 Rule 1 and 2 of the CODE OF CIVIL PROCEDURE, 1908 for ad interim injunction was also based on the aforesaid pleadings.