MEDIA TRANSASIA LIMITED Vs. INDIAN AIRLINES LIMITED

JUDGEMENT

(1.) This appeal is preferred by the appellants/plaintiffs against the judgment and order dated 14.8.2002 passed by learned Single Judge in I. A. No. 6418/2002 in Suit No. 1198/2002. The appellants have filed the aforesaid suit for declaration and permanent injunction against the defendants/respondents and in this Suit I.A.6418/2002 was filed which was an application under Order XXXIX Rules 1 and 2 read with Section 151, CPC. Through this application the appellants wanted ad interim injunction in their favour and to restrain the respondents 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 appellants' magazine named "SWAGAT". This application has been dismissed by the learned Single Judge vide impugned order which is subject matter of the present appeal.

(2.) It is imperative to take stock of the jejune facts of the case in order to appreciate the controversy involved: The appellants had entered into an agreement dated 14.5.1998 with Indian Airlines/respondent No. 1 (hereinafter referred to as IA 'for short') for publication of IA's in-flight magazine titled "SWAGAT". As per this agreement the appellants agreed and undertook to print, publish and provide LA the in-flight magazine "SWAGAT" with monthly 12 issues per year comprising at least 84 pages to be printed on 100 gsm imported art paper and 300 gsm imported art card cover (Japanese or similar quality). Total cost of printing, publishing and producing this magazine is to be borne by the appellants without any liability on the part of the LA. The appellants also agreed to print and deliver 60,000 copies free of cost. The magazine is to be printed and published by the appellants at their costs without any remuneration from the LA. In fact, the appellants have agreed to pay to LA a sum of Rs. 8,75,000/- per month and for fulfilment of this obligation on the part of the appellants they had furnished a bank guarantee for Rs. 50 lakhs. However, the appellants are entitled to all the proceeds from advertisement appearing in the magazine. LA is given right to publish two coloured full page advertisements in every issue of the magazine free of cost so as to generate goodwill among public and promote travel on LA. In addition the provision for aforesaid features, the agreement also deals with contents of the magazine, warranty, constitution of the editorial board and meetings of the editorial board. Duration of the agreement is 5 years starting from June, 1999 and expiring on 31.5.2004. The appellants and LA also agreed in the said agreement that in case of any disputes only Courts in Delhi would have jurisdiction for filing any suit in relation to the said agreement. Agreement is to be governed by the laws of India.

(3.) In terms of the aforesaid agreement the plaintiffs are printing and supplying 60,000 copies of the magazine "SWAGAT" to LA every month and are also paying royalty of Rs. 8,75,000/- per month.