YOUNG ACHIEVERS Vs. IMS LEARNING RESOURCES PVT LTD

JUDGEMENT

(1.) The respondent filed a suit for permanent injunction seeking a restraint against infringement of a registered trademark, infringement of copyright, passing off of damages, rendition of accounts of profits, delivery up, etc. qua the trademark/words IMS of the respondent. The respondent claims to be a leading player in management entrance test coaching with specific focus on Common Admission Test (CAT). In the course of business, the respondent entered into arrangements to carry out its business through its business partners and franchisees, making available its proprietary and copyrighted course material and the benefit of its trademark "IMS". One such arrangement was arrived at with the appellant under an agreement dated 1.4.2007, which was valid for a period of three (3) years. On expiry of the said agreement by efflux of time a fresh agreement was executed on 1.4.2010 on similar terms & conditions. This agreement was to be valid till 31.3.2013. However, this agreement was mutually terminated prematurely in terms of a document called Exit Paper. This Exit Paper dated 1.2.2011 records the mutually agreed terms bringing the arrangement inter se the parties to an end.

(2.) It appears that prior to institution of the suit, the respondent complained about the appellant's breach of the contractual obligations contained in the Exit Paper dated 1.2.2011 including the use of the trademark IMS but to no avail, resulting in institution of the suit.

(3.) The appellant filed IA No. 818/2012 under Section 8 of the Arbitration & Conciliation Act, 1996 predicated on clause 20, an arbitration clause, incorporated in both the agreements dated 1.4.2007 and 1.4.2010. This application has been dismissed by the impugned order dated 16.4.2012 of the learned single Judge.