KONINKLIJKE PHILIPS ELECTRONICS NV Vs. KANTA ARORA

JUDGEMENT

(1.) This suit for permanent injunction, passing off, damages, rendition of accounts and delivery up etc., was accompanied by an application for ad-interim injunction, in which the defendants expressed their willingness to give up the trade mark "PHILIPS", provided reasonable time was granted to them to change over to a new trade mark. On behalf of the plaintiff's that proposal was accepted and time till 31st March, 2002 given to the defendants to adopt a distinctively dis-similar trade mark. Shortly after the order of this Court dated 4th April, 2002 in which that arrangement was recorded, defendant No. 1 appeared to repudiate the same. This changed stance on the part of the defendants was viewed by this Court as an attempt to over- reach the process of law with the result that a notice was issued to defendants No. 1 & 3 to show cause why appropriate action under the Contempts of Courts Act be not initiated against them. The Court also prima facie felt satisfied that a case for issue of an ad-interim injunction was made out by the plaintiffs, restraining the defendants from manufacturing, selling or offering for sale its product under the trade mark "PHILIPS" and from passing off the goods manufactured by it as that of the plaintiff's. The defendants have in IA No. 6363/2002, sought vacation of the said interim order.

(2.) The factual backdrop in which the controversy arises at may be summarised as under:

(3.) Plaintiff No. 1 company is incorporated under the Dutch laws. Plaintiff No. 2 is an Indian company incorporated under the Indians Companies Act in which 83% equity share is held by plaintiff No. 1. The parent company has permitted its subsidiary to sue the registered trade marks, which inter-alia consist of the word "PHILIPS" in respect of the goods manufactured or marketed by the said company. The user is, however, under strict supervision and control of plaintiff No. 1, owner of the trade mark.