WANDER LTD Vs. ANTEX INDIA PVT LTD

JUDGEMENT

(1.) The above two writ appeals arise out of the order of the learned single Judge dated 6-4-1990 in W.P. No. 5398 of 1989 filed by M/s. Antex India (P) Ltd. Bangalore 80 whereunder the learned Judge while quashing the impugned order dated 2-12-1989 issued by the State Drug Controller, Tamil Nadu in his reference No. 7771/IW/ 1/89, further directed the said Authority to pass orders by exercising the powers for cancellation of the licence issued to the appellant in W.A. No. 527 of 1990 (Alfred Berg and Company (I) Private Ltd. Madras-7) to manufacture a drug under the brand name Cal-De-Ce', in the light of the observations contained in the judgment, after affording a fair and reasonable opportunity to the appellants in W.A. Nos. 526 and 527 of 1990. The appellant in W. A. No. 526 of 1990 is the third respondent in the writ petition (M/s Wander Limited, Bombay-18) and the appellant in W.A. No. 527 of 1990 is the second respondent in the writ petition.

(2.) It is necessary to set out certain facts in detail which will go to show that the course adopted by us in the disposal of the writ appeals will be the proper and appropriate one on their peculiar nature.

(3.) The appellant in W.A. No. 526 of 1990 hereinafter referred to as "Wander" and the writ petitioner hereinafter referred to as 'Antex' entered into an agreement dated 28-3-1986 under which the writ petitioner was authorised to manufacture a pharmaceutical product and affix the trade mark 'Cal-De-Ce' which is the trade mark that was being used by Wander subject to certain terms and conditions specified therein. The sum and substance of this agreement is that Antex shall manufacture the product in accordance with the standards and specifications given by Wander and supply to them the product at such price as shall mutually be agreed upon by them, that the patent used by Wander shall at all times remain Wander's exclusive and absolute right, that Wander reserves the right to revoke the authority to affix the said trade mark given to Antex at its discretion without assigning any reason, and that nothing in the agreement shall be deemed to preclude Wander from arranging for the manufacture or purchase of the said products by or from any other party. The other terms are not necessary for the purpose of the controversy between the parties before us. Thereupon, Antex made an application to the Drug Controller, Karnataka State who, on 20-6-1986, informed Antex that their application can be considered only if Wander surrender the permission granted to them and authorise Antex to use the trade name. It was further insisted that Wander will have to give an undertaking to the effect that they will not simultaneously manufacture the said product nor authorise anyone else to use the trade name. The undertaking, as required of Wander, was given by them on 21-6-1986. The Drug Controller, Karnataka State thereupon granted the permission on 10-7-1986 to Antex to manufacture the additional product "Cal-De-Ce" tablets (registered trade mark of M/s. Wander Ltd. Bombay) under the manufacturing loan licence in form No. 28A, after specifying the formula etc.