GUJARAT BOTTLING COMPANY LTD. Vs. COCA COLA COMPANY

JUDGEMENT

(1.) These two cross appeals are directed against ad interim order dated 22 Feb., 1995, passed by learned single Judge on notice of motion No. 316 of 1995 in Suit No. 400 of 1995.17 By detailed speaking order, the learned single Judge granted ad interim relief in terms of prayer (a)(ii) of notice of motion. The learned Judge observed that detail scrutiny is necessitated at the hearing of the motion. Being aggrieved by ad interim order, defendant No. 1 has preferred appeal No. 183 of 1995 while the plaintiffs have preferred appeal No. 191 of 1995

(2.) The parties through their counsel submitted that as decision in the appeals would have impact on the motion pending before the learned single Judge, it is desirable that notice of motion No. 316 of 1995 should be taken up on board and disposed of finally by this Bench so as to avoid one more appeal. The suggestion made by the counsel was extremely reasonable and, by consent of parties, the motion was taken up on board and called out for hearing. By this judgment, we are disposing of the motion finally. Shri Andhyarujina, learned counsel appearing on behalf of the plaintiffs, sought amendment of prayer (a)(iii) of the notice of motion in terms of draft handed in and marked 'Y'. Though the prayer for amendment of the motion was resisted by the respondents - defendants, the prayer was granted.

(3.) The controversy in this litigation reveals the cut-throat competition between two multinational giants carrying on business in beverages. The plaintiff - Coca Cola Company, is a public corporation incorporated under the laws of State of Delaware, USA, and is (the) largest soft drink company in the world, with the operations in 195 countries. The company is engaged in the manufacture and sale of concentrates and beverage bases which are used in the preparation of certain non-alcoholic beverages and which beverages are available for sale in bottles and other containers. The defendant No. I - Gujarat Bottling Company Limited, is an authorised bottler and owns two plants at Ahmedabad and Rajkot in the State of Gujarat. The plants have licence to prepare, package, sell and distribute finished beverages under the trade marks 'THUMS UP', 'LIMCA', 'GOLD SPOT', 'MAAZA', etc. The defendant No. 2 - Shri Pinakin K. Shah, and his family members and business associates are the majority shareholders of defendant No. 1 company and own and control approximately 78% of the shares. The defendants Nos. 3 and 4 - Ramesh Chauhan and Prakash Chauhan, hold the balance shares of 22%, of the defendant No. 1 company. The defendant Nos. 3 and 4 were engaged in the manufacture and sale of carbonated beverages under the trade marks, 'THUMS UP', 'LIMCA', 'CITRA', 'MAAZA', etc. On 12 Nov., 1993, the defendant Nos. 3 and 4 sold the business which inter alia comprised of licensing of the trade marks and preparation of the beverages bases, concentrates, formulations and intellectual property rights as well as business of marketing in the beverage bases, to Coca Cola Company. The defendant Nos. 3 and 4 in pursuance of sale, entered into various agreements for assignment of trade marks, transfer of know-how, assignment of goodwill, confidentiality on receipt of substantial consideration. In pursuance of the said transaction, Coca Cola Company became the owner of the trade marks also.