In commercial suits, summary judgment can be passed without recording evidence
This was held by the Hon’ble High Court at Delhi in the matter Sandisk LLC & Anr v. Memory World, CS (COMM) No. 659/2018 on 12th September, 2018.
Challenge
In a suit for permanent injunction restraining infringement of trade mark, rendition of accounts, damages etc. against the defendant, the High Court of Delhi vide its order dated 27.02.2018 granted an ex-parte ad-interim injunction against the defendant to make an inventory and take custody of all infringing products and their packaging bearing Plaintiff’s trademark “Sandisk” and the Red Frame logo and return the infringing goods to the defendant on Superdari. The Defendant appeared on 27.04.2018 and thereafter was proceeded ex-parte on 31.07.2018 wherein the ex parte ad interim injunction order was confirmed till the disposal of the suit. Plaintiff possessed both common law trade mark rights as well as trade mark registrations for the mark “Sandisk” in more than 150 countries. Therefore, the plaintiff had pleaded that the suit be decreed as no purpose will be served in leading ex-parte evidence in the form of affidavit by way of examination in chief.
Held
The Hon’ble Court while placing reliance on Order XIII-A of the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015, which empowers the Court to pass a summary judgment without recording evidence in the event it appears that the defendant has no prospect of defending the claim and lack of compelling reason why the claim should not be disposed of, it was held that it was a clear case of infringement of the Plaintiff’s registered trademark and its product packaging to sell counterfeit products with a view to trade upon and benefit from the reputation and goodwill of the Plaintiffs mark as also to pass off the Defendant’s products as the Plaintiffs’. The suit was decreed in favour of the Plantiffs with a direction that the infringing goods seized by the Local Commissioner would be delivered to the representative of the Plaintiff for destruction within fourteen days of the order.