Trademark 539686
Trademark 539686
versus
CORAM:
HON'BLE MR. JUSTICE SANJEEV NARULA
ORDER
% 22.04.2024
I.A. 8559/2024 (seeking exemption from filing certified/ fair typed copies of
annexures)
1
It is noted that at a later point in time, an appearance slip was submitted on behalf of the Respondent
bearing the names of Mr. Anshul Gupta and Mr. Shubham Kaushik, Advocates. However, in view of the
fact that there was no appearance when the matter was taken up and no arguments were addressed on
behalf of the Respondent, the said appearance slip has not been accepted.
2
(“the Agreement”)
3
(“Arbitration Act”)
4
(“TM Act”)
(a) cease to operate and conduct the Restaurant Business from the Outlet;
Provided however, that the Franchisee shall not be relieved of any accrued
obligations under this Agreement including any obligation to pay any
monetary dues to the Franchisor, as per the terms of this Agreement;
(d) cease to use the Licensed Marks and desist from using any mark
confusingly or deceptively similar to the Licensed Marks.”
6.4. In October, 2023, upon noticing that the Respondent was acting in
breach of their obligations under the Agreement, the Petitioner issued a
show cause notice dated 7th November, 2023, seeking an explanation
regarding such breaches and calling upon the Respondent to rectify the
same. The Respondent replied to the aforesaid notice on 15th November,
2023, refuting the allegations made by the Petitioner. Per contra, they
1. The first part has preferred the legal way for the issues between both the
parts without any prior written information and e-mails. Therefore wef
date of Show Cause Notice, Franchisee Obligations and related clauses
in the said agreement will be kept on hold till disposal of these issues.”
[Emphasis Supplied]
6.5. The above stand reflects that the Respondent has no intention to fulfil
their obligations under the Agreement. Therefore, being left with no choice,
the Petitioner terminated the Agreement vide notice of termination dated 18th
December, 2023. In terms of Article 13.3(i) of the Agreement, the
termination notice applied with effect from 28th December, 2023, after the
expiry of the 10-day notice period. The said termination notice has not been
challenged by the Respondent.
6.6. Despite such termination, as per the Petitioner’s knowledge, the
Respondent is continuing to operate the franchise outlet under the
Petitioner’s registered trademark “BURGER SINGH”. This amounts to
infringement of the Petitioner’s statutory rights as well as violation of the
Respondent’s obligations, as delineated in Article 14.1 of the Agreement.
Moreover, the Petitioner has also received complaints from customers
regarding food items supplied by the Respondent. In absence of any
contractual relationship between the parties, the Petitioner is no longer able
to exercise quality control mechanism on the Respondent’s operations and
as such, the Respondent’s activities are causing them loss of reputation and
goodwill.
6.7. In such circumstances, the Petitioner has applied under Section 9 of
SANJEEV NARULA, J
APRIL 22, 2024/nk