Entire court fees can be refunded, once dispute stands resolved in terms of settlement agreement: Delhi HC

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Read Judgment: HELL ENERGY vs. BRAHM SHAKTI PRINCE BEVERAGES

Pankaj Bajpai

New Delhi, October 21, 2021: The Delhi High Court has observed that entire court fees can be refunded to plaintiff (Hell Energy), when suit is amicably resolved through mediation and parties have finally settled their disputes in terms of the Settlement agreement. 

The Bench of Justice Suresh Kumar Kait therefore decreed the suit in favour of the plaintiff according to the Settlement Agreement. 

The facts of the case was that the plaintiff filed a suit u/s 26 of the Trade Marks Act, 1999 seeking permanent injunction from infringement/unauthorized use of trade name /trade mark/ trade dress/copy right/passing of/dilution and damages/rendition of accounts of profit against the defendant. 

The plaintiff claimed to be in the business of production and sale of energy drinks and beverages under the brand name “HELL ENERGY” and obtained registration in respect of trade mark for the goods “beer; mineral and aerated waters; other non-alcoholic beverages; fruit drinks and fruit juices; syrups and other preparations for making beverages”, in Hungary and other countries. 

During the relevant year, the plaintiff had filed an application for opposition against application of defendant seeking registration of trade mark ‘Hellxxx’ in Class 32 before the Registrar of Trade Marks, Delhi and approached the Court submitting that the defendant (Brahm Shakti Prince Beverages) had no legitimate right to use the mark “HELL” with or without the suffix “xxx” or any other trade mark which was identical/ deceptively or confusingly similar to that of the plaintiff. 

At the request of defendant, the matter was referred to Delhi High Court Mediation and Conciliation Centre for parties to explore settlement of disputes.

After considering the plaint, the High Court noted that the subject matter of the present suit had been amicably resolved through mediation and parties had finally resolved their disputes in terms of Settlement-Agreement dated September 21, 2021. 

After studying the Mediation report and finding it to be valid & lawful, the Single Judge decreed the present suit as per the terms mentioned in Settlement-Agreement which shall form part of the decree. 

A Division Bench of this Court in Nutan Batra Vs. M/s. Buniyaad Associates , relying upon a decision of the Supreme Court in Afcons Infrastructure Limited v. Cherian Varkey Construction Company Private Limited , had allowed an appeal against the order of refusal of refund of entire court fee in a suit, observed Justice Kait. 

Further, Justice Kait found that a Coordinate Bench of the Court in Munish Kalra Vs. Kiran Madan and Others, taking into account the fact that the dispute stands amicably settled between the parties, had relied upon decisions in Afcons Infrastructure Limited(Supra) and Nutan Batra(Supra) and had directed refund of the entire court fees. 

Hence, the High Court directed the Registry to issue necessary certificate/ authorization in favour of the plaintiff’s counsel to seek refund before the appropriate authorities.

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