Amul And Its Controversies Around Ex-Parte Interim Injunctions And Trademarks

Key Takeaways

• An Ex parte defined and explained for easy referring
• The way one can use ex parte to one’s own benefit.
• Injunctions are arranged and have suffered such serious damage that only an ex-parte ruling can provide relief.
• Temporary injunction has been used efficiently in the “Amul trademark case”.

Introduction

In the context of legal ethics, Ex parte refers to improper interaction with a party or a judge. Typically, ethical guidelines prohibit a lawyer from contacting the judge or the other party without the presence of the opposing party's counsel. Improper ex parte interaction is defined as a violation of these rules. According to the Code of civil procedure, Ex parte refers to a legal process initiated by one party without the presence of, or notification of, the other party. An Ex Parte decision is a decision made by the court in the absence of all parties involved in the dispute. A court will usually be cautious in making an ex parte motion. This is because Article 21 ensures a right to due process, and ex parte motions, by excluding one party, risk infringing on the right to due process of the excluded party. An injunction is a court process in which one of the parties seeks a court order to prevent someone from doing something or to order someone to take a specific action. First, articles 94 and 95 of the CPC establish drafting rules, according to which the court can order precautionary measures in certain circumstances and stipulate rules under Order 39.

Is an Injunction Different from a stay?

Stay usually includes a scenario or incident in which a court temporarily stops or suspends the proceedings. The injunction, however, refers to a person's restriction or prevention of any action. Stay orders are placed before a court and require that the court, when an order is issued to a party, receive the communication and come into force immediately after it is issued.

Ad-interim injunctions are issued either by an ex-parte order or if the defendant was not fully heard. The following is a common observation:

So injunctions are granted because the petitioner has suffered such serious damage that only an ex-parte ruling can provide relief.
Injunctions above mentioned are passed through severe damage caused to the petitioner in such a way that only an ex-parte order may grant relief.
Notice of the actin dispute is noticed by the Court.
The petitioner must obey the principle of uberimae fidei.
Order is temporary.

Temporary Injunction

A temporary injunction is an interim remedy pursued to retain the subject matter in its existing state, and it can often be granted on an ex parte application at any point during the suit's stay. Its goal is to retain the plaintiff's rights from being suspended.

Some Principles of temporaryinjunctions

The exercise of discretion in granting a temporary injunction should be done in a judicial manner. There can be no hard and fast rule for the court to follow in this regard. As a result, it is widely established that, before granting the Temporary Injunction, the Judge must assess whether the Application falls into the categories listed below/has Plaintiff demonstrated the following criteria.

1. Prima Facie Case
2. Irreparable Injury
3. Balance of Inconvenience
4. Other Factor

Injunctions, ex parte ad interim are dealt with in Order 39 (1) and (2), whereas interim measures, which may or may not be interim injunctions, are dealt with in Order 38 and notably Rule 5 where one wants someone to supply security. When an ex parte interim relief is granted, there are particular laws and regulations as well as practice directives that must be followed. After receiving ex parte relief, a party must immediately notify the opposing party that an ex parte injunction has been obtained against that party, and the party requesting relief must also provide a copy of the plaint and other documents on record. A party must also file a compliance report using an affidavit, which must be done under oath. It's also worth noting that failing to meet the above requirements can have serious implications.

Recent Judgement

The Delhi High Court has given Gujarat Cooperative Milk Marketing Federation Ltd, also known as 'Amul (Anand Milk Union Limited),' an ex-parte ad-interim injunction in a trademark violation petition alleging that a company was using a ambiguous mark, namely 'Amul Cookware,' for selling kitchenware and utensils.

On August 13, the court issued a notice to Maruti Metals, a tea firm, regarding the trademark infringement case, prohibiting it from dealing with the trademarks of Amul or any other mark that is identical or relatively similar to given Gujarat Cooperative Milk Marketing Federation Ltd well-known AMUL Trademarks in any way. Justice C Hari Shankar stated:
"AMUL is a characteristic term and has no etymological sense. It is ineradicably related, in the minds of the consuming public, with the products of the plaintiff. Prima facie, any use of the word "AMUL" as a trademark within any or by any other entity which may be equal to infringement." while observing a prima facie case that was made out in the favour of AMUL. The court also set a hearing date for September 9, 2021.
Anand Milk Union Ltd's Senior Advocate Sunil Dalal argued that the defendant company had fraudulently portrayed its trademark as registered by utilizing the superscript with the infringing mark. As a result, it was argued that it had used an unregistered and misleading trademark.

Any unregistered trademark is importantly a title that does not occupy any sort of legal assistance or aid. Yet, in some specific or major cases, an unregistered trademark may get some naturally given or prevalent legal perks. Such unregistered marks are defined as marks that are not registered in relation to goods or services (that is names, marks, or logos used in relation to a business) under the Trademark Act. Even though under Section 27 you cannot take action for infringement, as it is not allowed for unregistered trademarks, they can still be protected by means of common law tort of passing off. To get ahead in such a deed, it is essential to establish that an unregistered mark has comparable goodwill or reputation in connection with the product, service, or business with which it is used.

The matter has been scheduled for completion of pleadings, admission or rejection of documents, and marking of exhibits before Joint Registrar (Judicial) on October 25. Senior Advocate Sunil Dalal claimed that while Maruti Metals had another trademark that was currently pending for determination in the presence of the Registrar, the GCMMF's Rectification Application was already registered.

Conclusion

Such an analysis is important as many aspects like Recording of reasons, equitable remedy, notice, when an injunction can be granted, when an injunction cannot be granted are all based on the understanding of the concept.
In order to be able to understand the concept of injunctions, prior knowledge of interim orders is important. Efficiency and efficacy of the concepts are demonstrated and though it is commonly the Court’s decision to decide the case, the guidelines laid down always help the parties and the laymen understand the essence of the concept and act accordingly.