Facts
The parties entered into a Settlement Agreement on November 24, 2024, regarding trademark disputes in C.O.(COMM.IPD-CR) 1/2022 and 2/2022, which the High Court took on record on November 29, 2024.
Source reference: p. 2, para. 1-2Pushpa Bansal filed a contempt petition alleging that Mahaveer Bansal continued using the restricted mark ‘SHREE JI’.
Source reference: p. 2, para. 3Conversely, Mahaveer Bansal filed a cross-contempt petition alleging that Pushpa Bansal violated paragraph 14 of the Agreement by using the word ‘Bansal’ predominantly in tax invoices.
Source reference: p. 2, para. 4-5A Local Commissioner (LC) appointed by the court found traces of old ‘SHREE JI’ packaging and promotional material at Mahaveer Bansal’s premises.
Source reference: p. 3, para. 6Issues
1. Whether the respondent, Mahaveer Bansal, committed willful disobedience of the Settlement Agreement by failing to withdraw trademark applications and continuing the use of the mark ‘SHREE JI’.
Source reference: p. 2, para. 32. Whether the petitioner, Pushpa Bansal Trading, violated the terms of the Settlement Agreement by the manner in which the ‘Bansal’ mark was used on commercial invoices.
Source reference: p. 2, para. 43. Whether the presence of residual packaging material at the respondent’s premises constitutes contumacious conduct warranting punishment under the Contempt of Courts Act.
Source reference: p. 3, para. 6Law Applied
The Court applied the principles of civil contempt arising from the breach of an undertaking or settlement agreement recorded by a court.
Source reference: p. 4-7, para. 8-9It relied on the doctrine of bona fide compliance, where an unconditional apology and proactive steps to rectify a breach can mitigate a finding of "willful" disobedience.
Source reference: p. 4-7, para. 8-9The court also exercised its inherent power to issue directions for the destruction of infringing material and the shifting of costs (equitable restitution) to the party responsible for the delay in compliance.
Source reference: p. 7-8, para. 11, 14Reasoning
The Court analyzed Mahaveer Bansal’s compliance through his reply affidavit, noting that he had subsequently withdrawn all relevant trademark, copyright, and opposition applications across various schedules of the Settlement Agreement.
Source reference: p. 4-5, para. 5Regarding the material found by the LC, the Court accepted the explanation that the items were "old and residual packaging" and "leftover stock" rather than evidence of ongoing manufacturing of ‘SHREE JI’ products, noting that no active production lines for the prohibited mark were found.
Source reference: p. 5-6, para. 9The Court found that while there was a delay in compliance, it was occasioned by a "genuine misunderstanding" rather than deliberate defiance.
Source reference: p. 7, para. 9To resolve the remaining physical infringement issues, the Court determined that the seizure and destruction of residual goods would suffice to uphold the spirit of the settlement.
Source reference: p. 7, para. 11Holding
The Court accepted the unconditional apology of Mahaveer Bansal and held that no further orders were required as substantial compliance with the Settlement Agreement had been achieved.
The Court ordered Mahaveer Bansal to destroy the seized products in the presence of an authorized representative of Pushpa Bansal. Due to the delayed compliance which necessitated the appointment of a Local Commissioner, the Court directed Mahaveer Bansal to refund Rs. 2.50 Lacs to Pushpa Bansal Trading within four weeks. Both contempt petitions were disposed of with all other legal contentions kept open.
Source reference: p. 7, para. 11; p. 8, para. 14-18Original Court PDF
Mahaveer BansalvsSuresh Bansal & Ors.
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