Delhi HC Rules In Favor Of Castrol In Trademark Infringement Suit, Says Compromise In Product Quality Can Adversely Affect Customers

The Delhi High Court has awarded costs of Rs. 1 lakh in favor of Castrol India Limited in a trademark infringement suit filed by it against manufacturing of identical products by the defendant-entity using its registered trademarks.

Justice Prathiba M Singh observed that the defendants were engaged in manufacturing and sale of counterfeit products using Castrol's trademarks and decreed the suit on the ground of lack of any defense.

“The copying of so many marks, labels, packaging and containers is a deliberate act on behalf of the Defendants to gain monetarily by selling counterfeit products. Clearly, the present is a case of counterfeiting of lubricants, greases and oils which are used in automobiles and any compromise in the quality of such products could be having adverse consequences upon the customers,” the court said.

It was Castrol's case that the defendants were infringing its registered trademarks by selling identical products under the brand name "VOLTRONIC", used in conjunction with its marks 'ACTIVE', 'RADICOOL', 'GTX', 'POWER 1', 'MAGNATEC' and 'EDGE'.

On behalf of Castor, it was further submitted that the defendants' products bearing the mark "VOLTRONIC ACTIVE" were listed for sale on e-commerce websites including Amazon.

After repeated opportunities were granted to the defendants, they were proceeded ex-parte on September 09 last year. An application was then moved by the defendants seeking setting aside of the order in question, stating that since no recovery was made by the Local Commissioner from their premises, they were not guilty of infringement.

On instructions, the defendants' counsel submitted that defendants had no objection if the suit was decreed and that they were willing to pay Rs.1 lakh as costs to Castrol for partial reimbursement of the same.

“After having perused the application, the Court is clear that there is no justifiable cause to set aside the ex parte order. Ld. counsel for the Defendants, Mr. Gupta, ld. Counsel for the Defendants has continued to appear on many occasions but no written statement has been filed. However, since the Defendants are willing to suffer a decree and pay some costs, the said order is set aside,” the court said.

Justice Singh directed the defendants to pay the costs in three instalments.

“Subject to the above amount being paid, no further damages or costs are being pressed by the Plaintiff. However, if the said amount is not paid, the Plaintiffs are free to seek restoration of the present suit for the purposes of claiming damages/rendition of accounts,” the court added.

Advocates Afzal B Khan, Samik Mukherjee, Suhrita Majumdar & Sharad Besoy appeared for plaintiffs (Castrol)

Advocates Sanjeev Gupta, Pritama, Rahul Saini and Ravish Sharma appeared for defendants

Case Title: CASTROL LIMITED & ANR. v. VOLTRANIC INDIA LUBRICANTS & ORS.

Citation: 2023 LiveLaw (Del) 1226

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