Plaintiff filed
a suit praying for relief against defendant No.1 so as to prevent
infringement of the rights of the plaintiff without obtaining the licence.
The defendant owns cinema halls in Maharashtra and Mumbai where
infringement is alleged and the entire cause of action, as alleged in the
plaint, has arisen in Mumbai, Maharashtra.
Civil Suit FAO (OS) No. 359/2007 has been filed in the High Court at
Delhi, by virtue of the fact that the Branch Office of the plaintiff is
situated at Delhi and the plaintiff is carrying on the business at Delhi.
However, it is not disputed that the plaintiff’s Head Office is situated at
Mumbai.
The objection was raised by the defendant with regard to the
territorial jurisdiction of the court at Delhi. The single Bench and the
Division Bench of the High Court have upheld the objection and held that
the suit should have been filed in the facts of the case, in the court at
Mumbai. Hence, the impugned order has been questioned in the appeals.
The Code of Civil Procedure, 1908 contains the provisions under
section 20 with respect to institution of the suits where defendant resides
or cause of action arose. Section 20 of the Code of Civil Procedure reads
thus :
“Section 20 - Other suits to be instituted where defendants reside or cause
of action arises. -- Subject to the limitations aforesaid, every suit shall
be instituted in a Court within the local limits of whose jurisdiction --
(a) the defendant, or each of the defendants where there are more than
one, at the time of the commencement of the suit, actually and voluntarily
resides, or carries on business, or personally works for gain; or
(b) any of the defendants, where there are more than one, at the time of
the commencement of the suit, actually and voluntarily resides, or carries
on business, or personally works for gain, provided that in such case
either the leave of the Court is given, or the defendants who do not
reside, or carry on business, or personally work for gain, as aforesaid,
acquiesce in such institution; or
(c) the cause of action, wholly or in part, arises.
[Explanation]. : A corporation shall be deemed to carry on business at its
sole or principal office in India or, in respect of any cause of action
arising at any place where it has also a subordinate office, at such
place.”
Section 62 of the Copyright Act is extracted below :section 20 with respect to institution of the suits where defendant resides
or cause of action arose. Section 20 of the Code of Civil Procedure reads
thus :
“Section 20 - Other suits to be instituted where defendants reside or cause
of action arises. -- Subject to the limitations aforesaid, every suit shall
be instituted in a Court within the local limits of whose jurisdiction --
(a) the defendant, or each of the defendants where there are more than
one, at the time of the commencement of the suit, actually and voluntarily
resides, or carries on business, or personally works for gain; or
(b) any of the defendants, where there are more than one, at the time of
the commencement of the suit, actually and voluntarily resides, or carries
on business, or personally works for gain, provided that in such case
either the leave of the Court is given, or the defendants who do not
reside, or carry on business, or personally work for gain, as aforesaid,
acquiesce in such institution; or
(c) the cause of action, wholly or in part, arises.
[Explanation]. : A corporation shall be deemed to carry on business at its
sole or principal office in India or, in respect of any cause of action
arising at any place where it has also a subordinate office, at such
place.”
“62. Jurisdiction of court over matters arising under this Chapter. --
(1) Every suit or other civil proceeding arising under this Chapter in
respect of the infringement of copyright in any work or the infringement of
any other right conferred by this Act shall be instituted in the district
court having jurisdiction.
(2) For the purpose of sub-section (1), a "district court having
jurisdiction" shall, notwithstanding anything contained in the Code of
Civil Procedure, 1908 (5 of 1908), or any other law for the time being in
force, include a district court within the local limits of whose
jurisdiction, at the time of the institution of the suit or other
proceeding, the person instituting the suit or other proceeding or, where
there are more than one such persons, any of them actually and voluntarily
resides or carries on business or personally works for gain.”
“134. Suit for infringement, etc., to be instituted before District Court.
-- (1) No suit--
(a) for the infringement of a registered trade mark; or
(b) relating to any right in a registered trade mark; or
(c) for passing off arising out of the use by the defendant of any trade
mark which is identical with or deceptively similar to the plaintiff's
trade mark, whether registered or unregistered,
shall be instituted in any court inferior to a District Court having
jurisdiction to try the suit.
(2) For the purpose of clauses (a) and (b) of sub-section (1), a
"District Court having jurisdiction" shall, notwithstanding anything
contained in the Code of Civil Procedure, 1908 (5 of 1908) or any other law
for the time being in force, include a District Court within the local
limits of whose jurisdiction, at the time of the institution of the suit or
other proceeding, the person instituting the suit or proceeding, or, where
there are more than one such persons any of them, actually and voluntarily
resides or carries on business or personally works for gain.
Explanation.--For the purposes of sub-section (2), "person" includes the
registered proprietor and the registered user.”
In our opinion, the provisions of section 62 of the Copyright Act and
section 134 of the Trade Marks Act have to be interpreted in the purposive
manner.
No doubt about it that a suit can be filed by the plaintiff at a
place where he is residing or carrying on business or personally works for
gain.
He need not travel to file a suit to a place where defendant is
residing or cause of action wholly or in part arises.
However, if the
plaintiff is residing or carrying on business etc. at a place where cause
of action, wholly or in part, has also arisen, he has to file a suit at
that place, as discussed above.
Thus, for the aforesaid reasons mentioned
by us in the judgment, we are not inclined to interfere with the orders
passed by the High Court. Appeals are hereby dismissed. No costs.