Sagar Ratna Restaurants Pvt. Ltd. v. Shree Shubh Rathnam Associates
In the High Court of Delhi
CS (Comm) 607/2022
Before Justice Prathiba M. Singh
Decided on September 25, 2023

Relevancy of the case: Jurisdiction of Delhi HC IP Division over a trademark dispute arising out of a franchise agreement

Statutes and Provisions Involved

• The Information Technology Act, 2000
• The Delhi High Court Intellectual Property Rights Division Rules, 2022 (“Rules”)

Relevant Facts of the Case

• Both parties entered into a franchise agreement granting the defendant the right to use its intellectual property, including trademarks.
• A conflict arose between the parties over the execution and terms of these agreements, mainly related to the franchisor’s intellectual property usage.
• A parallel trademark dispute was pending between the same parties in the Commercial Court, Saket.

Prominent Arguments by the Advocates

• The plaintiff’s counsel argued that the dispute concerned intellectual property rights granted under the franchise agreements. Hence, as per the Rules, it falls under the jurisdiction of the IP Division of the Delhi High Court.
• The defendant’s counsel argued that the dispute was primarily contractual and not a trademark dispute.

Opinion of the Bench

• The case fell within the jurisdiction of the Delhi High Court IP Division. The court relied on the broad definition of intellectual property rights in the franchise agreements and the relevant rules.
• Bench urged both parties to consider negotiations and explore a mutually acceptable solution.

Final Decision

• The court scheduled a further hearing to resolve the dispute between the parties.