The Delhi High Court has requested Shree Vallabh Metals’ counsel to explore potential resolution of the suit, considering the defendant’s readiness to accept a permanent injunction against manufacturing products under the “MAX FRESH” mark. However, the defendant seeks the plaintiff’s abandonment of claims for damages and costs.
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NEW DELHI: The Delhi High Court has urged the counsel for Shree Vallabh Metals to consider resolving their ongoing lawsuit against Cello Household Private Limited. This suggestion follows a notable statement from Cello’s Chief Operating Officer, expressing readiness to accept a decree of permanent injunction.
The COO stated-
“We are prepared to accept a permanent injunction as requested by the Plaintiff in this suit, as we have no intention of producing any products under the ‘MAX FRESH’ mark or any similar mark.”
provided Shree Vallabh Metals agrees to relinquish its claims for damages and costs.
In an order passed on May 24, Justice Sanjeev Narula granted permission to the Authorized Representative of Shree Vallabh Metals and their counsel to inspect the defendant’s factory for unsold stock of the disputed goods.
Justice Narula directed Advocate Anirudh Bakhru, appearing for the plaintiffs, to take instructions on whether the suit could be resolved based on the defendants’ statement.
The matter is scheduled for further hearing on August 9, 2024.
This legal matter began when Shree Vallabh Metals filed a suit against Cello Household Private Limited, alleging trademark infringement. The dispute centers on the use of the mark “MAX FRESH” by Cello, which Shree Vallabh Metals claims infringes on their trademark rights.
In October 2023, the Delhi High Court issued an injunction against Cello, prohibiting further manufacturing of products under the “MAX FRESH” trademark with immediate effect. The court allowed Cello until March 31, 2024, to exhaust their existing stock. Despite this, Shree Vallabh Metals discovered in April and May 2024 that tiffin boxes purchased from an e-commerce platform were manufactured by Cello in November 2023 and March 2024, indicating potential non-compliance with the court’s injunction order.
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Given these findings, the court’s recent directive for an inspection of Cello’s factory underscores the seriousness of ensuring adherence to the injunction. Justice Narula’s approach seeks to facilitate a resolution that could potentially avoid protracted litigation, provided both parties are willing to negotiate terms agreeable to both sides.
The upcoming hearing on August 9, 2024, will be crucial in determining whether a resolution can be reached based on the defendants’ willingness to cease using the disputed trademark and the plaintiffs’ readiness to forego claims for damages. This case highlights the complexities of trademark disputes and the judicial system’s role in encouraging amicable settlements while upholding legal protections for intellectual property.
The Delhi High Court has recently intensified scrutiny in the trademark dispute involving two prominent kitchenware companies, Vallabh Metals and Cello Plastic Industrial Works, over the “MAX FRESH” trademark. Vallabh Metals, which adopted the ‘MAX FRESH’ trademark back in 2010 and obtained its registration, alleges that Cello Plastic’s use of the “CELLO MAXFRESH” brand for similar products infringes upon its registered trademark.
In a recent hearing, Justice Narula of the Delhi High Court has directed Cello Plastic Industrial Works to produce a comprehensive affidavit detailing the goods manufactured under the contested trademark from October 21, 2023, until the present, including GST returns. This order follows Vallabh Metals’ application alleging contempt against Cello Plastic for not adhering to the court’s earlier injunction granted in October 2023, which prohibited the use of the MAX FRESH trademark by Cello Plastic.
Adding to the procedural dynamics, the court has also summoned Mukesh Kothari, COO of Cello Household Private Limited, stressing his presence in the upcoming hearings to ensure compliance and accountability from the corporate side.
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The controversy initially sparked when Cello, despite having its brand ‘CELLO’ for kitchenware, ventured to register ‘MAX FRESH’ in 2015, a move Vallabh Metals contested given their prior claim and registration. The court’s involvement seeks to untangle this dispute that now tests the boundaries of trademark law and corporate compliance.