Commercial Court's Decision Overturned Due to Jurisdictional Challenge on Registered Design Validity
In a significant ruling, the Kerala High Court, presided over by Justice T.R. Ravi, has mandated the transfer of a design infringement case from the Commercial Court to the High Court. This decision came in light of a jurisdictional challenge raised by the petitioners, Aines Food & Beverages and others, against the validity of a registered design claimed by the respondent, Abdulla Muhammed Sali.
The case revolves around allegations of design infringement and passing off concerning a bottle design, originally filed by the respondent. The petitioners, who are defendants in the suit, contended that the design had been previously disclosed publicly in India and abroad, thus challenging its exclusivity and validity.
Citing provisions under Sections 19 and 22(4) of the Designs Act, 2000, the petitioners argued for the case's transfer to the High Court. These sections stipulate that when a defense concerning the design's validity is raised, the jurisdiction of the Commercial Court is nullified, necessitating a transfer for adjudication by the High Court.
The court referenced several precedents, including a crucial decision by the Supreme Court in the case of S.D. Containers Indore vs. Mold-Tek packaging Ltd, which underscored the distinct operational fields of Sections 19 and 22 of the Designs Act. The Supreme Court had clarified that the validity of a design, when challenged, mandates a transfer to the High Court under Section 22(4).
The Kerala High Court's judgment emphasized that the Commercial Court lacked jurisdiction post the filing of the petitioners' written statement that challenged the design's validity. Consequently, the court set aside the Commercial Court's prior order as rendered without jurisdiction and directed the immediate transfer of the case to the High Court of Kerala for further proceedings.
Bottom line:-
Once a defence challenging the validity of a design is raised under Section 22(4) of the Designs Act, 2000, the case must be transferred to the High Court for decision.
Statutory provision(s): Section 19, Section 22(4) of the Designs Act, 2000
Aines Food & Beverages v. Abdulla Muhammed Sali, (Kerala) : Law Finder Doc id # 2935217
