This case involves a dispute between New Balance Athletics Inc., the plaintiff, and New Balance Immigration Private Limited, the defendant. New Balance Athletics is a company engaged in the design, manufacturing, marketing, and sales of footwear and clothing globally, including in India. They are the registered proprietor of various trademarks, including "NEW BALANCE" and "NB." New Balance Immigration is accused of infringing on the plaintiff's trademarks by using similar marks in its corporate name, corporate logo, and domain name. The plaintiff has sought a permanent injunction and other related relief.

Court: High Court of Delhi
Date of decision: 1st June, 2023

Procedural History:
The defendant failed to appear in court despite being served, and as a result, they were proceeded against ex parte on 15th September 2022. Subsequently, on 12th October 2022, an ex parte judgment was passed in favor of the plaintiff, granting an interim injunction restraining the defendant from using the marks "NEW BALANCE" and "NB" in any manner. The defendant later filed an application under Section 151 of the Code of Civil Procedure, seeking to participate in the suit. Another application was filed by the plaintiff to place additional documents on record, showing the defendant's continued use of the impugned marks.

Issue Presented:
The court addresses the following legal issues in this case:

• Whether the defendant should be allowed to participate in the suit after being proceeded against ex parte?
• Whether the plaintiff's application to place additional documents on record should be allowed?
• Whether the plaintiff is entitled to a permanent injunction against the defendant for trademark infringement and passing off?

Rule of Law:
The court will consider the following legal principles and rules:

• Section 151 and Order IX Rule 7 of the Code of Civil Procedure, 1908 - Related to setting aside ex parte orders and allowing a defendant to participate in a suit
• Order XI Rule 1(5) of the Commercial Courts Act - Allows a party to submit additional documents during the course of a suit.
• Order XIII-A Rule 3 and 6(1)(a) of the Code of Civil Procedure - Pertaining to the filing of written statements by the defendant.
• Order XXXIX Rule 1 and 2 of the Code of Civil Procedure - Concerning temporary injunctions.
• Trademark laws and principles of passing off - Applicable to the infringement and protection of trademarks.

Analysis and Reasoning:
The court first allows the defendant to participate in the suit, considering the personal exigencies cited by the defendant's counsel and the absence of serious opposition from the plaintiff. The court also grants the plaintiff's application to place additional documents on record, demonstrating the defendant's continued use of the impugned marks.

The court then examines the pleadings and evidence presented by the plaintiff. It finds that the plaintiff is the registered proprietor of the "NEW BALANCE" and "NB" marks and has established their goodwill and reputation. The defendant's marks are compared to the plaintiff's marks, and it is determined that the defendant's marks are similar and likely to cause confusion.

Given the defendant's failure to appear, file a written statement, and comply with the interim injunction order, the court finds the plaintiff's case to be uncontroverted. It concludes that the plaintiff is entitled to a permanent injunction against the defendant for trademark infringement and passing off.

Holding and Decision:
The court allows the defendant to participate in the suit from the date of appearance. It grants the plaintiff's application to place additional documents on record and considers the additional documents submitted by the plaintiff. The court finds that the defendant's continued use of the impugned marks constitutes trademark infringement and passing off.

Taking into account the plaintiff's exclusive rights as the registered proprietor of the "NEW BALANCE" and "NB" marks, the court deems it necessary to protect their interests and prevent any confusion among consumers. Therefore, the court issues a permanent injunction restraining the defendant from using the marks "NEW BALANCE" and "NB" in any manner, including in its corporate name, corporate logo, and domain name.

Furthermore, the court directs the defendant to immediately cease all activities that infringe upon the plaintiff's trademarks and to remove any infringing materials from its premises, marketing materials, and online platforms. The defendant is also ordered to deliver to the plaintiff all materials bearing the infringing marks for destruction.

In addition to the permanent injunction, the court awards costs in favor of the plaintiff, considering the defendant's non-appearance and failure to file a written statement. The precise amount of costs will be determined at a later stage of the proceedings.

Overall, the court affirms the interim injunction granted earlier and provides the plaintiff with the permanent relief sought, safeguarding their rights in the registered trademarks and preserving their goodwill and reputation in the market.

Implications and Significance:
The court's decision emphasizes the importance of providing an opportunity for a defendant to present their case, even after an ex parte judgment has been passed. It also highlights the significance of enforcing injunction orders and allowing the plaintiff to submit additional evidence to establish the defendant's continued infringement.

Conclusion:
The High Court of Delhi allows the defendant to participate in the suit and grants the plaintiff's application to place additional documents on record. The court finds the defendant liable for trademark infringement and passing off and, accordingly, issues a permanent injunction restraining the defendant from using the marks "NEW BALANCE" and "NB." The court also orders the defendant to cease infringing activities, remove infringing materials, and deliver such materials to the plaintiff for destruction. Costs are awarded in favor of the plaintiff. This judgment serves to protect the plaintiff's trademarks and preserve their market reputation.