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Himachal Pradesh High Court · body

2012 DIGILAW 736 (HP)

Suresh Garg v. State of Himachal Pradesh

2012-10-17

KULDIP SINGH

body2012
Judgment Kuldip Singh, J. 1. This is an application under Section 438 Cr.P.C. for releasing the petitioner on bail in FIR No. 280 of 2011 dated 7.9.2011 registered at Police Station, Paonta Sahib, District Sirmaur, under Sections 420, 406 IPC, Sections 63, 64 of the Copyrights Act, 1957 and Sections 103 and 104 of the Trade Marks Act, 1999. 2. It has been stated that one K. Prasad Reddy had approached the petitioner for the manufacture of multivitamin mineral supplement by the name of ZINCOVIT. K. Prasad Reddy is the registered owner of trade mark ‘Zincovit’ under Trade Marks Act, 1999 vide applicationdated 23.4.2009 in respect of food product with multivitamin mineral supplement under the Trade Marks Rules. 3. K. Prasad Reddy had also applied for the registration of ‘Zincovit with fruits devise label’ under the artistic work under the Copyrights Act, 1957, which was registered under the registration No. A-90270/2011. 4. K. Prasad Reddy entered into a supply agreement dated 5.4.2011 with Zeon Life Sciences Ltd. represented by the petitioner. Zeon Life Sciences Ltd.had undertaken to manufacturethe products listed in Annexure –I of the said agreement, namely Zincovit Tab., Zincovit Syp. and Zincovit for the applicant and the Companieswhereinhe was a Director viz., Octtans Nutra (P) Ltd., Hezen Inc, Hezen Pharmaceuticals Ltd. and PCP Pharmaceuticals (P) Ltd. 5. M/s Apex Laboratories (P) Ltd. had filed O.S. No. 304 of 2011 in the Court of Principal District Judge, Ranga Reddy District, L.B.Nagar, Hyderabad against K. Prasad Reddy. In the said suit, the petitioner was arrayed as defendant No.1 alongwith other defendants. M/s Apex Laboratories (P) Ltd. had also filed an application under Order 39 Rule 1 & 2 CPC. It was alleged that M/sApex Laboratories (P) Ltd. had also got its product registered under the name ‘Zincovit’ in respect of pharmaceutical and medicinal preparation under class 5 of the Trade and Merchandise Marks Act, 1958. 6. It has been stated that besides O.S. No. 304 of 2011, other suits bearing registration Nos. O.S. No. 15 of 2009, O.S. No. 402 of 2010 and a petition before Intellectual Property Appellate Board, Chennai for cancellation of the trade mark of K. Prasad Reddy are also pending adjudication between the petitioner and M/s Apex Laboratories (P) Ltd. with respect to manufacture of products under the trade mark ‘Zincovit’. O.S. No. 15 of 2009, O.S. No. 402 of 2010 and a petition before Intellectual Property Appellate Board, Chennai for cancellation of the trade mark of K. Prasad Reddy are also pending adjudication between the petitioner and M/s Apex Laboratories (P) Ltd. with respect to manufacture of products under the trade mark ‘Zincovit’. The title of any of the parties with respect tothe trade mark ‘Zincovit’ has not been decided till date nor any party has been able to obtain any injunction order against the other party from manufacturing its products under the said trade name. 7. M/s Apex Laboratories (P) Ltd. through its Vice President T. Venktaraman filed a complaint against K. Prasad Reddy and Zeon Life Sciences Ltd.and thereupon FIRNo. 280 of 2011 dated 17.9.2011 has been registered at Police Station, Paonta Sahib. It has been stated that on the basis of allegations contained in the complaint, no offence punishable under Sections 420, 406 IPC and Sections 63 and 64 of the Copyrights Act, 1957 is made out. The complaint and FIR are malafides. 8. There is material concealment and mis-statement of facts in the complaint in order to harass the petitioner. The case has been registered at the behest of M/s Apex Laboratories (P) Ltd.without carrying out any preliminary enquiry. The police acted in haste. The allegations against the petitioner are vague. The petitioner is innocent, he has committed no offence. The dispute between the parties is essentially of civil nature. The petitioner is ready to furnish bail bonds. The submission has been made for releasing the petitioner on bail. 9. The status report has been filed. It has been stated that the case has been registered on the complaint of T. Venkat Raman, Vice President (Finance) Apex Laboratories Private Ltd. It has been stated that Apex Laboratories Private Ltd.was incorporated in the year 1978 under the Companies Act and the said Company is engaged in manufacturing and sales of Pharmaceutical & Nutraceuticals. The Company manufactures Nutraceutical supplement by the name of ‘ZINCOVIT’ in the form of drops, syrup, tablets and capsules. The Company had already obtained “Registered Trade Mark” for its product ‘ZINCOVIT’ on 16.3.1988 which is valid up to 16.3.2019. The Company has been carefully manufacturing and trading ‘ZINCOVIT’ under the registered trade mark and copyright registration vide No. A/54243/97. 10. The Company manufactures Nutraceutical supplement by the name of ‘ZINCOVIT’ in the form of drops, syrup, tablets and capsules. The Company had already obtained “Registered Trade Mark” for its product ‘ZINCOVIT’ on 16.3.1988 which is valid up to 16.3.2019. The Company has been carefully manufacturing and trading ‘ZINCOVIT’ under the registered trade mark and copyright registration vide No. A/54243/97. 10. It has been alleged that M/s Zeon Life Science Limited, represented by its Managing Director, Sathish Kharge and other Directors, colluded with K. Prasad Reddy. The Directors of M/s Zeon Life Sciences Limited and K. Prasad Reddy conspired for manufacturing ‘ZINCOVIT’ syrup, drops, and tablets illegally in the trade name of edible oil products and selling the same in the open market which is in violation of Sections 103, 104 and 107 of the Trade Mark Act, 1999. 11. The said persons are also using similar packing material with colour combination for marketing and sale of ‘ZINCOVIT’ as the products of Apex Laboratories Private Limited. They are selling the products. They are violating Sections 63 and 64 of the Copyrights Act, 1957. The Directors of M/s Zeon Life Sciences Limited along with K Prasad Reddy criminally conspired, cheated, behaved dishonestly, tarnished the image of Apex Laboratories Private Limited by manufacturing and selling ‘ZINCOVIT’ products. On this case has been registered. 12. It has been stated that during investigation raid was conducted in the premises of M/s Zeon Life Sciences Limited, Rampur Ghat, Paonta Sahib and some recoveries were made through recovery memos. It has been stated that M/s Zeon Life Sciences has filed an application for quashing of FIR. It has come in the investigation that the opinion of Registrar, Trade Mark Authority was also sought. After the receipt of the opinion, Sections 103, 104 and 107 of the Trade Mark Act were added. 13. It has come in the investigation that M/s Apex Laboratory Pvt. Ltd. has got registered trade mark ‘Zincovit’ in Class-5 under goods description pharmaceutical and medicinal preparations on 16.3.1988 and in class 30 under nutraceutical and food supplement on 4.5.2009 with the Trade Mark Authority of India, Chennai. K. Prasad Reddy has registered the same Trade Mark ‘Zincovit’ in class 29 under fruits and vegetables, oils and fats preserves on 23.4.2009. M/s Apex Laboratorieshave got registeredtheir Trade Mark ‘Zincovit’under class 5 on22.10.1997 with the Copy Right Office, New Delhi. K. Prasad Reddy has registered the same Trade Mark ‘Zincovit’ in class 29 under fruits and vegetables, oils and fats preserves on 23.4.2009. M/s Apex Laboratorieshave got registeredtheir Trade Mark ‘Zincovit’under class 5 on22.10.1997 with the Copy Right Office, New Delhi. K. Prasad Reddy has got registered the same Trade Mark ‘Zincovit’ with the Registrar of Copy Right Office on 29.3.2011. 14. It has been stated that on 13.10.2012 the petitioner joined the investigation. He disclosed that in the year 2011, K. Prasad Reddy came to his factory and asked himto manufacture Zincovit Food Supplementary Product and the contract between petitioner and K. Prasad Reddy was signed for three years. The petitioner checked the food supplement produce under class 29 of the trade mark act on the Net, the product was registered in the name of K. Prasad Reddy. After that M/s Zeon Life Sciences started preparing the demand product for K. Prasad Reddy Company “Octance Nutra”. A representative of Apex Laboratories Pvt. Ltd. informed through E-Mail on 1.6.2012 that the product which was being manufactured by M/s Zeon Life Sciences for “Octance Nutra Company” was the registered and trade mark product of Apex Laboratories Pvt. Ltd. and it was registered under class 5 of trade mark and since then they had stopped the manufacture of the product. 15. It has to be ascertained as how much brand ‘Zincovit’ product had been manufactured by M/s Zeon Life Sciences and despatched to “Octance Nutra Company’ owned by K. Prasad Reddy after the Apex Laboratories Pvt. Ltd.through E-mailintimatedM/s Zeon Life Sciences that the produced preparedby them was in fact registered with Apex Laboratories Pvt. Ltd.The submission has been made for rejection of the bail application. 16. Heard and perused the record. The dispute is with respect to manufacture, marketing, sale of ‘ZINCOVIT’. Initially both the sides claimed the right to manufacture, sale ‘ZINCOVIT’. It has been stated in the status report that civil litigation is pending between the parties. The petitioner in the petition has stated that till now, no party has obtained injunction order against the other party in the civil litigation. Initially both the sides claimed the right to manufacture, sale ‘ZINCOVIT’. It has been stated in the status report that civil litigation is pending between the parties. The petitioner in the petition has stated that till now, no party has obtained injunction order against the other party in the civil litigation. In the status report, it has been stated that on 1.6.2012 the representative of Apex Laboratories Pvt. Ltd. informed that the product which was being manufactured by M/s Zeon Life Sciences for “Octance Nutra Company” was the registered and trade mark product of Apex Laboratories Pvt. Ltd. and it was registered under class 5 of trade mark and since then they had stopped the manufacture of the product. 17. It has not been stated in the status report that petitioner is not cooperating in the investigation nor it has been stated that petitioner will not be available for trial in case he is released on bail. The case against the petitioner appears to be documents based. In the status report, it has not been stated for what purpose the custodial interrogation of the petitioner is required. Thus, keeping in view the nature of dispute between the two sides, the petitioner has made out a case for grant of bail under Section 438 Cr.P.C. 18. In view of above, the petition is allowed. The petitioner in the event of arrest is ordered to be released on bail in FIR No. 280 of 2011 dated 7.9.2011 registered at Police Station, Paonta Sahib, District Sirmaur, under Sections 420, 406 IPC, Sections 63, 64 of the Copyrights Act, 1957 and Section 103 and 104 of the Trade Marks Act, 1999, on his furnishing personal bond in the sum of`2,00,000/- with one surety of the like amount to the satisfaction of the Arresting Officer with the conditions that the petitioner shall continue to join the investigation as and when called by the Investigating Officer and shall not hamper the investigation and tamper with the prosecution evidence in any manner. The petitioner shall not overawe or terrorise any prosecution witness and he shall not leave the country without the permission of learned Sessions Judge, Sirmaur District at Nahan during the pendency of the investigation and without the permission of the trial Court during the trial. 19. The petitioner shall not overawe or terrorise any prosecution witness and he shall not leave the country without the permission of learned Sessions Judge, Sirmaur District at Nahan during the pendency of the investigation and without the permission of the trial Court during the trial. 19. The observations made in this judgment are for disposal of bail petition only and the same shall not be construed as an expression of opinion on the merits of the case.