Sun Pharmaceutical Industries LTD vs. M S Sunmarker Pharmaceuticals & Anr.

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CS(COMM)/423/2021HC DelhiGSTCNR DLHC01027886202127 July 2022Bench: HON'BLE MS. JUSTICE PRATHIBA M. SINGH3 pages
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Facts

Sun Pharmaceutical Industries Ltd. (Plaintiff) filed a suit against MS Sunmarker Pharmaceuticals & Anr. (Defendants) for trademark infringement and passing off, alleging the Defendants adopted the mark "SUNMARKER PHARMACEUTICALS" and domain name www.sunmarkerpharma.com, which was deceptively similar to the Plaintiff's well-known marks "SUN", "SUN PHARMA", and "SUN PHARMACEUTICALS". The Plaintiff has registrations for its marks in Class 5 for medicinal and pharmaceutical preparations. The Defendants had a registration for their mark in Class 35 for retail services. An ex-parte ad interim injunction was granted in favour of the Plaintiff on September 9, 2021. Subsequently, the parties arrived at a settlement, and a joint application under Order XXIII Rule 3 CPC was filed.

Held

The Court held that the terms of the settlement arrived at between the Plaintiff and the Defendants were lawful and binding. The settlement broadly acknowledged the Plaintiff's rights in the marks "SUN", "SUN PHARMA", and "SUN PHARMACEUTICALS". The Defendants undertook to cease manufacturing, selling, or offering for sale any pharmaceutical preparations under the impugned mark or any deceptively similar mark. They surrendered their GST registration under the impugned mark. The Court directed that the stock of pharmaceutical preparations seized by the Local Commissioner shall be destroyed by the Defendants. For existing stock, the "SUNMARKER" mark was to be removed from packaging in the presence of the Plaintiff's representative, after which the Defendants could use the stock. All stationery, packaging, labels, and promotional material bearing the impugned mark were also to be destroyed. The Defendants confirmed withdrawal of their trademark application No. 4381751 and no further applications for the impugned mark. The suit was decreed in terms of the settlement application.

Key Issues

1. Whether the Defendants' adoption and use of the mark "SUNMARKER PHARMACEUTICALS" and domain name www.sunmarkerpharma.com amounted to infringement of the Plaintiff's registered trademarks "SUN", "SUN PHARMA", and "SUN PHARMACEUTICALS" and passing off, contrary to Section 29 of the Trade Marks Act, 1999, and common law principles. Plaintiff's Contentions: The Plaintiff argued that its marks "SUN", "SUN PHARMA", and "SUN PHARMACEUTICALS" are well-known and have been in use since 1978, with numerous registrations. The Defendants' adoption of a similar mark and domain name was deceptive and infringed upon their rights. Defendants' Contentions: The Defendants did not file any specific arguments against the Plaintiff's claims in the judgment, as they entered into a settlement. However, they had registered their mark "SUNMARKER" in Class 35.

Sections Cited

Section 29

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Cause title — parties, addresses and appearances
CS (COMM) 423/2021 Page 1 of 3 $~16 * IN THE HIGH COURT OF DELHI AT NEW DELHI + CS (COMM) 423/2021 & I.A. 11733/2022 SUN PHARMACEUTICAL INDUSTRIES LTD ..... Plaintiff Through: Mr. Sachin Gupta, Ms. Jasleen Kaur, Mr. Pratyush Rao, Ms. Snehal Singh, Ms. Swati Meena, Advocates (M:9811180270) versus M S SUNMARKER PHARMACEUTICALS & ANR...... Defendants Through: Ms. K. Vaijayanthi, Mr. Nagender, Advocates (M:7011469291) CORAM: JUSTICE PRATHIBA M. SINGH

O R D E R % 27.07.2022

1.

The present suit was filed by the Plaintiff - Sun Pharmaceutical Industries Ltd., seeking permanent injunction restraining infringement of trade mark, passing off, unfair competition, rendition of accounts, etc., against the Defendants. It is the case of the Plaintiff that it has been using the marks “SUN”, “SUN PHARMA” and “SUN PHARMACEUTICALS”, since the year 1978, and has various registrations to that effect in class 5 – “Medicinal and Pharmaceutical Preparations”.

2.

The grievance of the Plaintiff is that the Defendants have adopted the mark “SUNMARKER PHARMACEUTICALS” as a trade name and mark, as also the domain name www.sunmarkerpharma.com. The said mark was registered by the Defendants under No. 4381751, in class 35 – “retail services in relation to pharmaceutical preparations”.

3.

Vide order dated 9th September, 2021, this Court had granted an ex- parte ad interim injunction in favour of the Plaintiff, in the following terms: This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 13/06/2026 at 23:36:07 “13. Accordingly, till further, orders, defendants, their partners, their assigns in business, licensees, franchisee, distributors, dealers stockists, retailers/chemists, are restrained from manufacturing, selling, offering for sale, advertising, directly or indirectly dealing in medicinal & pharmaceutical preparations under the impugned mark/ trade name/ domain name SUNMARKER and www.sunmarkerpharma.com or any other trade mark/trade name/domain name as may be deceptively similar to the plaintiffs trade mark SUN/ SUN PHARMA/ SUN PHARMACEUTICAL amounting to infringement of the plaintiff’s registered trademarks as tabulated in para 12 of the plaint and passing off of the plaintiff’s well- known trademark SUN/ SUN PHARMA/ SUN PHARMACEUTICAL.”

4.

During the pendency of the suit, the Plaintiff and the Defendants have arrived at a settlement. An application under Order XXIII Rule 3 CPC has been jointly filed by the parties. The terms and conditions of the said settlement are contained in paragraphs 3(i) to 3(xv).

5.

As per the terms of the Settlement Application, the Defendants broadly acknowledge the rights of the Plaintiff in the mark “SUN”, “SUN PHARMA” and “SUN PHARMACEUTICALS”, and undertake to refrain themselves, partners, distributors, from manufacturing, selling or offering for sale, any pharmaceutical preparations under the impugned mark, trade name, domain name, or any other identical or confusingly/deceptively similar mark. The Defendants have surrendered the GST registration number which was under the impugned mark. With regard to the stock of the Defendant’s pharmaceutical preparations, which was seized by the Local Commissioner, the same shall be destroyed by the Defendants. In respect of those pharmaceutical preparations which have not expired, the Defendant has agreed that the mark “SUNMARKER”, will be removed from the This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 13/06/2026 at 23:36:07 packaging, in the presence of the Plaintiff’s representative. The Defendants have been permitted to use the said stock thereafter. Furthermore, any stationery, packaging, labels, and promotional material bearing the impugned mark are also also be destroyed by the Defendants. The Defendants confirm by way of the Settlement Application that they have withdrawn the trade mark application No. 4381751, and have not filed any other application for registration of the impugned mark.

6.

The Court has perused the terms of the Settlement Application. The same are lawful. The Settlement Application has been signed by the parties, as also by their respective Counsels. Affidavits of authorized signatories are annexed to the Settlement Application. There is no impediment in recording the same. Accordingly, the suit decreed in terms of paragraphs 3(i) to 3(xv) of the application. The parties and all other acting for or on their behalf shall be bound by the terms of the settlement.

7.

Decree sheet be drawn. All pending applications are also disposed of. No order as to costs.

8.

In terms of the Settlement Applications, 50% of the Court fee is refunded to the Plaintiff, through Counsel.

9.

The Registrar of Trade Marks shall pass appropriate orders in respect of withdrawal of application no.4381751 filed by the Defendant in Class 35. 10. Copy of this order be communicated to the Trademark Registry (Address: Trademarks Registry, New Delhi, Boudhik Sampada Bhawan, Plot No.32, Sector 14, Dwarka, New Delhi-110078; Email: cgoffice- mh@nic.in, hodel.tmr@nic.in). PRATHIBA M. SINGH, J. JULY 27, 2022/dj/ss This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 13/06/2026 at 23:36:07

Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.