SHEIKH AHMAD vs MESSRS UNILEVER LTD. AND ANOTHER
This petition challenged a judgment of the High Court of Sind, which had upheld the rejection of the petitioner's trade mark application by the Deputy Registrar of Trade Marks. During the pendency of the proceedings before the Supreme Court, the petitioner and the respondent reached a settlement agreement to resolve their dispute. The core question before the Court was whether it could record and give effect to this compromise agreement regarding the registration of the trade mark. The Supreme Court accepted the settlement, which permitted the petitioner to register the trade mark subject to specific limitations on the goods for which it could be used—specifically restricting it to medicines used in Homoeopathy, excluding Allopathic pharmaceutical products and glycerine-based goods. Consequently, the Court set aside the previous orders of the Registrar of Trade Marks and the High Court, allowed the appeal, and directed the Registrar to register the trade mark in accordance with the agreed terms. The principle established is that the Court may dispose of a trade mark dispute by recording and enforcing a voluntary settlement reached between the parties.
- Can the Supreme Court give effect to a settlement agreement reached between parties during the pendency of a trade mark dispute?
- Is a court empowered to set aside previous orders of a Registrar of Trade Marks and a High Court to implement a compromise reached between the parties?
ORDER
NASIM HASAN SHAH, J.---This petition is directed against the judgment, dated 20-4-1982 of the High Court of Sind at Karachi, whereby the appeal (Miscellaneous Appeal No. 24 of 1983, directed against the order dated 5-1-1978, passed by the Deputy Registrar Trade Marks, who had rejected the petitioner's application for the registration mark (Application No. 57686, dated 15-8-1972) in view of the respondent Trade Mark opposition No. 26 - 1974 in respect of a pharmaceutical product in Class V.
2. During the pendency of this petition in this Court the petitioner and respondent No. 1 have reached an agreement to settle their dispute as follows :-
(a) The trade mark in Application No. 57686, in Class V, dated 15th August, 1978 may be used by the petitioner and may be registered in the name of the petitioner but only in respect of the following goods namely :- "Medicines used in Homoeopathy but excluding pharmaceutical products used in Allopathy or other systems of medicine. None of the aforesaid goods being glycerine, containing or made with glycerine or goods of the same description as glycerine."
(b) The petitioner shall not use or seek registration of the said trade mark in Application No. 57686 or any similar mark in respect of any other goods.
3. In view of this settlement, the petitioner and respondent No. 1 have prayed that this Court may record, the same and pass an appropriate order giving effect to it.
4. Accordingly, this petition is converted into an appear and the Registrar of Trade Marks is directed to register the trade mark in Application No. 5768 for the following goods namely :- "Medicines used in Homoeopathy but excluding pharmaceutical products used in Allopathy or other systems of medicine. None of the aforesaid goods being glycerine, containing or made with glycerine or goods of the same description as glycerine."
5. The result is that the order of the Registrar of the Trade Marks, dated 5th March, 1978, in Trade Mark Opposition No. 26 of 1974 and the order of the High Court of Sind, dated 20th April, 1982 in Miscellaneous Appeal No. 24 of 1978, whereby the petitioner's Application No. 57686 was rejected in toto are set aside and the appeal allowed in - terms of the direction contained in para. 4 above.
6. The parties shall bear their own costs throughout.