In the matter of:-
DELHI PUBLIC SCHOOL SOCIETY ….. Plaintiff
Versus
AVIRAL EDUCATION WELFAREAND CULTURAL SOCIETY AND ANR ….. Defendants
Date of Order:- 16.10.2023
DPS Trademark Versus DPS Trademark
Plaintiff is a society that was established in 1949 under the name Delhi Public School. The Plaintiff’s Delhi Public School, R.K. Puram was established in 1972 and the Plaintiff has more than 200 affiliated schools across the country. There are 10 schools which have been established outside India by the Plaintiff.
The present suit was filed by the Plaintiff – Delhi Public School Society seeking permanent injunction restraining misuse of the Plaintiff’s name – DELHI PUBLIC SCHOOL, mark – DPS.
The suit was filed against Defendant No.1- M/s Aviral Education Welfare and Cultural Society (`AEWCS’) which is running the Defendant No.2’s School – Delhi Public School in Sahibabad– Loni Road, Indraprastha Yojna, Teela Shahbazpur, Bhopura-Loni Road, Sahibabad, Ghaziabad- 201102, Uttar Pradesh.
The Plaintiff has enormous goodwill and reputation in the mark and the name. The Plaintiff is also the registered propreitor of the trademark DPS and DPS Logo.
Plaintiff’s trademark and logo are also well known trademarks declared by Registrar of Trademarks, Delhi.
Defendant No. 1 approached the Plaintiff for a joint venture agreement to run a school under the name and style Delhi Public School Sahibabad in Ghaziabad- 201102, Uttar Pradesh. The agreement was entered into on 10th October, 2016 as per which, the Defendants were permitted to use the trademarks of the Plaintiff. At the time of entering into the agreement a sum of Rs.25,00,000/- was paid as Signing Fee, by the Defendant No. 1 to the Plaintiff.
The said agreement was terminated on 24th September, 2018. Despite the said termination, the Defendants continued to run and operate the school.
As there was an arbitration clause in the agreement, a petition under Section 9 of the Arbitration and Conciliation Act, 1996 was also filed by the Defendant No. 1. However, no relief was granted in favour of the Defendant No. 1. Subsequently, the Defendant No. 1 filed a WP(C) 8219/2020 titled Aviral Education Welfare and Cultural Society & ors. v. Delhi Public School Society for declaring certain clauses of the agreement as void. Upon the service of the notice in the said writ petition, the present suit came to be filed by the Plaintiff.
Order in the Writ Petition filed by Defendant no.1
In the writ petition WP(C) 8219/2020 vide order dated 24th December, 2020, the Court refrained from passing off any interim order in view of the writ petition filed by the Defendant No.1. Thereafter, the interim order was finally passed on 10th March, 2023 after hearing the parties.
Restraining order dated:- 10th March, 2023 by the Hon’ble Court
Interim order dated 10th March, 2023 was passed by the Hon’ble Court, where the Court came to the conclusion that after the termination of the joint venture agreement, neither the Defendant’s Society nor the Defenadant’s School, can run under the name of Delhi Public School or DPS. The Court had, accordingly, restrained the Defendants from using the DPS marks.
Multiple cases by Defendant no.1
Despite the passing of the order dated 10th March, 2023, by the Hon’ble Court, the Defendants continued to run the School under the mark/name DELHI PUBLIC SCHOOL/ DPS.
Then an appeal being FAO(OS) (COMM) 62/2023) titled Aviral Education Welfare & Cultural Society & Anr. v. The Delhi Public School Society was filed by the Defendants which was withdrawn.
After that, FAO(OS) (COMM) 69/2023 titled Aviral Education Welfare and Cultural Society & Anr. v. The Delhi Public School Society came to be filed.
As WP(C) 8219/2020 was dismissed on 10th March, 2023, an appeal being LPA no. 213/2022 titled Aviral Education Welfare and Cultural Society & Ors. v. The Delhi Public School Society was also filed.
Writ by Parents of students studying in Defendant no.1’s school
Certain parents of the Defendant School also challenged the order passed in the writ petition being LPA 214/2022 titled Surbhi Dubey & Ors. v. Delhi Public School Society & Ors.
DB of Delhi High Court ruled in favour of Plaintiff
The three proceedings came to be decided by the ld. Division Bench vide order dated 21st September, 2023 by which the judgment of the ld. Single Judge of 10th March 2023, both in the interim injunction application and in the writ petition came to be upheld.
Contempt Application by Plaintiff
Now, an application under Order XXXIX Rule 2A of CPC of contempt of the Hon’ble Court order was filed by plaintiff and defendants has also filed an application being I.A. 20500/2023 seeking extension of time to comply with the injunction order.
Submissions by Plaintiff’ Counsel
Counsel for the Plaintiff submitted that for a period of six years, the Defendants have not paid any maintenance charges which are to the tune of Rs. 12,00,000/- per year. He further submitted that despite the injunction order, they continue to use the Plaintiff’s DPS marks and have admitted students for the last six academic years.
Submissions by Defendants Counsel
Counsel for the Defendants, submitted that the joint venture agreement was for an undefined period. The Defendants had made investment of Rs. 30 crores, in setting up the school. But agreement was terminated after six months, He further submitted that an amount of Rs.25,00,000/-, which was paid, is still lying with the Plaintiff.
Court said, the Defendants have already been restrained from using the DPS marks and the said orders have also been upheld in appeal. Thus, there can be no justification for continuing the use of the DPS name and the mark as also the logos.
The case being one relating to education, the career of hundreds of children would be in jeopardy if allegations made by the Plaintiff are to be gone into and contempt action is initiated.
Court said, that there is no doubt that prima facie the Defendants are in contempt of the injunction order dated 10th March, 2023.
But due to the fact that the Defendants are running a school, where more than 500 students are currently studying, the Court took a compassionate view of the matter in order to ensure that the careers of the children are not put to any harm. Thus, contempt action was not initiated.
Court was of the opinion that the suit itself can be brought to quietus by putting in place an arrangement which is in the overall interest of the students of the school, at the same time suitably compensating the Plaintiff.
DIRECTIONS BY THE HON’BLE COURT
The Hon’ble Court gave the following directions:-
1) The Defendant School can use the DPS marks/names including ‘DELHI PUBLIC SCHOOL’, ‘DPS’ as also the logos only in respect of the students who are already admitted for the academic year 2023-2024, for the academic year ending on 31st March 2024.
2) Any fresh admissions in the Defendant School for the academic year 2024-2025 shall be under a new name.
3) The Defendant School shall not use the mark ‘DPS’, logo and name or any of the trademarks of the Plaintiff after the current academic year which is ending on 31st March, 2024.
4) The certificates for the current students who are currently undergoing Class 10 and Class 12 as also other children, for the academic year 2023-2024, shall be issued under the existing name of the Defendants.
5) Since, no amount has been paid by the Defendants after the initial amount, a further sum of Rs.20,00,000/- plus GST shall be paid by the Defendants by 31st December, 2023 to the Plaintiff.
6) Subject to this payment alone, current students shall be issued marksheets and certificates under the name ‘DPS’
7) It was made clear w.e.f next academic year – 2024-25, the use of the name ‘DELHI PUBLIC SCHOOL’, mark ‘DPS’ and the logos shall be ceased, failing which the trustees of the Defendants shall be personally responsible. No fresh admissions shall be carried out in the Plaintiff’s DPS marks, henceforth.
Suit was Decreed in the above terms and conditions.
Read, Reviewed and Edited by
Neeraj Gogia, Advocate