In the present case, the Hon’ble Delhi High Court modified its ex-parte ad-interim injunction order against the Defendant and allowed it to continue manufacture and supply of the Impugned Products (Honeycomb Sandwich Panels) exclusively to the Ministry of Defence.
The present suit was filed by the Plaintiff against the Defendant for infringement of its Registered Patent of Honeycomb Sandwich Panels. As per the Plaintiff, it discovered that the Defendant is manufacturing and supplying its Impugned Products in the market under the brand name ‘HONCORZ’ and thus filed the present suit. The Plaintiff was successful in obtaining an ex-parte injunction against the Defendants in this regard.
However, the Court modified its earlier ex-parte order as the Defendant was a major supplier of the Impugned Products for the Ministry of Defence. The Defendant contended that it is the sole Non-Governmental Supplier of the Impugned Products to Akash missiles and even had exclusive agreements with entities like DRDO and Bharat Dynamics Ltd. The Defendant also argued that its panel manufacturing is significantly different from that of the Plaintiff’s. The Defendant further highlighted that the Plaintiff did not have any sales in India and thus, cannot seek injunction. The Court found some merit in this argument.
Taking all these factors into account, the Court modified its order and allowed the Defendant to continue its supply of the Impugned Product exclusively for the Ministry of Defence. This arrangement allows the Defendant to manufacture and use honeycomb panels in its products and sell them to the Indian Government Agencies. In order to safeguard the Plaintiff’s interest, the Court directed the Defendant to deposit Rs. 25 lakhs with the court.
The Court emphasized that this interim agreement balances the interests of both parties and is consistent with legal precedent concerning patent non-use.