Vishal Choudhary vs SNPC Machines Private Limited & Ors.

AMIT BANSAL, J. (ORAL)

The present application has been filed on behalf of the appellant seeking interim stay of the order dated 5^th March, 2024, passed by the learned Single Judge in CS(Comm) 431/2023. Via the said order, the learned Single Judge has allowed the interim application for injunction [I.A. No.11490/2023] filed on behalf of the respondents/plaintiffs. The impugned order has restrained the appellant/defendant from manufacture and sale of brick making machines that were infringing the registered patents of the respondents/plaintiffs.

The operative part of the order of the learned Single Judge is set out below:

Notice in the appeal and the present application was issued on 28^th March, 2024 and statement of the counsel for the appellant was recorded that the appellant confines the relief in the present application to the grant of permission to sell eight (8) brick making machines, for which the appellant has prospective purchasers. Taking note of the aforesaid submission, the appellant was directed to place on record purchase order(s), if any.

Pursuant to the aforesaid order, an affidavit dated 29^th April, 2024 was filed on behalf of the appellant which provided a list of eight (8) proposed purchasers who had approached the appellant towards the purchase of the aforesaid machines and had also made bookings for the same. It was also stated in the affidavit that keeping in mind that the prospective purchasers were small business entities, the appellant did not insist on formal purchase orders. However, Aadhaar cards of the aforesaid prospective purchasers as well as letters acknowledging bookings from three of the said prospective purchasers have been placed on record.

On 2^nd May, 2024, a Local Commissioner was appointed to visit the premises of the appellant in order to verify whether the aforesaid eight (8) machines were available at the premises of the appellant. Pursuant to the said order, the Local Commissioner visited the premises of the appellant and furnished her report.

We have heard the counsels for the parties and perused the material on record.

The report of the Local Commissioner confirms the fact that eight (8) brick making machines are available in the premises of the appellant. It has also been stated on behalf of the appellant that the appellant is at various stages of negotiations with prospective purchasers for the sale of the aforesaid machines.

In our view, prejudice would be caused to the appellant if the appellant is not permitted to sell the aforesaid eight (8) machines, for the manufacture of which the appellant has undoubtedly invested resources, pending the disposal of the appeal. On the other hand, the interest of the respondent can be secured by calling upon the appellant to place on record the GST invoices in respect of sale of the aforesaid machines. Needless to state, in the event the respondent succeeds in the present appeal, the respondent can be awarded damages.

Accordingly, the interim order passed by the learned Single Judge is varied to the extent that the appellant is permitted to sell the aforesaid eight (8) brick making machines mentioned in the report of the Local Commissioner, subject to the condition that the appellant shall place on record a copy of the GST invoices evidencing sale within ten days from a sale being concluded.

The present application stands disposed of in above terms.

List on 12^th November, 2024.