India: Special Officer, Commerce, North Eastern Electricity Company Of Orissa (NESCO) & Anr. Vs. M/S Raghunath Paper Mills Private Limited & Anr. [MANU/SC/0962/2012]

Last Updated: 7 April 2013

Supreme Court Of India Cases:

The question which came before the Hon'ble Supreme Court in the present case was whether a Company, which purchased the property of another Company under liquidation through auction, is liable to pay the arrears of electricity dues outstanding against the erstwhile Company. The Hon'ble Supreme Court held that the supply of electricity by a distributor to a consumer is "sale of goods". The distributor as the supplier, and the owner/occupier of a premises with whom it enters into a contract for supply of electricity are the parties to the contract. A transferee of the premises or a subsequent occupant of a premises with whom the supplier has no privity of contract cannot obviously be asked to pay the dues of his predecessor-in-title or possession, as the amount payable towards supply of electricity does not constitute a "charge" on the premises.

A purchaser of premises cannot be foisted with the electricity dues of any previous occupant, merely because he happens to be the current owner of the premises. The supplier can therefore neither file a suit nor initiate revenue recovery proceedings against a purchaser of a premises for the outstanding electricity dues of the vendor of the premises in the absence of any contract to the contrary.

Indra Kumar Patodia & Anr. Vs Reliance Industries Ltd. and Ors. [MANU/SC/1012/2012]

The question that came before the Court was whether a complaint under Section 138 of the Negotiable Instruments Act, 1881 (in short "the Act") without signature is maintainable when such complaint was subsequently verified by the complainant. The important question in the instant case is what is meant by 'complaint in writing'. Whether complaint should be in writing simpliciter or complaint being in writing requires signature below such writing. The Court held that if the legislature intended that the complaint under the Act, apart from being in writing, is also required to be signed by the complainant, the legislature would have used different language and inserted the same at the appropriate place. The requirements of Section 142(a) of the Act is that the complaint must necessarily be in writing and the complaint can be presented by the payee or holder in due course of the cheque and it need not be signed by the complainant.

M/s Laxmi Dyechem Vs State of Gujarat & Ors. [MANU/SC/1030/2012]

The question that came up in the present case was whether cheques that were dishonored on account of the signatures not being complete' or 'no image found' complete' or 'no image found' would amount to a dishonor that could constitute an offence under Section 138 of the Negotiable Instrument Act. The Court held that the two contingencies envisaged under Section 138 of the Act must be interpreted strictly or literally. The expression "amount of money ............. is insufficient" appearing in Section 138 of the Act is a genus and dishonour for reasons such "as account closed", "payment stopped", "referred to the drawer" are only species of that genus. So long as the change is brought about with a view to preventing the cheque being honoured the dishonour would become an offence under Section 138 subject to other conditions prescribed being satisfied.

It is only when the drawer despite receipt of such a notice and despite the opportunity to make the payment within the time stipulated under the statute does not pay the amount that the dishonour would be considered a dishonour constituting an offence, hence punishable.


Ajay Devgan Films V. Yash Raj Films Private Limited and others

Case No. 66 of 2012 Dated: 05/11/2012

Held : As per the scheme of the Competition Act, tie-in arrangements per se are not violated of section 3(4)(a) of the Act. Whether such an agreement is prohibited under the Act depends upon its actual or likely appreciable adverse effect on the competition in India. The governing principle under section 3(4) is 'appreciable adverse effect on Competition in India'. The guiding factors are stated under section 19(3) to assess whether any agreement is causing or likely to cause an appreciable adverse effect on competition.

It further held that no enterprise can be considered dominant on the basis of big name. Dominance has to be determined as per law on the basis of market share, economic strength and other relevant factors stated under section 19(4) of the Act. The Commission is unable to accept such a narrow approach while determining the relevant market.

Shri Kaushal K. Rana v. DLF Commercial Complexes Ltd

Case No. 50 of 2012 Dated: 13.12.2012

Held :The Competition Commission in view of the allegations of contravention of section 4 of the Act observed, that, despite DLF being a major real estate player with a PAN India presence, the geographic conditions prevailing in different parts of the country require determination of relevant geographic market in context of that area. Gurgaon and Delhi are different relevant geographic markets vis a vis whole of India real estate market for the purposes of case at hand. In Delhi, DLF is just one of the real estate developers. Since the informant in the present case was desirous of booking an office space, the relevant market for this is 'market for development of commercial/office space in the region of Delhi'. Presence of other real estate developers offering commercial office space also indicates that the informant was not dependent upon the DLF for provisioning of an office space. None of the factors stated under section 19(4) of the Act supported the informant's plea of dominance of DLF in the relevant market.

The allegations related to unfair trade practices, deficiency in services etc. may be pleaded at other appropriate forums because these are not within the ambit and jurisdiction of the Commission.


IPAB Judgement

Ilango v. Rank Xerox Ltd. & Ors., delivered on September 21, 2012

Order (No.229/2012)

The IPAB stated that though the public had been using the word 'Xerox' in a loose manner, it clearly knew that the owner of the trade mark was the respondent's. The IPAB further pointed that the mark was registered since the 1960s, and the same was continuously renewed by the proprietor without any opposition from its competitors. The fact that an alternative word, that is, photocopy, existed and was used by competitors weighed against the argument of the applicant.

Accordingly, the IPAB concluded that the word 'Xerox' was not generic and dismissed the plea for rectification against the said trade mark in Classes 1, 7 and 9. However, rectification against three applications was allowed as the respondent failed to prove the user of the same.

Delhi High Court

Exide Industries Limited v. Exide Corporation, U.S.A. & Ors.


The issue in the present case centres on the ownership of trademark 'EXIDE'. The defendant was undisputedly the owner of the 'EXIDE' marks in several countries.. The defendant claimed that being the prior user worldwide and due to its transnational/spill over reputation in India, it is the owner of the said mark even in India.

It is the case of the plaintiff that CESCO started selling batteries in India under the name 'EXIDE' from U.K. and subsequently it applied for and was granted registration of the same in India.

In examining whether the defendant company did in fact give a common law license to the plaintiff, and if whether the plaintiff's rights were relatable to the defendant, the Court considered relevant commercial scenarios viz., the defendant did not have any controlling stake over the plaintiff or its predecessors after the split between the UK and US companies and that the defendant never received any consideration from the plaintiff as royalty. The Court observes that the American company would not have allowed its most valuable property to vest with the plaintiff without any control, and therefore there can be no common law license inferred. In deciding on special circumstances, the Court observed that there were no direct or indirect bars to import of batteries, and neither was the same demonstrated by the defendant for the purpose of qualifying as 'special circumstances'. The Court also held that there was no question of acquiescence by the plaintiff, as the defendant did not sell any goods in India nor did any special circumstances exist.

The Court held the plaintiff to be the registered proprietor of the trademark 'EXIDE' and therefore the defendant cannot infringe the trademark of the plaintiff and sell its goods or have a trade name with having the trademark 'EXIDE' of the plaintiff or any other name/mark deceptively similar thereto. The Court also stated that the plaintiff was the prior user of the trademark in India and, therefore, owner of the said trademark in India as defendant failed to plead and prove the existence of special circumstances.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.