The Weekly Obiter

NO CAUSE OF ACTION ARISES IN ON THE BASIS OF A SOLITARY TRANSACTION THROUGH THE INTERNET: DELHI HIGH COURT

January 22, 2018

The Hon’ble Delhi High Court in the case of Impresario Entertainment & Hospitality Pvt. Ltd. v. S & D Hospitality bearing CS(COMM) 111/2017 held that it has no territorial jurisdiction to entertain the trademark infringement and passing off suit filed by the Plaintiff, a company having its registered office in Mumbai and running a number of restaurants under the trademark ‘Social’ in various cities including Delhi, against the Defendant who’s operating two restaurants under the trade mark ‘SOCIAL MONKEY’ in Hyderabad.
Applying the tests laid down by the Division Bench in the Banyan Tree case, the court noted that the cause of action in this case cannot be said to have arisen in Delhi as even if the customers from Delhi can book the Defendant’s restaurants in Hyderabad through the Zomato and Dine-Out websites, the commercial transaction cannot take place unless the customers go to Hyderabad and avail the Defend-ant’s services. It further observed that the Plaintiff cannot claim the cause of action to have arisen in Delhi on the basis of a solitary transaction through the internet 

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