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Head Note

The Arbitration and Conciliation Act, 1996  - Section 9

The parties entered into an Agreement, to jointly carry on business, however, in breach of the agreement, the respondent approached the dealers and Distributors of the Appellant to take direct supplies from the Respondent on a higher discount - whether the High Court was justified in interfering with the order passed by the District Judge, Khurda in Arb. (P) No. 576 of 2007, on account whereof pending arbitration, the Respondent was restrained from marketing the products manufactured by her under the Trade Mark by herself or through anyone, except through the Appellant - Held no - The condition in the Deed of Assignment clearly stipulate that all the goods manufactured by the Respondent under the Trade Mark "Naturoma" would be marketed solely by the Appellant. Even upon termination of the joint venture under the Agreement between the parties, neither the Appellant nor the Respondent would be entitled to use or register the Mark in their own names or jointly with some other party - The Supreme Court held that the order passed by the District Jugde, Khurda, restraining the Respondent from marketing her products through any person, other than the Appellant, was more apposite as the rights of both the parties stood protected till such time as a final decision could be taken in arbitral proceedings - Impugned order of the ld. Single Judge of the High Court set aside and of the District Judge, Khurda restored - Appeals allowed.

Topic(s)-Breach of the agreement