PIONEER HI BRED INTERNATIONAL INC U S A Vs. PIONEER SEED COMPANY LIMITED

JUDGEMENT

(1.) This order will dispose of the plaintiff's application under Order 39, Rules 1 and 2 read with Section 151 Civil Procedure Code wherein it is prayed that the defendants be restrained from selling or disposing of any seeds under the brand name and/or trade name 'PIONEER'.

(2.) The aforesaid application has been filed by the plaintiff for getting interim relief during the pendency of the suit for permanent injunction filed by it. In the suit the plaintiff has, inter alia, alleged that it is a corporation registered outside India and was engaged world wide in the business of research and development, production and sale of hybrid seeds of various agricultural crops produced by the crossing of proprietary inbred lines developed through its own research and development efforts. It is further alleged that it is the owner of the trade mark 'PIONEER' which is registered in the various countries of the world, including India. According to the plaintiff defendant No. 2, who is the Director of defendant 1, and was closely connected with the plaintiff in USA, approached the plaintiff for setting up business in India. Pursuant thereto defendant 1 is stated to have been incorporated on 28th February, 1977 with the object to develop, grow, raise, process, buy, sell, export, import and deal in all kinds of seeds. Defendant 2 was made a Director of the said defendant 1.

(3.) In the aforesaid company, namely, defendant 1, it is further alleged that the plaintiff holds 39.1% of the equity share capital, while defendant 2 and his sister, Mrs. S. Kapur together hold 59.9% shares. While the nominal capital of the company was Rs. 30 lakhs the paid up and subscribed capital was only Rs. 5 lakhs. According to the plaint, the plaintiff holds 2000 shares having the face value of Rs. 2 lakhs, while defendant 2 holds shares worth Rs. 1 lakh, his sister holds shares worth Rs. 1,99,600. Four shares worth Rs. 400 are held by others.