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2010 (1) TMI 454 - HC - CustomsDetention of goods - This petition seeks a direction for return of goods detained by respondent No. 2 at Ludhiana. The grievance put forward in the petition is that the issue in the suit pending in Delhi High Court was only with regard to violation of trade mark rights which did not justify detention of the goods by the customs authorities. Held that- goods directed to be returned to petitioner except those bearing brand Usha which may be kept in premises of petitioner under seal of department. Department at liberty to impose conditions as considered appropriate.
Issues:
Detention of goods by customs authorities based on a pending suit in Delhi High Court regarding violation of trademark rights. Analysis: The petitioner filed a petition seeking the return of goods detained by respondent No. 2 at Ludhiana for export. The goods had the brand "Usha," and the petitioner claimed there was no valid reason for detention. The customs authorities informed the petitioner that the goods could not be released due to a suit filed by M/s. Usha International Limited in Delhi High Court. The petitioner argued that the suit was only about trademark rights violation and did not justify the detention of goods by customs authorities, especially when the power of seizure or detention under the Customs Act, 1944 had not been exercised. The court issued a notice to respondent No. 2, who accepted it and sought time to take instructions. In the reply filed, the facts were not disputed, and the court directed that the detained goods, except those bearing the brand 'Usha,' be returned to the petitioner. Goods with the 'Usha' brand were to be kept in the petitioner's premises under the seal of respondent No. 2 for dealing with according to the direction of the Delhi High Court in the pending suit. Respondent No. 2 was given the liberty to impose appropriate conditions on the said goods. The court disposed of the petition, thereby resolving the issue of the detention of goods based on the pending suit in Delhi High Court regarding trademark rights violation.
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