1. What is Professional Tax?

Professional Tax is a direct tax collected by state governments. It applies to salaried employees, business owners, and professionals such as consultants, doctors, and lawyers. The tax amount varies from state to state, with a maximum limit of ₹2,500 per year as per the Constitution of India.

Key aspects of Professional Tax include:

• It is levied on both employers and employees.
  
  
• Employers must register and deduct it from salaries before depositing with the state.
  
  
• Non-compliance may lead to penalties and legal consequences.

2. Importance of Professional Tax Registration for Startups

For a startup, registering for Professional Tax is more than a formality; it secures compliance and strengthens business operations. Benefits of Professional Tax registration are:

• Regulatory Compliance – Ensures adherence to state tax laws.
  
  
• Employee Trust – Shows employees that deductions are managed correctly.
  
  
• Avoidance of Penalties – Protects the business from fines and late fees.
  
  
• Professional Image – Builds credibility among clients and investors.

3. Process of Obtaining Professional Tax Registration

The process for obtaining PT registration can be completed in a few structured steps:

1. Check State Applicability – Verify if your state mandates Professional Tax, as not all states impose it.
2. Prepare Documents – Commonly required documents include:
   

○ PAN card of the business

○ Proof of business address

○ Identity proof of partners/directors

○ Employee details (if applicable)

3. File the Application – Apply online through the state portal or at the local tax office with supporting documents.

4. Verification and Approval – The State Tax Department reviews the documents.

5. Receive Registration Certificate – Once approved, you will be issued the certificate, enabling you to start deducting and depositing tax.

Startups often find compliance work time-consuming. RegisterKaro helps businesses with accurate document filing as per state norms. It also ensures timely compliance, reducing the risk of errors.

4. Penalties for Non-Compliance

Professional Tax laws are regulated by respective state governments, and every state prescribes its penalty provisions. Startups must pay attention to timelines, as even small delays can lead to fines and interest charges.

Common penalties include:

• Late Registration – A fine of up to ₹5 per day is charged for delay in obtaining registration (e.g., Section 5(5) of the Maharashtra PT Act, 1975).
  
  
• Delayed Payment – Interest at the rate of 1.25% per month is levied on the outstanding tax until payment is cleared.
  
  
• Late Filing of Returns – Failure to file the monthly/annual return within the prescribed due date attracts a penalty of ₹300 to ₹1,000 per return, depending on the state.
  
  
• Non-Payment – In some states, a lump sum penalty of 10% of the due tax is imposed in addition to interest (e.g., Karnataka PT Rules, 1976).
  
  
• Prosecution – Continuous non-compliance may also invite legal proceedings under state-specific Professional Tax Acts.

Timeframe:

• Registration must usually be obtained within 30 days of commencing business.
  
  
• Employers must deduct and deposit PT monthly, while self-employed professionals pay annually by 31st March (exact due dates vary state to state).

Conclusion

Professional Tax Registration is an important requirement for startups. It ensures legal conformity, safeguards the business from penalties, and enhances its credibility. Completing the registration at the initial stage allows entrepreneurs to focus on growing their venture with confidence.

The post How to Obtain a Professional Tax Registration for Your Startup? appeared first on LexForti .

1. INTRODUCTION

In India, marriage is not just a civil contract but a bond deeply rooted in cultural and emotional values. Society often views marriage as a lifelong commitment, making divorce a sensitive and challenging topic. Particularly, when a wife files for divorce, it is seen as rare due to societal pressure on women to adjust to difficult situations. However, there are circumstances where filing for divorce becomes necessary for a woman to protect her rights and well-being. With proper legal guidance and support, women can navigate the divorce process effectively. Consulting the best divorce lawyer in Bangalore can provide essential legal assistance and help ensure that the process is handled with the utmost care and expertise.

This article provides a detailed overview of filing a divorce petition by a wife, highlighting the grounds for divorce and the steps involved.

2. WHAT IS DIVORCE?

Divorce legally ends a marriage and is considered a civil contract in India. While marriage is seen as sacred in Hindu culture and a social commitment in Indian society, it is equally the responsibility of both partners to sustain it. Modern society acknowledges marriage failures and legal systems offer remedies for those trapped in unhappy or harmful marriages. Despite societal resistance, filing for divorce is sometimes the best solution, and women must know their legal rights in such situations.

3. GROUNDS FOR DIVORCE BY WIFE

The Hindu Marriage Act, of 1955 outlines various grounds for divorce, which women can use to file a petition in family courts. Here are the key reasons:

• Adultery
• If the husband engages in an extramarital affair, the wife can file for divorce. Although adultery is no longer a criminal offense in India, it remains a valid ground for seeking divorce.
• Cruelty
• Women often face mental or physical abuse in marriage. Domestic violence, dowry demands, and mental harassment are common examples of cruelty. The wife can file for divorce if she experiences such treatment.
• Abandonment
• If the husband deserts the wife for a continuous period of at least two years without any contact, the wife can seek divorce.
• Conversion of Religion
• If the husband converts to another religion or forces the wife to change her religion, it is grounds for divorce.
• Unsound Mind
• If the husband suffers from a severe mental disorder or loses his mental balance, the wife has the right to file for divorce.
• Leprosy or Communicable Diseases
• Diseases such as leprosy or other contagious illnesses provide valid grounds for a wife to seek separation.
• Renunciation
• If the husband renounces the world for religious reasons, the wife can file for divorce.
• Presumed Death
• If the husband has not been seen or heard from for seven consecutive years, the wife can file for divorce, as he is presumed dead by law.
• No Resumption of Cohabitation
• If the couple does not live together after one year of a legal separation order, the wife can seek divorce.

4. STEPS TO FILE A DIVORCE PETITION BY WIFE

Filing for divorce requires following specific legal procedures. Here are the steps involved:

• Filing the Petition
• The wife must file a petition in the family court with jurisdiction over her marital home or the place where she and her husband last lived together.
• Issuing Notice
• After filing the petition, a legal notice is sent to the husband. This serves as formal communication to inform him about the divorce proceedings.
• Response from the Husband
• The husband can either accept or contest the grounds mentioned in the petition. His response determines whether the case proceeds as a mutual or contested divorce.
• Court Proceedings
• If the case is contested, the court will conduct hearings where both sides present their evidence and arguments. In mutual consent divorces, the process is generally quicker.
• Final Decree
• After examining all evidence, the court issues a divorce decree, officially ending the marriage.

5. CHALLENGES FACED BY WOMAN FOR FILING DIVORCE

Despite having legal rights, many women face challenges such as societal judgment, family pressure, and financial dependency. These factors often discourage women from filing for divorce. However, with the assistance of a skilled lawyer, women can overcome these obstacles and assert their rights.

6. ROLE OF A DIVORCE LAWYER

A divorce lawyer plays a crucial role in ensuring that the process is smooth and legally sound. Here’s how a lawyer can help:

• Legal Advice: They guide the wife on her rights and the best course of action.
• Documentation: Proper preparation of the divorce petition and other legal documents.
• Representation: Advocating for the wife in court and handling contested cases.
• Additional Matters: Addressing related issues like alimony, child custody, and property division.

Even seemingly straightforward divorces can become complicated. Having a knowledgeable lawyer ensures that the wife’s interests are protected throughout the process.

7. MODERN PERSPECTIVES ON DIVORCE

Although Indian society still holds traditional views on marriage, attitudes toward divorce are gradually changing. Women are increasingly aware of their rights and are no longer willing to tolerate abusive or unhealthy relationships. Legal systems have evolved to support women in such cases, providing them with tools to seek justice and reclaim their lives.

8. CONCLUSION

Filing for a divorce petition by a wife is a significant step that requires careful consideration and legal support. While societal stigma may make the process difficult, women must prioritize their well-being and fight for their rights. With the assistance of an experienced divorce lawyer, the process becomes more manageable.

Whether it’s dealing with cruelty, abandonment, or other grounds for divorce, women should not hesitate to seek legal help. A divorce lawyer can guide them through every step, ensuring their rights are upheld and their future is secured. Remember, the first step toward a better life begins with understanding your rights and taking action.

The post DIVORCE PETITION BY WIFE IN INDIA appeared first on LexForti .

The Bench comprised of CJI DY Chandrachud, HMJ JB Pardiwala and HMJ Manoj Misra.

Reason of suo-motu cognisance:

“The reason why we have decided to take this Suo-moto matter is because this is not a matter related to a particular murder which took place in a hospital in Kolkata. It raises systemic issues related to the safety of doctors across India,…”

“First, on matters of safety, we are deeply concerned about the virtual absence of conditions of safety for young doctors in public hospitals, especially women doctors who are more vulnerable because of the nature of work and gender.

Therefore we must evolve a national consensus. There must be a national protocol to create safe conditions of work. If women cannot go to a place of work and feel safe, we are denying them equal opportunity. We have to do something right now to ensure that the conditions of safety are enforced,”

CJI DY Chandrachud

Intervention of Association of Medical Consultants of India (FAMCI)

The aforesaid FAMCI filed an intervention in the Suo-moto case being taken by the Hon’ble Court. The intervenors submitted the raising safety concerns for the medical workers in hospital across the country in the light of the absence of any centralized laws.

The Hon’ble Court’s findings:

State laws not sufficient:

The bench observed that while several states, including Maharashtra, Kerala, and Telangana, have enacted state laws to address violence against medical professionals, these laws fail to adequately address the shortcomings in institutional safety standards.

National Task Force:

The Hon’ble CJI announced that the Court is forming a “National Task Force” (NTF) comprised of medical professionals from across the country. The NTF will be responsible for recommending nationwide protocols to ensure the safety and well-being of healthcare workers.

The Hon’ble Court noted that the NTF will also consider the following issues:

1. Medical professionals on night duty are not provided with adequate rest facilities, and there are no separate duty rooms for male and female staff.
2. Interns, residents, and senior residents are required to work 36-hour shifts, often in conditions lacking basic hygiene and sanitation.
3. The absence of security personnel at hospitals is more common than not.
4. Healthcare professionals do not have sufficient access to proper toilet facilities.
5. Accommodation for medical professionals is often located far from the hospitals, with inadequate transportation services.
6. There is either an absence or insufficient functionality of CCTV cameras for hospital monitoring.
7. Patients and their attendants have unrestricted access to all areas within the hospital.
8. There is a lack of screening for arms and weapons at hospital entrances.
9. Certain areas within the hospital are poorly lit and dingy.

Composition of NTF

The bench ordered the creation of a ten-member National Task Force, led by Surgeon Vice Admiral Arti Sarin, AVSM, VSM, Director General Medical Services (Navy). The National Task Force is assigned to make recommendations concerning the safety, working conditions, and well-being of medical professionals. The Task Force must submit an interim report within three weeks and a final report within two months.

Court Appeals for Doctors to Resume Duties

In its order, the Court appealed to the protesting doctors across the country to resume their duties. The Court emphasized that, as it has now addressed the concerns regarding the safety of medical professionals, those participating in the protests should refrain from continuing their absence from work.

Slammed West Bengal Police

The Hon’ble CJI expressed grave concerns about the widespread dissemination of the victim’s name, photographs, and video clips of the deceased in the media, describing it as “extremely concerning.” Senior Advocate Kapil Sibal, representing the State of West Bengal, submitted that the photos were taken and circulated before the police arrived.

The Hon’ble Court questioned the State regarding the conduct of the hospital’s Principal, the delay in registering the FIR, and the vandalism at the hospital during a public protest on August 14.

The Hon’ble CJI highlighted that after the crime was discovered in the early morning, the Principal initially suggested it was a suicide, and the parents were not allowed to see the body for several hours. Sibal refuted this, stating the State would provide a full record of the facts.

In furtherance, the Hon’ble CJI also questioned why the Principal was given charge of another hospital after resigning from RG Kar Hospital. The bench then raised concerns about the timing of the FIR. Sibal explained that an “Unnatural Death” case was registered immediately, denying any delay in filing the FIR.

However, CJI noted that although the autopsy was conducted between 1 PM and 4:45 PM, the FIR was registered only at 11:45 PM, after the body was handed over to the parents at around 8:30 PM for cremation. Sibal clarified that the FIR was based on the victim’s family’s complaint.

Solicitor General Raises Concerns Over Police Inaction and Multiple FIRs

Solicitor General of India Tushar Mehta argued that a mob of 7,000 people could not have gathered without the knowledge or involvement of the police. The bench, in its order, expressed its inability to understand how the authorities failed to control the vandalism. The Solicitor General further contended that the root of the problem lies in the West Bengal police being led by a DIG-in charge who is himself facing various allegations, a claim which was refuted by Senior Advocate Kapil Sibal.

Sibal informed the Court that over 50 FIRs have been registered regarding the vandalism incidents, with 37 individuals already arrested. In response, the Solicitor General expressed surprise at the number of FIRs, suggesting that this approach might hinder a thorough investigation.

SC Directs State to Refrain from Coercive Action Against Peaceful Protesters

The Court advised the State to refrain from taking coercive actions against individuals participating in peaceful protests or expressing their views through media and social media. Senior Advocate Kapil Sibal noted that a significant amount of misinformation is being circulated in the media regarding the case, and clarified that the State’s actions were targeted solely against those spreading such false information.

“We expect that the Govt of WB shall observe necessary restraint in the face of peaceful protests being conducted by any quarter of the society bearing on the issues which form the subject matter of the incident in Kolkata.”

The Hon’ble Court

The Hon’ble SC Takes Serious Note of Threats to Women Doctors; Orders CISF Security

During the hearing, Senior Advocate Aparajita Singh, representing the organization “Protect the Warriors,” informed the bench that after the vandalism incident on August 14, a mob returned to the medical college hospital and threatened women doctors, warning them they would face the same fate as the rape victim if they reported the incident. Singh highlighted that one “brave doctor” had lodged a complaint with the police via email and provided a copy to the bench, which the Court took seriously.

Chief Justice of India DY Chandrachud expressed deep concern that the mob called the women doctors by name and threatened them with violence. CJI questioned why the police fled the scene. Justice Pardiwala, also on the bench, raised doubts about whether the same police could be trusted to protect the doctors. In response, CJI stated that the Court would order the Central Industrial Security Force (CISF) to provide security to the hospital and hostel, a move to which the State had no objection.

The Court recorded that, out of the 700 doctors who were present at the RG Kar hostel, only 30-40 females and 60-70 males remained after the vandalism. The Court invited any doctor with safety concerns to email the Registrar Judicial of the Supreme Court.

Additionally, the Court directed the Central Bureau of Investigation (CBI) to file a status report on the investigation by Thursday, August 22, and instructed the State of West Bengal to submit a status report on the acts of vandalism.

The post Detailed Brief: Supreme Court on RG Kar Incident appeared first on LexForti .

The process of establishing a franchise can be complex and overwhelming, but with the help of our experienced team of attorneys, we were able to guide KHATICRAFT through every step of the process.

We assisted in the drafting and review of the franchise agreement, ensuring that it protected the interests of both the franchisor and franchisee. And we provided ongoing legal support and guidance throughout the entire process, ensuring that everything was running smoothly and that any issues were quickly and efficiently resolved.

Overall, working with LexForti Legal was a seamless and stress-free experience for KHATICRAFT. We are proud to have been a part of their journey in establishing their franchise business and wish them all the best in their future endeavors.

At LexForti Legal, we understand the importance of protecting and promoting your business, and we are dedicated to providing the legal support and guidance you need to succeed. If you’re thinking about establishing a franchise, or have any other legal needs, please don’t hesitate to contact us.

More about KHATICRAFT

Khaticraft is a renowned furniture brand known for its exquisite craftsmanship and high-quality products. Specializing in solid wood furniture, Khaticraft offers a wide range of designs that blend traditional artistry with modern functionality. Their collections cater to diverse tastes, ensuring that every piece adds a unique charm to any space. With a commitment to sustainability and customer satisfaction, Khaticraft has become a trusted name in the furniture industry, providing durable and stylish solutions for homes and offices alike.

The post LexForti Legal advised KHATICRAFT on Franchising appeared first on LexForti .

Coram: HMJ Vibhu Bakhru and HMJ Amit Mahajan

Why appeal was preferred?

Single Judge’s vide Judgement dt. 30.10. 2021 allowed Respondent’s Injunction application.

What exactly was directed vide the impugned Judgement?

Plaintiff (Ptf.) can seek protection u/s 28 of the TM Act, but cannot have right on surnames/generic words like Packers or Movers individually. Subject to this limitation, Injunction application was allowed in following manner:

1. Defendant (Def.) 1-3 to investigate any complaint made by plaintiff alleging use of TM and its variation as keywords resulting in diversion of traffic form Ptf’s website to that of advertisers.
2. Def. 1-3 to investigate and review overall effect of an Ad to ascertain that same is not infringing/passing off the Ptf’s TM.
3. If its passing off / infringement, then Def. 1-3 shall restrain advertiser from using same and block/remove such ad.

Ratio of impugned Judgment:

Use of TM as keywords in Google Ads Program amounts to ‘use’ under TM Act and thus may constitute infringement. Google will also be not entitled to defence of an intermediary under Section 79 of the IT Act 2000.

Facts:

Appellant: Google | Resp. – 1: DRS Logistics P. Ltd. | Resp. – 2: Agarwal Packers and Movers P. Ltd. [Resp. 1 and 2 collectively referred as DRS, which are leading packaging, moving and logistics service providers in India.]

DRS’s registered TM is ‘Aggarwal Packers and Movers’.

What was the allegation against Google?

That Google actively encourages use of respondent’s., registered TMs as keywords for 3^rd parties to display their sponsored links, which amounts to TM infringement.

The Ads Programme (Previously known as Google AdWords):

Advertisers can create and display online ad w.r.t their websites. Said adv. Appears on first page (SERP – Search Engine Result Page). One can reserve a keyword. Say Lexus India, may reserve ‘Audi’, wherein anyone searching Audi, the Google will shows result of ‘Lexus India’ on top of Search result.

Advertiser first create new campaign for advertisement. Advertiser then set an ‘avg daily budget’, then chooses targeting options like location/languages/etc. Then keyword is chosen. On typing those keywords by user, the ad will get triggered.

Google provides ‘keyword planner tool’ to assist user in selecting a keyword. The tool shows the advertiser, the volume of searches made for that particular keyword.

Then advertiser bid for that keyword. Advertisers don’t pay on impression i.e., how many times it appears on SERP. Rather it’s paid on basis of ‘how many times it was clicked – Pay per Click (PPC)’. Advertiser also pay bid qua the maximum price they are willing to pay if user clicks i.e., ‘Max CPC’.

The sequence on which Ad will be placed is also decided on basis of ‘Click through rate’ (CTR). Google estimates rate at which viewers will click an ad. More CTR – More relevant keyword. Google also check if landing page experience (website – user experience) and how closely ad is likely to match user’s search.

The above factors are used by Google to estimate Quality Score. High Quality Score and bid amount of advertiser creates the position at which ad will appear in SERP. Advertiser pay more and improve quality of website to improve Ad position. Ad’s position at top of SERP will yield more CTR.

Present case:

On googling the word ‘AGGARWAL PACKERS AND MOVERS’, 3^rd parties sites like ‘www.safepackersmovers.com’ and ‘www.dtccargopackers.com’ used to come on SERP. These sites have no connection with DRS.

Google’s contentions:

Use of keywords does not amount to ‘use’. Even if considered ‘use’ under TM Act – It will be a ‘use’ by advertiser and not Google per se. Google also sought ‘safe harbour’ protection under Section 79 of IT Act.

Use of trademark as keyword not per se infringement of a trademark. The said position have been accepted by courts across jurisdictions of UK, USA, EU, Australia, NZ, Russia, South Africa, Canada, Spain, Italy, Japan and China.

In India, test of confusion is based on perceptibility of mark by consumer in terms of visual, phonetic and structural similarity. Since keywords are invisible, to consumers, necessary element of confusion is absent. In absence of confusion – no infringement.

Rebutted Ld. SJ’s reasoning – Meta Tags and keywords are different. Meta tags are website descriptors and keyword is word provided by advertiser. Meta tag neither used by Google in organic search result or as part of sponsored link. Meta-tags are an outdated form of tech that is not used by Google for over a decade and not equivalent to keywords.

Diversion of internet traffic on account of use of TM as keywords is matter of trial. Requires evidence to be led on issue and can’t be decided at interim stage.

Google is entitled to safe harbor, since it has a content neutral role as advertisement as well as keywords comprises of 3^rd parties.

DRS’s contentions:

Google can’t claim ‘safe harbour’ protection under Section 79 of IT Act. It actively participates in promoting sponsored Ads. It itself determine ‘keywords’ which is relevant to goods and services of advertisers. Hence its not a passive intermediary as claimed.

Keyword and Meta tag perform similar functions.

Keyword planner tool clearly satisfies necessary element for infringement of trademark. Google through use of said tool informs advertiser about DRS’s TM. Google relied on various international decisions that held that invisible use of TM in keywords does not amount to ‘use’ and same is erroneous, since none of those cases discuss Keyword Planner Tool. Use of TM by said tool is not invisible but visible to advertisers.

Issues:

• whether use of the trademarks as keywords amounts to use of those marks for the purposes of Section 29 of the TM Act;
• if so, whether such use is that of the advertiser or by Google as well;
• whether the use of the trademark as keywords per se amounts to infringement of a trademark; and
• if so, whether Google is absolved of its liability in respect of use of trademarks as keywords by virtue of being an intermediary under Section 79 of IT Act

Whether use of the trademarks as keywords amounts to “use” under TMA?

The use of a trademark as keywords for display of advertisements in respect of goods or services clearly amounts to use of the trademark in advertising within the meaning of Section 29(6) of the TM Act.

The use of a trademark as a keyword by an advertiser for the purposes of displaying its advertisements on the Search Engine, is use of the mark in relation to the goods and services offered by an advertiser.

if so, whether such use is that of the advertiser or by Google as well;

Google actively promotes and encourages the use of trademarks identified with the leading goods and service providers-which apparently yield a higher incidence of search queries in respect of a particular category of goods and services-as keywords by suggesting the same and further monetizing their value. In our view Google’s PPC model, which actively uses keywords, derives a distinct advantage by use of trademarks as keywords.

whether the use of the trademark as keywords per se amounts to infringement of a trademark;

use of a registered trademark as a keyword, absent of any confusion, dilution, or compromise of the trademark, would not amount to infringement of the trademark.

Use of a trademark as keyword is, essentially, to seek the attention of the internet users who may find information relating to goods and services covered under the said trademark as relevant. We find nothing illegal in seeking out such internet users as targets for advertisements that they may find relevant.

Any person using an internet search engine such as that operated by Google for finding information relating to a search query is obviously aware that all search results may not be relevant.

Clearly, the facts of each case are required to be considered in determining whether in a given case use of a trademark as a keyword amounts to infringement under the TM Act

the use of the trademark as a keyword coupled with the display of a sponsored link must have real likelihood of confusion. Mere generation of interest in the sponsored link without any likelihood of confusion cannot be construed as infringement of a trademark. It is necessary to be careful to not conflate initial interest with the Doctrine of ‘Initial Interest Confusion’. Thus, sponsored links may be relevant to the search query and what the internet user is searching for. It may thus generate interest that would obviously not constitute infringement of a registered trademark under Section 29(2) of the TM Act, if there is no deception or confusion.

Contributory Infringement by Google?:

It is not necessary for us to consider this aspect in any detail at this interlocutory stage. The same would be a matter of trial provided DRS has laid a foundation for the action of contributory infringement in its pleadings and it produces evidence to establish the same.

Google – Liability under Section 79 IT Act?

the said benefit would be unavailable to Google if its alleged activities are found to be infringing DRS’s trademarks

Conclusion:

Google’s use of the trademarks as keywords does amount to use in advertising under the TM Act.

if it is found that Google has infringed DRS’s trademark or is contributorily liable for the same, the benefit of safe harbour under Section 79(1) of the IT Act would not be available to it

The post Google vs. DRS Logistics: Case analysis appeared first on LexForti .

In the captioned matter, the Ld. Trial Court restrained the Defendant form using the mark MEDILICE post long drawn trial and awarded punitive damages of sum of Rs. 10 Lakhs against the Defendant. Furthermore, the mark MEDICLICE was declared WELL-KNOWN by the Ld. Court.

Plaintiff:

Wings Pharmaceuticals Pvt. Ltd.

Defendant:

Kirit Bhadiadra

Competing Marks:

MEDILICE (Identical)

Nature of the Suit:

Suit for infringement, passing off, unfair competition, rendition of accounts, and delivery of impugned goods, etc.

Competing Product Description:

Anti-lice shampoo – Plaintiff

Hair Oil – Defendant

Registration Status of Plaintiff:

The Plaintiff adopted the trade mark MEDILICE in 1998 for the production of anti-lice shampoo. The Plaintiff became the registered proprietor of the trade mark MEDILICE on November 19, 2014, under class 3. This registration remains valid and in effect.

Defendant’s Registration Status:

The Defendant has also applied for registration of the mark MEDILICE in class 5, which is currently pending.

Issues raised:

1. Whether the plaintiff is entitled for permanent injunction restraining the defendant / its agents, etc. from infringing the plaintiff’s trade mark MEDILICE as alleged. ?

2. Whether the plaintiff is entitled for decree for permanent injunction restraining the defendant for passing off their goods as plaintiff’s goods by using trademark MEDILICE?

3. Whether the plaintiff is entitled for rendition of accounts?

Analysis:

Judgments:

Automatic Electrical Ltd Vs I L K Dhwan (1999) 19 PTC 81 (Dimmerdot)

• Defendant applied for registration cannot argue that the mark is descriptive.

Midas Hygiene v. Sudhir Bhatia (2004) 3 SCC 90

• In case of infringement injunction needs to follow

Sun Pharma Industries Ltd. v. Cipla Ltd., 2009 (108) DRJ 207 (Para 8, 11, 23)

• Third party cannot challenge an assignment between the plaintiffs.

Glaxosmithkline Pharmaceuticals Ltd. vs. Horizon Bioceuticals Pvt. Ltd. & Anr. 2023 SCC On-Line Del 2065

• Common to register does not prove that they are common to trade.

Allergan v. Chetana Pharma, 2007 (34) PTC 267 (Cal) (SJ), Para 11

• Mere manufacturing license does not prove usage.

Microsoft Corporation v. Rajendra Pawar & Anr., (36) PTC 697 (Del)

• Where the conduct of the erring party is found to be egregiously invidious and calculated to mint profits for his own self, awarding punitive damages prevents the erring party from taking advantage of its own wrong by escaping prosecution or detection

Reddy Laboratories Ltd. (Dr.) Vs. Reddy Pharmaceuticals Limited, 2004 SCC OnLine Del 668 (2004) 76 DRJ 6161

• to claim the defence of acquiescence, there should be a tacit or an express assent by the plaintiff to the defendant’s using the mark and in a way encouraging the defendants to continue with the business. It is as if the plaintiff wants the defendant to be under the belief that the plaintiff does not regard the action of the defendant as being violative of the plaintiff’s rights.

Hindustan Pencils (P) Ltd vs India Stationery, AIR 1990 Del 19

• the owners of trademarks or copyrights cannot be expected to run after every infringer and thereby remain involved in litigation at the cost of their business time, but can wait till the time the user of their name starts harming their business interests and starts misleading and confusing their customers.

Emcure Pharmaceuticals Ltd. V. Corona Remedies Pvt. Ltd. MANU/MH/1SS0/2014

• mere failure to sue without a positive act of encouragement is no defence and is no acquiescence

Relief:

A decree for a permanent injunction has been issued in favor of the Plaintiff. This injunction restrains the Defendant from dealing in cosmetic/medicinal preparations under the impugned mark MEDILICE, its variants, or any other trade mark that might be deceptively similar to the Plaintiff’s trade mark MEDILICE, thereby constituting infringement and passing off.

Compensation:

The Plaintiff is also entitled to punitive damages amounting to Rs. 10 Lakhs, in addition to the costs of the suit.

Decree

The post Rs 10 Lakh Imposed, Defendant Restrained from Using ‘MEDILICE’ appeared first on LexForti .

Leasing or renting a property can help you save your situation and achieve demands for your business without having to break the bank. While it may be a lifesaver and vital for you, it is good to understand all the details of the lease contract that you want to sign. Whether you are starting or want to expand your business, going through the path of leasing a property in your business is a good idea. After all, when well planned, a lease can help you build yourself as your business strengthens. But, if you need help understanding the terms and other factors in your free rental lease agreement, it will impact your business positively.

Take your time

Take your time deciding on a particular property, as you can explore other options in the market and know the best in terms of your set goals. That aside, you can take yet another step to analyze different properties depending on their agreement and go for the one that suits you best. With the best property in terms of location and contract, you can move to the negotiation phase.

Understand the terms and conditions

For any agreement or contract, there must be terms and condition that binds the two parties or stakeholder in the deal. Some leasing terms include the address of the target property, commitment to pay, due dates, and other crucial clauses of your ideal contract that need to be understood well. After you understand, it is essential to be comfortable with them. If not, seek to know what you need help understanding to ensure every term favors your business.

Negotiation

At this stage, you have found a suitable property whose contract you need clarity, which means it is time to get into murky mud. Negotiation will help you get the best property with the best terms. Other involved parties in the deal will also convince you that their contract offers the best in the market. It is important to clarify what is obtainable in the market regarding such properties. While at it, be sure to work with the best deal after proper negotiation, as that is how you will understand the most outstanding of them in the market.

Ensure your lawyer is present before you sign

Although at this point everything looks good, do not ignore tagging your lawyer along on the day of signing the free rental lease agreement. Your signature for any contract is binding, which means that you agree to every clause, term, and everything in the document. Having your lawyers back as your legal practitioner will help protect you and your entire business in the long run. It should be someone you can trust, one without conflict of interest.

Conclusion

When doing business or starting one, you may need to lease properties or equipment for your business to grow. You might think it is as simple as leasing, but you must sign an agreement with your ideal lender for everything to be in place. While at it, always remember to negotiate to get the best contractual agreement in the presence of your lawyer before you sign on terms to keep watch when given the target property.

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Ombudsman for digital transactions
Digital transactions mean any seamless payment transaction affected without the need for cash. This extends to any payment transaction accomplished through electronic means without physical cash involved. To prevent scams and loss of finances, digital transactions should be regulated without breaching customer privacy.

In a previous post, we discussed the Ombudsman Scheme for digital transactions as established by the Reserve Bank of India (RBI). This scheme focuses on establishing a mechanism for resolving complaints of customers regarding digital transactions. This aims to reduce fraud and ensure that the terms of digital payments remain transparent among customers.

Foreign exchange transaction limits

One of the effects of India’s fintech growth is the increased access to foreign exchange markets. People can use online trading platforms to trade forex from the global currency market — accessing over 100 currency pairs without delays. In fact, many people turn to forex trading to make additional income and grow their wealth. At the same time, people may also need to exchange foreign currencies for traveling abroad or transferring money overseas.

As foreign exchange has become more common, the RBI established foreign exchange regulations such as limits to foreign currency transaction amounts (Rs 50,000) and limits to foreign currencies being purchased (up to USD 2,50,000 or its equivalent in any other currency). This is done to maintain stability in exchange rates and hopefully attract further foreign investment as a result.


The rise of RegTech

Another key aspect of fintech regulations in India is the rise of regulatory tech (or RegTech). Regulatory bodies often announce and implement new frameworks and regulations to undertake proper due diligence and ensure ethical and fair business conduct. New technologies, like RegTech, are put in place to help fintech companies keep up with and maintain compliance.

Most regulatory technology solutions in India today focus on know-your-customer (KYC) and anti-money laundering (AML) compliance. In case of red flags or transaction errors, KYC and AML compliance helps financial institutions monitor their customers’ transactions for suspicious activity. RegTech can help by using technology to automate compliance, improve data management, enhance security, and offer greater transparency to customers.

Digital lending guidelines

Finally, fintech regulations also extend to digital lending. The digital lending industry in India has seen significant growth over the past years, making it a key component of India’s fintech sector. This growth is attributed to the reluctance shown by traditional financial institutions to lend money or credit to low-income and credit-deficient entities in the country. As a result, fintech solutions like digital lending have become a more accessible alternative for people.

In 2022, RBI updated their digital lending guidelines to smoothen the digital lending process and protect consumers from unusually high-interest rates of lenders. The new guidelines would keep tabs on unethical loan recovery practices, such as automatic credit increases without the borrower’s consent. The new guidelines also required all regulated entities to have a suitable nodal grievance redressal officer to handle fintech and digital lending-related complaints, creating a necessary and reliable human element in the digital and automated landscape.

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Personal Guarantees and IBC: A Complex Web of Struggles

The concept of personal guarantees seems straightforward: entrepreneurs vouch for their company’s loan repayment. However, when the company faces insolvency and enters the jurisdiction of National Company Law Tribunal (NCLT), these personal guarantees morph into a nightmare. Most companies undergoing insolvency proceedings are labeled as fraudulent by banks, leading to legal action against entrepreneurs. The entrepreneurs are then put under intense scrutiny, often having to account for financial decisions made years ago.

Despite the Supreme Court of India overturning some of these declarations, the damage to entrepreneurs’ reputation is often irreparable. The ongoing legal disputes, coupled with reputational erosion, force entrepreneurs into a corner with limited options. The consequences are vast, affecting not only the entrepreneurs but also employees, suppliers, and the overall business ecosystem.

The Veil over Valuation: Entrepreneurs’ Exclusion and Flawed Process

The valuation process under the IBC is a crucial determinant of a company’s fate during insolvency. However, entrepreneurs who have nurtured and built their businesses are excluded from this process, as the company’s assets are handed over to new entities for evaluation. This exclusion contradicts the principles of natural justice and transparency.

The IBC introduces two types of valuations: the going concern value and the liquidation value. The disparity between these values and the actual sale price is evident in cases like Su-kam, where a company valued at Rs300 Crore was sold at a mere 49Cr. The process raises pertinent questions about the fairness and effectiveness of these valuations.

Entrepreneurial Plight and Future Prospects

Entrepreneurs, who are often the driving force behind a company’s success, find themselves marginalized during the insolvency process. This treatment contrasts sharply with the more balanced approach taken towards investors who acquire distressed companies. Entrepreneurs are treated as criminals, leading to depression, personal struggles, and even tragic outcomes.

The IBC’s approach to ‘interest’ burdens further exacerbates the situation. Entrepreneurs are burdened with interest payments even when they no longer have control over the company. The continuous accrual of interest, often out of their control, hampers their ability to resolve financial matters and move forward.

Conclusion: A Call for Reform and Empathy

The personal guarantee saga under the IBC raises profound ethical and systemic questions. Entrepreneurs who have invested their lives, energy, and resources into building businesses are left battling legal complexities, financial woes, and reputational damage. The valuation process, skewed and lacking transparency, further compounds their struggles.

It is imperative to create an environment that respects entrepreneurs’ contributions and provides them with a fair chance to rebuild and recover. Reforms to the IBC should focus on balanced valuations, empathetic treatment, and a more supportive ecosystem for entrepreneurs. As society, we must recognize that entrepreneurial journeys are not just about profits and losses but about innovation, growth, and economic progress.

By sharing the untold stories of entrepreneurs like these, we open the door to a more nuanced and compassionate discussion surrounding personal guarantees, insolvency, and the overall business landscape.

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PDF

Digital Personal Data Protection Act, 2023

The Purpose of the Act

The Act streamlines the processing of digital personal data, balancing individuals’ rights to guard their data with the imperative to utilize such data for legitimate purposes, ensuring everything is in alignment with the broader spectrum of related issues.

Background & Need for the DPDPA

To cope with the rapid pace of technological advancements and provide a structured framework for personal data protection, the Digital Personal Data Protection Act, 2023 was enacted. This legislation empowers individuals by granting them rights over their data while setting strict guidelines for businesses and organizations that process this data.

Key Terms to Understand

• Data Principal: The individual whose personal data is being processed.
• Data Fiduciary: An entity or individual who determines the purpose and means of processing the personal data.
• Data Processor: The entity processing the data on behalf of the data fiduciary.

Salient Features of the Act

• Data Fiduciaries’ Obligations: These are entities like companies, individuals, and government bodies that process data. Their key responsibilities encompass data processing activities, including collection, storage, and other related operations.
• Data Principals’ Rights & Duties: The Act ensures the rights of Data Principals, essentially the individuals to whom the data pertains. It also introduces penalties for any infringements of these rights, duties, and obligations.
• Promotion of Business & Innovation: By laying down clear guidelines, the Act facilitates ease of living and conducting business, fortifying India’s evolving digital economy and innovation landscape.

Foundational Principles

The Act anchors itself on seven robust principles:

• Ensuring consented, transparent, and lawful data use.
• Limiting data use to the original, specified purpose.
• Gathering only the necessary data (data minimisation).
• Upholding data accuracy.
• Restricting data storage duration.
• Mandating reasonable security protocols.
• Enforcing accountability, particularly in the event of data breaches.

Novel Features of the Act

Apart from being rooted in these principles, the Act sets itself apart by being SARAL – Simple, Accessible, Rational, and Actionable Law. It’s noteworthy for its plain language, illustrative explanations, lack of complex provisions, and minimal cross-references. A pioneering step in inclusivity, the Act uses “she” instead of “he,” marking a significant nod to women in parliamentary legislation.

Empowering Individuals

The Act fortifies individual rights by allowing:

• Access to their processed data.
• Data correction and erasure.
• Grievance redressal channels.
• Nomination rights for representation in case of death or incapacity.

Data Principals can seek recourse with Data Fiduciaries for rights enforcement. If unsatisfactory, they can escalate issues to the Data Protection Board effortlessly.

Duties & Obligations of Data Fiduciaries

Key responsibilities include:

• Implementing robust security safeguards.
• Reporting data breaches to the concerned Data Principal and the Data Protection Board.
• Deleting data post its utility or upon consent withdrawal.
• Maintaining a grievance redressal system.
• Appointing an officer for Data Principal inquiries.

Significant Data Fiduciaries have additional obligations, encompassing data audit appointments and periodic Data Protection Impact Assessments to amplify data protection.

Child Data Protection

Recognizing the vulnerability of children, the Act:

• Mandates parental consent for processing their data.
• Prohibits practices harmful to children, like tracking or targeted ads.

Act Exemptions

Certain entities and scenarios, such as research purposes, startups, legal rights enforcement, and specific Data Fiduciary categories, enjoy exemptions under this Act for various reasons, including national security and public order.

Data Protection Board’s Role

The Board is the watchdog, empowered to:

• Direct data breach remedies.
• Investigate breaches, impose fines.
• Advocate Alternate Dispute Resolution.
• Advise the Government on punitive actions against recurring offenders.

Rights of the Data Principal

Every data principal has pivotal rights under the DPDPA, including:

• Access to their personal data.
• Correct, complete, update, or request erasure of their data.
• Nominate a representative to exercise these rights on their behalf in case of death or incapacity.

Obligations of Organizations and Businesses

Businesses, regardless of size or domain (including MSMEs and startups), have several obligations:

• Ensure data principals can access, correct, and erase their data.
• Correct any inaccurate or misleading personal data upon request.
• Not to disclose recipients of personal data upfront, though they must provide this information upon the data principal’s request.
• Establish robust grievance redressal mechanisms for users, including the designation of a grievance officer.
• Comply with the guidelines even if they are processing the data of foreign residents.

Data Transfer & Processing Across Borders

While the DPDPA doesn’t mandate data retention solely within India, it allows the Central Government to restrict data transfer to certain countries. Businesses must be cognizant of these nuances and sector-specific laws that might apply.

Exemptions & Penalties

It’s crucial for organizations to understand potential repercussions of non-compliance:

• Penalties range from INR 10,000 to a whopping INR 250,00,00,000, depending on the nature of the breach.
• The regulatory board can mandate remedial measures and even suggest mediation between parties.

Preparing for the DPDPA

As the DPDPA comes into effect, it’s vital for businesses to:

• Establish dedicated data protection teams.
• Adapt IT infrastructure and operational procedures.
• Revisit and realign data processing frameworks and contracts.
• Prioritize compliance to prevent significant fines and operational disruptions.

Conclusion

As we transition into an era where data is the new currency, the Digital Personal Data Protection Act, 2023, emerges as a beacon of hope, ensuring that this currency is both secure and used ethically. Whether you’re an individual or a business, understanding this Act is the key to navigating India’s digital landscape effectively.

The digital era has revolutionized how we deal with information. While technology has brought us innumerable advantages, it also comes with the challenge of managing and protecting personal data. With data breaches becoming increasingly common and concerns over individual privacy growing, nations worldwide are introducing robust data protection frameworks. Among them, the Digital Personal Data Protection Act, 2023 (DPDPA) is India’s answer to these challenges. Let’s explore what this means for businesses, individuals, and the broader digital landscape.

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