
Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration
Date: 07.09.2026
Delhi High Court Invalidates Trademark Assignment, Affirms Corporate Ownership of ‘Su-Kam’ Brand
This Short Article has been prepared & written by Advocate Ravi Shekhar Jha-Delhi High Court, New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com .
The Delhi High Court recently delivered a significant judgment in the legal battle over the ownership and rights to the “Su-Kam” trademarks. The dispute, between Su-Kam Power Systems Ltd. (the plaintiff) and its former managing director, Mr. Kunwer Sachdev, along with others (the defendants), centered on the rightful ownership and use of the “Su-Kam” brand, especially in relation to inverters and related products under Class 9 of the Trade Marks Act, 1999.
Background of the Dispute
Su-Kam Power Systems Ltd. is a well-known manufacturer of power backup solutions, including inverters and batteries. The conflict arose when Mr. Sachdev, after leaving the company, claimed ownership of the “Su-Kam” trademarks based on a Deed of Assignment and other historical agreements. The plaintiff, through its resolution professional and later a liquidator, sought a declaration of exclusive ownership, invalidation of the assignment deed, and an injunction against the defendants from asserting any rights over the trademarks.
Key Arguments
Plaintiff’s Position
- Continuous Use and Registration: Su-Kam Power Systems Ltd. had registered the “Su-Kam” marks in Class 9 and used them extensively since 1998, with no objection from Mr. Sachdev during his tenure as managing director and majority shareholder.
- Admissions by Defendant: Multiple instances were cited where Mr. Sachdev, in official documents and agreements (including with Reliance India Power Fund and in a 2015 infringement suit), acknowledged the company as the rightful owner of the trademarks.
- Estoppel: The plaintiff argued that Mr. Sachdev was estopped from denying the company’s ownership due to his prior representations and conduct.
- Invalid Assignment: The Deed of Assignment was challenged as invalid due to breach of fiduciary duty, lack of proper board authorization, and being executed by Mr. Sachdev in conflicting roles.
Defendant’s Position
- Original Proprietorship: Mr. Sachdev claimed to have coined and used the “Su-Kam” mark since 1986, licensing it to his partnership firm and later to the company.
- Validity of Assignment: He argued that the Deed of Assignment was valid and that the company was merely a licensee.
- Need for Trial: The defense insisted that issues of fraud and document authenticity required oral evidence and could not be decided summarily.
Court’s Analysis and Findings
- Summary Judgment Justified: The court held that, under the Commercial Courts Act and Order XIIIA of the CPC, summary judgment was appropriate as the defendants had no real prospect of successfully defending the claim and there was no compelling reason for a full trial.
- Exclusive Proprietorship: The court found that Su-Kam Power Systems Ltd. is the exclusive registered proprietor of the “Su-Kam” trademarks in Class 9, with valid and subsisting registrations renewed during Mr. Sachdev’s management.
- Invalidity of Assignment: The Deed of Assignment was declared void due to breach of fiduciary duty, lack of proper board quorum, and failure to register the assignment as required by law.
- Estoppel: Mr. Sachdev was estopped from claiming ownership, having repeatedly represented the company as the owner in various legal and commercial contexts.
- Limitation: The suit was held to be within limitation, as the cause of action arose only when Mr. Sachdev asserted ownership in 2018.
Final Judgment and Reliefs Granted
The court decreed the suit in favor of Su-Kam Power Systems Ltd., granting the following reliefs:
- Declaration: The Deed of Assignment dated March 16, 2006, is invalid.
- Declaration: The License Agreement dated July 7, 1995, never was and is not applicable to the plaintiff.
- Directions: The Trade Marks Registry was directed not to proceed with the defendant’s request for recordal of assignment.
- Permanent Injunctions: The defendants were restrained from:
- Claiming ownership of the “Su-Kam” marks.
- Applying for or obtaining registration of the marks in any form.
- Using the marks as a trade name, domain, or in any other manner.
- No Order as to Costs: The court did not award costs to either party.
Significance of the Judgment
This decision reinforces the importance of proper corporate governance, the binding nature of admissions and representations by company directors, and the legal protections afforded to registered trademark proprietors. It also clarifies the application of summary judgment procedures in commercial disputes, emphasizing efficiency and the avoidance of unnecessary trials.
Conclusion
The Delhi High Court’s ruling provides clarity on trademark ownership in corporate contexts and sets a precedent for similar disputes. Su-Kam Power Systems Ltd. retains exclusive rights to the “Su-Kam” trademarks in Class 9, ensuring brand continuity and legal certainty for its business operations.
Connected Matter
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Source: Delhi High Court
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