M/s Pleasant Beverages Corporation, a USA based corporation.

has been in to the business of

manufcturing and marketing nutrient health drinks in different parts of world. The research team of the
eorporation has invemed a new nutrient drink having the potency of controlling diabetes in the patients
having type one diabetes. This product was named as ‘Madhuvani’. Pleasant Beverages has been
marketing this product in a typically shaped bottle in the market from January 20I6. The product has
received a good response in India in general and Hyderabad in particular.

For the purposes of expanding the sales of ‘Madhuvani’ in India where the incidence of diabetesis high,
the Pleasant Beverages has entered into two franchise agreements : one for South India and
the other for North India. In January 2018, ‘M/S Pleasant Beverages Corporation’ has entered into
agreement for marketing ‘Madhuvani’ in South India with Royal Enterprises , a Hyderabad
based LLP in which Mr. Vinod Kumar and his wife Ms.Padma are partners. The agreement among
other terms and conditions contains a non disclosure clause to the effect that the franchisee shall not
disclose the ingredients of the ‘Madhuvani’ to any third party. The franchise agreement also contains
a clause that all disputes arising out of the franchise agreement shall be decided by an arbitrator
mutually agreed upon by the parties.

Mr. Vinod Kumar, who has been in the business of manufacturing and marketing other
ayurvedic preparations in Hyderabad since 2012, started marketing the product ‘Madhuvani’ through
his LLP under the franchise agreement . Sometime in the month of August, 2018 Mr. Vinod Kumar
statrted selling his ayurvedic preparation for diabetes in the similarly shaped bottles in which Pleasant
Beverages Corporation has been marketing its product ‘Madhuvani’.

Aggrieved by this, M/S Pleasant Beverages Corporation has filed an application under section 9
of the Arb. And Concili. Act, 1996 read with S. I35 of Trademarks Act, I999 in a court at
Hyderabad claimimg an interim injunction against Mr. Vinod Kumar from passing off his ayurvedic
product as that of Madhuvani product. The application was contested by the respondent on the
following grounds.

1. There is no arbitration agreement between the between the Applicant and the Respondent .
2. Disputes relating to the passing off can not be the subject matter of arbitration.