Bombay High Court Imposes ₹1 Lakh Penalty on German Firm for 91-Day Delay in Patent Case

Radhika Mittal

The Bombay High Court has imposed a penalty of ₹1 lakh on the German firm AIC246 AG & Co. KG for a 91-day delay in filing a petition regarding a patent dispute. The Court made it clear that legal requirements apply equally to all entities, irrespective of their country of origin, dismissing the argument that the firm’s foreign status and the complexity of the matter justified the delay.

Justice R.I. Chagla, who presided over the proceedings, was unconvinced by the arguments presented by the firm’s counsel. The counsel had claimed that the delay was due to the time needed to obtain instructions from Germany and the complexities involved in executing and notarizing the Power of Attorney. However, the Court emphasized that the provisions of the Patent Act, 1970, apply uniformly to both Indian and foreign companies and that the firm’s foreign status was not a valid reason for the delay.

The issue arose after the Indian Patent Office rejected AIC246 AG & Co. KG’s patent application in June 2023. The company sought the High Court’s permission to file a petition challenging the rejection, arguing that the delay was due to the need for extensive consultations with legal teams in India and Germany, especially given the technical nature of the patent issues. These issues included concerns about the lack of novelty, inventive step, and non-patentability under Section 3(d) of the Patents Act.

Justice Chagla found the petition lacking in specifics and noted that the delay was twice the statutory period allowed under the Patents Act. The Court criticized the company for not demonstrating any urgency in filing the petition within the prescribed period and remarked that the application lacked detailed explanations for the delay.

As a condition for allowing the late petition, the Court directed AIC246 AG & Co. KG to pay ₹1 lakh to the Baldeodas Bhagirathi Shah Trust within two weeks.

The case , involved Advocates Amey Nargolkar, Nisha Austine, and Dhiren Karania from Khaitan and Co. representing the petitioner, and advocates Rashmin Khandekar, Anand Mohan, Vandita Malhotra Hegde, Rishi Mody, and Archi Gala from VMH & Associates representing the respondent.

Name of the case:- AIC246 AG & Co. KG v. Patent Office of India
Bench: Justice R.I. Chagla 

Click here to access the judgment