RANA STEELS VS RAN INDIA STEELS PVT. LTD

IN THE HIGH COURT OF DELHI AT NEW DELHI

SUBJECT : CODE OF CIVIL PROCEDURE

Judgment delivered on: 25.03.2008

IA No. 9165/2007 & 10779/2007 in CS(OS) 1459/2007

M/S RANA STEELS .......Plaintiff -versus -

M/S RAN INDIA STEELS PVT. LTD. ........Defendant Advocates who appeared in this case:

For the Plaintiff	: Mr S.K. Bansal with Mr Ajay Amitabh Suman
For the Defendant	: Mr Sudhir Chandra, Sr Advocate with Mr Amarjeet
	Singh,
	Mr	Gurvinder	Singh,	Mr	Bhagwati	Prasad,	Mr
	Abhyudai
	Singh, Ms Rinkoo Paliwal and Ms Sheetal Dang

CORAM:-HON'BLE MR JUSTICE BADAR DURREZ AHMED

BADAR DURREZ AHMED, J

1. Two applications shall be disposed of by this order. The first application (IA.No.9165/2007) has been filed by the plaintiff under Order 39 Rules 1 and 2 read with Section 151 of the Code of Civil Procedure, 1908 (hereinafter referred to as the 'CPC') and the second application (IA.No. 10779/2007) has been filed by the defendant under the provisions of Order 39 Rule 4 CPC for vacation of the ex parte interim injunction which was granted by this Court on 14.08.2007 on the first application, that is, IA 9165/2007.

The Ex Parte Order:

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1                   A reading of the order dated 14.08.2007 reveals that the plaintiff claimed itself to be the proprietor of the registered trademark “RANA” in respect of its products which include steel rolled products, C. T. D bars, angles, flats, rounds, channels and girders. The plaintiff had stated that it had used the said trademark since 1993 continuously and that it had applied for the registration of the trademark on 14.12.1994 which was finally granted on 03.03.2006. The said registration was in Class 6 specified in Schedule IV to the Trade Marks Rules, 2002. It may be pertinent to note that while the application for registration was made at the time when the Trade and Merchandise Marks Act, 1958 was in operation, the actual registration was done on 03.03.2006 and in view of Section 159(2) of the Trade Marks Act, 1999, it would be deemed to be a registration under the said Act of 1999.

2                   It was also stated that the sales of the plaintiff in respect of the goods in question run into several crores of rupees. It was alleged by the plaintiff that the defendant had recently started using the trademark “RANA TOR” in respect of identical products, namely, steel bars. The plaintiff, as stated in the plaint, came to know of this in July 2007 and, consequently, had immediately approached this Court by filing this suit. On the basis of the statements made in the plaint and the documents filed along with the plaint as well as the submissions made by the learned counsel for the plaintiff, the following order was passed on 14.08.2007:

“In view of the averments made in the plaint and submissions made by the learned counsel for the plaintiff, I

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am of the view that the plaintiff is entitled to ex parte orders. Accordingly, till the next date of hearing the defendants by itself or through their proprietors, partners, directors, agents, representatives, distributors, assigns, heirs, successors, stockists and all others acting for and on their behalf shall refrain from using, selling, advertising, displaying or through the visual, audio, print mode or by any other mode manner or dealing in or using the trademark RANA or any other identical or deceptively similar mark in respect of the impugned goods in relation to metal building materials, pipes, tubes of steel which include rods, flats, pipes, angles and building steels made of mild steel and related / allied products.”

The Defendant's arguments:

4. Being aggrieved by this order, the defendant has filed the second application, that is, the application under Order 39 Rule 4 CPC for vacation of the same. It was contended by Mr Sudhir Chandra, the learned senior counsel who appeared on behalf of the defendant, that this Court would not have granted the ex parte injunction to the plaintiff had the full facts been disclosed. He submitted that, first of all, it was not disclosed to this Court that the defendant was the registered proprietor of the trademark “RANA TOR”. The defendant's trademark was registered on 06.04.2005 under Class 19 in respect of “building material (steel)”. Since the application for the same had been made on 26.04.2001, the registration would relate back to that date. It was also contended by Mr Sudhir Chandra that both the plaintiff and the defendant have trademark registrations. The plaintiff has a registration in respect of the trademark “RANA” whereas the defendant has a registration in respect of the trademark “RANA TOR”. He submitted that in view of Section 28(3) of the Trade Marks Act, 1999, there is a complete bar in respect of filing a suit by one registered proprietor of a trademark

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against another registered proprietor of the same or similar mark. Section 28 (3) reads as under:

“28.Rights conferred by registration

1                   xxxx xxxx xxxx xxxx

2                   xxxx xxxx xxxx xxxx

3                   Where two or more persons are registered proprietors of trade marks, which are identical with or nearly resemble each other, the exclusive right to the use of any of those trade marks shall not (except so far as their respective rights are subject to any conditions or limitations entered on the register) be deemed to have been acquired by any one of those persons as against any other of those persons merely by registration of the trade marks but each of those persons has otherwise the same rights as against other persons (not being registered users using by way of permitted use) as he would have if he were the sole registered proprietor.”

It wascontended by the learned counsel that while the two registered

proprietors had exclusive rights to use the trademarks in respect of third

parties,they did not have such exclusivity in respect of each other.

Therefore, the plaintiff could not have filed the present suit against the

defendant in respect of the alleged infringement of the trademark. The

provisions of Section 30 (2) (e) were also referred to by Mr Sudhir Chandra.

They stipulate that a registered trademark is not infringed where the use of a

registered trademark, being one of two or more trade marks registered under

this Act which are identical or nearly resemble each other, is in exercise of

the right to the use of that trade mark given by registration under this Act.

It wascontended that since the defendant had a registered trademark,

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namely, “RANA TOR”, no infringement action could lie against the defendant for the use of the said trademark.

5. It was further contended on behalf of the defendant that, apart from the question of infringement of trademark under the Trade Marks Act, 1999, this suit has also been filed on account of allegations of passing off. In this regard, he submitted that there is no evidence that the mark employed by the plaintiff had acquired a distinctive character so as to connect the plaintiff with the said mark exclusively. He submitted that there is no evidence produced by the plaintiff in respect of any sales under the said trademark for the years 1996-2005. He submitted that prior to 1996 there may have been certain local sales, most of which were cash sales and there were no excise records produced by the plaintiff in respect of such sales. It was also submitted that the defendant is based in Tamil Nadu and its business is confined to the southern Indian states. He also submitted that the defendant has been in business since 1991 and has been using the said trademark since then. He referred to various documents filed on behalf of the defendant and in particular the Chartered Accountant's certificate at page 5 of the documents file which relates to sale figures of 1996-97, the costs of advertisement etc. In any event, he submitted that all the sales of the defendant are in South India and there are no sales whatsoever in Delhi. A statement was also made at the Bar that the defendant had no intention to sell its products in Delhi. On the basis of these statements, it was submitted by Mr Sudhir Chandra that this Court would not have territorial jurisdiction

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to entertain the present suit and, therefore, the plaint itself has to be returned after the ex parte order is vacated. He submitted that insofar as the action based on infringement of the trademark is concerned, that would not lie because of the provisions of Section 28(3) read with Section 30(2)(e) of the Trade Marks Act, 1999. As regards the passing off action, he submitted, the same would only lie if there were sales by the defendant in Delhi or there was any threat of any sales in Delhi. The threat aspect has been discussed in a decision of this Court in the case of Pfizer Products Inc. v. Altamash Khan & Anr.: 2006 (32) PTC 208 (Del). He submitted that there is not an iota of evidence of any sale by the defendant of any product under the trademark “RANA TOR” in Delhi. Furthermore, the defendant has no intention of selling its products in Delhi and it is for this purpose that the statement at the bar had been made that the defendant does not intend to sell any of its products in Delhi. Therefore, not only are there no sales in Delhi, there is also no threat of sales in Delhi. Consequently, it was submitted that in respect of the passing off action, this Court would not have any territorial jurisdiction.

6. It was also contended that the balance of convenience lay in vacating the order and not in maintaining it. He submitted that there is no evidence of user by the defendant in Delhi. The defendant had substantial sales in South India. The plaintiff has not furnished any sales figures for the period 1996-2005. No invoices have been placed on record so as to enable this Court to take a prima facie view that the plaintiff had a long and

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continuous user of the mark “RANA”. It was also contended by the learned counsel for the defendant that the plaintiff has been guilty of suppression of facts. With reference to the Supreme Court decision in the case of Salem Advocate Bar Association, Tamil Nadu v. Union of India : (2005) 6 SCC 344, he contended that this is a fit case where actual costs should be imposed on the plaintiff. He submitted that because of the suppression of facts on the part of the plaintiff, this Court was persuaded to pass the ex parte orders, which has resulted in untold misery to the defendant. He submits that Rs 10 crores worth of goods are lying unsold and are rusting. He also submitted that a suit of the present nature ought to be thrown out and such a practice should be deprecated in strong words. Consequently, he submitted that the injunction order passed on 14.08.2007 ought to be vacated.

The plaintiff's arguments:

7. Mr Bansal, who appeared on behalf of the plaintiff, submitted that there was no suppression of facts and that the order passed on 14.08.2007 ought to be maintained. First of all, he submitted that the trademark registration, which was obtained by the defendant, was in an entirely different Class from that of the plaintiff's registration. The defendant's registration was in respect of Class 19 whereas the plaintiff's

th

registration was under Class 6. He referred to the IVSchedule to the Trade Mark Rules, 2002 and drew my attention to the contents of Class 6 and Class 19. He submitted that Class 6 deals with metallic goods whereas

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Class 19 dealt entirely with non-metallic goods. In this background he submitted that the registration of the defendant's mark “RANA TOR” in Class 19 is ex facie wrong. He submitted that in respect of steel, there could not have been any registration under Class 19 and the same could only have been registered in Class 6.

1                   He submitted that in 2005 the defendant had also filed an application No.1334903 for registration of the label mark “RANA TOR” under Class 6. The plaintiff filed an opposition to the same in Form TM-5. In the counter statement to the plaintiff's said opposition, no mention was made by the defendant that its application for registration under Class 19 was pending. The counter statement also revealed that the defendant had stated that it was the leading manufacturer and merchant in India of a wide range of “building materials which includes pipes and tubes of metals, flats, rods and angles”. The defendant had also stated that by way of the “rich quality standards maintained”, wide advertisements made in different media and promotional efforts undertaken “ever since the year 2001”, the defendant had earned valuable reputation in the field of manufacturing and marketing of the said goods. It was, therefore, contended by Mr Bansal that the defendant, by its own statement made in the counter statement, did not have any user in respect of the mark RANA prior to 2001. Secondly, the defendant did not disclose in its counter statement that it had applied for registration of the mark “RANA TOR” under Class 19.

2                   Mr Bansal sought to answer the allegations made by Mr Sudhir Chandra that there was no evidence of any sales during the period 1996-2005 and more so no evidence with regard to any excise documents. He drew my attention to page 44 of the plaintiff's documents which was a bill raised by Rana Steels and was dated 01.01.1994 with respect to MS angles. A reference was also made to the sales turnover for the year 31.03.1996 at pages 25 to 33 of the plaintiff's documents. There is no doubt the sales figures are substantial but it must be noted that they pertain to K.K. Steel Limited which, according to the learned counsel for the plaintiff, is a part of the group of which Rana Steels is a constituent. Mr Bansal then referred to page 50 of the plaintiff's documents to show that there were excise documents also in respect of the Rana Steels in 1996. The said document does indicate that it pertains to the removal of certain goods. However, the description of the goods is NS ingots. The document is dated 27.03.1996. A reference was also made to the document at page 61 of the plaintiff's document which is a bill dated 08.09.2006 raised on Rana Steels with respect to the advertising charges over the radio. Similarly, the document at page 68 also indicates that the plaintiff has, in the year 2007, extensively advertised in radio-one FM in Delhi.

3                   It was next contended by Mr Bansal that the adoption of the mark RANA has a basis and is not mischievous as in the case of the defendant. He submitted that a look at the Memorandum and Articles of Association of K.K. Steels Limited would show that the word RANA forms

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part of the names of the promoter Directors and it is for this reason that the mark RANA was employed by the plaintiff and in respect of which registration has been obtained.

11. Mr Bansal referred to page 1 of the second volume of the plaintiff's documents to show an advertisement in the Punjab Kesari of 04.11.1993 which was brought out by the plaintiff in respect of the mark RANA. Another advertisement was brought out in the same newspaper but on a different date, i.e., 21.10.1993. He referred to similar advertisements in Punjab Kesari of other dates as well as of Amar Ujala in 1994. The advertisements which appear in 1993-94 in Amar Ujala referred to the plaintiff's name RANA Steels as well as the mark RANA and they clearly indicate that the plaintiff's “RANA Steels” is the first automatic plant in North India and that it manufactures, inter alia, bars, angles, channels, rounds, flats and girders of steel. A reference was also made to the caution notice taken out on behalf of the advocates of the plaintiff with regard to the use of the mark RANA. This caution notice was published in the Vijayawada edition of the Hindu of 17.08.2006. A reference was then made to the September 2006 edition of the Hindi Magazine Parvat Piyush, which is brought out from Dehradun. The said Magazine contains an advertisement by the Rana Group of Companies which includes RANA Steels (Plaintiff herein). The advertisement is in respect of various steel products of the said Rana Group of Companies and includes the expression “RANA SARIA” as well as RANA GIRDERS”. A reference was also made

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to the estimate dated 17.03.2006 raised by Top Advertising in respect of telecasting charges of T.V. advertisements on the Sun T.V. Channel at Chennai. The said advertisements were in the month of March 2006. On the basis of the aforesaid documents, Mr Bansal submitted that there is, prima facie, evidence of continuous user from 1993-2006 of the mark RANA in respect of the plaintiff's products. He submitted that there is also evidence that the plaintiff has vigorously advertised its mark and because of which the mark has become distinctive of the plaintiff's products. He submitted that on the other hand the defendant has no right or logical basis to use the mark RANA. He submitted that the defendant's name was and is RAN India Steels Pvt Limited and its products were sold under the mark RAN. This would be apparent from the invoice-cum-delivery challan dated 28.10.2001 which has been filed at page 60 of the defendant's documents. There are similar documents in respect of the product TOR Steel at pages 60, 61, 62 and 63. All these are invoice-cum-delivery challans of September and October, 2001. Mr Bansal also submitted that apart from the fact that these invoice-cum-delivery challans reveal that the defendant was using the mark RAN at that point of time and not RANA, it also reveals that these documents have been fabricated because the words “RANA TOR TESTED” appear to the eye to have been printed later and using a different typewriter / printer. He submitted that this would be further apparent by comparing similar invoice-cum-delivery challans of August 2005 which have been placed at pages 149 -150 of the documents file. On an examination of all the invoice-cum-delivery challans filed by the defendant

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beginning from 16.04.2000 and ending with 24.07.2007 running from pages 1 to 210 of the defendant' documents, it is clearly discernible that for the period prior to May 2001 there is no mention of the mark RANA in any of the invoices of the defendant. In respect of the period from May, 2001 right upto June, 2004, the invoices apparently did not contain the expression “RANA TOR TESTED” when they were originally issued. But the said expression has been subsequently superimposed on each of the challans using a different ribbon, perhaps a different printing devise. However, from July, 2005 onwards, the expression “RANA TOR TESTED” appears to have been printed on the original invoices themselves. On the basis of this, the learned counsel for the plaintiff submitted that the invoices for the period 2001 to 2004 are clear fabrications. He also submitted that the defendant has not been able to show any advertisements prior to 2005 in respect of mark RANA.

12. Mr Bansal referred to various decisions and they include:

1                   N.R. Dongre and Others v Whirlpool Corporation and Others : AIR 1995 DELHI 300

2                   Anand Kumar Deepak Kumar and Another v Haldiram Bhujia Wala and Another : 1999 PTC (19) 466

3                   M/s Niky Tasha India Pvt Ltd v M/s Faridabad Gas Gadgets Pvt Ltd : AIR 1985 DELHI 136

4                   Veerumal Praveen Kumar v Needle Industries (India) Ltd & Anr : 2001 PTC 889 (Del) (DB)

5                   Bal pharma Ltd Centaur Laboratories Pvt Ltd & Anr : 2002(24) PTC 226 (Bom) (DB)

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6.	Ansul Industries v Shiva Tobacco Company : 2007 (34) PTC 392 (Del)
7.	M/s Gujarat Bottling Co Ltd and Others Company and Others : AIR 1995 SC 2372	v	Coca	Cola
8.	State of Orissa & Ors v Prasana Kumar Sahoo : JT 2007 (6) SC 182
9.	Union of India & Ors v Bashir Ahmed : AIR 2006 SC 2487
10.	Union of India & Ors v Rakesh Kumar : AIR 2001 SC 1877

1                    Flower Tobacco Company v State and Another : (1986 – PTC-352)

2                    Gopal Krishan v M/s Mex Switchgear (P) Ltd & Another : (1993 PTC-1)

3                    M/s Hidesign v Hi-Design Creations : 1991 (1) Delhi Lawyer

125.

13. Mr Bansal then referred to the jurisdictional argument which was raised by Mr Sudhir Chandra. He drew my attention to paragraph 26 of the plaint where it is stated that this court has territorial jurisdiction to try and adjudicate the present suit inasmuch as the defendant's impugned acts of infringement and passing off are taking place in Delhi. It is also alleged that the defendant has intention to use the impugned trademark / label in Delhi, if not already used inasmuch as the defendant has filed the impugned application for registration, on an All India basis. It is also alleged that the defendant is otherwise soliciting trade and has distribution networks in Delhi in relation to the said trade mark / labels. In view of these averments, the learned counsel for the plaintiff submitted that this court would have

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territorial jurisdiction to entertain this present suit. He submitted that the defence taken by the defendant in the written statement is not required to be gone into at this stage and as to whether the allegations contained in para 26 of the plaint are established or not can only be determined on evidence. He referred to the decision of a learned Single Judge of this court in the case of

S. Oliver Bernd Freier GmbH & Co. KG V Karni Enterprises & Anr : 2006 (33) PTC 574 (Del) to submit that the defendants are functioning on an All India basis and the threat looms large in Delhi also. He also reiterated that in the counter statement to the opposition filed by the plaintiff referred to above, the defendant had itself stated that it is the leading manufacturer of building materials in India. Therefore, it was contended by Mr Bansal that this court has jurisdiction both in respect of the infringement action and in respect of the passing off action.

The defendant's further arguments:

14. Mr Sudhir Chandra, the learned senior counsel appearing on behalf of the defendant, submitted, in rejoinder, that the registration of the defendant's mark “RANA TOR” in Class 19 was not defective. He submitted that the application was made under the Trade and Merchandise Marks Act, 1958. The registration, however, was granted when the said Act had been replaced by the Trade Marks Act 1999. He submitted that Class

th

19 in the IVSchedule to the Trade and Merchandise Marks Rules 1959

th

was materially different from Class 19 of the IVSchedule to the Trade Marks Rules, 2002. The old Class 19 referred to building materials whereas

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the new Class 19, inter alia, referred to building materials (Non-metallic). It was submitted by Mr Sudhir Chandra that old Class 19 included both metallic and non-metallic materials whereas new Class 19 has reference only to non-metallic building materials. Therefore, the registration of the defendant's mark under Class 19 in respect of the building materials (steels) cannot be regarded as a fractured registration or a registration under a mistake.

15. Mr Sudhir Chandra also submitted that with regard to the passing off action, Delhi has no jurisdiction. Moreover, no use has been indicated by the plaintiff between 1996-2005 and, therefore, the plaintiff can be assumed to have abandoned the mark. Mr Sudhir Chandra also referred to

P.M. Dissels Pvt Ltd v Thukral Mechanical Word : AIR 1988 Del 282; Pfizer Products, Inc v Rajesh Chopra & Ors : 2006 (32) PTC 301 (Del) ; and Dabur India limited v K.R. Industries : 2006(33) PTC 348 (Del.).

16. He also submitted that, essentially, in a passing off action, the plaintiff must show that its mark has acquired distinctiveness by continuous user. In this context, he submitted that the mark RANA is not known at all as being distinctive of the plaintiff's products. He reiterated that there is no invoice for the periods 1996 to 2005 and the sales figures that have been given by the plaintiff are those of K.K. Steels and not of the plaintiff (RANA Steels).

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Jurisdiction:

17. The argument advanced on the part of the defendant is that the plaintiff’s suit for infringement is not maintainable on account of the provisions of section 28 (3) of the trademarks act, 1999 and, therefore, section 134 (2) of the said act would not be available to the plaintiff. The further argument is that in respect of the alleged passing off action nothing has happened in Delhi as the defendant has neither sold nor offered its products for sale in Delhi and, therefore, this court would not have territorial jurisdiction over this suit. At this juncture, it would be instructive to remember that the suit filed by the plaintiff is composite in nature. It is both, a suit for infringement of the trademark RANA as well as a suit for passing off. Therefore, the question of territorial jurisdiction has to be examined keeping in mind this composite nature of the suit. The learned counsel for the defendant wanted this court to hold that the infringement action was barred on account of the provisions of section 28 (3) read with section 30 (2) (e) of the said act. And, then, to look at the suit merely as one of passing off. But, as will be clear from the discussion that follows, it cannot be held at this stage that the plaintiff has no case on infringement or that section 28(3) would come into play or that the defence under section 30(2)(e) would be available to the defendant. Though the position appears to be to the contrary, those are issues which will have to determined in the suit after considering the evidence led by the parties. Therefore, in the facts and circumstances of the present case at this preliminary stage, it cannot be held that the plaintiff’s alleged infringement action is not maintainable.

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Consequently, the argument that this court does not have jurisdiction would have to be rejected.

Infringement:

1                   The plaintiff has alleged that its mark RANA which is registered in respect of “steel rolled products, CTD bars, angles, flats, rounds, channels and girders” falling under class 6 of the Fourth Schedule to the Trade Marks Rules, 2002 has been infringed by the defendant inasmuch as the defendant has used and is using the mark “RANA TOR” in respect of its products. The defendant, on the other hand, has taken the stand that there is no infringement on its part because it is a registered proprietor of the mark “RANATOR” in respect of “Building materials (steels)” falling under class

2                   It was, therefore, contended on the strength of section 28(3) and 30(2)(e) of the said Act that the defendant has not infringed the plaintiff’s registered trade mark RANA and that both the plaintiff and the defendant can co-exist in the market using their respective marks. The plaintiff also propounded the view that the defendant’s registration under class 19 is invalid as the said class does relate to to metallic products at all.

19. To examine the relative merits of these contentions a brief survey of the relevant provisions of the said Act would be necessary. Section 28

(1) of the said act prescribes that, subject to the other provisions of the said act, the registration of a trademark, if valid, gives to the registered

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proprietor of the trademark, the exclusive right to the use of the trademark "in relation to the goods or services in respect of which the trademark is registered" and to obtain relief in respect of infringement of the trademark in the manner provided by the act. Sub-section (2) stipulates that the exclusive right to the use of a trademark given under sub-section (1) shall be subject to any conditions and limitations to which the registration is subject. As already indicated earlier, sub-section (3) deals with a situation where two or more persons are registered proprietors of trademarks which are identical to or nearly resemble each other. In such a situation, the exclusive right to the use of any of those trademarks shall not be deemed to have been acquired by anyone of those persons as against the other “merely by registration of the trademarks”. Of course, each of those persons would otherwise have the same rights as against other persons, not being registered users using by way of permitted use, as he would have if he were the sole registered proprietor. It is noteworthy that the registered proprietor of a trademark gets the exclusive right to use the trademark in relation to the goods or services in respect of which the trademark is registered. This means that a trademark is registered not merely in favour of a person but also bears relation to goods or services. So, while a particular trademark may be registered in favour of one person in respect of certain goods, that person may not have the exclusive right to use the mark in respect of other goods. This means that under normal circumstances the right to use a trademark to the exclusion of others is only in respect of the goods or

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services in connection with which the trademark is registered. There are exceptions which shall be alluded to presently.

20. Section 29 (1) of the Trade Marks Act, 1999, which deals with the issue of infringement of registered trade marks indicates that a trade mark is infringed by a person who, not being a registered proprietor or a person using by way of permitted use, uses in the course of trade, a mark which is identical with or deceptively similar to the trade mark “in relation to goods or services in respect of which the trade mark is registered” and in such manner as to render the use of the mark likely to be taken as being used as a trade mark. So, for an infringement action, it must be shown that --(1) the registered trade mark is being used by a person other than the registered proprietor or by a person permitted to use the same; and (2) the use must be in the course of trade; and (3) in relation to goods or services in respect of which the trade mark is registered. This means that if a trade mark is registered in respect of a certain set of goods or services, then the use of that trade mark by a person other than the registered proprietor or by a person permitted to use the same would not, ipso facto, amount to infringement if such person uses the trade mark in relation to an entirely different set of goods or services. However, sub-section (2) of section 29 of

the said Act brings within the fold of infringement, uses of the registered trade mark by a person other than a registered proprietor in respect of “similar” goods also in three different sets of circumstances --where there is (a) identity with the registered trade mark and similarity of the goods or

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services covered by the registered trade mark; or (b) similarity to the registered trade mark and identity or similarity of goods or services covered by such registered trade mark; or (c) identity with the registered trade mark and identity of the goods or services covered by the registered trade mark --and there is likelihood of confusion being caused on the part of the public or the likelihood of such user having an association with the registered trade mark. Sub-Section (3) of Section 29 of the said Act provides that where there is an identity of the impugned trade mark with the registered trade mark and there is also an identity of the goods or services covered by the registered trade mark, the court shall presume that it is likely to cause confusion on the part of the public. By virtue of sub-section (4) of Section 29, there may be infringement of a registered trade mark even where the mark is used in relation to goods or services which are not similar to those for which the trade mark is registered provided, inter alia, the registered trade mark has a reputation in India and the use of the mark without due cause takes unfair advantage of or is detrimental to the, distinctive character or repute of the registered trade mark.

21. A reading of the relevant provisions of Sections 28 and 29 of the said Act, therefore, reveals that the registration of a trade mark is linked to the goods or services in respect of which the trade mark is registered. If a person uses a registered trade mark in relation to goods and services which are different and distinct from the goods or services in respect of which the trade mark is registered, then he would not be infringing the registered trade

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mark except in the case covered by Sub-Section (4) of Section 29 which requires that the registered trade mark must have a reputation in India and the use of the mark without due cause would be amounting to taking unfair advantage of or would be detrimental to the distinctive character or repute of the registered trade mark.

22. Since the defendant has taken the defence of section 30 (2) (e), it also needs to be taken note of. This provision stipulates that a registered trade mark is not infringed where there is use of a registered trade mark, being one of two or more trade marks registered under the said Act which are identical or nearly resemble each other, in exercise of the right to the use of that trade mark given by registration under the said Act. Thus, where there are two registered trade marks, which are identical or nearly resemble each other, the use of such trade marks by their respective registered proprietors would not amount to infringement of the others' registered trade mark. But, when can there be registration of marks which are identical or similar? Section 9 of the said Act, inter alia, absolutely prohibits the registration of trade marks which are devoid of any distinctive character, that is to say, not capable of distinguishing the goods or services of one person from those of another person. Section 11(1), save as provided in section 12, also conditionally prohibits the registration of a trade mark if, because of its (a) identity with an earlier trade mark and similarity of goods or services covered by the trade mark; or (b) similarity to an earlier trade mark and the identity or similarity of the goods or services covered by the

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trade mark, there exists a likelihood of confusion on the part of the public, which includes the likelihood of association with the earlier trade mark. Section 12 permits the registration of trade marks which are identical or similar (whether any such trade mark is already registered or not) in respect of the same or similar goods or services in cases of honest concurrent use or of other special circumstances. It is obvious that where identical or similar trade marks are registered in relation to the same or similar goods or services in exercise of the powers under sections 11 and 12, the use of such marks by their respective proprietors would not amount to infringement. This is what is specifically provided for under section 30(2)(e).

23. But, does section 30(2)(e) also cover cases where identical or similar trade marks are registered in respect of different classes of goods or services? The answer is – no. Section 28 deals with the rights conferred by registration. And, it has already been clarified that the use of a registered mark must be in relation to the goods or services in respect of which the trade mark is registered. It follows that where the goods or services, in respect of which two or more identical or similar (nearly resemble) marks are registered, are different then section 30 (2)(e) does not come into play. The question of infringement would, itself, not arise as the registered marks would be used in respect of different classes of goods or services by their respective proprietors. A couple of examples would further clarify the position:

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Example 1: Assume that a trade mark “M” has been registered in favour of Mr “X” as well as in favour of Mr “Y” in relation to the same goods or services. In such a situation, by virtue of section 28(3), neither Mr “X” nor Mr “Y” can claim exclusivity against each other for the use of the said mark in relation to the goods or services for which it was registered. If Mr “X” were to bring an action for infringement against Mr “Y”, the latter would have a complete defence under section 30(2)(e).

Example 2: Let us now assume that there are two different goods “A” and “B” in respect of which the same trademark “M” has been registered in favour of different persons “X” and “Y”, respectively. Here, although the same mark “M” is registered in favour of both Mr “X” and Mr “Y”, Mr “X” has exclusive right to use the same in respect of good “A” and Mr “Y” has exclusive right to use the said mark in respect of good “B”. Therefore, section 28(3) is not attracted. Moreover, if Mr “X” were to bring an action of infringement against Mr “Y” alleging that Mr “Y” was using the said mark “M” in relation to good “A”, then, the defence of section 30(2)(e) would not be available to Mr “Y” as he does not have any right to use the mark “M” in relation to good “A”, his registration being in relation to good “B”.

24. At this point, it would be appropriate to refer to Section 7 of the

said Act which provides for classification of goods and services. Sub-

Section (1) stipulates that the Registrar shall classify the goods and services,

as far as may be, in accordance with the international classification of goods

and services for the purposes of registration of trade marks. Rule 22 of the

Trade Marks Rules, 2002 provides that for the purposes of registration of

trade marks, goods and services shall be classified in the manner specified

in the Fourth Schedule. Clearly, registration of trademarks is in relation to

specified goods or services. Goods and services have been classified. It is

obvious that, prima facie, goods falling under one class would be different

from goods falling under another class. Ordinarily, when registration of a

trade mark is granted under one class of goods, it does not cover goods of

another class.

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25. The plaintiff is the registered proprietor of the mark RANA

w.e.f. 14.12.1994 in relation to “steel rolled products, CTD bars, angles,

1

flats, rounds, channels and girders” falling under class 6of the Fourth Schedule to the Trade Marks Rules, 2002. The defendant does not have a registered trade mark in respect of goods falling under class 6 of the said

2

schedule. However, as things stand today, the defendant is the registered proprietor of the mark “RANATOR” w.e.f. 26.04.2001 in respect of

3

“Building materials (steels)” falling under class 19. Whether the registration is liable to be cancelled, as alleged by the plaintiff, or not, as contended by the defendant, is not a matter for consideration before this court. For the present, in view of section 31 of the said Act, the registration of the trade mark is prima facie evidence of its validity. So, considering the defendant’s registration to be valid, for the time being, it must be kept in mind that the mark RANATOR is registered in class 19 and not class 6. The plaintiff has brought this suit claiming its exclusive right to the use of the trade mark RANA in relation to “steel rolled products, CTD bars,

1“6. Common metals and their alloys; metal building materials; transportable buildings of metal; materials of metal for railway tracks; non-electric cables and wires of common metal; ironmongery, small items of metal hardware; pipes and tubes of metal; safes; goods of common metal not included in other classes; ores.”

2     The plaintiff has filed a rectification application under section 57 of the said Act before the Intellectual Property Appellate Board, Chennai seeking cancellation/removal of the defendant’s registration on various grounds. The application was filed 11.09.2007, after the filing of the written statement in this case. It is alleged by the plaintiff that it became aware of the defendant’s said registration only upon reading the written statement. The said application is pending.

3     “19. Building materials (non-metallic), non-metallic rigid pipes for building; asphalt, pitch and bitumen; non-metallic transportable buildings; monument, not of metal.”

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angles, flats, rounds, channels and girders” falling under class 6 of the Fourth Schedule to the Trade Marks Rules, 2002. The defendant, admittedly, does not have any registration in class 6 (its registration being under class 19). Therefore, the situation which presents itself in the case at hand is similar to the situation explained in Example 2 above. Consequently, neither is section 28(3) attracted nor can the defendant take refuge under section 30(2)(e).

26. In Ramdev Food Products (P) Ltd. v. Arvindbhai Rambhai Patel: (2006) 8 SCC 726 ( at page 754), the Supreme Court observed that the purpose of a trade mark is to establish a connection between the goods and the source thereof which would suggest the quality of goods and that if the trade mark is registered, indisputably the user thereof by a person who is not otherwise authorised to do so would constitute infringement. It was further noted that a proprietor of a registered trade mark indisputably has a statutory right thereto. In the event of such use by any person other than the person in whose name the trade mark is registered, he will have a statutory remedy in terms of Section 29 of the 1958 Act. The registration of the trade mark RANA in relation to “steel rolled products, CTD bars, angles, flats, rounds, channels and girders” falling under class 6 has established a connection between such goods and the plaintiff who manufactures them. Whenever such goods are found in the market and they bear the mark RANA, the prospective consumer connects the goods with the source, that is, the plaintiff (RANA STEELS). If another person such as the defendant

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uses the same mark or a similar mark in relation to the very same goods (steel rolled products, CTD bars, angles, flats, rounds, channels and girders falling under class 6) then, that would be seen as an interference and an attempt at breaking the connection between the goods bearing the mark RANA and the source, the plaintiff. In such a situation, the plaintiff would have the statutory remedy of seeking injunction for preventing further infringement.

27. The plaintiff has certainly established a prima facie case in its favour. Because of registration and by virtue of section 28 (1) of the said Act, an exclusive right of using the trade mark RANA has been conferred upon the plaintiff in relation to steel rolled products, CTD bars, angles, flats, rounds, channels and girders falling under class 6. And, such right is absolute [see: Ramdev Food Products (supra)(para 83)]. As observed in Ramdev Food Products (supra)(para 82), what is needed by way of cause of action for filing a suit of infringement of trade mark is use of a deceptively similar mark which may not be identical. It was contended on behalf of the plaintiff that the marks RANA and RANATOR are identical inasmuch as TOR is merely descriptive of a kind of high strength steel. While this may be debatable, there cannot be any escape from the fact that RANATOR is deceptively similar to RANA. It is interesting to note that though the defendant’s registration under class 19 is in respect of the trade mark RANATOR used as one word, the defendant has been using it in the form of two words RANA TOR. This clearly signifies the defendant’s

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intention to break up the mark RANATOR into RANA and TOR. It is this separation of RANA and TOR which, in fact, lays emphasis on the mark RANA because the other word TOR, as is commonly understood, is merely descriptive of a type of steel. The moment this happens there is every possibility that the mark RANA TOR used by the defendant is confused by the public at large with the plaintiff’s registered trade mark RANA which is used for the plaintiff’s TOR steel products.

28. The balance of convenience is also in favour of the plaintiff. The plaintiff’s user is since 1993. Its registration relates back to 14.12.1994. As discussed above the plaintiff has been extensively advertising its products under the said mark RANA in Punjab Kesari (04.11.1993 & 21.10.1993 and 1994), Amar Ujala (1993-94), Hindi Magazine Parvat Piyush (September, 2006), TV advertisements in Sun TV channel at Chennai (March, 2006). On the other hand, the defendant’s alleged user (even as per its own admission in its application for registration) is from the year 2001 and its registration under class 19 relates back to 26.04.2001. Even the user of the mark by the defendant after 2001 is suspect. This aspect will be discussed in some detail later. The defendant’s name is RAN India Steels Pvt Ltd and it sold its products (including TOR steel) under the mark RAN. There appears to be no reasonable cause for its subsequent adoption of the mark RANA TOR when the mark RANA was already being used by the plaintiff and for the registration of which the plaintiff’s application was pending since

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14.12.1994. Then, there is the circumstance of the defendant not opposing the plaintiff’s application for registration in relation to goods under class 6 but, in applying for registration of the mark RANATOR in class 19. The plaintiff has a valid registration in relation to steel rolled products, CTD bars, angles, flats, rounds, channels and girders falling under class 6. The defendant has a registration under class 19 but not in relation to steel rolled products, CTD bars, angles, flats, rounds, channels and girders falling under class 6. It is obvious, that it is the plaintiff’s statutory right which requires protection and not the defendant’s improper use of the mark RANA TOR in relation to steel rolled products, CTD bars, angles, flats, rounds, channels and girders falling under class 6. The balance of convenience is clearly in favour of the plaintiff and against the defendant. Furthermore, in an infringement action, when the plaintiff has demonstrated that it has a prima facie case and also that the balance of convenience lies in its favour, not granting an interim injunction restraining the defendant from further infringing the plaintiff’s registered trade mark would result in causing irreparable injury to the plaintiff.

29. For all these reasons, even de hors the question of passing off, I am of the view that the plaintiff is entitled to an order confirming the ex parte injunction dated 14.08.2007, though, with a slight modification. The said order was in respect of “metal building materials, pipes, tubes of steel which include rods, flats, pipes, angles and building steels made of mild steel and related/ allied products”. But, as noted above the plaintiff’s

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registration is only in relation to “steel rolled products, CTD bars, angles, flats, rounds, channels and girders falling under class 6”. Consequently, the plaintiff is entitled to an interim injunction order only in respect of “steel rolled products, CTD bars, angles, flats, rounds, channels and girders

falling under class 6”.

Suppression:

30. It has been submitted on behalf of the defendant that the plaintiff had deliberately withheld and suppressed the factum of the defendant’s registration from this court and that had the full facts been disclosed, this court would not have granted the ex parte ad interim injunction to the plaintiff. Suppression of facts is undoubtedly a good ground for refusal of the equitable relief of injunction. That is a principle which is well engrained in our judicial system. But, the question is --was there any suppression on the part of the plaintiff? First of all, the plaintiff’s explanation is that the defendant’s registration was in an entirely different class of goods with which the plaintiff is not concerned. Secondly, the plaintiff was not aware of the defendants registration under class 19. It, apparently, came to know of the same through the defendant’s written statement filed in the present suit. Prima facie, I would tend to believe the plaintiff. There are reasons for this. It must be remembered that in 2005 the defendant had also filed and application for registration of the mark RANA TOR under class 6. The plaintiff filed an opposition to the same. In the counter-statement to the plaintiff’s said opposition, the defendant made no

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mention that it had applied for the same mark in relation to goods falling under class 19. The plaintiff was interested in goods and services under class 6 and not under other classes including class 19. Therefore, it is not unreasonable for the plaintiff to have not known about the defendant’s registration under class 19. Moreover, after the filing of the written statement, from which the plaintiff allegedly derived knowledge of the defendant’s registration, the plaintiff has filed a rectification application under section 57 of the said Act before the Intellectual Property Appellate Board, Chennai seeking cancellation/removal of the defendant’s registration on various grounds. These actions, the filing of the opposition to the defendant’s application in relation to class 6 goods and the filing of the rectification application, clearly demonstrate that the plaintiff is quick to guard its rights flowing from its registration. The sequitur is that the plaintiff was unaware of the defendant’s said registration and could not have reasonably been expected to have known about it.

Defendant’s conduct:

31. In Gujarat Bottling Co. Ltd v. Coca Cola Company: (1995) 5 SCC 545 (para 47), the Supreme Court, in the context of an application under Order 39 Rule 4 for vacating a temporary injunction, observed:-

“Under Order 39 of the Code of Civil Procedure, jurisdiction of the Court to interfere with an order of interlocutory or temporary injunction is purely equitable and, therefore, the Court, on being approached, will, apart from other considerations, also look to the conduct of the party invoking the jurisdiction of the Court, and may refuse

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to interfere unless his conduct was free from blame. Since the relief is wholly equitable in nature, the party invoking the jurisdiction of the Court has to show that he himself was not at fault and that he himself was not responsible for bringing about the state of things complained of and that he was not unfair or inequitable in his dealings with the party against whom he was seeking relief. His conduct should be fair and honest. These considerations will arise not only in respect of the person who seeks an order of injunction under Order 39 Rule 1 or Rule 2 of the Code of Civil Procedure, but also in respect of the party approaching the Court for vacating the ad interim or temporary injunction order already granted in the pending suit or proceedings.”

32. The defendant has moved the application under Order 39 Rule 4 for vacating the ex parte ad interim injunction granted in favour of the plaintiff. So, the defendant’s conduct is as much under the scanner as is the plaintiff’s. This takes me to the consideration of the invoice-cum-delivery challans filed by the defendant with the object of, perhaps, showing user of the mark 'RANA TOR' since 2001. It has been noticed by me in the earlier part of this judgment that the defendant has filed such challans for the period 16.04.2000 to 24.07.2007 at pages 1 to 210 of the defendant’s documents. In the challans prior to May, 2001 there is no mention of the marks RANA or RANATOR. In the challans for the period May, 2001 to June, 2004, the expression “(RANA TOR TESTED)” is apparently printed subsequently and using a different printing device. This becomes clear on comparing the challans for this period with the challans for July, 2004 onwards where the said expression appears to have been printed contemporaneously with the other matter filled therein and using the same printing device. By way of illustrative samples, photographs of challans for

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the periods May, 2001 – June, 2004 and July, 2004 onwards are given below:

Photograph 1 [sample of an invoice-cum-delivery challan during May, 2001 – June, 2004]

Photograph 2 [sample of an invoice-cum-delivery challan during July, 2004 onwards]

33. These photographs reveal that the expression “(RANA TOR TESTED)” is apparently superimposed and in different typeface in photograph 1. Whereas in photograph 2, the said expression and the rest of the typed matter match in ribbon intensity, alignment as well as in typeface.

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This does give rise to grave suspicion as regards the challans for the period May, 2001 to June, 2004. Perhaps there is a plausible reason for this, but, none was forthcoming on the part of the defendant in the course of arguments. However, as I have already concluded that the plaintiff is entitled to interim injunction, I shall not dwell on this matter further at this stage and leave the matter to be conclusively dealt with at the trial stage.

Conclusion:

34. The ex parte injunction granted on 14.08.2007 is confirmed till the disposal of the suit, though, with the modification that the injunction would be only in respect of “steel rolled products, CTD bars, angles, flats, rounds, channels and girders falling under class 6”. I.A. 9165/2007 (under Order 39 Rules 1 & 2, CPC) stands allowed to this extent. I.A. 10779/2007 (under Order 39 Rule 4 CPC) is dismissed. The parties shall bear their own costs.

Sd/

BADAR DURREZ AHMED ( JUDGE )

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