Havells India Limited Vs. Cab-Rio Industries

Fact of the Case:

Havells India Limited, the plaintiff, is a well-established company engaged in the business of electrical and power distribution equipment, including cables, wires, and other industrial and domestic circuit protection devices. The plaintiff has been using the brand name "REO" since 2012 and claims that it is a well-known trademark. The plaintiff obtained trademark registration for "REO" under classes 7, 9, and 11 and was granted copyright registration for its packaging. The plaintiff alleged that Cab-Rio Industries, the defendants, were manufacturing and selling electrical cables and wires under the name "CAB-RIO," which was deceptively similar to the plaintiff’s mark. The plaintiff contended that the defendants adopted the mark dishonestly to mislead consumers and pass off their products as those of the plaintiff. The plaintiff filed a suit seeking a permanent injunction against the defendants for trademark infringement and passing off.

The defendants argued that they had been using the mark "CAB-RIO" since 2017 and had a valid trademark registration for the same under Class 9. They contended that their mark was distinct and that the term "CAB" referred to cables, which was a descriptive term. The defendants further claimed that the plaintiff’s trademark registration was invalid as a third-party rectification petition was pending against it. The defendants also argued that the plaintiff’s brand "REO" was often used along with the "Havells" brand, and thus, there was no likelihood of confusion among consumers.

Procedural Background in Brief:

The plaintiff filed the suit for a permanent injunction against the defendants in the Delhi High Court, along with an application for an interim injunction under Order XXXIX Rules 1 and 2 of the Code of Civil Procedure, 1908. On November 11, 2024, the Court issued summons and appointed a Local Commissioner to inspect the defendants' premises. The Local Commissioner conducted an inspection on November 18, 2024, and prepared an inventory of the defendants’ products. After hearing both parties, the Court reserved judgment on January 27, 2025, and delivered its decision on February 17, 2025.

Reasoning of the Court:

The Court analyzed the plaintiff’s claim of prior use and found that the plaintiff had produced invoices showing use of the mark "REO" since 2012, while the defendants' earliest invoice under the mark "CAB-RIO" was from 2019. Based on this, the Court held that the plaintiff was the prior user of the mark. The Court compared the marks "REO" and "CAB-RIO" and observed that the dominant and prominent part of the defendants’ mark was "RIO," which was phonetically and structurally similar to "REO." The Court relied on the principles laid down in Cadila Health Care Ltd. v. Cadila Pharmaceuticals Ltd. (2001) and S. Syed Mohideen v. P. Sulochana Bai (2016) to determine deceptive similarity. The Court emphasized that consumers, particularly electricians, contractors, and builders, were of average intelligence and imperfect recollection, making them susceptible to confusion between the two marks.

The Court rejected the defendants' contention that "CAB-RIO" should be considered as a whole and found that the defendants’ use of the mark was not bona fide. It noted that the defendants had failed to provide any reasonable explanation for adopting the mark "RIO." The Court also found that the defendants' website and advertisements used "CAB" as an acronym for cables, reinforcing the likelihood of confusion. The Court concluded that the adoption of the mark "CAB-RIO" was intended to ride on the goodwill of the plaintiff’s mark "REO."

Decision:

The Court granted an interim injunction in favor of the plaintiff, restraining the defendants from using, selling, soliciting, exporting, advertising, or dealing in electrical cables and wires under the mark "CAB-RIO" or any other mark deceptively similar to "REO" until the final adjudication of the suit. The Court also directed the defendants to change their corporate name within one month.

Case Ttitle: Havells India Limited Vs. Cab-Rio Industries & Ors.
Date of Order: February 17, 2025
Case Number: CS(COMM) 995/2024 & I.A. 44613/2024
Neutral Citation: Not provided in the document
Court: High Court of Delhi
Hon’ble Judge: Hon'ble Justice Shri Amit Bansal