Capital Meters Ltd. Vs B.P. Electric

Brief Introductory Head Note Summary of case

This case revolves around a dispute over the use of the trade mark CAPITAL in the electrical goods market. Capital Meters Ltd., a company making electrical products like meters and switches since 1986, took legal action against B.P. Electric for using the same trade mark on fans. The court found that the defendant's use of the mark caused confusion among buyers, leading them to think the fans came from the plaintiff, and this hurt the plaintiff's business reputation built over years of sales worth crores of rupees.Capital-Meter-Vs-B-P-Electrical.pdf​

Factual Background

The plaintiff company has been in the business of manufacturing and selling various electrical items such as electrical meters, transformers, switches, relays, alarms, and both industrial and domestic electric appliances under the trade mark CAPITAL starting from 1986. This trade mark CAPITAL is already registered for measuring apparatus and instruments, including energy meters, under Clause 9 of the Fourth Schedule of the Trade and Merchandise Marks Act, 1958. To expand protection, the plaintiff applied for registration in Classes 7, 9, and 11 at the Trade Mark Registry in New Delhi, with these applications advertised in the Trade Mark Journal and certificates expected soon. Through long, widespread, and exclusive use on electrical goods, the trade mark gained strong reputation and goodwill, with annual sales in crores, and it even forms a key part of the plaintiff's company name.Capital-Meter-Vs-B-P-Electrical.pdf​

In January 1998, the plaintiff learned that the defendant started using the exact same trade mark CAPITAL for fans they made and sold across Delhi and other areas. The defendant sold these fans secretly without proper invoices, making the mark identical and confusingly similar in look and sound to the plaintiff's. Buyers ended up mistaking the defendant's fans for the plaintiff's products, allowing the defendant to profit from the plaintiff's hard-earned goodwill. The plaintiff's products faced damage to reputation due to the defendant's lower quality items sold under the same name.Capital-Meter-Vs-B-P-Electrical.pdf​

Procedural Detail

The plaintiff sent a legal notice to the defendant asking them to stop using the trade mark, but the defendant refused in a written reply. This led the plaintiff to file a suit in court seeking a permanent injunction to stop the use, action for passing off and trade mark infringement, damages, and rendition of accounts. Summons were properly served on the defendant, but they did not appear or respond, so the court proceeded ex parte, meaning without the defendant's side. Evidence came through an affidavit by Dinesh Chand Gupta, the plaintiff's Director, who proved key documents like the company's Memorandum and Articles of Association, board resolutions authorizing the suit, the registration certificate for CAPITAL, pending applications, invoices and ads from Exhibits P-2 to P-21 showing long use, labels of both parties' marks, and the notice with reply.Capital-Meter-Vs-B-P-Electrical.pdf​

Core Dispute

The main fight was whether the defendant infringed the plaintiff's registered trade mark CAPITAL and passed off their fans as the plaintiff's goods by using an identical mark on similar electrical products. The plaintiff argued this violated their statutory rights under the Trade and Merchandise Marks Act, 1958, and common law rights from reputation and goodwill. The defendant's secretive sales without invoices worsened the chance of buyer confusion, leading to loss for the plaintiff and unjust gains for the defendant.Capital-Meter-Vs-B-P-Electrical.pdf​

Detailed Reasoning and Discussion by Court including on Judgement with Complete Citation Referred and Discussed for Reasoning

The court looked closely at the unrebutted evidence from the plaintiff, which clearly showed the defendant using CAPITAL on fans and passing them off as the plaintiff's. The labels were placed on record, proving the defendant's mark deceptively similar, sure to confuse ordinary buyers into thinking the fans came from the plaintiff. This use on similar goods like fans, which relate to electrical appliances, rode on the plaintiff's reputation from years of sales, causing real business loss while the defendant profited unfairly. The court noted the defendant copied the mark on purpose to trick buyers and cash in on the goodwill, as no defense was offered.Capital-Meter-Vs-B-P-Electrical.pdf​

In its reasoning, the court relied on the Trade and Merchandise Marks Act, 1958, especially Clause 9 for registered measuring instruments, and principles of passing off from long exclusive use. No other cases were cited in the judgment, but the decision rested on proved facts: prior use since 1986, registration, pending wider applications, sales proof via Exhibits P-2 to P-21, and identical labels. The court held the plaintiff proved infringement and passing off fully, entitling them to relief. Thus, it granted permanent injunction per prayers (i) and (ii) of para 15 of the plaint, ordered delivery of all finished/unfinished goods, blocks, labels, boards, and literature with the offending mark for destruction per prayer (iii), and for accounts per prayer (iv), appointed Local Commissioner Mr. Yogesh Chaudhary (243, Lawyers Chambers, Delhi High Court) with Rs. 15,000 fee paid by plaintiff, for a preliminary decree on profits, allowing final decree later.Capital-Meter-Vs-B-P-Electrical.pdf​

Decision

The suit succeeded fully with costs against the defendant. Permanent injunction issued restraining use of CAPITAL or any similar mark; delivery-up for destruction ordered; preliminary decree for profit accounts passed with commissioner appointed; decree sheet to be drawn up.Capital-Meter-Vs-B-P-Electrical.pdf​

Concluding Note

This judgment strongly protects trade mark owners from copycats in related goods, stressing how identical marks on electrical items confuse buyers and damage goodwill. It shows courts act decisively ex parte when evidence is clear and unchallenged, upholding registration and reputation under the 1958 Act. A key lesson for businesses: long use builds rights even before full registration expands.Capital-Meter-Vs-B-P-Electrical.pdf​

Case Title: Capital Meters Ltd. Vs B.P. Electric
Order date: October 12, 2001
Case Number: Suit No. 1413 of 1998
Neutral Citation: 2001:DHC:1155
Name of Court: Delhi High Court
Name of Hon'ble Judge: Sharda Aggarwal, J.Capital-Meter-Vs-B-P-Electrical.pdf​

Disclaimer: The information shared here is intended to serve the public interest by offering insights and perspectives. However, readers are advised to exercise their own discretion when interpreting and applying this information. The content herein is subjective and may contain errors in perception, interpretation, and presentation.

Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi

Suggested 5 Suitable Titles for this Legal Analytical Article:

1. Guarding Goodwill: Trade Mark Protection in Electrical Goods Domain

2. From Meters to Fans: Decoding Infringement and Passing Off under 1958 Act

3. Ex Parte Triumph: Enforcing CAPITAL Mark against Deceptive Imitation

4. Reputation at Stake: Judicial Stand against Identical Marks in Allied Products

5. Injunction and Accounts: Lessons from CAPITAL Trade Mark Clash

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Delhi High Court Grants Injunction to Capital Meters Ltd. in Trade Mark Clash with B.P. Electric

New Delhi, October 12, 2001: In Suit No. 1413 of 1998, the Delhi High Court, presided over by Hon'ble Justice Sharda Aggarwal, ruled in favor of Capital Meters Ltd. against B.P. Electric, issuing a permanent injunction for trade mark infringement and passing off of the mark CAPITAL.Capital-Meter-Vs-B-P-Electrical.pdf​

Capital Meters Ltd., manufacturing electrical meters, switches, and appliances under CAPITAL since 1986, proved prior registration under Clause 9 of the Trade and Merchandise Marks Act, 1958, and substantial goodwill from crore-level sales. The court found B.P. Electric's use of the identical mark on fans deceptively similar, causing buyer confusion and business loss due to inferior quality products sold clandestinely without invoices.Capital-Meter-Vs-B-P-Electrical.pdf​

Proceeding ex parte after the defendant's non-appearance, evidence via Director Dinesh Chand Gupta's affidavit confirmed long use through invoices, labels, and legal notice ignored by defendants. Justice Aggarwal decreed injunctions per plaint prayers (i)-(iii), ordered destruction of offending materials, and a preliminary decree for profit accounts via Local Commissioner Yogesh Chaudhary, with costs on defendant.Capital-Meter-Vs-B-P-Electrical.pdf​

Disclaimer: This is for general information only and should not be construed as legal advice as it may contain human errors in perception and presentation: Advocate Ajay Amitabh Suman, IP Adjutor (Patent & Trademark Attorney), High Court of Delhi

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