Information on this blog is being shared only for the purpose of creating legal awareness in public at large, especially in the field of Intellectual Property Right. As there may be possibility of error, omission or mistake in legal interpretation on the contents of this blog, it should not be treated as substitute for legal advise.
Monday, June 23, 2025
Swarovski India Pvt. Ltd. Vs SPA Agencies:
Saturday, June 21, 2025
ITC Limited Vs. Pravin Kumar
Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi.
Jay Baba Bakreswar Rice Mill Pvt. Ltd. Vs. Lunia Marketing Pvt. Ltd
Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi.
Saga Lifesciences Limited Vs. Indian Herbo Pharma
Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi.
Narender Kumar Sharma Vs. Maharana Pratap Educational Center
Introduction:The case of Narender Kumar Sharma v. Maharana Pratap Educational Center exemplifies this tension, spotlighting the judiciary's approach to delays in refiling legal documents. Decided by the High Court of Delhi on December 13, 2018, this appeal wrestled with the question of whether a delay in refiling a written statement—after its initial timely submission—warranted the drastic consequence of closing the defendant's right to defend.
Detailed Factual Background: The dispute originated in a commercial suit, CS(COMM) 22/2018, filed by Dr. Narender Kumar Sharma and others (the plaintiffs) against Maharana Pratap Educational Center and another (the defendants). The plaintiffs initiated the suit before the High Court of Delhi, and the defendants were served with the summons on January 8, 2018. Under the Code of Civil Procedure (CPC), the defendants had 120 days—until May 8, 2018—to file their written statement, a critical document outlining their defense. The defendants did file their written statement on May 7, 2018, within this statutory period. However, the court registry returned the document due to certain procedural objections, requiring the defendants to refile it after rectification. This refiling process, however, was not completed promptly, leading to a significant delay.
On October 1, 2018, the Joint Registrar, citing the expiration of the 120-day period and the defendants' failure to refile in time, passed an order closing their right to file the written statement. Aggrieved, the defendants appealed this order, arguing that the initial filing was timely and that the delay in refiling should not extinguish their right to defend the suit.
Detailed Procedural Background: The procedural journey of this case unfolded in multiple stages. After the defendants filed their written statement on May 7, 2018, the registry flagged it with objections, a common occurrence in Indian courts where filings must meet stringent formatting and procedural standards. On July 23, 2018, the Joint Registrar noted that the written statement had been filed but returned under objection, implying that the defendants needed to address these issues and refile. However, the defendants did not act swiftly, and the refiling remained pending beyond the initial 120-day window.
On October 1, 2018, the Joint Registrar issued the impugned order, closing the defendants' right to file the written statement, relying on the CPC’s strict timeline for commercial suits. This prompted the defendants to file an appeal (OA No. 154/2018) alongside an application (IA No. 17120/2018) seeking condonation of the delay in filing the appeal itself, citing personal difficulties faced by their counsel. The High Court, presided over by Justice Jayant Nath, heard both matters on December 13, 2018, addressing the condonation application first before delving into the substantive appeal.
Issues Involved in the Case: The case presented two primary issues for adjudication. First, whether the delay in filing the appeal against the Joint Registrar’s order of October 1, 2018, could be condoned given the counsel’s personal circumstances. Second, and more critically, whether the delay in refiling the written statement—after its initial timely filing within 120 days—justified closing the defendants’ right to defend, or if such delay warranted a more lenient judicial approach distinct from delays in initial filing.
Detailed Submission of Parties: The defendants, represented by their counsel, argued that the written statement was filed on May 7, 2018, well within the 120-day period from the service of summons on January 8, 2018. They conceded a delay in refiling after the registry’s objections but emphasized that this was a procedural lapse, not a failure to meet the substantive deadline. Citing the Joint Registrar’s order of July 23, 2018, which acknowledged the initial filing, they contended that the delay in refiling should be treated differently from an initial filing delay. They leaned on judicial precedents to argue that courts have historically adopted a liberal stance toward refiling delays to ensure cases are decided on merits rather than technicalities.
The plaintiffs, represented by their counsel, opposed the appeal vehemently. They argued that refiling after rectifying objections amounted to a fresh filing, and any delay beyond the 120-day limit was fatal under the CPC’s strict timeline for commercial disputes. They relied on the Division Bench ruling in Northern Railway v. Pioneer Publicity Corporation Pvt. Ltd., 2015 (X) AD Delhi 378, asserting that refiling constituted a new institution of the document, and thus, the defendants’ failure to refile promptly justified the Joint Registrar’s order. They urged the court to uphold procedural discipline to prevent undue delays in litigation.
Detailed Discussion on Judgments Cited by Parties and Their Context: Several judicial precedents shaped the arguments and the court’s reasoning in this case:
- S.R. Kulkarni v. Birla VXL Ltd., 1998 (3) RCR (Civil) 436Cited by the defendants, this Division Bench judgment of the Delhi High Court distinguished between delays in initial filing and refiling. The court held that refiling delays should be viewed leniently, as they involve procedural corrections rather than substantive defaults. In Kulkarni, the court condoned a refiling delay despite the counsel’s casual approach, noting the absence of mala fide intent and suggesting that costs could compensate the opposing party for any prejudice. The defendants used this to argue that their refiling delay, though negligent, did not warrant forfeiture of their defense.
- Indian Statistical Institute v. Associated Builders, (1978) 1 SCC 483 : AIR 1978 SC 335Another cornerstone for the defendants, this Supreme Court ruling clarified that delays in representing a petition after rectifying defects do not attract the stringent tests of Section 5 of the Limitation Act, which governs initial filing delays. The court emphasized that once a document is filed within the prescribed period, subsequent delays in curing defects should be judged on a less rigorous standard. The defendants invoked this to underscore that their written statement, filed on May 7, 2018, met the initial deadline, rendering the refiling delay a secondary issue.
- Northern Railway v. Pioneer Publicity Corporation Pvt. Ltd., 2015 (X) AD Delhi 378The plaintiffs’ primary authority, this Division Bench decision of the Delhi High Court held that refiling beyond a stipulated period amounted to a fresh filing, subject to limitation constraints. However, the defendants countered that this ruling was overturned by the Supreme Court in Northern Railway v. Pioneer Publicity Corporation Pvt. Ltd., (2017) 11 SCC 234. The Supreme Court clarified that Section 34(3) of the Arbitration and Conciliation Act (analogous to CPC timelines) applied only to initial filings, not refilings, and that procedural rules like the Delhi High Court Rules should not mechanically bar refiling extensions. This reversal undermined the plaintiffs’ reliance on the 2015 judgment.
Detailed Reasoning and Analysis of Judge
Justice Jayant Nath began by addressing the condonation application (IA No. 17120/2018). Finding the counsel’s personal difficulties a sufficient cause, he condoned the delay in filing the appeal, disposing of the application swiftly.
Turning to the substantive appeal (OA No. 154/2018), the judge framed the core issue: whether the delay in refiling the written statement, after its timely initial submission, justified closing the defendants’ defense. He noted the undisputed fact that the written statement was filed on May 7, 2018, within 120 days of service on January 8, 2018. The delay occurred in the refiling process, which the plaintiffs argued was equivalent to a fresh filing.
The Court rejected the plaintiffs’ stance, aligning with the defendants’ reliance on S.R. Kulkarni and Indian Statistical Institute. He emphasized that Indian courts have consistently treated refiling delays on a “different footing” from initial filing delays. Quoting Kulkarni, he highlighted that while negligence in refiling is not excusable per se, the absence of mala fide intent and the potential for costs to offset prejudice tilt the scales toward condonation. Similarly, Indian Statistical Institute reinforced that procedural delays post-initial filing do not trigger the Limitation Act’s strictures.
The judge then dismantled the plaintiffs’ reliance on the 2015 Northern Railway judgment by citing its reversal in 2017 by the Supreme Court. The apex court’s ruling clarified that refiling extensions, even beyond procedural norms, do not equate to fresh filings unless mala fide delay is evident. Applying this to the facts, Justice Nath found no evidence of intentional delay by the defendants, attributing the lapse to procedural oversight rather than bad faith.
Balancing justice and discipline, he allowed the appeal, permitting the written statement to be taken on record if refiled within one week, subject to a cost of Rs. 15,000 to compensate the plaintiffs for the delay. This pragmatic approach underscored his commitment to ensuring a trial on merits while penalizing procedural laxity.
Final Decision: The High Court allowed the appeal (OA No. 154/2018) on December 13, 2018. The defendants’ written statement was ordered to be taken on record, provided it was refiled within one week, with a cost of Rs. 15,000 imposed on the defendants.
Law Settled in This Case: This judgment reaffirmed that delays in refiling legal documents, after their timely initial submission, are not subject to the same stringent standards as initial filing delays under the CPC or Limitation Act. Courts may condone such delays absent mala fide intent, often with costs to mitigate prejudice, ensuring that procedural lapses do not unjustly deprive parties of their substantive rights. The ruling harmonized earlier precedents like S.R. Kulkarni and Indian Statistical Institute with the Supreme Court’s clarification in Northern Railway (2017), solidifying a flexible yet disciplined approach to refiling timelines.
Case Title: Narender Kumar Sharma Vs. Maharana Pratap Educational Center:Date of Order: December 13, 2018:Case No.: CS(COMM) 22/2018: Citation: 2018 SCC OnLine Del 13146:Name of Court: High Court of Delhi at New Delhi:Name of Judge: Justice Jayant NathDisclaimer: 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
Friday, June 20, 2025
Dunlop International Limited Vs. Glorious Investment Limited
Intercon Recyclopolis Pvt. Ltd. Vs. Bank of Baroda
Thursday, June 19, 2025
National Sewing Thread Co. Ltd. Vs. James Chadwick & Bros. Ltd.
Introduction: Decided by the Supreme Court of India on May 7, 1953, this landmark judgment not only resolved a dispute over the registration of a trade mark but also clarified the scope of appellate jurisdiction under the Letters Patent of the Bombay High Court. At its heart, the case pitted an Indian company’s “Vulture Brand” against an English rival’s iconic “Eagle Mark,” raising questions of deception, confusion, and the finality of judicial decisions in trade mark disputes.
Detailed Factual Background: The appellant, National Sewing Thread Co. Ltd., was an Indian entity incorporated under the Indian Companies Act, 1913, with its registered office in Chidambaram, South Arcot District, Madras. The respondent, James Chadwick & Bros. Ltd. (later assigned to J. & P. Coats Ltd.), was a British company based in Bolton, England. Since 1896, the respondents had marketed their sewing thread in India under the “Eagle Mark,” a trade mark featuring an eagle with outspread wings, widely recognized as “Eagley” or “Eagle” goods.
Detailed Procedural Background: The procedural odyssey began when the Registrar of Trade Marks, on September 2, 1949, upheld the respondents’ opposition and rejected the appellants’ application, finding that the “Vulture Brand” mark closely resembled the “Eagle Mark” and was likely to deceive or confuse the public. The appellants appealed this decision to the Bombay High Court under Section 76 of the Trade Marks Act, 1940. On August 28, 1950, exercising original jurisdiction, reversed the Registrar’s order, directing the registration of the appellants’ mark.
The respondents appealed this ruling to a Division Bench of the Bombay High Court under Clause 15 of the Letters Patent, which permits appeals from a single judge’s judgment. On March 19, 1951, the Division Bench overturned Bombay High Court Single Judge’s decision, restoring the Registrar’s refusal. The appellants then sought and obtained a certificate under Section 109(c) of the Civil Procedure Code, enabling an appeal to the Supreme Court of India.
Issues Involved in the Case: The case presented two pivotal issues. First, whether Single Judge’s judgment, rendered in an appeal under Section 76 of the Trade Marks Act, was appealable to a Division Bench under Clause 15 of the Bombay Letters Patent? Second, whether the Registrar’s discretion to refuse registration of the appellants’ trade mark—on grounds of likelihood of deception or confusion—was correctly exercised?
Detailed Submission of Parties: The appellants contended that Single Judge’s judgment was not appealable under Clause 15, as the Trade Marks Act, 1940, created a distinct appellate jurisdiction not governed by the Letters Patent or Section 108 of the Government of India Act, 1915. They relied on Indian Electric Works v. Registrar of Trade Marks (A.I.R. 1947 Cal. 49), where the Calcutta High Court held that appeals under the Trade Marks Act were outside the Letters Patent’s ambit. On merits, they asserted that their “Vulture Brand” mark, distinct in name and get-up from the respondents’ “Eagle Mark,” posed no risk of confusion. They further argued that the Madras High Court’s dismissal of the passing-off action conclusively established no likelihood of deception, binding the Registrar and subsequent courts.
The respondents maintained that Section 76 conferred appellate jurisdiction on the High Court, to be exercised per its established rules, including Clause 15 appeals, citing National Telephone Co. v. Postmaster General ([1913] A.C. 546) and Privy Council precedents like R.M.A.R.A. Adaikappa Chettiar v. Ra. Chandrasekhara Thevar (74 I.A. 264). On merits, they argued that the appellants’ mark, despite the “Vulture” label, visually mimicked an eagle, risking confusion with their well-known “Eagle Mark.” They emphasized that passing-off and registration proceedings involve distinct considerations, rendering the Madras ruling irrelevant.
Detailed Discussion on Judgments Cited by Parties and Their Context: The parties invoked several precedents, each shaping the court’s analysis:
- National Telephone Co. v. Postmaster General, [1913] A.C. 546Cited by the respondents, this House of Lords decision held that when a statute directs an appeal to an established court without specifying procedure, the court’s ordinary rules—including appeal rights—apply. The respondents used this to argue that Section 76 appeals to the High Court carried Clause 15 appeal rights.
- R.M.A.R.A. Adaikappa Chettiar v. Ra. Chandrasekhara Thevar, (1947) 74 I.A. 264A Privy Council ruling, also relied upon by the respondents, it affirmed that appeals to ordinary courts under special statutes follow the court’s procedural norms unless excluded. This bolstered their claim that Justice Shah’s judgment was appealable.
- Secretary of State v. Chellikani Rama Rao, (1916) I.L.R. 39 Mad. 617Another Privy Council decision cited by the respondents, it held that appeals to district courts under the Madras Forest Act followed civil procedure rules, supporting the applicability of Clause 15 to Trade Marks Act appeals.
- Indian Electric Works v. Registrar of Trade Marks, A.I.R. 1947 Cal. 49The appellants’ key authority, this Calcutta High Court ruling deemed Trade Marks Act appeals outside the Letters Patent’s scope, arguing that Section 108 of the Government of India Act, 1915, applied only to pre-existing jurisdiction. The respondents urged its overruling.
- Secretary of State v. Mask & Co., (1940) 67 I.A. 222Cited by the appellants to distinguish their case, this Privy Council decision held that statutory remedies under the Sea Customs Act excluded civil court jurisdiction. The respondents clarified its irrelevance, as the Trade Marks Act designated the High Court as the appellate forum without finality clauses.
- The Gurdwara Case, (1936) 63 I.A. 180Referenced by the appellants to contrast jurisdictions, this Privy Council ruling applied National Telephone principles to Gurdwara Tribunal appeals. The respondents leveraged it to align Trade Marks Act appeals with general appellate jurisdiction.
Detailed Reasoning and Analysis of Judge: The Supreme rejected the appellants’ contention that Single Judge’s decision was unappealable, affirming that Section 76 of the Trade Marks Act, by conferring appellate jurisdiction on the High Court without procedural specifics, imported the court’s ordinary rules, including Clause 15 of the Letters Patent. Drawing on National Telephone, Adaikappa Chettiar, and Chellikani Rama Rao, the Supreme Court held that Appellate courts exercise statutory appellate jurisdiction per their charters unless expressly excluded. The Supreme Court dismissed the appellants’ reliance on Indian Electric Works, overruling it as a “narrow and restricted” interpretation of Section 108, which the court deemed an enabling provision applicable to both existing and future jurisdictions, reinforced by Article 225 of the Constitution of India, 1950.
On merits the court upheld the Registrar’s discretion under Section 8 of the Trade Marks Act, which prohibits registration of marks likely to deceive or cause confusion. The Supreme Court emphasized that the appellants bore the burden of proving their mark’s distinctiveness, a test not met by mere comparison with the respondents’ mark but by assessing its impact on an average purchaser. He found the appellants’ bird—despite being labeled a “vulture”—visually akin to an eagle, risking confusion with the respondents’ “Eagle Mark,” a conclusion supported by the appellants’ prior “Eagle Brand” usage. He distinguished the Madras passing-off ruling, noting that passing-off focuses on actual deception in trade, whereas registration assesses potential confusion, rendering the earlier decision non-binding.
Final Decision: The Supreme Court dismissed the appeal on May 7, 1953, affirming the Division Bench’s restoration of the Registrar’s refusal to register the appellants’ “Vulture Brand” mark, with costs awarded to the respondents.
Law Settled in This Case: The judgment settled two key principles. First, appeals under Section 76 of the Trade Marks Act, 1940, to a High Court are governed by the court’s ordinary procedural rules, including Letters Patent appeals from a single judge to a Division Bench, unless the statute explicitly provides otherwise. Second, the likelihood of deception or confusion under Section 8 is an independent inquiry for trade mark registration, distinct from passing-off considerations, placing the onus on the applicant to prove distinctiveness based on public perception, not just comparison with existing marks.
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
Crompton Greaves Consumer Electricals Limited Vs. Bali Ram
Crompton Greaves Consumer Electricals Limited Vs. Bali Ram Trading : May 28, 2025: C.O.(COMM.IPD-TM) 243/2021 : 2025:DHC:4527: High Court of Delhi:Hon'ble Mr. Justice Saurabh Bannjee
Brief Facts: Crompton Greaves has been using the ‘CROMPTON GREAVES’ trademark since 1943, which is well-known. The respondent registered the mark ‘CROMPTON’ in 1986 in Class 21 while the petitioner’s mark was already registered. The petitioner alleged that the respondent's mark is identical, similar, and likely to cause confusion, encroaching upon the petitioner’s goodwill.
Decision: The court held that the petitioner is the prior adopter and registered proprietor of the ‘CROMPTON GREAVES’ mark and that the respondent's registration of ‘CROMPTON’ was contrary to the law. The court ordered the removal of the respondent’s ‘CROMPTON’ mark from the Trademark Register.
Law Settled: The court relied on Sections 11(1) and 11(2) of the Trade Marks Act, 1999, and concluded that the registration was improperly granted, supporting the petitioner’s case under Sections 57(2) and 47(1) of the Act, based on prior user, registration, and reputation of the mark.
Wednesday, June 18, 2025
ITC Limited Vs. The Controller of Patents
Case Title: ITC Limited Vs. The Controller of Patents, Designs, and Trademarks:Case No.: IPDPTA/13/2024 :Date of Order: 20 May 2025:Name of Court: High Court at Calcutta:Name of Judge: Hon’ble Justice Ravi Krishan Kapur
Fact of the Case:
ITC Limited filed an application for a patent titled “A Heater Assembly to Generate Aerosol,” designed for handheld aerosol-generating devices. The Patent Office (Controller) rejected ITC’s patent application under Section 3(b) of the Patents Act, 1970, on grounds that the invention allegedly caused serious prejudice to human life, health, public order, and morality. ITC challenged this rejection before the Calcutta High Court, asserting that the Controller's decision was legally flawed, lacked proper reasoning, and was based on extraneous and unshared documents.
Legal Issue
The core legal issues were:Whether the Controller's rejection of the patent application under Section 3(b) was justified, especially regarding the grounds of public health and morality? Whether the Controller adhered to principles of natural justice by providing proper reasons and opportunity to respond to new evidence.Whether the interpretation of Section 3(b), as well as reliance on constitutional provisions and ethical considerations, was appropriate under Indian patent law.
Reasoning
The Court observed that:
- The Controller’s order lacked detailed reasoning and appeared to rely heavily on subjective notions about public morality and health without citing scientific or technical evidence.
- The Controller relied on documents surfaced for the first time in the order; no prior opportunity was given to ITC to address these.
- The order interpreted Section 3(b) too broadly, conflating moral and ethical concerns with patentability criteria.
- The Court emphasized that the law does not permit the Controller to base rejection solely on perceived societal harm without scientific backing or specific legislative guidance.
- The Court also noted that invoking constitutional Articles (such as Article 47) and framing the matter as a moral issue was misplaced, as patent law is a statutory regime that should be interpreted within legal bounds, not on moral judgments.
- The Court remanded the matter for re-evaluation, emphasizing the need for proper explanation, adherence to natural justice, and law-based reasoning.
Decision
The Court quashed the Controller's order, set aside the rejection, and remanded the case for a fresh hearing, as the original order lacked transparent reasoning and procedural fairness. The Court clarified that the interpretation of Section 3(b) should not be used arbitrarily to deny patents based on subjective moral or health concerns without scientific rationale.
Tuesday, June 17, 2025
Under Armour, Inc. Vs. Anish Agarwal
SML Limited Vs. Mohan & Company & Anr.
Procter & Gamble Hygiene and Health Care Ltd. & Anr. Vs. State of Himachal Pradesh
ITC Limited Vs. The Controller of Patents Designs and Trademark
Inbrew Beverages Pvt. Ltd. Vs. Mount Distilleries Ltd
Dunlop International Limited Vs. Glorious Investment Limited
K. Mangayarkarasi Vs N. J. Sundaresan
Monday, June 16, 2025
Om Prakash Gupta Vs. Parveen Kumar
Introduction: In the intricate world of intellectual property law, the case of Om Prakash Gupta v. Parveen Kumar and Anr., decided by the High Court of Delhi on May 19, 2000, emerges as a compelling narrative of trademark rights, misrepresentation, and the consequences of abandonment. This dispute revolves around the trademark "SURAJ CHHAP," a label tied to the tobacco trade, and pits Om Prakash Gupta, claiming registered proprietorship, against Parveen Kumar and another, who challenge the plaintiff’s assertions with a tale of prior use and alleged deceit. The High Court’s ruling not only vacates an interim injunction but dismisses the suit entirely, spotlighting the sanctity of judicial processes and the fragility of trademark rights in the face of non-use and fraud.
Detailed Factual Background: Om Prakash Gupta, the plaintiff, asserts ownership of the trademark "SURAJ CHHAP," registered under number 287631 on April 24, 1973, in Class 34 for scented chewing tobacco. Initially, Gupta operated as part of a partnership firm, M/s. Prakash Sugandh Bhandar, alongside Sumer Chand and Promod Kumar, starting in 1973. Over time, one partner retired, another passed away, and Gupta became the sole proprietor. He claims extensive use of "SURAJ CHHAP" across states like Delhi, Rajasthan, Uttar Pradesh, Gujarat, and Madhya Pradesh since 1973, building a robust reputation. Gupta also asserts copyright in the artistic design of his product labels and pouches, characterized by a distinctive trade dress and color scheme, and invokes common law rights against passing off due to long-term use. However, he admits to a period of non-use—without specifying its duration—before resuming business in 1999.
The defendants, Parveen Kumar and another, counter that they have been in the tobacco trade since 1956, initially using trademarks "PATANGA" and "HARIBIHARI." They claim to have adopted "SURAJ CHHAP" for unmanufactured raw tobacco in 1993 (later contested as 1995 due to excise licensing), with significant sales figures: ₹10,62,257.50 in 1993-94 escalating to ₹17,66,250 in 1998-99. They assert a copyright registration for "SUN BRAND" Hukka Tobacco since May 10, 1976, and argue that their pouches differ from Gupta’s. The defendants allege that Gupta’s tobacco business faltered by 1979, leading to abandonment of "SURAJ CHHAP," and that his 1999 resumption was a belated attempt to capitalize on their established market presence. They further contend that Gupta’s trademark registration carries a disclaimer excluding exclusive rights to "SURAJ" and the "Sun" device, a fact he allegedly concealed.
Detailed Procedural Background: Gupta filed Suit No. 1744/99 in the High Court of Delhi, seeking a permanent injunction against the defendants for trademark infringement, copyright infringement, and passing off, alongside ancillary reliefs. Concurrently, he moved I.A. No. 7665/99 under Order 39 Rules 1 and 2 of the Code of Civil Procedure, 1908 (CPC), for a temporary injunction. On August 12, 1999, the court granted an ex parte interim injunction, restraining the defendants from using "SURAJ CHHAP" or similar labels, based on Gupta’s claims of registered trademark rights, as recorded on August 10 and 12, 1999.
The defendants responded with I.A. No. 8739/99 under Order 39 Rule 4, CPC, seeking to vacate the injunction, alleging misrepresentation and prior use. They did not file a written statement but presented detailed facts in their application. Both parties submitted extensive documentation and written arguments, supplemented by lengthy oral submissions. Justice J.B. Goel adjudicated the applications together, delivering a comprehensive judgment on May 19, 2000, which not only addressed the injunction but also disposed of the suit itself.
Issues Involved in the Case: The case hinges on several key issues: whether Gupta’s suit for trademark infringement is maintainable given the disclaimer on "SURAJ" and the "Sun" device; whether his concealment of this disclaimer constitutes fraud sufficient to warrant dismissal; whether prolonged non-use of "SURAJ CHHAP" amounts to abandonment, extinguishing his rights; whether the defendants’ prior use since 1993 (or 1995) establishes superior rights; and whether Gupta’s passing off claim survives despite the disclaimer and non-use?
Detailed Submission of Parties: Gupta’s counsel argued that he is the registered proprietor of "SURAJ CHHAP" under registration No. 287631, renewed and valid as of 1994, entitling him to sue for infringement under Section 28 of the Trade and Merchandise Marks Act, 1958. He emphasized extensive use since 1973, claiming goodwill and reputation, and asserted copyright in his pouch designs. On non-use, he attributed the hiatus to a partner’s death, insisting it did not erode his rights, and cited precedents to argue that registration persists despite temporary disuse. For passing off, he contended that the disclaimer under Section 17’s proviso preserves common law remedies, unaffected by registration limitations.
The defendants’ counsel challenged Gupta’s claims, asserting that the registration certificate (No. 287631) includes a disclaimer excluding "SURAJ" and the "Sun" device, rendering his infringement claim baseless. They accused Gupta of suppressing this fact, obtaining the injunction fraudulently, and argued that such misrepresentation justifies dismissal. They claimed prior use of "SURAJ CHHAP" since 1993, supported by sales data, and argued that Gupta abandoned the mark by 1979, losing all rights after 20 years of non-use. They denied similarity in pouch designs and asserted their established market reputation, urging the court to vacate the injunction and dismiss the suit.
Detailed Discussion on Judgments Cited by Parties and Their Context:The parties and court relied on several precedents, each illuminating distinct facets of the dispute:
- Chandra Shashi v. Anil Kumar Verma, (1995) 1 SCC 421: Cited by the defendants and court, this Supreme Court case involved contempt proceedings against a respondent who fabricated a document in a matrimonial dispute. The court emphasized the need to punish fraud to preserve judicial integrity, sentencing the respondent to imprisonment. Justice Goel applied this to Gupta’s concealment, underscoring its severity as a fraud on the court.
- Indian Bank v. Satyam Fibres (India) Pvt. Ltd., (1996) 5 SCC 550: The defendants referenced this Supreme Court ruling, where a forged letter led to the recall of a National Consumer Disputes Redressal Commission judgment. The court affirmed inherent powers under Section 151, CPC, to set aside orders obtained by fraud. Justice Goel used this to justify vacating the injunction and dismissing the suit.
- S.P. Chengalvaraya Naidu (Dead) by LRs v. Jagannath (Dead) by LRs, (1994) 1 SCC 1: Another Supreme Court case cited by the defendants, it declared judgments obtained by fraud as nullities, stressing clean hands in litigation. The court linked non-disclosure of material documents to fraud, a principle Justice Goel applied to Gupta’s omission of the disclaimer certificate.
- Registrar of Trade Marks v. Ashok Chandra Rakhit, AIR 1955 SC 558: Both parties cited this Supreme Court decision, which explained disclaimers under the Trade Marks Act, 1940 (predecessor to Section 17 of the 1958 Act). It clarified that disclaimed elements lack statutory protection but retain common law rights. Gupta used it to support his passing off claim, while the court interpreted it to limit his infringement claim.
- Wander Ltd. v. Antox India P. Ltd., 1990 (Supp) SCC 727: The court referenced this Supreme Court case to distinguish infringement (statutory) from passing off (common law) remedies, noting Gupta’s infringement claim failed due to the disclaimer, though passing off remained theoretically viable.
- Polson Ltd. v. Polson Dairy Ltd., 1996 (16) PTC 709 (Delhi): Gupta relied on this Delhi High Court ruling, where non-use due to government policy did not constitute abandonment. The court distinguished it, finding Gupta’s non-use lacked such justification.
- Avis International Ltd. v. Avi Footwear Industries, AIR 1991 Del 22: Cited by Gupta, this Delhi High Court case placed the burden on defendants to prove non-use leading to abandonment, which they disputed. Justice Goel found sufficient evidence of Gupta’s non-use.
- Garden Perfume (P) Ltd. v. Anand Soaps and Detergents, : Gupta referenced this case to argue non-abandonment, but the court found it factually inapplicable due to Gupta’s unexplained hiatus.
- Godfrey Philips India Ltd. v. Girnar Food & Beverages Pvt. Ltd., : Cited by the court, this case likely elaborated on trademark use and recognition, supporting the defendants’ prior use claim.
- Ruston and Hornby Ltd. v. Zamindara Engineering Co., AIR 1970 SC 1649: Implicitly referenced via Polson, this Supreme Court case upheld registered trademark rights, but Justice Goel noted its irrelevance given the disclaimer.
Detailed Reasoning and Analysis of Judge: Justice J.B. Goel’s analysis is a dual-pronged examination of fraud and trademark rights. He first tackled Gupta’s misrepresentation, noting that the plaint and court submissions claimed "SURAJ CHHAP" as a registered trademark under No. 287631, yet the certificate—produced by both parties—revealed a disclaimer excluding "SURAJ" and the "Sun" device. Gupta’s failure to disclose this, coupled with reliance on a non-legal certificate, constituted a material suppression and misrepresentation. Drawing from Chandra Shashi, Indian Bank, and Chengalvaraya Naidu, the judge held that such fraud vitiates judicial proceedings, justifying not only the injunction’s recall but the suit’s dismissal under inherent powers (Section 151, CPC).
On trademark merits, Justice Goel interpreted Section 17, citing Ashok Chandra Rakhit, to confirm that disclaimed elements lack statutory protection under Section 28, restricting Gupta’s registered rights to "Zafrani Patti." The infringement claim thus collapsed. For passing off, the judge assessed non-use, finding Gupta’s business ceased in 1979, with a 20-year gap until 1999. His explanation—death of a partner in 1985—failed to account for prior cessation, and excise license lapses post-1982 reinforced abandonment. Contrasting cases like Polson (justified non-use) and Avis (disputed non-use), Goel inferred an intent to abandon from the prolonged, unexplained hiatus, per Narayana’s treatise on trademark law.The defendants’ use since 1993 (or 1995) predated Gupta’s 1999 resumption, establishing prior rights. Their pouch design, adopted earlier, negated copyright infringement claims. Balancing equities, the judge found no prima facie case, irreparable harm, or convenience favoring Gupta, especially given his deceitful conduct.
Final Decision: On May 19, 2000, the High Court allowed the defendants’ I.A. No. 8739/99, vacating the August 12, 1999, interim injunction, and dismissed Gupta’s I.A. No. 7665/99 and Suit No. 1744/99 with costs of ₹20,000, citing fraud and abandonment.
Law Settled in This Case: The judgment reinforces that concealment of material facts, such as a trademark disclaimer, constitutes fraud on the court, warranting dismissal under inherent powers. It clarifies that disclaimed elements of a registered trademark lack statutory protection under Section 28, limiting infringement claims, though passing off remains viable under Section 17’s proviso. Prolonged, unjustified non-use can infer abandonment, extinguishing common law rights, especially against prior users.
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
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