JUDGMENT

K. Ramaswamy, J.-Leave granted.

We have heard learned counsel on both sides.

2. The admitted facts are that the respondents through their agents had registered trade marks "Releigh"and other trade marks (12 marks) under the Indian Merchandise Marks Act, 1889 (4 of 1989) and the Trade Mark Act, 1940 (5 of 1940). The Trade and Merchandise Marks Act, 1958 (43 of 1958) (for short, the `Act) which came into force with effect from October 3, 1958 has repealed the Predecessor Act and now the Act is in operation. The respondents entered into an agreement with Sudhir Kumar Sen on November 3, 1948 to render technical know-how to the Indian Company to be formed which would manufacture bicycles and market them under Raleigh s Indian Trade marks. Pursuant thereto, a company called Sen Raleigh Ltd. came into existence which manufactured cycles with technical assistance by the respondents-Raleigh Industries of U.K. and marketed the bicycles with a brand name and trade marks belonging to the respondents. On April 24, 1954, Sen Raleigh was recorded as permitted users of the trade marks. By agreement dated December 29, 1962, Sen Raleigh and the respondents agreed that Sen Raleigh was register