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1996 Supreme(SC) 1023

1996(6) Supreme 208
SUPREME COURT OF INDIA
G.N. Ray and G.B. Pattanaik, JJ.
Vishnudas Trading as Vishnudas Kishendas —Appellant
versus
Vazir Sultan Tobacco Co. Ltd. Hyderabad
& Anr. —Respondents
Civil Appeal Nos. 9094-95 of 1996
(Arising out of SLP Nos. 7208-09/91)
Decided on 9-7-1996
Counsel for the Parties :
For the Appellant : M.S. Ganesh, N. Durga
and T.V.S.N. Chari, Advocates.
For the Respondent: C.S. Vaidyanathan, Sr. Advocate, Shivaram, O.P. Gaggar, S.R. Setia, Advocates.
For the Respondent No. 2 : A.N. Jayaram, Additional Solicitor General, Ms. Indira Sawhney and D.S. Mehra, Advocates.

IMPORTANT POINT
Under the Trade and Merchandise Act, if registration has been given generally in respect of all the articles coming under the broad classification and if it is established that the trader or manufacturer who got such registration had not intended to use any other article except the articles being used by such trader or manufacturer, the registration of such trader is liable to be rectified by limiting the ambit of registration and confining such registration to the specific article or articles which really concern the trader or manufacturer enjoying the registration made in his favour.

Headnote:Trade and Merchandise Marks Act, 1958—Trade Marks Rules 1959—Section 46/56—Rectifying registration of existing trade mark— Respondent Company got registration of its brand name Charminar under broad classification "manufactured tobacco —Appellant made application for registration of quiwam and zarda under same brand name Charminar —Disallowed—Application for rectification of registration made in favour of respondent company for limiting it only in respect of articles being manufactured and marketed by it—No evidence that respondent Com­pany had really intended to manufacture any other product of tobacco other than cigarettes—Rectification of trade marks registered in favour of respondent Company was valid and justified.

       Held : If a trader or manufacturer actually trades in or manufactures only one or some of the articles coming under a broad classification and such trader or manufacturer has no bonafide intention to trade in or manufacture other goods or articles which also fall under the said broad classification, such trader or manufacturer should not be permitted to enjoy monopoly in respect of all the articles which may come under such broad classification and by that process preclude the other traders or manufacturers to get registration of separate and distinct goods which may also be grouped under the broad classification. If registration has been given generally in respect of all the articles coming under the broad classification and if it is established that the trader or manufacturer who got such registration had not intended to use any other article except the articles being used by such trader or manufacturer, the registration of such trader is liable to be rectified by limiting the ambit of registration and confining such registration to the specific article or articles which really concern the trader or manufacturer enjoying the registration made in his favour. In our view, if rectification in such circumstances is not allowed, the trader or manufacturer by virtue of earlier registration will be permitted to enjoy the mischief of trafficking in trade mayfc ; booking to the Scheme of the registration of trade mark as envisaged in the Trade Marks Act and the Rules framed thereunder, it appears to us that registration of a trade mark cannot be held to be absolute, perpetual and invariable under all circumstances. (Para 11)

       Further held : It is not only permissible but it will be only just and proper to register one or more articles under a class or genus if in reality registration only in respect of such articles are intended, by specifically mentioning the names of such articles and by indicating the class under which such article or articles are to be comprised. It is, therefore, permissible to register only cigarette or some other specific products made of manufactured tobacco, as mentioned in Class 34 of 4th Schedule of the Rules. (Para 12)

       Since such registration initially had not been done, the rectification of the registration by limiting or confining the registration of trade mark of the Respondent Company to particular goods, namely, cigarettes, in the facts and circumstances of the case, cannot be held as illegal or unjustified. (Para 13)

       

JUDGMENT

G.N. Ray, J.—Leave granted. Heard learned counsel for the parties.

2. These appeals are directed against the common judgment dated October 11, 1990 passed by the Division Bench of Madras High Court in Trade Mark Second Appeal Nos. 1 and 2 of 1981 arising out of the judgment dated September 11,1980 passed by a Single Bench of Madras High Court in AAO Nos. 582-83 of 1978. The respondent No. 1 Company, namely, the Vazir Sultan Tabacco Co. Ltd. Hyderabad, has been manufacturing cigarettes under the brand name "Charminar". The said Compay in 1942 and in 1955, under the then Trade Mark legislation obtained registration of Trade Mark in respect of "manufactured tobacco" falling in Class 34 of the 4th Schedule to the rules framed under the Trade Marks Act 1940 and 1950 Act. The respondent No. 1 Company, however, did not manufacture anything other than cigarettes during all these long years. The appellant, namely, Vishnu Das Trading as Vishnudas Kishendas Zarda are manufacturing quiwam and zarda since 1973 and the appellant has been using the same trade mark, namely, "Charminar" on his bottles and boxes of quiwam and zarda.

The device of trade mark "Charminar" in the city of Hyderabad as used by the appellant is, however, different from the device being used by the respondent No. 1 Company. The appellant applied for registration of quiwam and zarda with trade mark "Charminar" under the Trade and Merchandise Marks Act, 1958 and the Trade Marks Rules, 1959 framed under the said Act. The respondent Company raised objections that the trade mark sought by the appellant would conflict with the registered Trade Marks Nos. 9951 and 170427 which the respondent No. 1 Company obtained in 1942 and 1955. The Joint Registrar of Trade Marks, however, observed (nter alia in the minutes dated September 24,1973 about the objections of the respondent to the effect that the mark would conflict with registered trade marks Nos. 9951 and 170427. It was also observed that although the applicant had contended that such registration of trade marks was in respect of cigarettes but quiwam and zarda were goods of different specifications and such goods would not cause any conflict with the goods being manufactured by the respondent No. 1 Company, since the registration was of the trade mark made in favour of the respondent in respect of manufactured tobacco which in its ambit would also take quiwam and zarda, the objection of the respondent No. 1 Company under Section 12(1) of the Trade Marks Acts, therefore, could not be waived. It was noted in the minute that the counsel for the applicant i.e. the appellant herein, had offered to apply for rectification of the said trade mark in favour of the respondent .No. 1 Company.

3. Accordingly, on October 15 , 1973, the appellant filed two applications under Section 46 read with Section 56 of the Trade and Merchandise Marks Act, 1958 before the Registrar of Trade Marks, Madras for rectifying the registration of the existing trade mark held by the respondent No. 1 Company mainly on the ground of non user of the same in respect of quiwam and zarda by the respondent No. 1 Company. The proceedings before the Registrar of Trade Marks continued from 1973-76 but the respondent No. 1 Company though contested the said applica- tions could not dispute or refute the allegation of the appellant that the respondent No. 1 Company had never manufactured any other article of tobacco except the cigarettes. The said applications made by the appellant were ultimately disposed of by the Assistant Registrar, Trade Marks, Madras on August 31, 1976 by allowing the applications for rectification. The Assistant Registrar Trade Marks ordered that the Registrar, Trade Mark, bearing Nos. 9951 and 170427 would be rectified by making the entries relating to specification of goods to read as cigarettes.

4. Respondent No. 1 Company thereafter preferred two statutory appeals under "Section 109(2) of the Trade and Merchandise Marks Act before a



























































































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