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2008 Supreme(SC) 1188

2008(6) Supreme 144
Supreme Court of india
Tarun Chatterjee and Harjit Singh Bedi, JJ.
K. Narayanan and Anr. — Appellants
versus
S. Murali — Respondent
Civil Appeal Nos. 4480-4481 of 2002
Decided on : 05-08-08

Advocates appeared:
For the Appellants :Ms. Gladys Daniei, Anup Kumar and K.V. Vijayakumar, Advocates.
For the Respondent:Dr. A. Francis Julian, Sr. Adv., Sumit Kumar (for M/s. Arputham, Aruna & Co.), Advocates.
Important Point
Mere filing of a trade mark application could not be regarded as a cause of action for filing a suit for passing off where filing of an application for registration of trade mark did not indicate any deception on part of respondent to injure business or goodwill of appellants.

Advocates appeared :
For the Appellants : Ms. Gladys Daniei, Anup Kumar and K.V. Vijayakumar, Advocates.
For the Respondent : Dr. A. Francis Julian, Sr. Adv., Sumit Kumar (for M/s. Arputham, Aruna & Co.), Advocates.
Important Point
Mere filing of a trade mark application could not be regarded as a cause of action for filing a suit for passing off where filing of an application for registration of trade mark did not indicate any deception on part of respondent to injure business or goodwill of appellants.



Headnote:Trade and Merchandise Marks Act, 1958 – Section 18(1), 28 – Appellants engaged in business of manufacturing and selling Banana Chips adopted trade mark A-ONE with respect to said Banana Chips in 1986 – Application by appellants for registration of trade mark A-ONE before Trade Mark Registry at Chennai on 6th of December, 1999 with respect to said Banana chips – Suit filed by respondent against appellants, seeking an injunction restraining appellants from passing off their goods using trade mark A-ONE – Said suit was dismissed by District Judge – Respondent thereafter filed three trade mark applications seeking registration as user of mark A-ONE throughout India since 1995 – Injunction application thereagainst – Dismissed – Appeals – Dismissed – Special Leave Petitions – Before registration is granted for trade mark, there is no right in the person to assert that the mark has been infringed and that a proposed registration which may, or may not be granted will not confer a cause of action to the plaintiff, whether the application for registration is filed by the plaintiff, or the defendant – Instantly, mere filing of a trade mark application could not be regarded as a cause of action for filing a suit for passing off since filing of an application for registration of trade mark did not indicate any deception on part of respondent to injure business or goodwill of appellants – Appellants could not file suit seeking an injunction to restrain respondent from passing off his goods using the trade mark A-ONE, based only on the claims made in the trade mark application of respondent filed before the Trade Mark Registry, since the necessary requirements of an action for passing off were absent – No ground to interfere with impugned judgment of High Court – Appeals dismissed. (Paras 26, 29, 30)

       Facts of the Case :

       1.Appellants engaged in business of manufacturing and selling Banana Chips adopted trade mark A-ONE with respect to said Banana Chips in 1986. Application was filed by appellants for registration of trade mark A-ONE before Trade Mark Registry at Chennai on 6th of December, 1999 with respect to said Banana chips. Suit was filed by respondent against appellants, seeking an injunction restraining appellants from passing off their goods using trade mark A-ONE. Said suit was dismissed by District Judge -.Respondent thereafter filed three trade mark applications seeking registration as user of mark A-ONE throughout India since 1995. Injunction application thereagainst was dismissed. Appeals thereagainst were also dismissed.

       2.Present Special Leave Petitions have been filed against said order of High Court.

       Findings of the Court :

       Before registration is granted for trade mark, there is no right in the person to assert that the mark has been infringed and that a proposed registration which may,or may not be granted will not confer a cause of action to the plaintiff, whether the application for registration is filed by the plaintiff, or the defendant. Instantly, mere filing of a trade mark application could not be regarded as a cause of action for filing a suit for passing off since filing of an application for registration of trade mark did not indicate any deception on part of respondent to injure business or goodwill of appellants. Appellants could not file suit seeking an injunction to restrain respondent from passing off his goods using the trade mark A-ONE, based only on the claims made in the trade mark application of respondent filed before the Trade Mark Registry, since the necessary requirements of an action for passing off were absent.

       Result : Appeals dismissed.

Judgment

Tarun Chatterjee, J. —

1.The present appeals are filed at the instance of the appellants against the Judgment and final Order dated 18th of April, 2002 passed by the High Court of Madras in O.S.A. Nos. 149 & 150 of 2002 whereby the Division Bench of the High Court had dismissed the appeals of the appellants.

2.The brief facts leading to the filing of these appeals may be narrated as under :

3.The appellants are engaged in the business of manufacturing and selling Banana Chips and had adopted the trade mark A-ONE with respect to the said Banana Chips in 1986. The appellants had applied for an application for registration of the trade mark A-ONE before the Trade Mark Registry at Chennai on 6th of December, 1999 with respect to the said Banana chips. The application of the appellants for registration of the trademark is still pending.

4.On 7th of February, 2000, the respondent filed O.S.No.1 of 2000 on the file of the District Judge at Coimbatore against the appellants, seeking an injunction restraining the appellants from passing off their goods using the trade mark A-ONE. The said suit was dismissed by the District Judge at Coimbatore on 23rd of December, 2001.

5.The respondent filed three trade mark applications numbered as 899359, 899360 and 899361 on 24th of January, 2000 before the Trade Mark Registry at Chennai seeking registration as user of the mark A-ONE throughout India since 1995.

6.Thereafter the appellants filed C.S.No. 482 of 2001 on 22nd of May, 2001 on the file of the High Court of Madras, seeking an injunction to restrain the respondent from passing off his goods using the trade mark A-ONE.

7.The appellants filed an application before the High Court for leave to institute the suit and by Order dated 11th of June, 2001, the High Court granted leave.

8.On 6th of March,2002, the learned Single Judge of the High Court dismissed the injunction application and also revoked the leave to sue, granted by it to the appellants.

9.The appellants, being aggrieved by the aforesaid Order, preferred appeals before the Division Bench of the High Court, which was dismissed by the Division Bench by an Order dated 18th of April, 2002.

10.Being aggrieved and dissatisfied with the aforesaid Judgment of the Division Bench, the appellants have filed these Special Leave Petitions in this Court which, on grant of leave, were heard by us in presence of learned counsel for the parties.

11.We have heard the learned counsel for the parties and examined the impugned Judgment of the Division Bench of the High Court as also of the learned Single Judge and other materials on record and we deem it appropriate to reproduce the findings of the Division Bench while dismissing the appeals, which are as under :-

“The point raised in the appeals is one which was already decided against the appellant by our considered Judgment in the case of Premier Distilleries Pvt. Ltd. Vs. Sushi Distilleries 2001(3) CTC 652. Learned counsel sought to contend that there is an earlier view of this Court which conflicts the view which we have taken. Having perused that Order, we find that it was merely a summary Order which does not address itself pointedly to the question. Mere filing of the application for registration of the trade mark in the Registry situated at Madras would not suffice to confine the jurisdiction of this Court. That question was specifically addressed, and dealt with in our reasoned Order in the case of Premier Distilleries Pvt. Ltd. (supra). In that Order, we have pointed out that the very term “cause of action” would clearly imply that the action viz., the institution of the suit must follow the cause, and not precede it. Even before the registration is granted for the trade mark, there is no right in the person to assert that the mark has been infringed. A proposed registration which may, or may not be granted will not confer a cause of action to the plaintiff, whether the application for registration is filed by the plaintiff, or the defendant.”

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