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2008 Supreme(Bom) 30

2008(2) ALL MR 1
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Dr. D.Y. CHANDRACHUD, J.
M/s. D. R. Cosmetics Pvt. Ltd. & Anr. — Appellant
Vs.
M/s. 1. R. Industries — Respondent
Notice of Motion No.3845 of 2007 IN Suit No.2808 of 2007
Decided on: 11th January, 2008.

Advocates:
Advocated appeared:
Mr. V. R. DHOND with Mr. SANDEEPPAREKH i/b. Mr. K. S. P ACHOO and Mr. A VESH KA YER, for the Plaintiffs.
Mr. MAHESH A. MAHADGUT with Ms. DEEPALI BHALEKAR i/b. M/s. Bilawala & Co. for the Defendant.

Headnote:Trade Marks Act, 1999 - Section 29-Suit filed for restraining defendant from using mark BUFFER-Which was in violation of plaintiff’s registered trade mark BUFIN-Plaintiff’s mark was registered in 1972-Whereas defendant commenced his business in 2003-Held that plaintiffs have made out a prima facie case for grant of an interlocutory injunction.-In the present case, the material on record would not prima facie lead to an inference that the plaintiffs had acquiesced in the use of the offending mark by the defendant. It cannot be said that there was a positive act on the part of the plaintiffs or that the plaintiffs stood by and knowingly allowed the defendant to proceed with the business based on the use of the offending word and label mark. On the contrary, the institution of the criminal complaint by the plaintiffs would suggest an inference that the plaintiffs were diligent in pursuing their remedies.

       For all these reasons, that the plaintiffs have made out a prima facie case for the grant of an interlocutory injunction. The plaintiffs have a long standing presence in the trade dating back to 1972 when their predecessor-in-interest obtained registration of the word mark BUFIN. The defendant entered into the business three decades later in 2003. The defendant cannot claim that he was unaware of the word and label marks of the plaintiffs and, in any event, a diligent search in the Register of Trade Marks would have revealed the existence of the word and label marks of the plaintiffs. The word mark adopted by the defendant is used on an identical product. The label mark adopted by the defendant consists of a device and get up which is deceptively similar. The plaintiffs have produced material which would prima facie indicate a significant goodwill associated with the continuous user of the mark for over three decades. The defendant cannot, in these circumstances, be permitted to trade on the reputation of the plaintiffs. The balance of convenience lies in favour of the grant of an interlocutory injunction and irreparable injury is liable to be caused to the plaintiffs if an injunction were not to be granted.

JUDGMENT :-

The Plaintiffs seek interlocutory relief in an action for passing off and infringement

2. The First Plaintiff is a Company incorporated under the provisions of the Companies' Act, 1956. The Second Plaintiff is a Director of the Company. Prior to the incorporation of the First Plaintiff, a business of manufacturing and marketing soap strips was carried on by a proprietary firm of Dhanvantrai Ramshankar Joshi. The case of the Plaintiffs is that the First Plaintiff was incorporated on 30th March, 1999 to convert, as a going concern, the existing proprietory business together with its name, goodwill, licence, assets and liabilities into a corporate entity. The First Plaintiff was initially known R as Dhanvantrai Ramshankar Cosmetics Pvt. Ltd. In pursuance of a certificate issued on 21st May, 2002 by the Registrar of Companies, the name of the Company has been abbreviated to D. R. Cosmetics Pvt. Ltd. The Directors of the Company are members of the family of the erstwhile proprietor who has since expired.

3. The primary business of the Plaintiffs consists of the manufacture, marketing, distribution, export and sale of soaps and soap products. A trade mark called BUFIN was conceived by the Plaintiffs' predecessors- (in-title in 1972. Registration of the mark was granted on 7th April, 1972 to the erstwhile proprietor in Class 3, in respect of soaps, cosmetics, non-medicated toilet preparations and shampoo. The registration was renewed on 7th April, 2000 for seven years and continues to subsist on the Register. On 27th November, 2003 the Plaintiffs applied for registration of a label mark which was allowed on 3rd September, 2005. The registration dates back to the application for registration. On 12th September, 2003, the First Plaintiff requested the Registrar of Trade Marks to enter its name in the Register as a proprietor of the trade mark "BUFIN" bearing No.279406 and registered in Class 3. This application was allowed by a communication dated 26th October, 2007 of the Trade Mark Registry.

4. The Plaintiff have disclosed in Exhibit D to the Plaint details of their sales and of the advertising expenses from 1st April, 1973 till 31st March, 2007. The sales figures which stood at Rs.5.10 lakhs for the year 1978-79, increased to Rs.45.92 lakhs for 1993-94, Rs.l.04 crores for 2000-01 and Rs.l.19 crores for 2004-05. The Plaintiff have annexed, inter alia, invoices commencing from the year 1978 and bills raised by the advertising agencies.

5. The Plaintiffs manufacture soap strips which consist of a special paper on which a thin coating of soap is applied. The strips of soap are bound together in packs of ten from which each strip can be conveniently removed. Rubbing the soap strip on a wet surface generates lather. According to the Plaintiffs, these strips of soap are particularly useful of maintaining personal hygiene in the course of travel. A label mark is stated to have been adopted in 1983 which inter alia consists of an artistic work. The label mark comprises of the device of a woman with lathered hands resting upon her face. The mark BUFIN appears prominently thereon. The label contains details of the date of manufacture, the licence and batch number and of the Total Fatty Matter (TFM).

6. In or about September, 2003, the Plaintiffs claim to have learnt of the use of an allegedly deceptive word mark by the name of BUFER by the Defendant with a label possessing a similar colour scheme and get up. The Plaintiffs filed a criminal complaint on 12th September, 2003. On 24th September, 2003, the Metropolitan Magistrate in the 25th Court at Mazgaon, directed an investigation under Section 156(3) of the Code of Criminal Procedure, 1973. The Senior Examiner of Trade Marks furnished an opinion to the Investigating Officer on 9th February, 2004. On 13th November, 2004, a report was submitted to the Magistrate that the Police did not find substance in the complaint. An application for further investigation was thereupon dismissed and



































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