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2001 Supreme(Del) 1654

High Court Of Delhi
NOVELTY EMPORIUM - Appellant
Versus
NOVELTY CREATION PRIVATE LIMITED - Respondent
Interim Application 8647 of 1998
Decided On : 11/26/2001

Advocates Appeared:
A.K.DEY, RAJIV GEORGE, Ravinder Sethi, V.P.Ghiraya

The main legal point established in the judgment is the importance of distinguishing marks to prevent confusion in the market and protect reputation and goodwill.

Headnote:

Passing Off - Corporate Name - [Code of Civil Procedure, Order XXXIX Rule 4, Indian Partnership Act, Section 9] - The court discussed the legal framework of passing off and the use of corporate names, emphasizing the need for distinguishing goods and the protection of reputation and goodwill. The court referred to various precedents to establish the principles of passing off and the importance of distinguishing marks to prevent confusion in the market.

Fact of the Case:

The plaintiff filed a suit for perpetual injunction, alleging that the defendant adopted a corporate name identical to the plaintiff's, causing confusion and deception in the market. The defendant contested the suit, claiming dis-similarity and the generic nature of the word 'novelty'. The main controversy was whether the plaintiff was entitled to an ad interim injunction in the action for passing off.

Finding of the Court:

The court found that the defendant's use of the word 'novelty' with added words 'creations Private Limited' distinguished its goods from those of the plaintiff, and thus, the plaintiff did not have a prima facie case for passing off. The ad interim injunction granted was vacated.

Issues: The main issue was whether the plaintiff was entitled to an ad interim injunction in the action for passing off, based on the alleged confusion caused by the defendant's use of a similar corporate name.

Ratio Decidendi: The court emphasized the need to distinguish goods and protect reputation and goodwill in the market. It referred to various precedents to establish the principles of passing off and the importance of distinguishing marks to prevent confusion.

Final Decision: The ad interim injunction granted to the plaintiff was vacated, as the court found that the defendant's use of the word 'novelty' with added words 'creations Private Limited' distinguished its goods from those of the plaintiff.

V. S. AGGARWAL

( 1 ) M/s. NOVELTY Emporium (hereinafter described as "the plaintiff") has filed the present suit for perpetual injunction, restraining the defendant (M/s. Novelty Creation Private Limited) from manufacturing, selling offering for sale, advertising, directly and indirectly dealing in wedding sarees, banaras, Bangalore and South sarees, Embroided sarees, lehanga Chunni, Punjabi suit dupatta etc. under the corporate name "novelty" of the company or any other company name with prefix and suffix of the word "novelty". Besides that a claim has also been made for rendition of accounts. During the pendency of the said suit, the plaintiff seeks ad interim injunction by virtue of I. A. No. 8647/98. The defendant has filed an application under Order XXXIX Rule 4 of the Code of civil Procedure i. e. I. A. No. 8962/98. By this common order,both these interim applications are proposed to be disposed of.

( 2 ). The facts alleged are that the plaintiff is engaged in the business of manufacturing, exporting and acting as a dealer in wedding sarees and other clothes, stitched clothes like Punjabi Suit Dupatta etc. It is carrying on the business under the name and style of Novelty Emporium. It has adopted this name in the year 1960 and has been carrying on the business under the said name uninterruptedly since then. The plaintiff has acquired statutory right to use the trade name and plaintiff s corporate name novelty in the trading style has become distinctive and associated with the aforesaid goods. It has acquired handsome reputation and goodwill in the market and thus, the plaintiff claims that it has acquired exclusive right to use the corporate name "novelty". The defendant is alleged to be engaged in the business of marketing of wedding sarees and banaras, Bangalore and South sarees, embroidered sarees and Lehanga chunni and Punjabi suit dupatta etc. It has recently started the business. The defendant, with dishonest and malafide intention adopted the corporate name NOVELTY, identical and deceptively similar to the plaintiff s corporate name novelty. The adoption of name identical and deceptively similar to that of the corporate name by the defendant, is with an ulterior motive to cause confusion and deception in the mind of purchasing public at large. It is claimed that the touts of the defendant are always standing in front of down stairs of the plaintiff s showroom and insist the unwarry and innocent purchasers that Novelty Creation Private limited is another showroom of the plaintiff, where huge stocks are kept and purchasing public is likely to wonder that defendant is connected in one or the other manner with the plaintiff. It is asserted that the defendant has no right to use the trading name novelty and hence the present suit with an application for ad interim injunction.

( 3 ). The defendant has contested the said suit as well as the application. In the written statement filed, it has been asserted that the plaintiff has not mentioned that it is a registered partnership firm and, therefore, the petition as such as well as the suit is not maintainable. Plea has also been raised that the plaintiff deliberately and with malafide intention tried to confuse the matter by not making it clear whether its trade name is "novelty" or "novelty emporium". The word "novelty" is a generic in nature meaning quality of being novel or something new. The plaintiff has nowhere claimed any right over a particular artistic or colourful way of writing the word NOVELTY. The goods of the plaintiff can not pass off as that of the defendant. The defendant s claim is that everything is absolutely dis-similar including the/trade name of the plaintiff as well as the defendant. Furthermore, it is contended that the word novelty has been extensively used by many other dealers as a constituent part of their trade name, both prior or after use of the said word by the plaintiff. It is alleged that the word Novelty is not associated with the goods o




















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