( 1 ) MONTARI- a word hitherto unknown to dictionary of languages, howsoever auspiciously and artfully or innocently articulated, is destined to find its place in law reports.

( 2 ) THE plaintiff `m/s Montari Industries Ltd having its corporate office at 78, Nehru Place, New Delhi has filed this suit for issuance of permanent preventive injunction restraining the defendant `m/s Montari Overseas Ltd from using trading or carrying on business in the name and style of M/s MONTARI OVERSEAS LTD. A mandatory injunction is also sought for commanding the defendant to suitably change its corporate name so as to exclude therefrom the word MONTARI. An ad interim injunction in similar terms is also sought for.

( 3 ) ACCORDING to the plaintiff, it was registered as MONTARI INDUSTRIES LTD in Punjab on 27. 1. 1983. Ever since thenit has been carrying on its business in the name and style of its name and manufacturing an exhaustive range of articles such as chemical products, agro- chemicals, industrial chemicals, paints, inks, varnishes, bleaching preparation , article of laundry use, cosmetics, oils, insecticides , pharmaceuticals, leather articles, tissues, bed covers, clothing, shoes, carpets, sport items, coffee, tea and a few food articles etc. In the year 1992, it has applied for registration of trade mark MONTARI with its logo and device under the Trade Mark Act. Several companies with the use of the word MONTARI in their names have been brought into existence by the plaintiff with the turnover of several crores. The names of such MONTARI group companies are:-

( 4 ) THE defendant company has set up itself in Delhi and Haryana on 21. 4. 93. On 15. 2. 94 it obtained certificate of commencement of its business. on 4. 7. 94 land has been acquired by the defendant for setting up its factory. On 24. 7. 94 it applied for power connection which has not yet been sanctioned. In September 94, the defendant has commenced construction of the factory. The completion is expected sometime between January and April, 1995. Machines are yet to be installed, though delivery thereof is expected to commence in January, 1995.

( 5 ) BOTH the Companies have come to the share market. The plaintiff came out with the rights issue the subscription of which was to be open on 9. 1. 95. The defendants public issue was to open on 10. 1. 95. The plaintiff became aware of the defendant s activities when the later came to the capital market.

( 6 ) ACCORDING to the plaintiff the word MONTARI is neither a natural nor a generic word. It does not find place in dictionary. It has been coined by the plaintiff, by deriving components from Mohan (Bhai Mohan Singh) the name of Chairman of the plaintiff company and Mrs Awtar Mohan Singh, nick named as TARI, being the wife of the Chairman of the plaintiff company. It has psychological significance for the plaintiff. It has acquired tremendous reputation and goodwill for the plaintiff company, its associated companies in the group and its products in the market. Public-at-large associate the name MONTARI with the name of the plaintiff companies and the company s in its group and their product. The defendant with intent to cash upon the goodwill and reputation of the plaintiff and to pass off its name and products as that of the plaintiff, has deceptively adopted the word MONTARI in its name. The plaintiff is having export oriented business activities. Coining of the defendant s name as MONTARI Overseas Ltd is likely to cause serious confusion to the public and the people dealing with the two companies and the consumers and the business community dealing in the products of the two companies.

( 7 ) THE defendant has contested the plaintiff s prayer for the grant of ad interim injunction on several grounds. Instead of narrating the defences it would be more convenient to crystalise them as has been done by the learned counsel for the defendant at the time of hearing. They are : 1. The use and adoption of the name by