High Court Of Delhi
GARDEN PERFUME PRIVATE LIMITED - Appellant
Versus
ANAND SOAPS AND DETERGENTS - Respondent
Interim Application 3786 of 1993
Decided On : 12/15/1993
TRADE AND MERCHANDISE MARKS ACT, 1958 - SECTION 33 - INJUNCTION GRANTED TO RESTRAIN DEFENDANTS FROM USING THE TRADE MARK "RAINY" - DEFENDANTS' ADOPTION OF THE MARK WAS DISHONEST AND NOT HONEST CONCURRENT USE - PLAINTIFFS WERE THE FIRST TO INVENT AND USE THE MARK AND HAD NOT ABANDONED IT.
Fact of the Case:
Plaintiffs, the proprietors of the trade mark "rainy" for soaps, alleged that the defendants had dishonestly copied their trade mark and started using it without authority. The defendants claimed honest concurrent use of the mark.
Finding of the Court:
The court found that the defendants' adoption of the mark was dishonest as they knew that the plaintiffs had already been using it for the same product. The court also found that the plaintiffs had not abandoned the mark despite a gap in its use.
Issues: Whether the defendants' use of the trade mark "rainy" was honest concurrent use.
Ratio Decidendi: The court held that the defendants' use of the mark was not honest concurrent use as they had adopted it with knowledge of the plaintiffs' prior use. The court also held that the plaintiffs had not abandoned the mark and were entitled to an injunction restraining the defendants from using it.
Final Decision: The court granted an ad interim injunction restraining the defendants from using the trade mark "rainy" till the disposal of the suit.
( 1 ). The petitioner had adopted the trade mark rainy in respect of soaps and they are the proprietors of this trade mark. It is alleged that the defendant has dishonestly copied the trade mark of the plaintiff and have started applying to their soaps without any authority and to trade upon valuable goodwill of the plainitiff. The fact that the defendant firm is not the proprietor of the trade mark "rainy" and it is the plaintiff who is the first to use and adopt the trade mark and is the proprietor of the trade mark is clearly established from the fact that one Mr. Pradeep Kumar Arora son of one of the partners of defendant namely Mr. Ram Saran Arora was an employee of the plaintiff partnership firm when the trade mark RAINY was adopted. That particular person resigned from the job of the plaintiff and after leaving their employment joined his father in the business of defendant and thereafter defendant started using the said trade mark of the plaintiff rainy . These facts came out in response to court questions asked from the said individual which was recorded in the court when his aforesaid father was also present in the court. He admitted that he is the son of one of the partner of the defendant and further admitted that originality the plaintiff had invented this mark, but because they were not continuously using it and had abandoned it after 1988-89 and that he after leaving the employment of the plaintiff adopted the said mark through defendant and thereafter has been using it openly: From the documents filed by the plaintiff it appears that there was a gap of certain period after 1988 before the plaintiff started using the trade mark "rainy". Therefore, it cannot be accepted that there was abandonment of Trade Mark by plaintiff. A break in the user does not amount to abandonment. In such circumistances, defendant could not claim any entitlement to use the plaintiff s mark. A reference in this behalf be made to the observations of Hon ble Supreme Court in the case of State of U. P. Vs. Ram Nath reported as AIR 1972 SC 232 quoted herein below:-
"it does not however entitle him to use a trade mark whether it is current or has been removed from the register,or has been abandoned or even if it has never been initially registered but has acquired the currency of a trade mark"
( 2 ) THE defendants other main plea is that they are honest concurrent users of the trade mark RAINY, that is to say that they had adopted the trade mark honestly and have been using the same openly and concurrently with that of the plaintiffs mark. The condition precedent for the success of any such plea is that the adoption of the mark is honest. Unless the adoption is honest no amount of user can legitimise the adoption and use in the absence of acquiscence or consent of the proprietor of the Trade Mark, more so when the proprietor of the Mark who is in the same trade has started using itself the said mark though after a certain gap of time.
( 3 ) THE very fact that the defendant adopted a mark which to their knowledge had already been used by the plaintiff for the same product for which the defendants had adopted it shows that the adoption was not honest and that the defendant cannot claim any proprietory right over the said trade mark. The fact that for three years the plaintiff did not manufacture further lots of soap under the trade mark RAINY does not in any way take away or dilute their claim to be the proprietor of the mark being the first one. to invent and use. The defendants case is not covered by Section 33 of the Trade and Merchandise Marks Act, 1958. Neither side has got its mark registered so far. In that view of the matter.
( 3 ) ONE has to view the case in the light of the judgment in the case of B. K. Engineering Company Vs. U. B. H. I. Enterprises (Regd), Ludhiana and another reported as AIR 1985 Delhi 210 wherein it was held that "trading must not only be honest but must not even unintentionally be unfair". Ref
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