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1992 Supreme(Del) 77

High Court Of Delhi
VINAY CHAWLA - Appellant
Versus
CHANDAMAMA TOYTRONIX PRIVATE LIMITED - Respondent
Interim Application 12208 of 1991
Decided On : 02/06/1992

Advocates Appeared:
K.G.BANSAL, PARVIN ANAND

A MANUFACTURER OF TOYS WHO HAS BEEN USING A TRADEMARK SINCE 1987 AND HAS APPLIED FOR ITS REGISTRATION HAS A PRIMA FACIE CASE OF PASSING OFF AGAINST A COMPETITOR WHO STARTED USING THE SAME TRADEMARK ONLY IN 1990.

Headnote:

TRADEMARK - PASSING OFF - INJUNCTION - [SECTION 27(2) OF THE TRADE AND MERCHANDISE MARKS ACT, 1958] - THE COURT HELD THAT THE APPLICANT HAS A PRIMA FACIE CASE FOR PASSING OFF AND GRANTED AN AD INTERIM INJUNCTION RESTRAINING THE RESPONDENT FROM USING THE IMPUGNED TRADEMARK.

Fact of the Case:

THE APPLICANT, A MANUFACTURER OF TOYS, FILED A SUIT FOR PASSING OFF AGAINST THE RESPONDENT, WHO WAS ALSO A MANUFACTURER OF TOYS, FOR USING THE SAME TRADEMARK "CUDDLES" AS THE APPLICANT. THE APPLICANT CLAIMED THAT IT HAD BEEN USING THE TRADEMARK SINCE 1987 AND HAD APPLIED FOR ITS REGISTRATION IN 1989, WHILE THE RESPONDENT STARTED USING THE TRADEMARK ONLY IN 1990.

Finding of the Court:

THE COURT HELD THAT THE APPLICANT HAD ESTABLISHED A PRIMA FACIE CASE OF PASSING OFF. IT FOUND THAT THE APPLICANT HAD BEEN USING THE TRADEMARK SINCE 1987, WHILE THE RESPONDENT STARTED USING IT ONLY IN 1990. THE COURT ALSO FOUND THAT THE APPLICANT'S GOODS HAD ACQUIRED A VENDIBLE CHARACTER AND WERE IDENTIFIED AND RECOGNIZED BY THE USE OF THE TRADEMARK.

Issues: 1. WHETHER THE APPLICANT HAD A PRIMA FACIE CASE OF PASSING OFF? 2. WHETHER THE BALANCE OF CONVENIENCE WAS IN FAVOR OF THE APPLICANT?

Ratio Decidendi: THE COURT RELIED ON SECTION 27(2) OF THE TRADE AND MERCHANDISE MARKS ACT, 1958, WHICH PROVIDES THAT NOTHING IN THE ACT SHALL BE DEEMED TO AFFECT RIGHTS OF ACTION AGAINST ANY PERSON FOR PASSING OFF GOODS AS THE GOODS OF ANOTHER PERSON OR THE REMEDIES IN RESPECT THEREOF. THE COURT ALSO RELIED ON SEVERAL JUDICIAL PRECEDENTS, WHICH HELD THAT IN ORDER TO SUCCEED IN AN ACTION FOR PASSING OFF, THE APPLICANT MUST PROVE THAT IT HAS A PROPRIETARY RIGHT IN THE TRADEMARK, THAT THE RESPONDENT'S USE OF THE TRADEMARK IS LIKELY TO CAUSE CONFUSION OR DECEPTION, AND THAT THE APPLICANT WILL SUFFER IRREPARABLE HARM IF THE RESPONDENT IS NOT RESTRAINED FROM USING THE TRADEMARK.

Final Decision: THE COURT GRANTED AN AD INTERIM INJUNCTION RESTRAINING THE RESPONDENT FROM USING THE IMPUGNED TRADEMARK "CUDDLES" OR ANY OTHER TRADEMARK IDENTICAL OR DECEPTIVELY SIMILAR TO THE TRADEMARK OF THE APPLICANT.

Mohd. Shamim

( 1 ) THIS is an application by the plaintiff for issue ofan ad interim injunction under Order 39 Rules 1 and 2 of the Civil Procedure Code restrainingthe defendant, their servants and agents from manufacturing, selling, offeringfor sale, advertising or displaying, directly or indirectly, their toys or stuffedtoys under the trade mark cuddles or any other trade mark identical withor deceptively similar to the aforementioned trade mark of the plaintiff.

( 2 ) BRIEF facts which led to the present application are : that the plaintiffis a firm and Smt. Vinay Chawla is the sole proprietress of the said firm. Thesaid firm deals in toys under the trade mark cuddles . The plaintiff hasbeen using the said trade mark since long i. e. 1/01/1987. The goodsof the plaintiff bearing the said trade mark are in huge demand in the markets. The plaintiff with a view to acquiring the statutory rights in the said trademark moved an application bearing No. 505426 before the Trade Markregistry, New Delhi on 15/02/1989 for all types of toys. The saidapplication has been accepted for registration by the Trade Mark Registry,bombay vide Order No. U-8/2759, dated 30/07/1991 and as such, registrationcertificate is to be issued shortly in favour of the plaintiff. Besides the abovethe plaintiff also claims to be the proprietor of the said trade mark on accountof its prior adoption and subsequent user. The said trade mark alluded to abovehas already become distinctive and is associated with the aforesaid goodsbelonging to the plaintiff on account of its long, continuous extensive and exclusive user. The goods belonging to the plaintiff bearing the said trade markare very much in demand on account of their standard quality and precision. The plaintiff has also advertised the said trade mark through the distributionof trade literature and by displaying the same on packing material of the aforementioned products. The plaintiff has as such spent a substantial sum of moneyon the publicity of the said trade mark. The plaintiff has been using the saidtrade mark all alone without any interruption or interference from any quarter,whatsoever.

( 3 ) THE defendant (hereinafter REFERRED TO to as respondent) are alsoa dealer in stuffed toys under the trade mark cuddles . The saidfact came to the notice of the plaintiff through an advertisement in amagazine known as chandamama of May, 1991. The defendant is notthe proprietor of the trade mark cuddles in respect of stuffed toys or toysto any type. The respondent adopted the impugned trade mark in respectof stuffed toys and toys out of greed with a view to taking advantage ofthe reputation of the plaintiff (hereinafter REFERRED TO to as the applicant) tomislead the public and to practise deception and create confusion in the mindsand to pass of their spurious goods as that of the applicant. The resemblancein between the two trade marks i. e. the one belonging to the applicant and theother belonging to the respondent is so close that it could not have occurredexcept by deliberate imitation. The said trade mark is bound to cause confusion and deception in the normal course of business. The respondent arethus guilty of passing off their goods and business as that of the applicant. Therespondent thus must give up the use of the trade mark as the applicantis suffering huge losses, both in business and in reputation. Thus, the primafade case is in favour of the applicant, the balance of convenience is also inher favour. The applicant is likely to suffer irreparable loss and injury incase the injunction is not issued in favour of the applicant restraining the respondent from passing of their goods under the trade mark cuddles belonging to the applicant. Hence the present application. The applicationis supported by an affidavit.

( 4 ) THE respondent have resisted and opposed the above applicationthrough an application under Order 39 Rule 4 CPC, being I. A. No. 12208/91inter alia, on the following grounds : that
















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