Fraudulent adoption or use of a trademark negates the defenses of laches and acquiescence and entitles the plaintiff to injunctive relief.

( 1 ) THE plaintiffs have filed a suit for perpetual injunction alleging infringement of their registered trade mark and have also prayed for a decree for rendition of accounts of profits against the defendants. Along with this suit, an application under Order 39 Rules 1 and 2 has also been filed for an interim injunction against the defendants, for restraining them from infringing the said mark.

( 2 ) FACTS, relevant for the disposal of the application for injunction, may first be noticed. It is alleged by the plaintiffs that they are the proprietors of the following two registered trade marks :

" (A) Trade mark NATRAJ with the device of Nataraj under No. 2604. 66 dated 6-11-1969 claiming user since 22-2-1961 in respect of pencils, refills for propelling pens and pencils, pen sharpners, pens, fountain pens, erasers, pin clips and stapples including in class 16.

(B) Device of NATARAJ under No. 283730 dated 27-10-1972 in respect of pencils all kinds, erasers, refills for propelling pens and pencils, pencil sharp- ners, pens, fountain peas, pins, clips, wire stapples for stappling presses and pins. "according to the plaintiffs, the aforesaid marks were adopted by them in the year 1961 and after registration the same are still valid and subsisting in the register of Trade Marks. It is the case of the plaintiffs that they are incurring large expense of thousands of rupees by way of advertisement and the sale of their products under the trade mark of Nataraj is over eight crores. The plaintiffs have also placed on record copy of the certificate of their registered trade mark along with their registered label. Some of the labels and cartons bearing the said mark and device are printed in red colour. One such label contains the name nataraj and also has the photographs of the dancing Nataraj, which is the device which has been registered.

( 3 ) ACCORDING to the plaintiffs, in the middle of the year 1985 they got to know that the defendants had surreptitiously sot registered a copyright, with the Office of the Registrar of Copyright, a label similar to that of the plaintiffs in respect of pins. The defendants got this copyright in respect of pins under the name of Nataraj and a copy of the carton, which has been filed in Court, shows that the defendants have not only used the registered name of the plaintiffs, namely, Nataraj but have also used the device of the dancing Natarai which is identical to the dancing figure which has been registered by the plaintiffs with the Registrar of Trade Marks.

( 4 ) IT is alleged by the plaintiffs that the conduct of the defendants is fraudulent inasmuch as they are using the trade mark and the device of Nataraj in respect of stationery pins even though the plaintiffs are the registered owners of the said trade mark and device. This alleged, deliberate and dishonest act on the part of the defendants is stated to be causing a damage to the plaintiffs name, goodwill and business. According to the plaintiffs, pecuniary compensation will not afford them an adequate relief and if injunction is not granted, the plaintiffs will suffer irreparable loss and injury to the business name, reputetion and goodwill.

( 5 ) IT is further contended that after the plaintiffs got to know about the wrongful registration of the copvright by the defendants, they applied in June, 1985 with the Registrar of Stationery Products Co. and another Copyright for rectification and cancellation of the defendants tegistration. The proceedings so initiated are still stated to be pending before the Registrar of Copyright.

( 6 ) ON the basis of the allegations contained in the plaint and the application, supported by the documents placed on record, an ad interim ex parts injunction was granted, inter alia. restraining the defendants from manufacturing or selling pins and clips in the carton bearing the trade mark and device Nataraj of which trade mark and device the plaintiffs were the registered owners.

( 7 ) THE defend