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2016 Supreme(Del) 4568

IN THE HIGH COURT OF DELHI
Rajiv Sahai Endlaw, J.
Sambhav Kapur – Plaintiff
Versus
British Indo German Industrial Organics Private Ltd. and Others – Defendants
CS (COMM) No. 1532 of 2016 and IA No. 14411 of 2016
Decided On : 24-11-2016

Advocates Appeared:
For the Plaintiffs : Mr. Dhanesh Ralhan and Mr. Aashita Manocha.

The main legal point established in the judgment is the requirement for pleadings to contain only material facts and not law, and the limited role of evidence in passing off suits.

Headnote:

Passing Off - Trademark Infringement - CPC - [REINOL SAFETY SKIN PASTE] - [Trade Mark Act, Section 428103] - The court dismissed the suit against the defendants for passing off their goods as that of the plaintiff, as the pleadings and documents of the plaintiff did not disclose any case of passing off by the defendants. The court emphasized the need for pleadings to contain only material facts and not law, and held that evidence hardly serves any purpose in such suits.

Fact of the Case:

The plaintiff filed a suit against the defendants for permanent injunction restraining them from manufacturing and selling goods under a mark deceptively similar to the plaintiff's mark REINOL SAFETY SKIN PASTE, delivery of impugned goods, and accounts. The plaintiff alleged passing off of their goods by the defendants and dilution of their mark.

Finding of the Court:

The court found that the pleadings and documents of the plaintiff did not disclose any case of passing off by the defendants. The suit was dismissed as it was deemed to be filed as a tool of harassment and a counter blast to the claims made by the defendants and other family members against the plaintiff's parents.

Issues: The issues revolved around the alleged passing off of goods by the defendants, misuse of trademarks, and misrepresentation to distributors and consumers. The court also addressed the relevance of certain representations made by the defendants and the misuse of the legal process by the plaintiff.

Ratio Decidendi: The court emphasized the need for pleadings to contain only material facts and not law, and held that evidence hardly serves any purpose in passing off suits. It also highlighted the importance of gauging the similarities in trade marks and trade dress and the possibility of consumer deception in passing off cases.

Final Decision: The suit was dismissed as the pleadings and documents of the plaintiff did not disclose any case of passing off by the defendants. The court also noted that evidence hardly serves any purpose in passing off suits and emphasized the need for pleadings to contain only material facts and not law.

ORDER :

Rajiv Sahai Endlaw, J.

1. The plaintiff has instituted this suit against the defendants no. 1 to 9 namely (i) British Indo German Industrial Organics Private Ltd. (ii) BIG Industrial Organics Private Limited (iii) Mr. Nitin Khullar (iv) Mr. Rakesh Rathour (v) Mr. Mangat Rai (vi) Mr. Raj Kumar Rathour (vii) Mr. Raman Kumar (viii) Mr. Vikram Rathour and (ix) Akash Rathour for (i) permanent injunction restraining the defendants from manufacturing, selling the goods under the mark PUREPASTE SAFETY SKIN PASTE or any other mark as may be identical or deceptively similar to the plaintiff's mark REINOL SAFETY SKIN PASTE amounting to passing off by the defendants of their goods as the goods and business of the plaintiff and diluting the plaintiff's mark REINOL SAFETY SKIN PASTE (ii) for delivery of all the impugned goods and (iii) for accounts.

2. The suit had come up first before this Court on 22nd November, 2016 when on the statement of the counsel for the plaintiff that there were some mistakes in pagination and amended plaint needs to be filed, the suit was adjourned for today.

3. The plaintiff has since filed amended plaint and which is taken on record.

4. It is the case of the plaintiff in the plaint (i) that the plaintiff is the sole proprietor of M/s. Treadfast Ventures and M/s Reinol Obstfeld India; (ii) M/s. Reinol Obstfeld India markets and sells the products manufactured by M/s. Treadfast Ventures; (iii) that the trademark REINOL was the property of M/s. Reino Industrial Organics Private Limited (RIOPL) which has assigned its rights in the said trademark vide Assignment Deed dated 28th August, 2014 in favour of the plaintiff; (iv) that the trademark REINOL is registered under number no. 428103 in Class-01 since 2014; (v) RIOPL was set-up by the father of the plaintiff for manufacturing industrial chemicals and the said company started manufacturing a safety skin paste by the name of REINOL SAFETY SKIN PASTE which is used by the industrial workmen to protect their hands from hazardous chemicals used in various industries; (vi) M/s. Gebr. Obstfeld GmbH & Co. + KG, Germany developed the formula of the paste and RIOPL acquired the technical know-how for the formulation of the paste from the said German Company; (vii) that since 1984 RIOPL has improved upon the said paste; (viii) at the time when REINOL SAFETY SKIN PASTE was launched in 1984 there were no other similar paste and though in the last 30 years other pastes have come in the market, REINOL SAFETY SKIN PASTE has the largest market share; (ix) that at the time when the father of the plaintiff set-up RIOPL, he had also involved the defendant no. 3 Mr. Nitin Khullar, who is the brother of the mother of the plaintiff, in the said business since the defendant no. 3 Mr. Nitin Khullar was then unemployed and 2% of the shares of the RIOPL were also issued to the defendant no. 3 Mr. Nitin Khullar; (x) however the presence of the defendant no. 3 Mr. Nitin Khullar in RIOPL was namesake and the said Company progressed with the sole efforts of the father of the plaintiff; (xi) that the defendant no. 3 Mr. Nitin Khullar left the country in 1993 and totally disassociated himself from RIOPL in 2008; (xii) other disputes and differences have arisen between defendant no. 3 Mr. Nitin Khullar on the one hand and the parents of the plaintiff on the other hand; (xiii) in July, 2016, it has come to the notice of the plaintiff that PUREPASTE SAFETY SKIN PASTE with deceptively similar packing, instructions and formulae has appeared in the market and purports to be marketed by the defendant no. 1; (xiv) the plaintiff however on search on the website of Registrar of Companies did not find any Company by the name of defendant no. 1; (xv) the distributors of the plaintiff also informed the plaintiff that they had been offered distributorship of PUREPASTE SAFETY SKIN PASTE by the defendant



























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