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2014 Supreme(Del) 3376
IN THE HIGH COURT OF DELHI
G.S. Sistani, J.
Educare Limited - Appellant
Versus
S.K. Sachdev - Respondent
CS(OS) 1151 of 2014
Decided On : 14-11-2014
Advocate Appeared:
For the Appellant :Anuradha Salhotra, Sumit Wadhwa, Zeeshan Khan and Tushar John, Advocate
For the Respondent:M.K. Miglani, Aayushmaan Gauba and Kapil Kumar Giri, Advocate
Headnote:
Plaintiffs, a group of schools under the name SHRI RAM/SHRIRAM, filed an application for an injunction to prevent the defendants from using the trademark/trade name 'ShreeRam World School' and the domain name www.shreeram.in, alleging deceptive and phonetically similar to the plaintiffs' trade-mark "SHRI RAM/SHRIRAM" in relation to its services.
Fact of the Case:
Plaintiffs established SHRI RAM SCHOOL in 1988 in Vasant Vihar, New Delhi, and have since expanded to six different locations with the word SHRI RAM as a prominent part thereof. The plaintiffs allege that the defendants' adoption of the name ShreeRam is dishonest and violates the plaintiffs' rights and well-known name SHRI RAM in relation to schools. The defendants contend that the use of the word ShreeRam is not dishonest, but it is a common name that is apt to be adopted by others.
Finding of the Court:
The court found that the plaintiffs have acquired goodwill and the mark has become distinctive to the plaintiff. The court also found that the defendants' adoption of the name ShreeRam is not honest and bona fide. The court held that the plaintiffs have been able to prima facie establish immense goodwill and reputation in the name of SHRI RAM, attached to the school of the plaintiff.
Issues: 1. Whether the plaintiffs have acquired goodwill and the mark has become distinctive to the plaintiff? 2. Whether the defendants' adoption of the name ShreeRam is honest and bona fide?
Ratio Decidendi: The court held that the plaintiffs have been able to prima facie establish immense goodwill and reputation in the name of SHRI RAM, attached to the school of the plaintiff. The court also found that the defendants' adoption of the name ShreeRam is not honest and bona fide. The court relied on the following principles: * A person may sell his goods or deliver his services such as in case of a profession under a trading name or style. * With the lapse of time such business or services associated with a person acquire a reputation or goodwill which becomes a property which is protected by courts. * A competitor initiating sale of goods or services in the same name or by imitating that name results in injury to the business of one who has the property in that name. * The law does not permit any one to carry on his business in such a way as would persuade the customers or clients in believing that the goods or services belonging to someone else are his or are associated therewith. * It does not matter whether the latter person does so fraudulently or otherwise.
Final Decision: The court allowed the plaintiffs' application for an injunction and dismissed the defendants' application to vacate the injunction. The court also directed the parties to appear before the Joint Registrar for admission/denial of documents and to appear before the court for framing of issues.
JUDGMENT :
G.S. Sistani, J.
IA. No. 7512/2014 & IA. No. 10541/2014
1. This is an application filed by the plaintiffs under Order 39 Rules 1 and 2 of the Code of Civil Procedure. While issuing summons to the defendants this court had restrained the defendants from using the trademark/trade name, 'ShreeRam World School' and the domain name www.shreeram.in, as it was deceptively and phonetically similar to the plaintiffs' trade-mark "SHRI RAM/SHRIRAM" in relation to its services.
2. IA. No. 10541/2014 has been filed by the defendants under Order 39 Rule 4 CPC for vacation of the interim order.
3. Both the applications have been heard together and are being disposed of by a common order.
4. The facts of the case as set out in the plaint are that the plaintiff no. 1 is engaged in setting up schools in India and abroad. The plaintiff no. 2 is a registered non-profit society engaged in several social and community development initiatives including running schools under the name of the Sri Ram School and is the first adopter and user of the trade-name SHRI RAM in respect of the schools. Defendant no. 1 is the Chairman of defendant no. 2, which is running a school under the name ShreeRam World School at Dwarka.
5. The plaintiff established the SHRI RAM SCHOOL in the year 1988 in Vasant Vihar, New Delhi in an area of 1.5 acres near the ridge forest. It is the case of the plaintiff that the school has been designed to provide each student a diverse education in a safe and supportive environment that promotes sound values, self-discipline, motivation and excellence in learning. From a modest beginning in five tents with sixty four eager children, the school has grown to a strength in excess of seven hundred children and a hundred and eight staff. THE SHRI RAM SCHOOL-Moulsari, Gurgaon is the senior school of THE SHRI RAM SCHOOL, Vasant Vihar. THE SHRI RAM SCHOOL-Aravali, Gurgaon was established in the year 2000 in DLF City Phase IV.
6. In order to fulfil its objective to meet the shortage of good schools in India, the first Plaintiff entered into an agreement with Educomp Infrastructure and School Management (EISML), a subsidiary of Educomp Solutions to set up five schools over the next 2-3 years under the name "THE SHRIRAM MILLENNIUM SCHOOL" which would imbibe the core ideals enshrined in the pedagogical philosophy of second plaintiffs THE SHRI RAM SCHOOLS. The overall guidelines and framework of the curriculum, courses, contents, teaching, methodology, academic policies and pedagogic strategies of these schools were to be the same as the second Plaintiffs schools under the name "THE SHRI RAM SCHOOLS".
7. Under the Agreement with EISML, the first Plaintiff opened THE SHRIRAM MILLENNIUM SCHOOL, Noida in April, 2000 and THE SHRIRAM MILLENNIUM SCHOOL, Faridabad in April, 2012.
8. In the year 2011 the second Plaintiff jointly with the Haryana Police Department set up THE SHRI RAM POLICE SCHOOL in Bhondsi, Haryana for the children of Police Personal and the General Public. The Plaintiffs are therefore today associated with schools at six different locations with the word SHRI RAM as a prominent part thereof.
9. It is the case of the plaintiffs that the Plaintiffs schools under the name SHRI RAM/SHRIRAM have carved out a unique space as institutions of excellence and are well known for their value based innovative caring and child-centered approach to educating young children and the institutions are popularly known as THE SHRI RAM SCHOOLS. In the year 2002, THE SHRI RAM SCHOOL, Vasant Vihar was ranked number 04 amongst all schools of Delhi by Outlook India. The said school was rated the best day school in the country by an independent 15 city survey carried out by Education World Magazine in the years 2008, 2009 and 2011. In 2010 THE SHRI RAM SCHOOLS in Delhi and Gurgaon were recognized as the "Number One" schools in Gurgaon and Southwest Delhi by The Hindustan Times. In 2011 THE SHRI RAM SCHOOL, Aravali was ranked as the "Number One" school in India by
