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2022 Supreme(Del) 1749

IN THE HIGH COURT OF DELHI AT NEW DELHI
Vibhu Bakhru, Amit Mahajan, JJ.
Gulab Oil & Food (ahmedabad) Pvt. Ltd. - Appellant
Versus
Madhu Gupta. - Respondent
FAO (Comm) 138 of 2021 & CM Appl. 31852 of 2021
Decided On : 15-11-2022

Advocates appeared:
Mr. Aniruddha Deshmukh & Mr. Nikhil Goel, Advs., for the Appellant; Mr. Sanjeer Singh, Adv., for the Respondent

The central legal point established in the judgment is the protection of registered trademarks, the establishment of goodwill and reputation, and the likelihood of confusion among consumers in passing off claims.

Headnote:

Trademark Infringement - Business Dispute - Trade Marks Act, 1999, Section 134 - Code of Civil Procedure, Order XXXIX Rule 1 & 2 - [TM-639] - [CS(COMM) No.1724/2020] - Summary of Acts and Sections: The court discussed the Trade Marks Act, 1999, Section 134 and the Code of Civil Procedure, Order XXXIX Rule 1 & 2. It highlighted the protection of registered trademarks, passing off, and the entitlement to interim relief under the Trade Marks Act, 1999.

Fact of the Case:

The respondent filed a suit seeking a permanent injunction against the appellant for trademark infringement and passing off. The appellant was restrained from using the trademark 'Gulab' in connection with namkeen, roasted, and baked products. The court found that the respondent had established goodwill and reputation associated with the trademark 'Gulab Ka Phool' and was entitled to protection.

Finding of the Court:

The court found in favor of the respondent, holding that the appellant's use of the trademark 'Gulab' for similar products constituted infringement and passing off. The court rejected the appellant's contentions regarding the ownership of the trademark and territorial jurisdiction. It also dismissed the appellant's argument that the packaging dissimilarity negated the passing off claim.

Issues: The issues involved trademark infringement, passing off, ownership of the trademark, territorial jurisdiction, and the significance of packaging dissimilarity in passing off claims.

Ratio Decidendi: The court's decision was based on the establishment of goodwill and reputation associated with the trademark, the protection of registered trademarks, and the likelihood of confusion among consumers despite packaging dissimilarities.

Final Decision: The appeal was dismissed, and all pending applications were disposed of in favor of the respondent.

JUDGMENT

Vibhu Bakhru, J. - The appellant has filed the present appeal impugning an order dated 30.03.2021 (hereafter 'the impugned order') passed by the learned Commercial Court, whereby the application filed by the respondent under Order XXXIX Rule 1 & 2 of the Code of Civil Procedure (hereafter 'the CPC') was allowed and the appellant's application under Order XXXIX Rule 4 of the CPC, seeking vacation of the ad interim order, was rejected.

2. The appellant has been restrained from using the trademark "Gulab" in connection with namkeen, roasted and baked products (ready to eat snacks). The learned Commercial Court, prima facie, found that the use of the trademark by the appellant in respect of the said product would constitute infringement of the respondent's trademark "Gulab Ka Phool" registered under Class 30 (hereafter also referred to as 'TM-639') and passing off.

FACTUAL CONTEXT

3. The respondent (carrying on business as Shiv Nath Rai Sumer Chand) and Lala Shivnath Rai Sumer Chand Confectioner Pvt. Ltd., arrayed as plaintiff nos. 1 and 2 respectively, had filed the suit [being CS(COMM) No.1724/2020], inter alia, seeking a permanent injunction, restraining the appellant from infringing its trademark/copyright, passing off, damages and rendition of accounts amongst other reliefs. Plaintiff no.2 was deleted from the array of the parties and the said suit is being pursued by the respondent (plaintiff no.1).

4. The respondent claims to be carrying on the business of manufacturing and selling packaged namkeens, salted, roasted and baked products under the following trademark (TM 639); "".

5. The respondent alleges that she became aware, from certain market sources, that the appellant (a company incorporated and registered on 16.11.2019) was also selling namkeen and baked snacks, peanuts, roasted and flavoured cashew nuts, and several other products mentioned in the plaint, under the impugned trademark "Gulab". The appellant was selling various types of edible oil, agricultural products and raw materials under the said trademark; however, the respondent is, principally, concerned with the sale of namkeen, roasted and baked products, ready to eat snacks under the impugned trademark. The respondent claims that the same infringes the registered trademark (TM-639) and also constitutes passing off.

6. The respondent (plaintiff no.1 before the learned Commercial Court) claims that she acquired the proprietary rights in the said device mark "" through her husband - Late Shri Subhash Rai Gupta. The respondent claims that late Lala Shiv Nath Rai commenced the business in Indian traditional sweets and confectioneries (Rewari and Gajjak) in the year 1910. On 04.04.1944, he applied for registration of the wordmark "GULAB KA PHOOL" under Class 30 in relation to "confectionary, especially reoris, Indian sweet", by trademark application no. 94636, claiming use since 01.12.1910. The respondent claims that the said business was subsequently expanded to introduce new products including rewaris, namkeens, papads, breads, biscuits and other confectionaries.

7. The respondent states that subsequently the said trademark (Gulab Ka Phool) was registered under different classes. Further, the respondent also secured copyright registration in respect of the said mark/label, its unique artistic work of the picture of 'Gulab', its getup, colour combination, lettering style, placement of words etc. (Copyright application no. A-123948/2018).

8. The appellant states that in the year 1966, the Nathwani family started the business of manufacturing, marketing and selling various types of "edible oils including groundnut oil and agriculture produce, i.e. food grains, ground nut seeds, cattle feed etc." under the name and style of M/s Mangrol Oil Mill (hereafter' Mangrol'), which it claims is its parent entity. The appellant states that Mangrol secured registration of several device marks under Classes 29 and 31. It also obtained registration of the word mark "Gul

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