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2023 Supreme(Del) 605

IN THE HIGH COURT OF DELHI AT NEW DELHI
Amit Bansal, J.
Ankit Aggarwal – Petitioner
Versus
Gupta Casting Fvl. Ltd. – Respondent
CO. (COMM. IPD-TM) 769, 770/2022, I.A. 18968, 18971/2022 (for stay)
Decided On : 24-04-2023

Advocates:
Advocate Appeared:
Ashok Goel, Manu Aggarwal.

The central legal point established in the judgment is the significance of prior adoption and use of a trade mark, likelihood of confusion in the market, and non-use of impugned marks as grounds for cancellation of registration under the Trade Mark Act, 1999.

Headnote:

Trade Mark - Cancellation of Registration - Section 11(1), 11(2), 47(1)(a), 47(1)(b), 57 - The court discussed the provisions of the Trade Mark Act, 1999, specifically focusing on the grounds for cancellation of registration under Sections 11(1), 11(2), 47(1)(a), 47(1)(b), and 57. The court emphasized the importance of prior adoption and use of the trade mark, likelihood of confusion in the market, and non-user of the impugned marks as key factors influencing the decision to remove the impugned marks from the Register of Trade Marks.

Fact of the Case:

The petitioner sought cancellation of impugned marks registered in the name of the respondent, claiming prior adoption and use of the mark 'JAI KISAN' for agricultural implements. The respondent failed to file a reply, indicating lack of defense on merits.

Finding of the Court:

The court found that the petitioner was the prior adopter and user of the trade mark 'JAI KISAN' and that the impugned marks were likely to create confusion in the market. The court also noted the absence of a bona fide intention to use the impugned marks and the continuous non-use of the marks, leading to their removal from the Register of Trade Marks.

Issues: Prior adoption and use of the trade mark, likelihood of confusion, non-use of impugned marks, and failure of the respondent to contest the suit were the key issues in the case.

Ratio Decidendi: The court's decision was influenced by the prior adoption and use of the trade mark by the petitioner, the likelihood of confusion in the market, and the continuous non-use of the impugned marks by the respondent, as well as the respondent's failure to contest the suit.

Final Decision: The court allowed the petitions and removed the impugned marks registered under trademark application no. 3645519 and 2524816 in the name of the respondent from the Register of Trade Marks.

JUDGMENT :

AMIT BANSAL, J.

1. The present petitions have been filed seeking cancellation/removal of the following impugned marks registered in Class 7 in the name of the respondent no. 1, from the Register of Trade Marks:

    i. under no. 3645519 dated 27th September, 2017

ii. under no. 2524816 dated 3rd May 2013

2. Briefly, the case set up in the petition is that Sh. Ashok Aggarwal, the father and the predecessor-in-interest of the petitioner, had started his business under the name, Vepson Engineers, and was the proprietor of the said firm. After death of Sh. Ashok Aggarwal on 17th September, 2012, Mr. Ankit Aggarwal (petitioner herein) and Mrs. Rita Aggarwal, wife of Sh. Ashok Aggarwal and the mother of the petitioner, jointly continued the said business and constituted the aforesaid firm as a partnership firm by executing a Partnership Deed dated 23rd September, 2012. After death of Mrs. Rita Aggarwal on 24th March, 2015, the petitioner became sole proprietor of the aforesaid firm.

3. The petitioner's firm is engaged in the business of manufacturing and marketing agricultural implements including cultivator shovels and parts and fittings. The mark was adopted by Sh. Ashok Aggarwal in the year 1985 and registered under no. 481168 on 16th November, 1987 in class 7. In support of this, the petitioner has filed sales invoices at page no. 39 to 57 of the petitioner's documents. The aforesaid registration lapsed in the year 2001 as the necessary renewal application was not filed due to non-receipt of the mandatory renewal notice (O-3 notice) from the Trade Mark Registry.

4. The word mark JAI KISAN was registered in the name of the petitioner and Smt. Rita Aggarwal on 14th June, 2013 under no. 2548853 in Class 7 in respect of the similar goods as mentioned above. The registration certificate granted in favour of the petitioner (page no. 17 of the petitioner's documents) records user of the petitioner since 1st April, 1985. After death of Smt. Rita Aggarwal, the petitioner became sole proprietor of the mark JAI KISAN.

5. It is averred that due to long and continuous usage of the mark JAI KISAN, the petitioner has acquired immense goodwill and reputation. The members of trade associate the aforesaid mark exclusively with the petitioner. The annual sales turnover of the petitioner from the years 2012 to 2021 is mentioned in paragraph 11 of the petition. In the year 2020-2021, the annual sales turnover of the petitioner was Rs. 6,46,77,133/-.

6. The respondent no. 1 has claimed user of the impugned marks and since the year 2011 in its application for registration but no documents have been filed on behalf of the respondent no. 1 in this regard. The respondent no. 1 has obtained registration of the impugned marks by concealing material facts and making misrepresentations, which is in contravention of provisions of the Trade Mark Act, 1999 (hereinafter ‘the Act’). A legal notice dated 26th August, 2022 was issued upon respondent no. 1 to forthwith desist the use of the impugned marks. However, no response has been received by the petitioner to the same.

7. The use of the impugned marks in relation to the similar goods is likely to cause confusion in the market and among the members of trade and is bound to cause erosion of the distinctive character of the petitioner's mark JAI KISAN. The impugned marks are neither distinctive, nor capable of distinguishing the goods of the respondent no. 1 from that of the petitioner. Therefore, the mark is liable to be removed in terms of Section 11 (1) and (2) of the Act.

8. The impugned trademark is liable to be removed for ‘non-use’ in terms of Section 47 (1) (a) and (b) of the Act, as upto three months before the date of application, a continuous period of five years from the date of registration has elapsed, during which period there has been no bonafide use of the impugned marks in relation to goods for which the registration was granted.

9. The petitioner is the prior user and owner of the mark JAI KISAN since

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