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IN THE HIGH COURT OF DELHI
Prathiba M. Singh, J.
Karim Hotel Pvt. Ltd. - Appellant
Versus
Kareem Dhanani - Respondent
CS(COMM) 112 of 2022 & I.A. 2695 of 2022
Decided On : 27-05-2022




Trademark holders have exclusive rights to prevent misleading similarity that may cause consumer confusion, reinforcing prior use and goodwill in trademark disputes.

Headnote:(A) Trade Marks Act, 1999 - Sections 30 and 124 - Dispute over trademark rights between the Plaintiff, a well-known restaurant operator, and the Defendant using an identical mark - Plaintiff’s marks are established as prior and famous in the market, leading to confusion among consumers. (Paras 4, 5, 10, 14)

(B) Passing off - Elements include the prior use of mark, reputation, and potential for customer confusion - Continued use by the Defendant could mislead consumers and dilute the Plaintiff's trademark. (Paras 13, 14)

Facts of the case:
Plaintiff, a long-standing operator since 1913, found identical mark usage by the Defendant in 2003, leading to legal disputes - The Defendant operates 41 restaurants under the name 'KAREEM’S', causing consumer confusion.

Findings of Court:
The Plaintiff is the prior user and has established goodwill; injunction against the Defendant's further restaurant openings under similar marks granted with specific advertising stipulations.

Issues: Determining the rights and obligations concerning trademark use amidst ongoing litigation.

Ratio Decidendi: Court emphasizes the importance of the Plaintiff’s established reputation and the need to prevent consumer confusion while balancing the interests of both parties.

Result: Injunction granted with specific conditions against the Defendant's use of similar marks.

Table of Content
1. defendant's restaurant operations and ongoing litigation (Para 3 , 11 , 12)
2. plaintiff's trademark ownership and history (Para 4 , 5 , 6)
3. history of disputes and concerns over defendant's usage (Para 7 , 10)
4. ipab involvement and order outcomes (Para 8 , 9)
5. court's interim orders to prevent further infringement (Para 14)
6. next procedural steps and need for parties' presence (Para 15 , 16 , 17)

JUDGMENT

Prathiba M. Singh, J. (Oral)--This hearing has been done through hybrid mode.

2. Vide previous order 17th February, 2022, the Defendant had been directed to file a list of his restaurants which are operating in the name of `KAREEM'S'. Subsequently, no affidavit was filed and none had appeared for the Defendant. Accordingly, vide order dated 4th April, 2022, the Defendant was granted a last and final opportunity to plead and appear in this case.

3. Today, Mr. Vivek Singh, ld. Counsel, has entered appearance on behalf of the Defendant. He submits that his client is currently running 41 restaurants, the details of which have been handed over along with the affidavit of the Defendant-Mr. Kareem Dhanani. The said list of the restaurants which are being operated by the Defendant and in franchisee in the Defendant's name is set out below:

KAREEM'S RESTAURANTS (FRANCHISE BASIS)

Number of Restaurants
India
Maharashtra
Mumbai (9)
11Bandra
22Powai
33Lokhandwala (Newly Opened)
44Goregaon
55Kandivali
66Kalina
77Dahisar
88Ghatkopar
99Versova
Thane (3)
110Pallava, Dombivali
211Mira Road
312Hiranandani Estate
Pune (4)
113Aundh
214Koregaon Park
315Solankhi Vihar
416Magarpatta
Solapur (1)17
Nagpur (2)
118Nagpur Sadar
219Pagalkhana Chowk
Aurangabad (2)
120Nirala Bazaar
221Prozone
Sangli (1)22
West Bengal (3)
Kolkatta
123Salt Lake
224Park Street
325Chinar Park
Uttar Pradesh (8)
Lucknow
126Gomti Nagar
227Ashiana
328Pheonix Palazo Mall
429Aliganj
530Shalimar Mall (new)
631Jaunpur (new)
732Bareilly
833Rampur
Madhya Pradesh (2)
Raipur
134Mowa
235Civil Lines
Jharkhand (1)
136Ranchi
Jammu & Kashmir (1)37Kashmir
Karnataka (1)
138Bengaluru
International (3)
Dubai3939
Abu Dhabi4040
Canada4141

4. As recorded in the previous order dated 4th April, 2022, the Plaintiff in the present case, is the proprietor of the well-known trademark "KARIM/KARIM'S/KAREEM" (word per se/stylized/as a device) as also of the trading name-M/s Karim Hotel Pvt. Ltd., of which the word/mark "KARIM" forms a prominent and essential feature.

5. The founder of the Plaintiff coined and adopted the trade name "KARIM'S" in the year 1913. The mark was derived from the name of the original founder Haji Karimuddin. The said mark is being used by the Plaintiff in respect of restaurants, catering and other related businesses since more than 100 years. As averred in the plaint, the word "KARIM'S" is exclusively and uniquely associated with the Plaintiff for high quality Mughlai food. The Plaintiff has trademark registrations in various classes including Class 16, 29, 30, 42, 43, both for the mark "KARIM" and "KAREEM" as also devices, logos and other derivatives thereof. The Plaintiff also has registrations for the caption "Secret of good mood Taste of Karim's food" in Classes 16, 30 and 43. The Plaintiff also uses the domain name www.karimhoteldelhi.com, accessible to customers both in India and abroad.

6. The Plaintiff's case is that the founder hails from a line of ancestors who were Shahikhansamas (royal cooks) in the Mughal Empire and who developed a line of cuisine commonly and popularly known as Mughlai food. Its flagship restaurant is located near the Jama Masjid in Old Delhi and the same is ranked as one of the top most restaurants in Asia by `TIME Magazine'. Moreover, the Plaintiff has been positively reviewed by world renowned magazines and media outlets such as the `TIME Magazine', `BBC WORLD GUIDE', `National Geographic' since the 1980's itself. The Plaintiff has also been recognized in many national and internationally acclaimed books/travelogues, such as `Lonely Planet DELHI', `World Food India', etc.

7.

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