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IN THE HIGH COURT OF DELHI
Vibhu Bakhru, Amit Mahajan, JJ.
Varun Gems - Appellant
Versus
Precious Jewels - Respondent
RFA(OS)(COMM) 6 of 2019
Decided On : 06-10-2022




Registered trademarks must be protected against use that causes consumer confusion; bona fide use under Section 35 requires no intent to deceive.

Headnote:(A) Trade Marks Act, 1999 - Sections 2(m), 28, 29, and 35 - Trademark infringement - The appellant's registered trademark `RAKYAN'S FINE JEWELLERY' was unlawfully used by the respondents, causing public confusion - The court found prima facie evidence of bad faith use of the similar mark `NEENA & RAVI RAKYAN' by defendants - The dismissal of the appellant's suit was found erroneous as it failed to take into account the evidence led - The use of name under Section 35 was not permissible due to intention to deceive. (Paras 18-20, 24-26, 30-32)

(B) Trademark Protection - The right to use a name that is a registered mark is conditional upon bona fide use without intent to deceive - The court established the requirement of proving bona fide use under Section 35, leading to a ruling in favor of the appellant. (Paras 22-24)

Facts of the case:
The appellant operated under the registered trademark `RAKYAN'S FINE JEWELLERY’ from a shop in Greater Kailash-I and sought legal action against the respondent, who also utilized the name `RAKYAN' for their jewelry business which resulted in confusion amongst consumers.

Findings of Court:
The learned Single Judge's dismissal was overturned; it was concluded that the respondents’ actions amounted to infringement and passing off.

Issues: Whether the respondents' use of the name `RAKYAN' was bona fide and not intended to mislead consumers, and whether the evidence supported the claim of bad faith.

Ratio Decidendi: The Supreme Court's previous interim order was misapplied; the primary intention under Section 35 was not fulfilled, leading to the conclusion that the respondents could not be protected under the bona fide use clause.

Result: The judgment of the learned Single Judge is set aside; the respondent is enjoined from using `RAKYAN' within a specified radius of the appellant’s business.

Table of Content
1. appellant's challenge to a dismissed suit. (Para 1 , 2 , 3)
2. historical context of the trademark dispute. (Para 4 , 5 , 6 , 7 , 8)
3. supreme court's observations on interim injunction. (Para 10 , 12 , 13)
4. legal standards under the trade marks act. (Para 14 , 15 , 16 , 18 , 19 , 20)
5. bona fide use under section 35 of the act. (Para 24 , 26 , 29 , 32)
6. preliminary findings do not determine final outcomes. (Para 33 , 34 , 35)
7. final injunction against deceptive use of trademark. (Para 36 , 37)

JUDGMENT

Amit Mahajan, J.

1. The appellant, M/s. Varun Gems, has filed the present appeal being aggrieved by the impugned judgment and decree dated 06.04.2018, whereby the suit filed by the appellant praying for restraining the respondent from using the name `RAKYAN' and/or any other mark which is identical or deceptively similar to the appellant/plaintiff's registered trademark `RAKYAN'S FINE JEWELLERY', was dismissed.

2. The appellant has been running its business of selling jewellery under the registered trademark `RAKYAN'S FINE JEWELLERY' from the premises M-31 M-Block Market, Greater Kailash-I, New Delhi-110048.

3. Mr. Jitendra Kumar Rakyan is the managing partner of the appellant and is the paternal uncle of respondent No. 2 (defendant No. 2).

4. The facts in the present case relevant for deciding the present appeal are that, in the year 1951, one late Sh. Sital Dass Rakyan (Defendant No. 2's grandfather and father of Mr. Jitendra Rakyan) started a jewellery business in Connaught Place, New Delhi under the name of M/s. SITAL DASS & SONS. Subsequently, in the year 1961, Mr. Sital Dass Rakyan formed a partnership firm with four partners namely, Mr. Surendra K. Rakyan, Mr. Rajendra K. Raykan, Mr. Virendra K. Rakyan and Mr. Jitendra K. Rakyan as partners.

5. In the year 1962, Mr. Surendra K. Rakyan (now deceased) retired from the family business. He shifted to Jaipur, and opened "RAKYANS JEWELLERS" in partnership with his uncles. While the other partners remained in Delhi and continued with the same jewellery business under different names as each of them constituted different firms over a period of time.

6. In the year 1978, all the partners of M/s. SITAL DASS & SONS except Mr. Surendra K. Rakyan formed a new partnership firm named Virendra Kumar and Co., which and was subsequently re- constituted as SITAL DASS SONS in the year 1982. This firm was also dissolved in the year 1991. Thereafter each partner of newly constituted SITAL DASS SONS started separate businesses under the same name Sital Dass Jewellers and opened shops at various places within Delhi.

7. Mr. Jitendra K. Rakyan, in the year 2000, opened a shop at M31 M-Block Market, Greater Kailash-I, New Delhi-110048 and in the year 2005, got the trademark `RAKYAN'S FINE JEWELLERY' registered in the name of partnership firm `Varun Gems'.

8. In the year 2011, Ravi Rakyan, son of Mr. Rajendra K Rakyan, opened a shop at M-32, M-Block Market, Greater Kailash-I, New Delhi-110048 under the name `DIAMEZ'. Subsequently, in the year 2012, they changed the name from `DIAMEZ' to `NEENA & RAVI RAKYAN'.

9. Initially, an interim ex-parte injunction was granted in terms of the order dated 01.06.2012, whereby the respondents were restrained from using the name `RAKYAN' or any other mark which is identical or deceptively similar to the registered trademark `RAKYAN'S FINE JEWELLERY'.

10. The respondents appealed the said decision to the Division Bench and thereafter, to the Supreme Court. The said injunction was vacated by the Hon'ble Apex Court by an order dated August 4, 2014 passed in SLP(C)No.9942 of 2013. The said order reads as under:

    "11. We have perused, the hoardings of the shops where they are doing the business and upon perusal of the hoardings, we do not find any similarity between them.

    12. In our opinion, looking at the provisions of Section 35 of the Act, there is no prima facie case in favour of the plaintiff and therefore, the defendants cou

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