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2025 Supreme(Del) 335

IN THE HIGH COURT OF DELHI AT NEW DELHI
AMIT BANSAL, J.
Hi Tech Arai Private Limited - Appellant
Versus
Paul Components Private Limited and Others - Respondents
I.A. Nos. 25235, 25236, 25237 of 2023, I.A. No. 3671 of 2024, I.A. No. 13349 of 2025, C.S. (COMM) No. 891 of 2023
Decided On : 09-09-2025

Advocates:
Advocate Appeared:
For the Appellants : Aditya Gupta, Asavari Jain, Sauhard Alung, Shuvam Bhattacharya
For the Respondents: C.M. Lall, Jayant Kumar, S.S. Chadha, Annanya Mehan, Vijay Joshi, Kuldeep Singh

A plaintiff can maintain a passing off action irrespective of trade mark registration status, highlighting the need for genuine evidence in trade mark disputes.

Headnote:(A) Trade Marks Act, 1999 - Section 27(2), 28, 29 - Passing off - Interim injunction against defendants sought by the plaintiff claiming prior use of the trade mark 'HTA' since 1985, with extensive evidence of use and sales, contrasted by defendants’ claims of prior use being fabricated - Court ruled that passing-off actions are maintainable regardless of registration status, emphasizing the principle that confusing similarity cannot be permitted in trade - Defendants shown to manipulate evidence to claim prior use - Primary user established as plaintiff. (Paras 26, 27, 89)

(B) Evidence - Standards of proof - Court required to assess credibility of documents presented, with emphasis on the necessity for genuine submissions. (Paras 36, 44)

(C) Conduct of defendants - Pattern of dishonest adoption of marks and packaging recognized, resulting in clear case of bad faith to mislead consumers. (Paras 84, 87)

(D) Result - Interim injunction granted in favor of the plaintiff against all defendants. (Para 90)

Table of Content
1. factual background of the plaintiff's trade marks. (Para 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12)
2. factual background of the defendants' trade marks. (Para 18 , 19 , 20 , 21)
3. arguments concerning use and registration of trademarks. (Para 23 , 24)
4. court's analysis of passing off and trademark rights. (Para 25 , 26 , 27 , 28)
5. conclusion on passing off; injunction granted. (Para 88 , 89)

JUDGMENT :

AMIT BANSAL, J.

I.A. 25235/2023 (under Order XXXIX Rules 1 and 2 of the Code of Civil Procedure, 1908)

1. By way of the present judgment, I shall decide the application filed on behalf of the plaintiff under Order XXXIX Rules 1 and 2 of the Code of Civil Procedure, 1908 (hereinafter ‘CPC’) seeking grant of an interim injunction against the defendants.

2. The present application was heard on 27th March 2025, 7th May 2025, 26th May 2025 and 7th July 2025, when the judgment was reserved.

CASE SET UP IN THE PLAINT

3. The plaintiff, Hi Tech Arai Private Limited, is engaged in the design, manufacture and supply of rubber products (such as oil seals, valve stem seals, O-rings, gaskets and reed valve assembly) and aluminium die casting products. The plaintiff is a leading industry supplier of oil seals for two-wheelers and four-wheelers in India.

4. The plaintiff was incorporated by Shri. R. Lakshminarayanan, the Founder Chairman, as ‘Hi-Tech Ancillaries Private Limited’ on 18th February 1985.

5. In the year 1986, the plaintiff entered into a technical collaboration with a renowned Japanese company, namely, Arai Seisakusho Co. Ltd., Japan for transfer of technology relating to manufacturing of inter alia reed valve assembly products and sealing products including oil seals.

6. Subsequent to the aforesaid collaboration, the name of the plaintiff was changed to ‘Hi Tech Arai Limited’ with effect from 23rd December 1993. Thereafter, during the financial year 2010-11, the name of the plaintiff was changed to ‘Hi-Tech Arai Private Limited’.

7. The plaintiff is the prior adopter and user of the mark ‘HTA’ and has been using the said mark in relation to its goods since the year 1985. Owing to its successful joint venture with Arai Seisakusho Co. Ltd., Japan and Mitsubishi Corporation, Japan, the plaintiff adopted the marks ‘Ars-HTA’ and in the year 1994.

8. The marks ‘HTA’, ‘Ars-HTA’, ‘Ars-HTA Oil Seals’ are coined words, which have a significance only with respect to the plaintiff’s business, but otherwise have no meaning attributable to any other person or entity, including the defendants. The plaintiff has been continuously and extensively using the aforesaid marks and other HTA-formative marks since their respective adoption till date.

9. The plaintiff is the exclusive licensee of the rights vesting in the trade marks ‘ARS’, and other trade marks such as ‘ARAI’ and the concentric logo as incorporated in the mark owned by Arai Seisakusho Co. Ltd., Japan in India.

10. Most of the drawings/products developed and manufactured by the plaintiff between 1985 and 1994 bear the engraving ‘HTA’ and most of the drawings/products developed and manufactured by the plaintiff from the year 1994 to 2023 bear the engravings ‘HTA’ or ‘Ars-HTA’.

11. The plaintiff currently supplies approximately 20 lakh products on a daily basis across India. The gross sales of rubber products of the plaintiff from 1985 to 2022-23 are given in paragraph 34 of the plaint. Pertinently, the total sales revenue of the plaintiff’s rubber products in the financial year 2022-2023 alone were to the tune of INR 600 crores.

12. The plaintiff is a parts supplier to major Original Equipment Manufacturers (OEMs) in the automobile sector. Details of some of the notable customers of the plaintiff across different segments, which are given in paragraph 30 of the plaint, are given below:

• In the two-wheeler segment – Hero Motocorp Limited, Honda Motorcycle and Scooter India Limited, Mahindra Two Wheelers Limited and Royal Enfield.

• In the three-wheeler segment – Bajaj Auto Limited, T

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