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2024 Supreme(Del) 995

2024 DHC 7131
IN THE HIGH COURT OF DELHI AT NEW DELHI
Vibhu Bakhru, Tara Vitasta Ganju, JJ.
Rasayanam Enterprises - Appellant
Versus
Upakarma Ayurveda Pvt. Ltd. - Respondent
FAO(OS)(COMM) 80 of 2024
Decided On : 18-09-2024
Advocates Appeared : 
For the Appellant : Mr. Anil Goel, Mr. Aditya Goel, and Mr. Pranjal Sharma, Advocate
For the Respondent : Mr. Darpan Wadhwa, Sr. Advocate with Mr. Hemant Daswani, Ms. Saumya Bajpai, Ms. Pranjal, Mr. Amar Vaid, Mr. Kunal Prakash, Ms. Dimita Vyas, Advocates.

Trademark infringement and passing off claims are assessed based on overall consumer confusion and not merely by direct comparison of marks.

Headnote:(A) Trade Marks Act, 1999 - Sections 2(1)(m), 2(1)(zb) - Interim injunction contested in passing off action based on trademark similarity - Claim of unfair competition raised due to alleged infringement; Court assessed likelihood of consumer confusion based on overall impression and not solely on a side-by-side comparison. (Paras 24, 25, 26)

Facts of the case:
The Case involves an appeal challenging an interim injunction against a defendant for using a mark that was deemed deceptive similar to the plaintiff's registered trademark and packaging. The plaintiff alleged infringement and sought cessation of the defendant’s use of the mark 'RASAYANAM PURE SHILAJIT'. (Para 2)

Findings of Court:
The court found that while the defendant’s new 10 gm packaging was distinct and did not infringe the plaintiff's mark, the 20 gm packaging retained substantial similarity warranting continued injunction. (Para 26)

Issues: The primary issues were whether the defendant's altered packaging constituted a violation of the earlier injunction and the appropriate treatment of trademark similarity in terms of consumer confusion. (Para 7)

Ratio Decidendi: The court emphasized the necessity of evaluating the totality of trade dress elements and overall commercial impression for determining trademark infringement and passing off claims, supporting a broad approach to visual similarity beyond specific design elements. (Para 24)

Result: Appeal dismissed.

Table of Content
1. appeal against interim injunction order. (Para 1 , 3 , 4 , 6)
2. arguments regarding packaging and trademark rights. (Para 8 , 9 , 12 , 13)
3. court's observations on similarity and confusion. (Para 10 , 16 , 17 , 24)
4. criteria for confusion in trademark cases. (Para 18 , 22 , 25)
5. conclusion on appeal dismissal. (Para 27 , 28)

JUDGMENT :

TARA VITASTA GANJU, J.:

1. The present Appeal seeks to challenge an order of interim injunction passed by the learned Single Judge on 22.03.2024 in CS (COMM) 834/2023 titled as ‘Upakarma Ayurveda Private Limited v. Rasayanum Enterprises’ [hereinafter referred to as “the Impugned Order”].

2. The Respondent had filed a Civil Suit on 08.11.2023 before the learned Single Judge alleging infringement and passing off of its art work/get-up/label under the trade mark ‘UPAKARMA AYURVEDA PURE SHILAJIT’ bearing trademark registration no. 4422492 dated 14th August, 2023, w.e.f. 28th January, 2020 in Class 5 – herbal medicines, supplements, cosmetics, etc. [hereinafter referred to as “registered mark”] and copyright in the art work, and other attendant reliefs, by the Appellant, using similar mark named ‘RASAYANAM PURE SHILAJIT’ [hereinafter referred to as “restricted mark”]. The Respondent had also prayed for ex-parte ad-interim injunction against the Appellant under Order XXXIX Rule 1 & 2 of the Code of Civil Procedure, 1908 [hereinafter referred to as “CPC”].

3. The learned Single Judge by an ex-parte order dated 21.11.2023 [hereinafter referred to as “21.11.2023 Order”] allowed the Application and restrained the Appellant/Defendant in the following manner:

“18. For the aforesaid reasons, till the next date of hearing, the defendant, as well as all others acting on its behalf, shall stand restrained from manufacturing or marketing any product using the impugned label extracted in para 2 (supra) or any other label which is deceptively similar to the device mark registered in the plaintiffs favour vide Registration No. 4422492 dated 14 August 2023, w.e.f.28 January, 2020.”

3.1 The impugned label marks which were injuncted in the 21.11.2023 Order are extracted below:

4. The Respondent thereafter on 09.01.2024 filed an application under Order XXXIX Rule 2A CPC, alleging that the Appellant had violated the 21.11.2023 Order, by continuing trading in the impugned restricted mark.

5. Upon receipt of Notice, the Appellant filed an Application under Order XXXIX Rule 4, CPC for vacation of 21.11.2023 Order. The grounds taken by the Appellant in the Application were that during the pendency of the suit, the Application dated 31.07.2020 of Appellant for acquiring registration with respect to their trademark was allowed and the device mark/logo of the Appellant was registered on 30.01.2024 w.e.f. 31.07.2020, having registration no. 4591737 under ‘AYURVEDIC AUSHEDHI’included in class 5 [hereinafter referred to as “new mark”].

5.1 In addition, it was contended that the Appellant had introduced two new packages with respect to their products and that the new packaging was not violative of the registered mark of the Respondent. It was contented that a new packaging was introduced in brown colour for 10 gm product [hereinafter referred to as “10 gm packaging”] and with respect to the 20 gm packaging product [hereinafter referred to as “20 gm packaging”], the packaging had been changed to light green colour. It was thus contended that since the impugned restricted mark was no longer used by the Appellant, the 21.11.2023 Order be vacated. The pictorial depiction of the new packaging is set out below:

6. The Impugned Order decided 3 Applications being IA No. 23080/2023 under Order XXXIX Rules 1 & 2, CPC and IA No. 876/2024 under Order XXXIX Rule 2A CPC both filed by the Respondent and IA No. 24629/2023 under Order XXXIX Rule 4, CPC filed by the Appellant. The following directions were passed:

35. To summarise the conclusions of this Court:

35.1 Defendant’s new 10gm packaging is not violative of the injunction order g

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