( 1 ) THIS appeal at the instance of the original plaintiff Company arises out of passing off action must obviously be allowed for the reasons stated herein.

( 2 ) A few facts need be noticed in order to appreciate the rival contentions urged in this appeal by the learned Advocates of the parties hereto.

( 3 ) IN or about 1922 A. D. there was a firm carrying on business under the name and style of Bharat Flooring Tiles Company which was manufacturing and selling tiles under the trade name Bharat Tiles. The said firm. it is claimed by the plaintiff Company. had a large scale business and in the course of time its goods acquired a name in the trade. Somewhere in June 1940 the said firm entered into an agreement with the plaintiff Company whereby it was agreed by and between the parties that the firm would sell and the Company would purchase the lands. buildings furniture fixtures stock in trade of the business. together with the goodwill and all the trade marks connected therewith for a total sum of Rs. 9 92 400 for which the Company will allot the shares to the firm. The plaintiff Company thereafter in pursuance of the said agreement of assignment took over the lands