Gujarat High Court
Judgename :K.R.VYAS
Unjha Formulations Ltd. - Appellant
Versus
Unjha Pharmacy - Respondent
APPEAL FROM ORDER 160 of 1996
Decided On : 04/19/1996
Civil Procedure Code - Section 104 with Order 43, Rule 1 (r) - Appeal service on behalf of respective respondent in these two appeal against judgment and order allowing notice of Motion - Respondents granting common relief as prayed for in both Notice of Motion restraining appellant-Company from proceeding further with Public Issue in name of Formulations Limited - Except change in plaintiff one filed by a firm and another filed by a Private Limited company averments are practically same - Its products have acquired high good-will and reputation in the market and they are in great demand - It has a large turnover of business and profits and that word has acquired a distinct meaning in any Ayurvedic medicines or other products sold in market and brand name is taken as product manufactured by Pharmacy - According to respondent it has acquired a special and significant meaning amongst all consumers of its products and consumers purchase products only on account of word in name of said respondent Pharmacy - It is alleged that appellant-defendant has been registered with Registrar of companies in using word in its name on or for purpose of manufacturing products which are being manufactured by respondents for last many decades - It is also alleged that name of appellant Formulations limited closely resembles name of respondents and would mislead consumers in believing that appellants product are manufactured by respondents or a sister concern – Held, Court feels that an appropriate relief could be granted at end of event of plaintiff succeeding in suit in that event it would refrain itself from granting order at interim stage - When facts are required to be proved by leading evidence no finding to effect that a party is likely to prove its case and therefore there is a case in his favor be recorded- Granting injunction being a discretionary power of Court same should be exercised judiciously - Court should always take into consideration factors like delay latches and acquiescence on part of party claiming injunction - Suppression of material conduct and inaction on party of plaintiff are some of factors which are required to be given due weight age while considering question of granting injunction - Besides in matter of Public Issue investors who are thousands in number and who have invested their hard-earned money no order prejudicial to their interest should be passed unless their interest is sufficiently protected - Thus considering case from all angles in instant case Chamber Judge has totally misdirected himself in deciding questions which are not germane to decide at interim stage and granted injunction resulting miscarriage of justice - Appeals allowed(Para 26)
( 1 ) ADMIT. Mr. S. B. Vakil, Mr. Ashwin l. Shah and Mr. Jayant Patel waive service on behalf of the respective respondent in these two appeals. At the request of the learned Advocates these appeals are taken up for final hearing.
( 2 ) UNJHA Formulations Limited (hereinafter referred to as "the Appellant") has filed these two Appeals From Order under section 104 read with Order 43, Rule 1 (r) of the Code of Civil Procedure against the judgment and order dated 21st March, 1996 passed by the learned Chamber Judge, City civil Court, Ahmedabad, allowing the notice of Motion, Exs. 5 and 6 in Civil Suits nos. 1062 and 1063 of 1996 filed by the unjha Pharmacy, a partnership firm and unjha Pharmacy Pvt. Ltd.- the respondents herein granting common relief as prayed for in both the Notice of Motion restraining the appellant-Company from proceeding further with the Public Issue in the name of Unjha Formulations Limited till the hearing of the suits.
( 3 ) PERUSING the plaints, except the change in the name of the plaintiff one filed by a firm and another filed by a Private Limited company the averments are practically the same. To summarise the case of the respondent-plaintiffs in nutshell, respondent- unjha Pharmacy was established in the year 1884 and has been carrying on business of manufacturing various medicines and medical formulations of all kinds at unjha (N. G. ). Its products have acquired high good-will and reputation in the market and they are in great demand. It has a large turnover of business and profits and that the word "unjha" has acquired a distinct meaning in any Ayurvedic medicines or other products sold in the market and the brand name "unjha" is taken as the product manufactured by Unjha Pharmacy. Thus, according to the respondent, it has acquired a special and significant meaning amongst all consumers of its products and such consumers purchase such products only on account of the word "unjha" in the name of the said respondent-Unjha Pharmacy. It is alleged that the appellant-defendant has been registered with the Registrar of companies in using the word "unjha" in its name on or about 2-9-94 for the purpose of manufacturing the products which are being manufactured by the respondents for the last many decades. It is also alleged that the name of the appellant "unjha Formulations limited" closely resembles the name of the respondents and would mislead the consumers in believing that the appellants product are manufactured by the respondents or a sister concern of the respondents. It is further averred by the respondent- plaintiffs that by announcing a Public Issue by the appellant, the public is misled to believe that the appellant-Company is promoted by the respondent-plaintiffs or is a sister concern of the respondent-plaintiffs or is otherwise connected with the respondent-plaintiffs and, therefore, the appellant is not entitled to make use of the word "unjha" in its name. Accordingly the respondent-plaintiffs had given notices dated 19-2-96 and 22-2-96 to the appellant to change its name so as to exclude the word "unjha" from its name. The respondent- plaintiffs, therefore, have filed the aforesaid suits and prayed lor the following reliefs:" (A) It be declared that the defendant No. 1 is not entitled to make use of the word "unjha" in its name; (b) The defendant No. 2 be required to change its name so as to not to include the word "unjha" therein; (c) Defendant No. 2 be required to call upon defendant No. 1 to change its name to such other name so as not to include the said word "unjha" in such name; (d) The defendant No. 1 be restrained by a permanent injunction of this Honble court from using the word "unjha" in its name; (e) The defendant No. 1 be restrained by a permanent injunction from Public Issue of its shares in its present name of Unjha formulations Limited or in any other name containing the word "unjha"; (f) The defendant No. 1 be directed to give an account of the profits made by
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