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2013 Supreme(Guj) 644

IN THE HIGH COURT OF GUJARAT
S.H. VORA, J.
Dandi Salt Pvt. Ltd. & Ors. - Appellants
Versus
Indo Brine Industries Ltd. - Respondent
Appeal from Order No. 154 of 2013.
Decided on : 10-10-2013

Advocate Appeared:
For the Appellant :Mr. S.K. Bansal with Mr. Harshadray A. Dave, Advocates.
For the Respondent:Mr. S.N. Soparkar with Mr. Pratik Y. Jasani, Advocates.

Headnote:

Civil Procedure Code, 1908 - Order 43 Rule 1(r) -Trade Marks Act, 1999 - Sections 27(2) and 134(2) - Copyright Act, 1957 - Sections 55 and 62(2) - Trademark - plaintiff's claim of prior user of the trademark and infringement of copyright 'DANDI' in relation to salt - But, at the time of hearing of injunction application, the plaintiff deleted relief for injunction of copyright 'DANDI' as per purshish Exh.82 and restricted claim of prior user of trademark 'DANDI' - Trial Judge confirmed the ex-parte order wherein, reliefs in terms of para 21 A, B and C of the injunction application were granted against the defendants - Held, Plaintiff succeeds to establish claim of prior user but the plaintiff's injunction application must fail as it furnished false declaration and suppressed the material facts and thus, approached the Court with uncleaned hands, as recorded hereinabove. Therefore, no Court of law can exercise its discretionary power in favour of the plaintiff. The suppression of fact by the plaintiff disqualifies it from obtaining any relief and the learned trial Judge overlooked the plaintiff's conduct - Order passed by ADJ quashed and set aside - Main controversy to be decided by trial judge.

JUDGMENT :

Challenge in this Appeal from Order preferred under Order 43 Rule 1(r) of the Code of Civil Procedure (for short, the 'Code') is the order dated 31.01.2013 passed by the learned 5th Additional District Judge, Gandhidham, Kutch in Regular Civil Suit No.3 of 2011 (for short, the 'impugned order') whereby, the learned trial Judge confirmed the ex-parte order dated 20.12.2011 wherein, reliefs in terms of para 21 A, B and C of the injunction application were granted against the defendants.

2. The appellants namely M/s.Chirai Salt (India) Pvt. Ltd. and M/s.Dandi Salt Pvt. Ltd. are the original defendant Nos.1 and 2 and appellant Nos.2 and 3 are the Directors of defendant No.2 - Company in the subject matter of Regular Civil Suit No.3 of 2011 which was filed by the respondent - plaintiff - M/s.Indo Brine Industries Ltd. The parties to the present proceedings would be referred to as per their status in the plaint for convenience.

3. Before the submissions made by the learned advocates for the respective parties to the present proceedings are taken on hand, it is required to bear in mind that the subject matter of suit is plaintiff's claim of prior user of the trademark and infringement of copyright 'DANDI' in relation to salt. But, at the time of hearing of injunction application, the plaintiff deleted relief for injunction of copyright 'DANDI' as per purshish Exh.82 and restricted claim of prior user of trademark 'DANDI'.

4. The brief facts leading to filing of the suit as well as injunction application Exh.5 by the plaintiff can be stated thus:-

4.1. The plaintiff is a company incorporated under the Companies Act, 1956 having its registered office at Gandhidham and salt factory at village Chopadva, Kutch. The plaintiff is engaged in the business of manufacturing, selling and exporting 'iodized free flow salt for human consumption' under the trademark and label of 'KOHINOOR' as well as under the trademark and label containing and consisting of the name 'DANDI NAMAK' in Hindi as also 'DANDI SALT' in English since the month of June, 1998. According to the plaintiff's case, the plaintiff being prior user, lawful owner and proprietor of the trademark 'DANDI NAMAK', is entitled to use the same exclusively and also entitled to restrain others from imitating and/or violating the vested property rights in the said trademark by others in any manner and by passing off their goods under such imitated mark or label as those of the goods of the plaintiff.

4.2. It is specific case of the plaintiff that as per the information made available to it from the markets, the defendant No.1 namely, Chirai Salt (India) Pvt. Ltd. is a company incorporated under the Companies Act having its factory and office at Gandhidham, Kutch, engaged in the business of manufacturing 'Salt for human consumption' under the identical and/or deceptively similar mark 'DANDI NAMAK' in Hindi and 'DANDI SALT' in English and selling the same through defendant No.2. The defendant No.2 namely, Dandi Salt Private Limited, is also company incorporated under the provisions of Companies Act, 1956 by one Mr.Suresh Chand Agarwal and his wife Mrs.Anju S. Agarwal as the promoters and Directors. As per the plaintiff's case, said Mr.Suresh Chand Agarwal and his wife Mrs.Anju S. Agarwal, as being the partners of M/s.Kunwar Ajay Group of Industries and also as being the Directors of M/s.Kunwar Ajay Foods Pvt. Ltd., were marketing and selling iodized free flow salt under the trademark DANDI NAMAK/DANDI SALT of the plaintiff till the month of August, 2004. It is the case of the plaintiff that from the records and proceedings including balance sheets and Director's reports filed by the defendant No.2-Company with the Registrar of Companies, Ahmedabad, it appears that the defendant No.2-Company has not at all commenced any business activity since the date of its incorporation and except a







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