KoShy, J.

Appellants herein are the defendants in O.S. No. 2/88 on the file of the District Court, Kozhikode. The suit was filed by the respondents carrying on business in dairy products for a permanent injunction restraining the appellants from selling or marketing their goods by use of any trade mark containing 'Nambisans'/ Nambeesan and/or containing trade mark similar or identical to or deceptively similar to that of the respondents' trade mark. The respondents herein were the plaintiffs in O.S.2/88. The 1 st plaintiff is a company registered under the Indian Companies Act. The 2nd plaintiff is a registered partnership firm registered under the Indian Partnership Act.

2. According to the plaintiff averments, over 50 years back, late Sri. M. Krishnan Nambissan started the manufacture, production, marketing and sale of milk products like butter ghee and thick butter milk, under the name and style of'NAMBISANS D. V. DAIRY FARM'. Within three or four years of the starting the concern, the business became so successful and popular and the sole proprietary concern was converted into a partnership business taking his sons as partners. Thereafter, in 1965, 'Nambisans Dairy Pvt. Ltd.' was formed and the firm'Nambisan's D. V. Dairy Farm' continued as before. Even after the death of Sri. Krishnan Nambisan, the other directors and partners of the company and firm, continued. Manufacture and production of the milk products like butter, ghee and thick butter milk have been done in the name of the Private limited company and marketing was done by the firm'Nambisan's D.V. Dairy Farm', the second plaintiff. The plaintiffs and prior to that their founder has been manufacturing, distributing and selling the milk products like butter, ghee and thick butter milk for over half a century continuously and they were selling the products under the name and style of 'Nambisan's Ghee', 'Nambisan butter' and 'Nambisan's thick butter milk' and with the label inscribing the same though their distributors and agents etc. in the State of Kerala, Karnataka and Tamilnadu. They were also exporting with the said label and name and style, ghee and butter to andamans. In 1965, the 1st plaintiff company had registered under the Trade and Merchandise Marks Act, 1958 (hereinafter referred to as The act") with the Registrar of Trade Marks of their products butter, ghee and other dairyl products, their distinctive trade mark 'Nambisan's' and with the mark and emblem prepared and developed by the plaintiffs. According to the plaintiffs, their dairy products are popular and well-known in the market for its excellent purity and quality of the stuff. This trademark and trade name of the plaintiffs used by the plaintiffs are so popular and it will indicate that the products are that of the plaintiffs. Quality and standard maintained by the plaintiffs for their products are an asset of immense value to the plaintiffs. It was also contended that in the plaint that the general public on seeing the trade mark 'Nambisan's would accept and are likely to consider and treat the products only as that of the plaintiffs as their products attained distinctiveness. Annual sales turn-over of the products of the plaintiffs exceeds Rs.1 Crore for the past many years and every year it is on the increase. The 1st defendant in the suit (1st appellant in this appeal) was Depot in-charge for more than 15 years and mostly working in Calicut City managing the Calicut Depot of the second plaintiff wherein the products of the plaintiffs like 'Nambisan's butter', Nambisan's ghee' and 'Nambisan's thick buttermilk were being sold. People are mostly carried away by the word 'Nambisan's as it was the name used and known in the market for the products of the plaintiffs. The 1 st defendant resigned his post from the employment of the second plaintiff. Thereafter, he, alongwith his wife (second defendant in the suit), started the dairy farm under the name and style 'Narbeesan Dairy' and ten da