IN THE HIGH COURT OF KERALA AT ERNAKULAM
BASANT BALAJI, J.
Misty Mountain Plantation Resort, Rep. By Its Managing Partner, Mr. Michael Joseph Kallivayalil - Petitioner
Versus
M/s Surya Hotel and Properties, Rep. By Its Managing Partner, P. Suresh, S/o. R. Prabhakaran Pillai - Respondent
OP(C) No. 1810 of 2024
Decided On : 26-03-2025
(A) Trade Marks Act, 1999 - Sections 23 and 137 - Trade mark dispute - The petitioner, a partnership firm, claimed prior use and registration of the trade mark 'Misty Mountain' since 1999, while the respondent had registered the same mark in 2009 - The District Judge vacated the interim injunction against the respondent, leading to this petition under Article 227 - The court found that the petitioner was not the lawful proprietor of the trade mark at the time of filing the suit, as the registration was cancelled prior to the suit's initiation - The court emphasized that the petitioner failed to produce the appropriate certificate of registration as mandated by the Act. (Paras 3 , 4 , 11 , 17 , 24 )
(B) Review Application - The court held that the power of review is limited and cannot be exercised merely because a party disagrees with the decision - The petitioner did not demonstrate an error apparent on the face of the record to warrant a review of the order vacating the injunction. (Paras 20 , 24 )
Facts of the case:
The petitioner filed a suit for a declaration and injunction against the respondent's use of the trade mark 'Misty Mountain Resort', claiming prior use and registration. The District Judge vacated the interim injunction, leading to the present petition.
Findings of Court:
The court upheld the District Judge's decision, confirming that the petitioner was not the registered holder of the trade mark at the time of filing the suit.
Issues: The main issues were whether the petitioner was the lawful proprietor of the trade mark and whether the District Judge erred in vacating the interim injunction.
Ratio Decidendi: The court ruled that the petitioner failed to establish lawful ownership of the trade mark at the time of the suit and did not meet the requirements for a review of the injunction order.
Result: O.P.(C.) is dismissed.
JUDGMENT :
The petitioner is the plaintiff in O.S. No.1 of 2022 on the files of the II Additional District and Sessions Court, Thodupuzha, and the respondent is the defendant therein.
2. The petitioner is a partnership firm running a resort named ‘Misty Mountain Plantation Resort’. The trade mark ‘Misty Mountain’ was adopted as the trade name by the plaintiff's predecessor in 1999. An application for registration of trade mark was filed for the word ‘Misty Mountain’ under application No.2441920 in class 43 on 6.6.2019 in respect of services of ‘providing of food and drinks and temporary accommodation’ and the petitioner was assigned with the trade mark ‘Misty Mountain’.
3. By virtue of the assignment deed dated 13.9.2019, the same has been duly submitted before the Trade Mark Registry. In 2016, the petitioner came to know about the respondent's use of the said trademark with respect to a resort in Munnar. On enquiry, the petitioner came to know that the respondent secured a registration for the same mark with the application No.1969012. The petitioner immediately filed a rectification application for cancellation of the registration issued, and it was allowed, holding that the petitioner is the prior user of the trade mark. Despite the cancellation order, the respondent used the trade mark, violating the right of the petitioner and therefore, O.S.No.1 of 2022 was filed for a decree of declaration and for a permanent prohibitory injunction restraining the defendant from using in any manner the trade mark ‘Misty Mountain Resort’ or any other mark similar or deceptively similar to the registered trade mark of the plaintiff ‘Misty Mountain’. Along with the suit, an application for a temporary injunction under Order 39 Rules 1 and 2 read with Section 151 CPC was also filed. The learned District Judge passed an interim injunction order on 19.3.2022. The respondent filed I.A.No.2 of 2022 for vacating the said interim injunction order. After hearing both sides and marking Ext.Nos.A1 to A27 and Ext.Nos.B1 to B7, the learned District Judge, allowed I.A.No.2 of 2022 and vacated the interim injunction order passed. Aggrieved by order in I.A.No.2 of 2022, the petitioner filed I.A.No.8 of 2022 to review the order, along with a petition to condone the delay of 92 days, as I.A.No.6 of 2022. Another I.A., as I.A.No.7 of 2022, was also filed to receive additional documents. Objections were filed to all the applications by the petitioner. The District Judge, by a common order dated 13.2.2024, allowed I.A.No.6 of 2022 as well as I.A.No.7 of 2022, but dismissed I.A.No.8 of 2022, which was filed for reviewing the order in I.A.No.2 of 2022. It is challenging the said order in I.A.No.8 of 2022, this O.P. is filed under Article 227 of the Constitution of India.
4. A counter affidavit is filed by the respondent, wherein it was contended that this Original Petition is not maintainable as it has been filed by the petitioner, who is not the lawful proprietor of the trade mark. He has also approached this court with unclean hands and has concealed the material facts and documents. The plaintiff obtained the order in I.A.No.1 of 2022, by active concealment and suppression of facts and by filing I.A. No.2 of 2022 by the respondent, the ex-parte interim injunction order was vacated. I.A.No.8 of 2022 is an afterthought, as it is filed only with a delay of 92 days.
5. As per the order dated 24.12.2021 by the Assistant Registrar of Trade Mark, Chennai, in the certificate of registration, the registration in respect to word Misty mountain bearing application No.2441920 in class 43 stood cancelled and in the database, it was changed from registered to ‘review filed’. The respondent’s firm adopted the composite mark on 18.04.2009, and it has been used exclusively and uninterruptedly, since the said date. Therefore, prayed that the OP be dismissed.
6. Heard Sri.Benoy Kadavan for the petitioner and Sri.Sai Krishna Rajagopal for the respondent.
7. The question to be consider
The court affirmed that a party must produce valid documentation of trade mark registration to claim ownership, and the power of review is limited to errors apparent on the record.
The main legal point established in the judgment is that the test for exercising the power under Order VII Rule 11 of C.P.C. is whether the plaint discloses a cause of action, and the court cannot em....
The trial court must assess only the prima facie tenability of claims regarding trademark validity under Section 124, without delving into the merits of those claims.
The court ruled that a suit not questioning trademark validity and filed solely for injunction does not invoke stay under Section 124 of the Trade Marks Act, 1999, emphasizing mandatory issue framing....
The right to cancel a trademark under Section 57 of the Trade Marks Act is independent of ongoing infringement suits and remains available for invocation regardless of related Section 124 implication....
The court established that under Section 124 of the Trade Marks Act, 1999, a civil suit must be stayed if a rectification application regarding trademark validity is pending.
In trademark infringement actions, a presumption of confusion arises if the defendant's mark is identical to that of the registered trademark, fostering the entitlement to interim injunction.
A review under Order 47, Rule 1 CPC is limited to correcting errors apparent on the record, not re-evaluating cases, with no basis for changing decisions absent clear mistakes.
The failure to renew a trademark registration leads to abandonment, allowing subsequent users to claim rights.
Unilateral cancellation of a trademark registration without notice violates procedural fairness and natural justice principles.
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