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VINIT KUMAR MATHUR
Lotus Organic Care – Appellant
Versus
Aadhar Products Pvt. Ltd. – Respondent
Key Points: - The court states that the trial court must only record prima facie satisfaction regarding the invalidity of the trademark under Section 124, and not engage in detailed evaluation of evidence. (!) (!) - Section 124(1)(ii) requires that if a plea on invalidity is prima facie tenable and no such proceedings are pending, the court should raise an issue and adjourn to allow rectification proceedings. (!) (!) - The writ petition allowed; the trial court’s order rejecting Section 124 application was quashed and stayed proceedings related to infringement while permitting rectification proceedings to proceed. (!) - The pleadings in the written statement can suffice to establish prima facie tenability for Section 124; detailed appraisal is not required at this stage. (!) (!) - The suit for passing off may continue on its own framed issues, while the rectification process is undertaken separately. (!) - The court clarifies that the trial court is not required to evaluate the merits of the rectification application, only to satisfy prima facie about invalidity. (!) (!)
ORDER :
Mr. Vinit Kumar Mathur, J. - Heard learned counsel for the parties.
2. The present writ petition has been filed against the order dated 19.10.2023 passed by the learned Additional District and Sessions Judge, Mawli, District Udaipur in Civil Suit No.62/2022 (17/2018), whereby the application preferred by the petitioner under Section 124 of the Trademarks Act, 1999 (hereinafter referred to as the 'Act of 1999') has been rejected.
3. Briefly noted the facts giving rise to the present writ petition are that the respondent-plaintiff filed a suit for infringement and passing off of its registered label trademarks (1961814 & 2551769) before the learned trial court. In the suit filed by the respondent-plaintiff, the summons were issued. The petitioner-defendant filed written statement to the suit preferred by the respondent-plaintiff. The trial court framed the issues on 09.10.2022. Thereafter, on the application moved by the respondent-plaintiff as well as by the petitioner-defendant, an additional issue was framed by the trial court on 23.02.2023. After framing of the issues by the learned trial court, the petitioner preferred an application under Section 124 of the Trademarks Act,
The trial court must only record prima facie satisfaction regarding the invalidity of a trademark under Section 124 of the Trademarks Act without detailed evaluation of evidence.
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.
A plea regarding the invalidity of a trademark registration can be raised in a counter affidavit and is not restricted to a written statement under Section 124 of the Trademarks Act.
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 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.
Trademark rectification petitions require a triable issue on validity to proceed; without this, claims are not maintainable under the Trade Marks Act, 1999.
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 emphasized that the validity of a trademark must be resolved by the Tribunal, and interim relief can be considered despite the challenge pending resolution of validity.
Intellectual Property Law - Infringement of Trade mark - Passing off - while suit for infringement of trade mark has to be stayed under Section 124 of Trade Marks Act, when a rectification petition i....
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