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2001 Supreme(Raj) 1269

Supreme Court
Honble R.C. LOHATI & K.G. BALAKRISHNAN, JJ.
Laxmikant V. Patel - Appellant
Versus
Chetanbhai Shah & Anr. - Respondents
Civil Appeal Nos. 8266-8267 of 2001
Decided On : December 04, 2001

Advocates Appeared:
Man Mohan Singh, S.K. Verma, V.J. Trivedi, M.K. Choudhary, Ms. Ranjana Narayan, Ashutosh Kumar, Surinder Singh, Ashutosh Kumar, Surinder Singh, Vishal Arun, Advocates, for Appellant H.A. Raichura, S.H. Raichura and Shailendra Singh, Advocates, for Respond

Headnote:C.P.C., Order 39, Rule 1 & 2 – Ad-interim injunction – Passing off good-will – Once a case of passing off is made out the practice is generally to grant a prompt ex parte injunction followed by appointment of Commissioner if necessary – Held – The grant of interlocutory injunction to the plaintiff could not have been refused, therefore, it becomes obligatory on the part of this Court to interfere. (Paras 14 & 17)

       Prima facie case. availability of balance of convenience in his favour and his suffering an irreparable injury in the absence of grant of injunction. (Para 13)

       A refusal to grant an injunction in spite of the availability of facts, which are prima facie established by overwhelming evidence and material available on record justifying the grant thereof, occasion a failure of justice and such injury to the plaintiff as would not be capable of being undone at a latter stage. The discretion exercised by the Trial Court and the High Court against the plaintiff, is neither reasonable nor judicious. The grant of interlocutory injunction to the plaintiff could not have been refused, therefore, it becomes obligatory on the part of this Court to interfere. (Para 17)

Honble LAHOTI, J.–The plaintiff, feeling aggrieved by the orders of the learned Trial Judge and the High Court of Gujarat, refusing his prayer for the grant of ad interim injunction has filed these special leave petitions.

(2). Leave granted.

(3). According to the plaintiff, he started the business of colour lab and studio in the year 1982 in Ahmedabad, in the name and style of Muktajivan Colour Lab and Studio and is using the name since 1982 openly, extensively and to the knowledge of everyone concerned. The high quality of services rendered by the plaintiff to his customers has earned a reputation and developed a goodwill as sociated with the trade name Muktajivan Colour Lab. In order to develop his business the plaintiff has promoted his wife Radhaben to open a new colour lab in the name and style of Muktajivan Colour Studio at two other localities of Ahmedabad - one, at H.J. House, next to Maninagar, and two, at Nandanbaug Shopping Centre, Nava Vadaj. At the latter place the business is being run in the partnership of Radhaben, the wife of the plaintiff and her brother, Karsan Manji Bhutia. The plaintiff has expanded his business by incurring substantial expenditure on advertisement and by incorporating the word `Muktajivan in all stationery materials, letter-heads, in-voices, albums, hoardings, sign-boards etc. The defendant No. 1 who was carrying on his similar business in the name and style of `Gokul Studio is intending to commence business through his wife, the defendant No. 2 by adopting the name and style of Muktajivan Colour Lab and Studio.

(4). On 12.5.1997 the passing off action was initiated by the plaintiff by filing a suit in the District Court of Ahmedabad seeking issuance of permanent preventive injunction against the defendants restraining them from passing off their business, services and goods as of and for the business, services and goods of the plaintiff. An application seeking an ad interim injunction, on identical facts, was also filed. On the same day the learned Trial Judge passed an ex-parte order of injunction directing the defendants to ``maintain status quo in respect or Muktajivan Colour Lab and Studio if the business is not yet started in the name and style of Muktajivan Colour Lab and Studio till the next date. The defendants made appearance and submitted that their business in the name of Muktajivan Colour Lab and Studio had started before the filing of the suit. It was further submitted that the plaintiff was earlier carrying on business in the name of `M. J. and it was in the year 1995 that the plaintiff substituted `Muktajivan in place of `M.J. Secondly, the plaintiffs business name was ``QSS Muktajivan Colour Lab since 1995 and therefore it was not correct that the plaintiffs trade name was Muktajivan Colour Lab since 1982 as alleged by him. It was admitted that the defendant no.1 was carrying on the business in the name of Gokul Studio but there was nothing wrong in the defendants starting or continuing their business in the name and style of Muktajivan Colour Lab which will not be identical with the business of the plaintiff and therefore would not amount to committing the wrong of passing off. It was also submitted that the locality where the defendants had started their business was away from the area where the plaintiff was carrying on his business and as the two localities were away from each other, the plaintiff could not have any cause of action.

(5). Both the parties adduced evidence on affidavits. Substantial documents were filed enabling the Court forming an opinion on the issue relevant for decision at the stage of grant of temporary injunction. Vide order dated 9.9.1997 the Trial Court directed the application filed by the plaintiff to be dismissed although the Trial Court had found that the plaintiff was carrying on his business in the trade name of Muktajivan Colour Lab since 1995 and the defendant who had recently adopted the word Muktajivan in his business name had so done on



















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