High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE A. KULASEKARAN
S.V.S. Oil Mills - Appellant
Versus
S.V.S. Agro Refineries P. Limited and Anr. - Respondents
O.A.No. 505 of 2001 In C.S.No. 433 of 2001
Decided On : 27 June 2001
Interim Injunction - Trade Mark - Trade and Merchandise Marks Act - Section 17, 27, 34 - The court discussed the use of the trade name 'S.V.S.' by the applicant firm and the respondents, the retirement deed, the arbitration award, and the registration of the trade mark. The court considered the exclusive right over the trade name, the disclaimer imposed under Section 17, and the entitlement to seek protection under Section 34. The judgment highlighted the essential features of the trade marks, the likelihood of deception or confusion, and the balance of convenience in granting the injunction.
Fact of the Case:
The applicant sought an interim injunction to restrain the respondents from manufacturing, marketing, and advertising edible oil and Vanaspathi using the trade name 'S.V.S.' The dispute arose from the retirement of the 2nd respondent from the applicant firm and the subsequent use of the trade name by the respondents.
Finding of the Court:
The court found that the applicant had a prima facie case and proved the balance of convenience in their favor. It held that the use of the identical trade name by the respondents would create confusion in the market and granted the injunction.
Issues: The main issue was whether the applicant was entitled to an interim injunction restraining the respondents from passing off their goods using the trade name 'S.V.S.'
Ratio Decidendi: The court considered the likelihood of deception or confusion in the market, the essential features of the trade marks, and the balance of convenience in granting the injunction.
Final Decision: The court allowed the application for interim injunction, stating that the applicant was entitled to the injunction as the use of the identical trade name by the respondents would create confusion in the market.
A. Kulasekaran, J.
This application for interim injunction in O.A.No.505 of 2001 in C.S.No. 435 of 2001 is filed to restrain the respondents from manufacturing, marketing, advertising in all media including electronic media, either as domain name or as website use the expression S.V.S. either as prefix or suffix and pass off their edible oil of any kind and Vanaspathi as the goods of the plaintiffs edible oil and Vanaspathi or enable others to pass off their goods and business as that of applicants.
2. The applicant's case is briefly as follows:-
Originally, the applicant firm was consisting of 7 partners Sivalingam Nadar, S.V. Harikrishnan, S.V. Chandrapandian, S.V. Kasilingam, S.V. Ramachandran, S.V. Natesan and Smt. Kanthimathi Ammal. All are sons and daughters of Late. Velayutha Perumal Nadar. They have been manufacturing and marketing edible oil in the name and style of S.V.S. Oil Mills. In the course of business, they adopted three letters in a distinctive style S.V.S., the name of the firm and its trademark with an inverted triangle device and was used extensively all over India. On 20-04-1982, Smt. Gandhimathi Ammal retired and a fresh partnership under a deed dated 25-11-1982 was formed. In the meanwhile, to settle the disputes, they referred the matter to an Arbitrator by letter dated 08-10-1981 and arbitrator passed an award on 09-07-1984 thereby allowed the business of S.V.S. Oil Mills to S.V. Chandra Pandian, S.V. Kasilingam, S.V. Ramachandran and S.V. Natesan. Immediately, fresh partnership was constituted on 15-07-1984. The award was decreed in application No. 3505/1984 on 17-11-1988 against which O.S.A. No. 191/1991 and 173/1991 were filed by Sivalinga Nadar and the Division Bench set aside the decree on 13-11-1991. The Supreme Court on 11-01-1993 remanded the appeal to the Division Bench and it confirmed the award passed by the learned Single Judge. Again, the Division Bench Judgment was challenged before the Apex Court which confirmed the Judgment dated 27-10-1993 passed by the Division Bench on 19-11-1998. On 22-02-2001, 2nd respondent herein retired from the said partnership and an ascertained amount of Rs. 77, 57, 248.40 was paid. The 2nd respondent few weeks prior to his retirement started a firm Vigneswara Oil Mills. The 2nd respondent found that there was no demand for his new venture of V.O.M. and clandestinely incorporated a company S.V.S. Oil Agro Refineries (P) Ltd. and started approaching applicant's customers as they are known to him and it is a calculated attempt to exploit the commercial goodwill and trade mark namely S.V.S. The respondents have scheduled to commence the manufacturing activities from 24-06-2001 and circulated invitations extensively. The applicants received a communication from Civil Supplies Department and only after that the applicants came to know that the defendants have filed an application in the name of S.V.S. Agro Refineries Pvt. Ltd. The 2nd respondent has retired from the applicants company after receiving his ascertained amount and he has no locos standi to use the name of S.V.S. The respondents, with a view to paralise the applicants business and to cheat the consumer public at the cost of the applicant's business and reputation. For the reasons mentioned above, they sought for an injunction.
3. The respondents' case is briefly as follows:
The 2nd respondent's son filed the counter in the capacity of director of first respondent company on behalf of the company and the respondent. The allegations in it are as follows:-
The partners in the applicant firm are his maternal Uncles and his father, the 2nd respondent retired from the applicant's firm with effect from 30-11-2000 by executing necessary deed dated 22-02-2001. Originally, applicant's firm was consisting of six sons and one daughter of Late. Sudalaimada Velayutha Perumal. All the six brothers have been collectively called as SVS in the trade circle. SVS is the abbreviated form of Sudalaimada Velayutha Per
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