IN THE HIGH COURT OF JUDICATURE AT MADRAS
SENTHILKUMAR RAMAMOORTHY, J.
Nalli Sambbasivam - Appellant
Versus
M/s. Nalli Chinnasami Chetty & Ors. - Respondents
(T)OP(TM)/263 &264/2023 (ORA/17/2018/TM/CHN) & (ORA/18/2018/TM/CHN)
Decided On : 18-10-2023
Trade Marks - Maintainability of Rectification Petitions - Trade Marks Act, 1999, Section 47, 57, 125 - The court discussed the maintainability of rectification petitions in light of Section 124 of the Trade Marks Act, 1999. The interpretation of Section 124 and its applicability to the present case formed the core of the court's analysis. The court referred to relevant judgments and legal provisions to determine the conditions under which a party may apply for rectification under Section 57 after a civil suit for infringement has been filed. The court ultimately dismissed the rectification petitions as not maintainable, leaving open the possibility for the petitioner to re-apply if the Bombay High Court frames an issue on the validity of registration of the relevant trade marks.
Fact of the Case:
The first respondent objected to the maintainability of the rectification petitions, citing a suit for infringement filed earlier. The petitioner contended that the right to maintain a rectification petition is independent under Section 57 of the Trade Marks Act, 1999. The first respondent argued that the rectification petitions were not maintainable as per Section 124(1)(a)(ii) of the Trade Marks Act.
Finding of the Court:
The court found that the petitioner failed to satisfy the civil court of the existence of a triable issue on the plea of invalidity of the relevant trade mark. As the petitioner did not file the issues framed by the Bombay High Court in the pending commercial suit, the court dismissed the rectification petitions as not maintainable.
Issues: The main issue was the maintainability of the rectification petitions in light of Section 124 of the Trade Marks Act, 1999. The court also considered the applicability of constructive res judicata and the interpretation of relevant legal provisions.
Ratio Decidendi: The court's decision was based on the failure of the petitioner to satisfy the civil court of the existence of a triable issue on the plea of invalidity of the relevant trade mark, as required by Section 124(1)(a)(ii) of the Trade Marks Act. The court emphasized the importance of satisfying the civil court of the prima facie tenability of the plea of invalidity before applying for rectification under Section 57.
Final Decision: The court dismissed the rectification petitions as not maintainable, leaving open the possibility for the petitioner to re-apply if the Bombay High Court frames an issue on the validity of registration of the relevant trade marks.
JUDGMENT
(Common Prayer: Transfer Original Petition (Trade Marks) filed under Section 47, 57, 125 of the Trade Marks Act, 1999 and Rule 92 of the Trade Marks Rules, 2002 prays (a) that the present Application for rectification of the impugned trade mark “Nalli” may be allowed and the registration of the trade mark “Nalli” under number Nos.472754 & 903811 in class 24 and class 25 may be cancelled and entry relating thereto may be altogether removed from the Registrar of Trade Marks; (b) In the alternative to prayer (1), the Hon'ble Court may be pleased to limit and/or quality the trademark registration nos.472754 & 903811 in class 24 and class 25, with a disclaimer that the Respondents do not have any exclusive right over the word “Nalli” and the Petitioner is also entitled to use the mark “Nalli”; (c) the costs of these proceedings be awarded to the Applicant.)
Common Order
1. In both these rectification petitions, the first respondent raised an objection to the maintainability of the petitions. Such objection was raised on the ground that a suit for infringement was filed earlier by the first respondent against the petitioner herein in relation to Trade Mark Nos.472754 and 903811, which are the subject of the present rectification petitions. The said suit was filed and numbered as Commercial Suit No.108 of 2013 before the Bombay High Court. The first respondent asserts that the present rectification petitions were filed about four or five years later before the Intellectual Property Appellate Board in ORA Nos.17 and 18 of 2018. In spite of the rectification petitions being filed subsequently, the first respondent states that the Bombay High Court did not conclude that there is a triable issue on the validity of the registrations of the relevant trade marks and frame an issue thereon. Since such issue was not framed, it is submitted that the present petitions are liable to be dismissed as not maintainable.
2. Learned counsel for the petitioner contended that the right to maintain a rectification petition is an independent right inter alia under Section 57 of the Trade Marks Act, 1999 (the Trade Marks Act). According to learned counsel, the said right is not subject to Section 124 of the Trade Marks Act. In support of this contention, learned counsel referred to the judgment of the Delhi High Court in Anubhav Jain v. Satish Kumar Jain & another(Anubhav Jain), 2023/DHC/000233. In particular, learned counsel relied upon paragraphs 17, 19, 24 to 26 and 30 of the said judgment.
3. After pointing out that two suits are pending before the Bombay High Court, including a suit filed by the petitioner herein, learned counsel relied upon the judgment of the Delhi High Court in Sana Herbals Pvt Ltd v. Mohsin Dehlvi, 2022/DHC/005678, to contend that both the suits and the rectification petitions may be clubbed and heard by the High Court so as to preclude the possibility of conflicting decisions. Learned counsel next relied upon the principle of constructive res judicata to contend that it is not open to the first respondent herein to challenge the maintainability of the rectification petitions after acceding to the consolidation of the two suits before the Bombay High Court. In conclusion, learned counsel relied upon the judgment of the Supreme Court in BGS SGS Soma JV v. NHPC Ltd. (2020) 4 SCC 234 to contend that the judgment of a court is not to be read as a statute or as Euclid's theorem.
4. In response to these contentions, learned counsel for the first respondent submitted that the suit for infringement was filed by the first respondent before the Bombay High Court in the year 2013. By pointing out that the present rectification petitions were filed in late 2017 and numbered in 2018, learned counsel submits that Section 124(1)(a)(ii) is clearly applicable to the facts of this case. Consequently, he submits that the petitioner should have requested the Bombay High Court to frame an issue on the validity of registration of the relevant trade
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....
In a case where issue of invalidity is raised or arises independent of a suit, prescribed statutory authority will be sole authority to deal with matter.
The validity of registration of the trademark should be decided first in the rectification petition before the infringement action is decided, and the procedure can be tailored to meet the specific r....
Section 124 of the Trade Marks Act mandates automatic stay of infringement proceedings when rectification is pending, and does not apply to passing-off 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 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 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 trademark rectification petition is not maintainable if the validity is contested in a prior ongoing suit, as per the Trade Marks Act, 1999.
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.
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