The main legal point established in the judgment is the requirement of due notice, recording of reasons, and the absence of an emergent situation for the grant of injunction orders, as emphasized by the statutory provisions and judicial pronouncements.

S.N.Aggarwal, J.

1. The legality of the ex parte stay order granted by the Court of Incharge District Judge Sangrur on 17.6.2006 has been seriously questioned by the appellant in the present appeal.

2. The facts are that Abhishek Industries Limited Trident Complex Raikot Road Barnala (hereinafter to be referred to as the respondent) filed a civil suit under Trade Marks Act 1999 against the appellant M/s Abhishek Mills Limited Gat No. 148. Tamgaon Kolhapur-Hupari Raod Taulka Karveer District Kolhapur Maharasthra (hereinafter to be referred to as the appellant) with the allegations that the respondent Company was incorporated under the Companies Act, 1956 in 1990. It was running the business of manufacturing and marketing of inter alia terry towel yarn paper and chemicals. It has a roaring business. Not only sale of their goods within the country but they also export the same in more than 37 countries. It has a huge turn over which went on increasing since the year of its incorporation. It spent huge amount in publishing and promoting its products The respondent and its management have earned a number of awards because of its excellence.

3. It was alleged that the appellant Company is engaged in yarn manufacturing and construction. The respondent came to know about the existence of the appellant Company in the first week of June 2006 when the appellant submitted its Draft Red Herring Prospectus to the Securities and Exchange Board of India (in short SEBI). The appellant was carrying out its business activities under an identical trade name till the first week of June 2006. The respondent is aggrieved more by the proposed Initial Public Offer by which the appellant is intending to go to public and raise money from the public. There is a grave danger to the good-will and reputation of the respondent as the appellant is claiming to be operating in the same field of activity and manufacturing identical products using the identical trade and corporate name by using the word Abhishek. The appellant is inducing the trade and public to believe that it is connected or associated with the respondent. Therefore the conduct of the appellant tantamount to the passing off and was liable to be stayed forthwith by an injunction order by the Court.

4. An application Tor interim stay under Order 39 Rules 1 and 2 read with Section 151 C.P.C. was also filed for restraining the appellant Company its principal officers directors partners managers employees licensees and franchisees assigns agents and representatives from using the trade and corporate name Abhishek etc. and also for restraining the appellant Company from issuing its initial public offer/public issue under the trade and corporate name Abhishek and/or any deceptive variation thereof till the decision of the suit. The suit and the application for interim stay were filed by the respondent on 17.6.2006 on which the learned trial Court passed the following operative ex parte injunction order on the same day:

After hearing the learned Counsel for the applicant after going through the judicial pronouncement relied upon by the learned Counsel for the applicant the respondent company is restrained from using the Trade and Corporate name "ABHISHEK" and/or any deceptive variations thereof as a corporate name of as a trade name in whole or part whether in connection to any goods or its business or otherwise in any manner indulging in acts of unfair competition whatsoever so as to misrepresent to the trade public that their goods and business are those of the plaintiff and from doing any other thing as may cause confusion or deception leading to passing off its goods and business as those of the plaintiff and the respondent company is further restrained from issuing its initial forthcoming public offer/public issue under the Trade and Corporate name "ABHISHEK" and/or any deceptive variation thereof till further orders. Notice of the application be issued to the respondents for 20.7.2006 on