IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Anil Kshetarpal, J.
Tarsem And Company - Appellant
Versus
Virdi Motors Private Limited - Respondent
F.A.O. No. 18 of 2021 (O&M)
Decided On : 15-09-2021
Trademark - Dispute over the use of 'Virdi' - Trade Marks Act, 1999 - Section 35
Fact of the Case:
Dispute between family members over the use of the 'Virdi' trademark in their businesses. Plaintiffs claimed exclusive rights to the trademark, while defendants argued that 'Virdi' was their surname and they had been using it in their business since 1960.
Finding of the Court:
The Court found that the plaintiffs had concealed material facts and failed to prove a good prima facie case for injunction. The defendants' use of the surname 'Virdi' in their business was deemed bonafide and honest.
Issues: Dispute over the use of the 'Virdi' trademark, concealment of material facts by the plaintiffs, and the bonafide use of the surname 'Virdi' by the defendants.
Ratio Decidendi: The Court applied Section 35 of the Trade Marks Act, 1999, which protects bonafide use of one's own name or surname in business. It emphasized the importance of proving a good prima facie case for injunction and the need for honesty and bonafide intentions in using a surname as a trademark.
Final Decision: The appeal was allowed, the order of the Additional District Judge was set aside, and the application under Order XXXIX Rule 1 and 2 CPC was dismissed. The trial Court was requested to conclude the trial of the suit within one year and six months.
ORDER
Anil Kshetarpal, J. - Through this appeal, the appellants (the defendants in the suit) assail the correctness of the order of the Additional District Judge, Amritsar, passed under Order XXXIX Rule 1 and 2 of the Code of Civil Procedure, 1908 (hereinafter referred to as "CPC") while restraining them from using their registered trademarks "Virdi Pump Industries", "T.S.Virdi Pumps Private Limited" and "T.S.Virdi" in a suit filed by the plaintiff/respondents. Before this Bench proceeds further, it would be appropriate to draw a small pedigree table in order to understand inter-se relationship between the parties:
| Karam Singh Vardi | |||
| Tarsam Singh Vardi (Defendent) | Rajwinder Singh (Plaintiff) | ||
| Jagdeep Singh | Manjit Singh Vardi | Smt. Rajwinder Kaur | |
| Rajmit Kaur (wife) | |||
FACTS
2. It is evident that the plaintiffs and the defendants are companies or firms floated by the members of family having a common ancestor namely late Sh. Karan Singh Virdi except M/s Durga Sales. These firms and companies are owned by the family members. The plaintiffs filed a suit claiming that the company is manufacturing, selling and marketing electric motors, motors, mono block pumps, pumping sets (inclusive of submersible pumps and sewage submersible pumps for irrigational, industrial and domestic use), sanitary fungus pumps, grinders and polishing motors and parts thereof. The company initially started using the trademark "Virdi" in the year 1960 and after that the trade name "Virdi Motors Private Limited" and subsequently, the trademark "Virdi Pumps Private Limited" was being used. The company got its trademark "Virdi" and subsequently, the trademark "Virdi" in the Cursive writing, registered. It is claimed that in the month of August, 2020, the defendants started using a deceptively similar name. Formerly, the defendants were working under the name "Surya Pump Industries" but now they have started writing "Virdi Pump Industries Private Limited" and "T.S.Virdi Pump Limited".
3. Per Contra, the defendants contested the suit while asserting that the plaintiffs have not come to the Court with clean hands. It was pointed out that the Director of the plaintiff-company is the younger brother of defendant-Tarsem Singh Virdi and it was he (Tarsem Singh Virdi) who along with his father Karam Singh Virdi promoted the plaintiff company; and established the business and the impugned trademark. Subsequently, Tarsem Singh started his own business while allowing Rajwinder Singh to become the Director in the plaintiff company. It has further been pointed out that Tarsem Singh also has a proprietorship firm "Tarsem and Company" whose name was later on changed to "Texla Pump Hi-Power Industries". Besides this, Tarsem Singh Virdi has obtained registration of trademarks, namely "T.S.Virdi" vide registration No. 3979077, "Virdi Pump Industries" vide registration No. 4043492, "VPI" vide registration No 4234620 and 4408370. The defendants are old businessmen having established their business in manufacturing and marketing of the electric pumps, submersible pumps, electric motors and allied products, besides providing installations and repairing services for the same. The other defendants Jagdeep Singh Virdi and Mandeep Singh Virdi are the sons of Tarsem Singh Virdi, whereas Smt.Harmeet Kaur is the wife of Mandeep Singh Virdi son of Tarsem Singh Virdi. They have been using the trademark, namely "Virdi Pump Industries" bonafidely and honestly since 06.04.2015. It was further pointed out that a firm run by Smt. Rajwinder Kaur i.e. M/s King Sales has been purchasing the products manufactured by the defendants and she never raised any objection. It has further been pointed out that Virdi is an integral part of their name as it is a family name/surname and therefore, in view of Section 35 of the Trade Marks Act, 1999 Act (hereinafter referred to as "the 1999 Act"), no one can claim an exclusive right to use the expression "Virdi".
4. On perusal of the order, i
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