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2021 Supreme(Online)(Cal) 9

CALCUTTA HIGH COURT
Tapabrata Chakraborty, J
Shyam Steel Industries Ltd. – Appellant
Versus
Shyam Sel and Power Ltd. – Respondent
Civil Suit 63 of 2019 | Interlocutory Application GA 857 of 2019



Advocates:
For the Appellants/Petitioners: Mr. Ahin Choudhury
For the Respondents: Mr. S. K. Kapur

Registered trademark owners have exclusive rights, but concurrent users may claim based on prior use and non-acquiescence.

Headnote:(A) Trademarks Act, 1999 - Section 17, 28, 29, 31, 33, 57, 124 - Infringement of trademark - The appellant claimed infringement of its registered mark 'Shyam' by the respondent. The court addressed principles of provisional exclusivity and the balance of convenience, noting previous uses and applications for trademark registration. The court denied immediate relief but permitted the respondent to sell existing stock till a specified date, reinforcing the need for the suit to follow for resolution of the validity of the trademark registration. (Paras 31-65)

(B) The fundamental principles arising from trademark disputes and the consideration of prior usage, lack of acquiescence, and the rights granted by registration were emphasized. Findings on the validity of the appellant's registration will determine future rights under the Act. The court also highlighted the permissible action by the Appellate Board in rectification proceedings. (Parts Para 37-40)

1. The plaintiff in the suit (CS 63 of 2019), Shyam Steel Industries Ltd. and the first defendant, Shyam Sel and Power Ltd. ("the defendant") are both manufacturers of thermostatically treated bars (TMT bars). The second defendant is a group company of the first defendant and manufactures steel and ferroalloys. They also generate power. The plaintiff is the registered proprietor of the word mark ''Shyam'' and label marks, featuring this word prominently.

2. The suit is for infringement of this trademark and passing off.

3. In the interlocutory application (GA 857 of 2019), made by the plaintiff the learned single judge at the ad - interim stage, that is to say at the time the motion was presented to the court refused to grant an injunction restraining the first defendant from using these marks. Obviously, at this stage no affidavit - in - opposition on behalf of the defendants could be invited.

4. In the said order the case of the parties was noted. Then the order was passed after recording the reasons in support of it very shortly as follows:
“I have heard learned counsel for the parties. Prima facie, I am of the view that ''Shyam'' being a part of the business name of the defendants, no injunction should be passed to restrain them from using the said word on their packaging. Further, if the case of honest adoption can be made out by the defendants, that would also be a point in their favour. I deem it proper to grant the defendants time to file affidavit - in - opposition which may be filed positively within two weeks from date and no prayer for extension of time shall be entertained. Reply, if any, be filed within a week thereafter.
List the matter three weeks hence under the heading ''Adjourned Motion'' as a commercial cause. In the meantime, however, the defendants shall maintain weekly accounts of sale of its products covered by class 6, which are sold under the mark ''Shyam''. The accounts should be kept with the advocate - on - record of the defendants with a copy to advocate - on - record for the plaintiff. I make it clear that all the observations that I have made in this order are prima facie for the purpose of passing an order at the ad - interim stage and the same will have no relevance at the time of considering and deciding this application after exchange of affidavits."
The plaintiff (the appellant) is aggrieved and is up in appeal before us. The defendants are the respondents.

5. The manufactured products the TMT Steel bars were brought to court. The appellant and the first respondent's (hereinafter the respondent) products seem to be identical in their character, composition, features, looks, size and so on. They are of identical shape and size. On the appellant's bar the word "Shyam Steel" and in the respondent's manufacture "Sel" are inscribed. The appellant uses a wrapper around the bar where "Shyam Steel" and ''Shyam'' are prominently written. The respondent uses a similar wrapper where the word ''Sel'' is prominent but no less prominent is the writing "Shyam Metalics" on top of it. On this basis, the appellant alleges infringement of their trademark.

6. The respondent resists this claim.

7. Now, let me come to the essential facts which emerged from the submissions of Mr. Ahin Choudhury, learned senior counsel for the appellant and Mr. S. K. Kapur, learned senior counsel for the respondents.

8. From 19th April, 1999 the appellant applied to the trade marks registry for registration of a ''label'' mark which fell under the category ''device''. The mark sought to be registered was a label containing the words "Shyam Steel". This mark was registered on 23rd December, 2005 with recorded user from 30th April, 1994. This registration has been renewed upto 19th April, 2029.

9. On 2nd February, 2001 the appellant applied for registration, under the mark type ''word'' the trade mark ''Shyam''. Use of this mark was claimed from 1st April, 1994. A certificate was issued by the said authority on 24th March, 2008. The document

















































































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