Ambrose J:

This was an action for infringement of a trade mark and for passing-off in respect of the sale of cigarettes. The plaintiffs, British-American Tobacco Co. Ltd., are a company incorporated in England, and have their registered office in the City of London. The first and second defendants are companies incorporated in the Federation of Malaya, and have a place of business in Singapore. The first defendant is a wholly-owned subsidiary of the second.

The plaintiffs are the registered proprietors of Trade Mark No. 29816 registered as from 13 December 1961, in cl 34 of the Register of Trade Marks, Singapore, in respect of tobacco whether manufactured or unmanufactured. The trade mark consists of a pictorial device and the words "Gold Leaf" printed above the pictorial device and on a broad coloured panel. The exclusive use of the words "Gold Leaf" was specifically disclaimed. The trade mark is not limited in whole or in part to one or more specified colours. The pictorial device comprises a lifebuoy bearing the words "Player's Navy Cut" and enclosing the head of a sailor with two ships on the sea in the background.

On 9 November 1961 the plaintiffs sold for the first