JUDGMENT

Sanjay Kishan Kaul, J. The appellant filed a suit for permanent injunction restraining passing off of the trademark 'SUGAR FREE', its dilution, damages and rendition of accounts, delivery up, etc. The appellant claimed that in the year 1988, a low calorie table-top sweetener without natural sugar containing an artificial sweetener was introduced under the trademark 'SUGAR FREE'. This product contained 'Aspartame' which contains only 2% of its calories. The applications filed for registration of the trademark were pending. The sales have been large and from 1988 onwards, around Rs.216.40 crores sales have occurred.

2. The appellant alleged that the respondent had introduced 'Sugar Free Cookies' with 'SUGAR FREE' written in big size fonts in bright red colour. It is this 'SUGAR FREE', which has been emphasized while 'Cookies' is written in a small running font size in a pale brown colour so as to make it almost unreadable. The respondent is stated to have filed an application for registration of the trademark 'SUGARLESS' and/or 'SUGARLESS Bliss'. The packaging of the respondent also states that the product had been 'Sweetened with Splenda Brand'. The 'Splenda Brand' is act