Kerala High Court Holds Trade Mark Agent Authorisation Must Be Stamped as Power of Attorney

In a significant ruling that tightens procedural compliance for intellectual property practitioners, the Kerala High Court has held that an authorisation given by a trade mark applicant to a trade mark agent must be stamped under the applicable Stamp Act. The court categorically ruled that such a document possesses “all the trappings of a power of attorney” and therefore cannot be executed on plain paper.

Justice Bechu Kurian Thomas, presiding over a single-judge bench, dismissed a writ petition filed by advocate and trade mark attorney John Vadassery, who had challenged the Trade Marks Registry’s longstanding practice of requiring stamped authorisations. The judgment, delivered on September 30, reinforces the fiscal obligations attached to instruments that confer authority to represent another person before the Registry.

Background of the Petition

The petitioner, John Vadassery, appeared in person and argued that Section 145 of the Trade Marks Act, 1999 only requires a person to be “duly authorised in the prescribed manner” to perform an act before the Registrar. He contended that the provision does not explicitly demand a power of attorney and that a simple plain-paper authorisation—similar to one used to collect a postal article—should suffice.

Vadassery further argued that the authorisation contemplated under the Act and the Trade Marks Rules, 2017 is not an “instrument” within the meaning of the Kerala Stamp Act, 1959, and therefore no stamp duty is payable. He urged the court to declare the Registry’s practice as ultra vires.

The respondents, represented by the Trade Marks Registry and the Union of India, countered that the authorisation enables the agent to act on behalf of the applicant, receive service of documents, and appear before the Registrar. They maintained that such a document is, in substance, a power of attorney and must bear the appropriate stamp duty. They also highlighted that the practice had been consistently followed and that stamp duty is a State subject, beyond the purview of the Trade Marks Act.

Court’s Reasoning: Trappings of a Power of Attorney

Justice Thomas examined the interplay between Section 145 of the Trade Marks Act and Rule 19 of the Trade Marks Rules, 2017. Section 145 allows any act required to be done before the Registrar to be performed by a legal practitioner, a registered trade marks agent, or a person in the sole and regular employment of the principal, provided that person is “duly authorised in the prescribed manner.” Rule 19 prescribes that authorisation must be executed in Form TM-M and stipulates that service on the authorised agent is deemed service on the principal.

The court observed that the authority conferred on the agent carries significant legal consequences. The agent can bind the principal by his acts, accept notices, and appear in proceedings. “The acts of the agent will bind the principal and can even create a right on him or affect his right,” the court noted.

Turning to the question of stamp duty, the court held that neither the Trade Marks Act nor the Rules can determine whether stamp duty is payable. Stamp duty, the court emphasised, is a fiscal measure imposed by State legislation on specified classes of instruments. The definition of “instrument” under the Kerala Stamp Act, 1959 is broad, encompassing any document by which a right or liability is created, transferred, limited, extended, extinguished, or recorded. The Stamp Act also defines a power of attorney as an instrument empowering a specific person to act for and in the name of the person executing it.

The court found that the authorisation under Section 145 read with Rule 19 falls squarely within this definition. It creates a right in the agent to represent the applicant and therefore has “all the trappings of a power of attorney.” Consequently, it must be stamped under the relevant Stamp Act where the instrument is executed.

Distinguishing a Vakalathnama

A crucial part of the judgment was the court’s distinction between a vakalathnama filed by an advocate in court and the authorisation filed before the Trade Marks Registry. While a vakalathnama is effectively a power of attorney, it is chargeable to court fee when presented before a court or tribunal. The Kerala Court Fees Act and Suits Valuation Act, 1959 therefore apply, and no additional stamp duty is required.

However, the Trade Marks Registry is not a court or tribunal; it is an office headed by an officer appointed by the Central Government. Hence, the exemption applicable to vakalathnamas does not extend to authorisations filed before the Registrar. The court underscored that the Registry’s administrative character does not attract the court fee regime, leaving stamp duty as the applicable fiscal charge.

Reliance on Precedent

The court drew support from its earlier decision in The Institute of Chartered Accountants of India v. Union of India and Others , which dealt with authorisations filed before taxing authorities. In that case, the court had held that such authorisations were liable to be stamped under the Stamp Act where they were executed. Applying the same principle, the court rejected the petitioner’s contention that a plain-paper authorisation is sufficient.

Implications for Legal Practice

This ruling has immediate practical consequences for trade mark attorneys and agents across India. Every authorisation filed under Section 145 of the Trade Marks Act must now be executed on stamp paper of the appropriate value as per the Stamp Act of the state where the authorisation is executed. Failure to do so could render the authorisation invalid and potentially jeopardise proceedings before the Trade Marks Registry.

The judgment also clarifies that the Registry’s insistence on a stamped document is not an arbitrary procedural hurdle but a lawful requirement grounded in fiscal legislation. Practitioners who have been using unstamped authorisations will need to revise their practices immediately.

Moreover, the decision underscores the importance of distinguishing between different types of legal representation documents. While a vakalathnama in court proceedings attracts court fee, an authorisation before an administrative authority like the Trade Marks Registry attracts stamp duty. This distinction may have ripple effects in other administrative forums where similar authorisations are filed.

Conclusion

The Kerala High Court’s judgment in John Vadassery v. Union of India reaffirms that the requirement of stamp duty on instruments creating a right of representation is not negated by the Trade Marks Act or Rules. The court’s observation that the authorisation has “all the trappings of a power of attorney” leaves little room for argument. By dismissing the writ petition, the court has validated the Trade Marks Registry’s practice and provided clarity on an issue that had long troubled practitioners.

For the legal community, the takeaway is clear: when authorising a trade mark agent to act on your behalf, ensure the document is stamped as per the applicable Stamp Act. Plain-paper authorisations will no longer suffice.