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[Cites 10, Cited by 0]

Delhi High Court

Future Bath Products Private Limited vs Corza International & Ors. on 4 November, 2022

Author: Navin Chawla

Bench: Navin Chawla

                                                Neutral Citation Number: 2022/DHC/004700



                 *        IN THE HIGH COURT OF DELHI AT NEW DELHI
                                                                      Reserved on: 02.09.2022
                                                                      Date of decision: 04.11.2022

                 +        CS(COMM) 461/2020

                          FUTURE BATH PRODUCTS PRIVATE LIMITED ..... Plaintiff
                                       Through: Mr.Umesh Mishra & Mr.Vishal
                                                Patel, Advs.

                                                       versus

                          CORZA INTERNATIONAL & ORS.            ..... Defendants
                                       Through: Mr. PPA Sageer, Adv.

                 CORAM:
                 HON'BLE MR. JUSTICE NAVIN CHAWLA
                 I.A. 9580/2020
                 1.       The present application has been filed by the plaintiff under Order
                 XXXIX Rules 1 and 2 read with Section 151 of the Code of Civil
                 Procedure, 1908 (in short, „CPC‟) praying for grant of an ad interim
                 injunction restraining the defendants, their proprietors, partners, agents,
                 assigns,        representatives,           heirs,    servants,    dealers,    distributors,
                 manufacturers, franchisees and/or anyone acting for and on their behalf
                 from selling, marketing, offering for sale, advertising directly or
                 indirectly the goods under the trade mark                                    or any other
                 mark/name which is identical or deceptively similar to the plaintiff‟s


                 mark                      or                 for „apparatus for lighting, heating, steam
                 generating, cooling, cooking, refrigerating, drying, ventilating, water


Signature Not Verified
Digitally Signed By:SHALOO
BATRA
Signing Date:05.11.2022CS(COMM) 461/2020                                                       Page 1 of 22
17:40:33
                                            Neutral Citation Number: 2022/DHC/004700



                 supply and sanitary purposes, etc.‟ included in Class 11 or other similar
                 goods in any manner whatsoever, so as to result in the infringement as
                 also passing off the said registered trade mark and artistic work of the
                 plaintiff.

                 FACTUAL BACKGROUND

                 PLAINTIFF:

                 2.       It is the case of the plaintiff that in the year 1996, Mr. Naeem
                 Ahmed and Mr. Wasim Ahmed had entered into a partnership and started
                 a firm, namely „M/s. M.T. Engineering Works‟, engaged in the business
                 of manufacture and sale/supply of a complete range of bath fittings. On
                 01.04.1998, Mr. Naeem Ahmed and Mr. Wasim Ahmed conceived and
                 adopted the trade mark                    and have been using it ever since. They
                 applied for the registration of the trade mark                           , bearing
                 application no. 1099195 in Class 11, on 26.04.2002. The said application
                 was, however, treated as „abandoned‟ on 30.09.2015 as they failed to file
                 a reply to the opposition filed by one M/s Anchor Kenwood Electricals,
                 under Form TM-6, within the prescribed period of time.

                 3.       It is the further case of the plaintiff that in the year 2004, Mr.
                 Naeem Ahmed and Mr. Wasim Ahmed entered into another partnership
                 and established another firm, namely „M/s. M. Sons Engg. Works‟, and
                 filed a fresh application on 23.09.0211 bearing no. 2210199 for the
                 registration of the trade mark                   for goods falling in Class 11 with
                 respect to „apparatus for lighting, heating, steam generating, cooling,
                 cooking, refrigerating, drying, ventilating, water supply and sanitary

Signature Not Verified
Digitally Signed By:SHALOO
BATRA
Signing Date:05.11.2022CS(COMM) 461/2020                                               Page 2 of 22
17:40:33
                                            Neutral Citation Number: 2022/DHC/004700



                 purposes, etc.‟, claiming user since 01.04.1998. The said trade mark was
                 registered in the name of the said partnership firm vide Certificate of
                 Registration no. 1873221 in Class 11.

                 4.       The plaintiff asserts that, thereafter, Mr. Wasim Ahmed executed
                 an Assignment Deed dated 21.03.2013, assigning several registered trade
                 marks, including the trade mark                        , in favour of Mr. Naeem

                 Ahmed, who by then had started a proprietorship-firm under the name
                 and style of „M/s Future Bath Products‟. Mr. Naeem Ahmed filed an
                 application, under Form TM-16, before the Trade Marks Registry and
                 accordingly, became the registered proprietor of the trade mark
                 claiming user since 01.04.1998.

                 5.       On 17.08.2017, the plaintiff-company was incorporated and by
                 virtue of an Assignment Deed dated 09.08.2018, the plaintiff-company
                 acquired the proprietorship of the said trade mark                            from
                 Mr.Naeem Ahmed. The plaintiff filed Form TM-P in this regard before
                 the Trade Marks Registry on 09.08.2018, which was allowed and as such
                 the plaintiff became the registered proprietor of the trade mark                    .

                 6.       The plaintiff further submits that through its predecessor-in-
                 interest, it is engaged in the business of manufacturing, marketing and
                 selling of „apparatus for Lighting, Heating, Steam Generating, Cooling,
                 Cooking, Refrigerating, Drying, Ventilating, Water Supply and Sanitary
                 purposes etc.‟, included in Class 11 (hereinafter referred to as „the said
                 goods‟) and other classes as detailed in the Fourth Schedule to the Trade
                 Marks Rules, 2002 since 01.04.1998.

Signature Not Verified
Digitally Signed By:SHALOO
BATRA
Signing Date:05.11.2022CS(COMM) 461/2020                                              Page 3 of 22
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                                             Neutral Citation Number: 2022/DHC/004700



                 7.       The plaintiff further asserts that the predecessor-in-interest of the
                 plaintiff had also applied for the registration of the mark                       and
                 other trade marks/labels in other classes as well for the better protection
                 of the said mark under the provisions of the Trade Marks Act, 1999 (in
                 short, „the Act‟). The details of the registered trade marks of the plaintiff
                 are provided herein below:

                      S. No.               Trade Mark        Class         Status      Appl. No.
                            1.                                 6          Registered   2210196

                            2.                                 7          Registered   2210197

                            3.                                 8          Registered   2210198

                            4.                                14          Registered   2210200

                            5.                                21          Registered   2210202

                            6.                                35          Registered   2210203
                            7.                                 6          Registered   2379101
                            8.                                17          Registered   2210201
                            9.                                11          Registered   2210199



                 8.       The plaintiff submits that it is the original adopter and user of the


                 artistic work                     , which has been continuously, extensively, and
                 openly used by the plaintiff. The plaintiff further states that the aforesaid
                 mark has a unique colour combination, layout and lettering style in
                 relation to the said goods and has been in use since the year 1998 through
                 its predecessor-in-interest.           The said artistic work falls within the
                 meaning of an „original artistic work‟ under Section 2(c) of the


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BATRA
Signing Date:05.11.2022CS(COMM) 461/2020                                               Page 4 of 22
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                                             Neutral Citation Number: 2022/DHC/004700



                 Copyright Act, 1957 (in short, „the Copyright Act‟). The plaintiff further
                 submits that the plaintiff is the registered proprietor of the artistic work in


                                  under the Copyright Act vide Certificate bearing no. A-
                 106740/2013.

                 9.       The plaintiff submits that it maintains high standards in the field of
                 marketing and sale of the said goods. Due to the high quality and
                 efficiency of the said goods sold by the plaintiff under the said trade
                 marks/label/artistic works, it has acquired enviable goodwill and
                 reputation among the consumers, the general public and the members of
                 the trade.

                 10.      The        plaintiff      is     running       its    individual     website
                 https://www.corsabath.in, which comprises of information about the
                 business of the plaintiff and the same is accessible to the consumers and
                 the general public at large. The plaintiff is also promoting and selling its
                 products under the aforementioned marks through different interactive
                 websites such as Amazon India, Facebook, IndiaMart, YouTube and
                 LinkedIn.

                 11.      The predecessor-in-interest of the plaintiff as well as the plaintiff
                 has made substantial investment towards the publicity and advertisement
                 of its mark through different modes, including print and electronic media.
                 The details of the expenditure incurred on advertising goods bearing the
                 mark                      by the plaintiff as also its sales figures have been
                 provided in paragraph 16 of the plaint.


Signature Not Verified
Digitally Signed By:SHALOO
BATRA
Signing Date:05.11.2022CS(COMM) 461/2020                                                 Page 5 of 22
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                                              Neutral Citation Number: 2022/DHC/004700



                 12.      The plaintiff further submits that based on the aforementioned
                 facts, it is sufficiently clear that the plaintiff is the original as well as the
                 prior adopter and user of the trade mark(s)/label(s)/artistic work(s)


                               and                    .

                 13.      The plaintiff submits that in the third week of September 2020, the
                 sales team of the plaintiff informed one of the directors of the plaintiff
                 that an advertisement was displayed/uploaded on the Facebook page of
                 the defendant no. 1, that is, https://www.facebook.com/corzainternational
                 which stated that the goods of the defendant no.1, falling in Class 11 such
                 as bath fittings, etc., are coming soon in the market under the trade mark
                                Upon further inquiry, it came to the knowledge of the plaintiff
                 that the defendant no.1 is engaged in the business of manufacturing,
                 marketing and sale of a wide range of sanitary ware products. It also
                 came to the knowledge of the plaintiff that the defendant no.1 is
                 promoting and selling its products bearing the mark                           through
                 several websites as also social media platforms, including but not limited
                 to Instagram, JustDial, Facebook and IndiaMart; targeting customers of
                 the plaintiff as well as the general public within the territorial jurisdiction
                 of Delhi.

                 14.      Upon conducting a web search on the website of the Controller
                 General         of        Patents,       Trade   Marks    and    Designs,   that       is,
                 https://ipindiaonline.gov.in, it was brought to the notice of the plaintiff
                 that on 16.12.2014, the defendant no.1 herein, through its partner, that is,
                 the defendant no.2, applied for the registration of the mark                       vide
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BATRA
Signing Date:05.11.2022CS(COMM) 461/2020                                                 Page 6 of 22
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                                            Neutral Citation Number: 2022/DHC/004700



                 application bearing number 2863414 with respect to goods such as
                 „Hollow Bricks, Inter Lock, Floor, Pavement, Roofing, Ceramic Cement,
                 etc.‟ included in Class 19 and claiming user since 01.11.2014. The same
                 was granted registration vide Certificate of Registration bearing no.
                 1445104 dated 18.01.2017.

                 15.      The plaintiff asserts that on further inquiries it was revealed that
                 the defendant nos. 2 and 3, may be partners in another firm, namely „M/s
                 Pan India Tiles and Ceramics‟, which had filed an application seeking
                 registration of the trade mark                     in Class 11. The same had been
                 published in the Trade Marks Journal No. 1806-0 dated 17.07.2017 and
                 the plaintiff has opposed the same. The plaintiff did not take any action
                 against the said firm as goods under the trade mark                      were not
                 found to be sold in the open market. In the present suit also, „M/s Pan
                 India Tiles and Ceramics‟ has not been impleaded as no goods bearing
                 the mark                    from the said partnership-firm are available in the
                 open market, and in fact, the said partnership-firm does not appear to
                 exist.

                 16.      The plaintiff asserts that the adoption of the mark
                 amounts to infringment of the plaintiff‟s registered trade mark                     .
                 The defendants are also guilty of passing off their goods as that of the
                 plaintiff‟s.

                 DEFENDANT NOS. 1, 2 AND 4:

                 17.      In the Written Statement filed with the Suit, it is asserted that the
                 defendant no. 1 is a partnership-firm, with the defendant nos. 2 and 4

Signature Not Verified
Digitally Signed By:SHALOO
BATRA
Signing Date:05.11.2022CS(COMM) 461/2020                                              Page 7 of 22
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                 being partners thereof. The defendant no. 3 is not a partner in the
                 defendant no. 1.

                 18.      It is asserted that the defendant no. 2 created the mark
                 along with Mr. K. Hamza and Mr. C.K. Abdul Jabbar and constituted a
                 partnership firm, namely „M/s Pan India Tiles Gallery‟. The explanation
                 given for adoption of the mark is in paragraph 3 of the „Preliminary
                 Submissions‟ of the Written Statement to the suit and is reproduced as
                 under:-

                                           "3..... They conceived and adopted the
                                           trademark CORZA from the grouping of
                                           Partner‟s names of M/s Pan India Tiles.
                                           They formed the word KARZA choosing K
                                           from Defendant No.2's father's name
                                           Kunchalan, last two letters of K.Abdul
                                           JabbAR and the last letters of K. HamZA
                                           the then Partner and evolved it as CORZA to
                                           give a corporate aspect and it is no way
                                           connected to the Plaintiffs trademark as
                                           alleged."

                 19.      It is asserted by the defendant nos. 1, 2 and 4 that the marks of the
                 plaintiff and the defendants are not similar. The mark of the defendants
                 has been openly, continuously and extensively used since 28.09.1999 by
                 the "predecessor firm of Defendant No. 1 herein" and has become a
                 leader in the South Indian market with regards to its goods- water closets
                 and allied goods. It is asserted that the defendant no. 1 was formed by the
                 defendant no. 2 as a sister concern of „M/s Pan India Tiles‟, which is the
                 applicant for the trade mark                    in Class 11. The defendant no. 1 is
                 the registered proprietor of the mark                     . It is further asserted as
                 under:-

Signature Not Verified
Digitally Signed By:SHALOO
BATRA
Signing Date:05.11.2022CS(COMM) 461/2020                                                 Page 8 of 22
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                                            Neutral Citation Number: 2022/DHC/004700



                                           "5.... Thus, the Defendant No. 1 firm is the
                                           registered proprietor of the trademark
                                           CORZA.As        mentioned     supra,    the
                                           predecessor or the earlier user M/s Pan
                                           India Tiles (earlier known as M/s pan India
                                           Tiles and Gallery) originally designed the
                                           trademark CORZA on 28.09 1999 and upon
                                           the consent of the same the successor firm
                                           Defendant No.1 has started using the mark
                                           CORZA as thereon since its formation."

                 20.      It is asserted that the defendant no. 1 and its predecessor sister
                 concern, „M/s Pan India Tiles and Ceramics‟, together are engaged in the
                 field of manufacture and sale of „water closets, flushing and bath
                 installations, wash basins pedestals, European Indian water closets,
                 urinals closets, cisterns bidets, sinks urinals, bath room accessories,
                 toilet bowls, toilet tanks lavatories for sanitary purpose‟ since the year
                 1999.

                 21.      The defendants state the defendant no. 1 has a huge sales turnover,
                 the details whereof are given in paragraph 8 of the „Preliminary
                 Submissions‟ to the Written Statement filed in the Suit and has a good
                 market share in its goods and services especially in the State of Kerala.

                 SUBMISSIONS           ON BEHALF OF THE LEARNED COUNSEL FOR THE

                 PLAINTIFF


                 22.      The learned counsel for the plaintiff, while reasserting the
                 submissions as reproduced hereinabove, further submits that the plaintiff
                 being the registered proprietor of the mark                      , the adoption of a
                 deceptively similar mark by the defendants for the same and allied goods
                 is liable to be restrained.

Signature Not Verified
Digitally Signed By:SHALOO
BATRA
Signing Date:05.11.2022CS(COMM) 461/2020                                                 Page 9 of 22
17:40:33
                                            Neutral Citation Number: 2022/DHC/004700



                 23.      He submits that the plaintiff is also the prior adopter of the mark as
                 the plaintiff, through its predecessor-in-interest, had adopted the same
                 since 01.04.1998. He submits that on the other hand, the defendant no. 1
                 claims user of its mark                     only with effect from 01.11.2014, as
                 would be evident from its application no. 2863413 seeking registration of
                 its mark in Class 19. He submits that the attempt of the defendants to
                 claim an earlier user of the mark through „M/s Pan India Tiles Gallery‟
                 (hereinafter referred to as „M/s Pan India Tiles‟) cannot be accepted
                 inasmuch as the defendant no.1 is a separate partnership-firm and the
                 defendant no. 1 has not produced any document of assignment or licence
                 of the mark from „M/s Pan India Tiles‟ in its favour. He submits that, in
                 fact, „M/s Pan India Tiles‟, as late as 17.02.2018, filed its response to the
                 objection filed by the plaintiff to its application seeking registration of the
                 mark, wherein no reference was made to the use of the mark by the
                 defendant no. 1. The defendant no. 1 in its own application seeking
                 registration of the mark, claimed user only since 01.11.2014.

                 24.      The learned counsel for the plaintiff submits that, in summation,
                 the plaintiff is entitled to an order of ad interim injunction as the marks in
                 question are deceptively similar to each other; the plaintiff is the
                 registered proprietor of the mark for the goods in question; and the
                 plaintiff is also the prior adopter and user of the mark.

                 SUBMISSIONS           ON BEHALF OF THE LEARNED COUNSEL FOR THE

                 DEFENDANT NOS. 1,2 AND 4




Signature Not Verified
Digitally Signed By:SHALOO
BATRA
Signing Date:05.11.2022CS(COMM) 461/2020                                              Page 10 of 22
17:40:33
                                            Neutral Citation Number: 2022/DHC/004700



                 25.      On the other hand, the learned counsel for the defendant nos. 1, 2
                 and 4 submits that the defendant no.1, through its predecessor-in-interest-
                 „M/s Pan India Tiles‟, is the prior adopter and user of the mark                      ,
                 and has been using the mark since 28.09.1999. He submits that a
                 substantial amount has been spent by the defendants for the promotion
                 and expansion of its trade mark, due to which it has generated
                 tremendous goodwill and reputation in South India, especially in the
                 State of Kerala. He submits that on the other hand, the plaintiff has failed
                 to produce any document in support of its alleged claim of user of the


                 mark                  and               . prior to the year 2009. The plaintiff has
                 also failed to implead „M/s Pan India Tiles‟ as a defendant in the Suit.

                 26.      He further submits that as the defendant no. 2 was the Managing
                 Partner of „M/s Pan India Tiles‟ and is also the Managing Partner of the
                 defendant no. 1, he is, therefore, entitled to avail the benefit of the user of
                 the mark by „M/s Pan India Tiles‟.

                 27.      The learned counsel for the defendants further submits that the
                 present Suit has not been properly instituted inasmuch as there is no valid
                 authorization in favour of the signatory on behalf of the plaintiff-
                 company. In this regard, he submits that the purported certified copy of
                 the Board Resolution, though it claims itself to be passed unanimously, is
                 signed by only two of the four Directors of the plaintiff-company. He
                 submits that, therefore, the signatory to the Suit has not been authorized
                 by the plaintiff-company.


Signature Not Verified
Digitally Signed By:SHALOO
BATRA
Signing Date:05.11.2022CS(COMM) 461/2020                                               Page 11 of 22
17:40:33
                                            Neutral Citation Number: 2022/DHC/004700



                 28.      He further submits that the plaintiff has also intentionally not filed
                 the Legal Proceeding Certificates in support of its registration. The claim
                 of registration of the marks in favour of the plaintiff is, therefore, liable to
                 be rejected as the entry in the Registrar of Trade Marks may change due
                 to assignment, transfer or rectification, etc. He submits that „M/s Pan
                 India Tiles‟ has filed an application seeking rectification of the
                 registration granted to the plaintiff‟s trade mark.

                 29.      He submits that the plaintiff has itself disclosed the filing of an
                 application by „M/s Pan India Tiles‟ seeking registration of its mark on
                 01.08.2014. Objections thereto were filed by the plaintiff on 17.11.2017.
                 The present Suit was filed by the plaintiff in or around October 2020, that
                 is, with a delay of more than six/three years, on which ground itself the
                 plaintiff is not entitled to any relief. He submits that the plaintiff is also
                 estopped from laying any claim to injunction against the defendants in
                 terms of Section 33 of the Act.

                 30.      The learned counsel for the defendants further submits that the
                 defendants are operating only in South India, while the plaintiff is
                 operating in Delhi-NCR. The goods of the plaintiff are bath fittings,
                 while those of the defendants are water closets and allied products. He
                 submits that, therefore, the geographical area of operation and the goods
                 being different, no case of an ad interim injunction is made out by the
                 plaintiff. He submits that the plaintiff cannot be permitted to monopolize
                 the mark for goods in which it is not dealing and for which it has no bona
                 fide intention of using the mark. In support, he places reliance on the
                 judgments of the Supreme Court in Vishnu Trading as Vishnudas

Signature Not Verified
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BATRA
Signing Date:05.11.2022CS(COMM) 461/2020                                              Page 12 of 22
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                 Kishandas v. Vazir Sultan Tobacco Co. Ltd., Hyderabad & Anr., 1996
                 SCALE (5) 267 and in Nandhini Deluxe v. Karnataka Co-operative
                 Milk Producers Federation Ltd., AIR 2018 SC 3516.

                 31.      He submits that the defendants, being the registered proprietor of
                 the mark, and that there being no proceedings in challenge to the
                 registration of the defendants filed by the plaintiff till date, an injunction
                 against the registered proprietor of the marks cannot be granted.

                 32.      He submits that even otherwise, the mark(s) of the plaintiff and the
                 defendants, when compared as a whole, are not similar. In support, he
                 places reliance on the judgment of the High of Bombay in International
                 Foodstuff Co. LLC. v. Parle Products Pvt. Ltd. and Ors., 2016 SCC
                 OnLine Bom 2038.

                 33.      He submits that the plaintiff itself has valued its trade mark at only
                 Rs. 4,000/- (Rupees Four Thousand only) in the Assignment Deed dated
                 21.03.2013. Therefore, it is not entitled to any order of injunction.

                 ANALYSIS AND FINDINGS:

                 34.      I have considered the submissions made by the learned counsels
                 for the parties.

                 35.      At the outset, I shall first consider the submission of the learned
                 counsel for the defendants that the present suit has not been properly
                 instituted by the plaintiff. As noted hereinabove, this submission is based
                 on the plea that the authorisation in favour of the signatory to the plaint



Signature Not Verified
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BATRA
Signing Date:05.11.2022CS(COMM) 461/2020                                              Page 13 of 22
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                 has been signed by only two Directors, one of which is the signatory
                 himself.

                 36.      I do not find any merit in the said submission inasmuch as, as in
                 terms of Section 174 of the Companies Act, 2013, for a Board Meeting,
                 the quorum required is of only two Directors and the extract of the Board
                 Resolution filed on record meets the said requirement.

                 37.      The learned counsel for the defendants has also stated that there is
                 a difference between the address of the plaintiff-company as shown in the
                 Memo of Parties and the Board Resolution, however, I do not find any
                 such difference in the two addresses.

                 38.      The submission of the learned counsel for the defendants that the
                 plaintiff has not filed the Legal Use Certificates of its registrations, can
                 also be of no assistance to the defendants at this stage. I find that the
                 factum of registrations of the mark of the plaintiffs is not contested by the
                 defendants. Merely because „M/s Pan India Tiles‟ has filed an application
                 seeking rectification of such registration, in my prima facie view, cannot
                 come to the defence of the defendant nos. 1, 2 and 4 herein. The
                 defendants herein do not claim to have filed any such rectification
                 petition nor have urged grounds on which they may intend to challenge
                 the registration of the plaintiff. The registration granted to the plaintiff, at
                 least for the present application, therefore, has to be presumed to be valid
                 in terms of Section 31 of the Act.

                 39.      The submission of the learned counsel for the defendants that mere
                 phonetic similarity in the two trade marks is not sufficient, also does not

Signature Not Verified
Digitally Signed By:SHALOO
BATRA
Signing Date:05.11.2022CS(COMM) 461/2020                                              Page 14 of 22
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                 hold much force. The two trade marks in question, that is,                      and
                                are phonetically and visually similar. As held by the Supreme
                 Court in Corn Products Refining Co.v. Shangrila Food Products Ltd.,
                 (1960)1 SCR 968, the test to be applied is of a man of „average
                 intelligence and of imperfect recollection‟. To such a man, the overall
                 structural and phonetic similarity and the similarity of the idea in the two
                 marks is reasonably likely to cause a confusion between them.

                 40.      The submission of the learned counsel for the defendants that the
                 plaintiff-company, having valued its trade mark at Rs.4000/- only in the
                 Assignment Deed dated 21.03.2013, is not entitled to any relief of
                 injunction, is also liable to be rejected. The statutory and common law
                 right in a trade mark are not dependent on the value ascribed thereto by a
                 party. If the plaintiff is able to make out a case based on the registration
                 of its mark as also a common law right based on the prior adoption and
                 use of the mark, it shall be entitled to an injunction against the third party
                 misusing its mark irrespective of the value ascribed to such mark in an
                 Assignment Deed.

                 41.      The claim of user of the mark since 1999 made by the defendant
                 nos.1,2 and 4 based on the alleged user of the mark                       by „M/s
                 Pan India Tiles, cannot be accepted in absence of any assignment or
                 license to use the said mark from „M/s Pan India Tiles‟ being produced
                 by the defendants on record. The defendant no.1 is a separate partnership-
                 firm. The defendant no.2, though a partner in „M/s Pan India Tiles and
                 Ceramics‟ cannot, while such partnership is in existence and without any


Signature Not Verified
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BATRA
Signing Date:05.11.2022CS(COMM) 461/2020                                              Page 15 of 22
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                 contract to the contrary, claim rights over the trade mark of the fim to its
                 exclusion.

                 42.      Having said the above, it is also to be noted that the defendants are
                 the registered proprietor of the mark                        in Class 19. The said
                 registration is not only subsisting but has not been opposed by the
                 plaintiff. The defendants have also filed documents in support of their
                 user of the mark since at least the year 2014. This is ignoring the earlier
                 use claimed by them on basis of their association with „M/s Pan India
                 Tiles and Ceramics‟. It has also been contended that the defendants have
                 their business in South India, especially in the State of Kerala, where the
                 plaintiff has no presence. This has not been disputed by the learned
                 counsel for the plaintiff during his submissions. In fact, the learned
                 counsel for the plaintiff has submitted that the cause of action has arisen
                 when the defendants sought to expand their business to sanitary ware and
                 in which regard, he refers to the Facebook page of the defendants.

                 43.      In a nutshell, what is evident from the submissions of the parties
                 and the documents filed is as under:-

                          (i)      The plaintiff is a registered proprietor of the mark                ,
                          which it claims to be using for the manufacture and sale of
                          complete range of bath fittings since 01.04.1998, through its
                          predecessor in interest, namely, „M/s. M.T. Engineering Works‟.
                          However, as far as documents are concerned, the first document
                          produced is of the year 2009. The plaintiff claims that the
                          documents prior thereto have been destroyed in fire. This claim,


Signature Not Verified
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BATRA
Signing Date:05.11.2022CS(COMM) 461/2020                                               Page 16 of 22
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                          however, will have to be tested on evidence being led by the
                          parties;

                          (ii)     The defendants are the registered proprietor of the mark
                                           in Class 19 and claim to be using the same for
                          manufacture and sale of water closets and its allied products since
                          the year 1999 (on basis of claim of „M/s Pan India Tiles‟) and on
                          its own since the year 2014;

                          (iii)    The present suit has been filed in or about October 2020 by
                          the plaintiff, when, according to the plaintiff, the defendants
                          expanded their business into sanitary ware;

                          (iv)     The defendants claim to have their business primarily in
                          South India, especially in the State of Kerala, where the plaintiff
                          has no presence.

                 44.      As the mark of the plaintiff, that is,                        is registered for
                 goods in Class 11, the use of a deceptively similar mark thereto by the
                 defendants in relation to the same or similar goods would amount to
                 infringement of the registered trade mark of the plaintiff. Section 29 of
                 the Act spells out the circumstances whereby a registered trade mark is
                 infringed. Section 29(1) and (2) are reproduced herein under:-

                                             "Section 29. Infringement of registered trade
                                             marks.---- (1) A registered trade mark is infringed
                                             by a person who, not being a registered proprietor
                                             or a person using by way of permitted use, uses in
                                             the course of trade, a mark which is identical
                                             with, or deceptively similar to, the trade mark in
                                             relation to goods or services in respect of which
                                             the trade mark is registered and in such manner

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BATRA
Signing Date:05.11.2022CS(COMM) 461/2020                                                     Page 17 of 22
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                                            as to render the use of the mark likely to be taken
                                            as being used as a trade mark.
                                                   (2) A registered trade mark is infringed by a
                                            person who, not being a registered proprietor or a
                                            person using by way of permitted use, uses in the
                                            course of trade, a mark which because of--
                                                   (a) its identity with the registered trade
                                                   mark and the similarity of the goods or
                                                   services covered by such registered trade
                                                   mark; or
                                                   (b) its similarity to the registered trade
                                                   mark and the identity or similarity of the
                                                   goods or services covered by such
                                                   registered trade mark; or
                                                   (c) its identity with the registered trade
                                                   mark and the identity of the goods or
                                                   services covered by such registered trade
                                                   mark, is likely to cause confusion on the
                                                   part of the public, or which is likely to have
                                                   an association with the registered trade
                                                   mark."



                 45.       To avail the benefit of the exception to an action of infringement,
                 the defendants have to show "acquiescence" for a continuous period of
                 five years, wherein the registered proprietor was aware of the use of such
                 mark, Section 33 of the Act reads as under:-

                                            "Section 33. Effect of acquiescence. (1) Where
                                            the proprietor of an earlier trade mark has
                                            acquiesced for a continuous period of five years in
                                            the use of a registered trade mark, being aware of
                                            that use, he shall no longer be entitled on the
                                            basis of that earlier trade mark--
                                                  (a) to apply for a declaration that the
                                                  registration of the later trade mark is
                                                  invalid, or
                                                  (b) to oppose the use of the later trade mark
                                                  in relation to the goods or services in
                                                  relation to which it has been so used, unless
                                                  the registration of the later trade mark was
                                                  not applied in good faith.
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Digitally Signed By:SHALOO
BATRA
Signing Date:05.11.2022CS(COMM) 461/2020                                                      Page 18 of 22
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                                            (2) Where sub-section (1) applies, the proprietor
                                            of the later trade mark is not entitled to oppose the
                                            use of the earlier trade mark, or as the case may
                                            be, the exploitation of the earlier right,
                                            notwithstanding that the earlier trade mark may
                                            no longer be invoked against his later trade
                                            mark."

                 46.      In the present case, the plaintiff has asserted that as far as „M/s Pan
                 India Tiles and Ceramics‟ is concerned, on the advertisement of its
                 application in Class 11, the same was opposed by the plaintiff and to the
                 knowledge of the plaintiff, the said partnership firm has not been using
                 the mark "                  ". The plaintiff has further asserted that it gained
                 knowledge of the use of the mark "                        " by the defendants only in
                 the third week of September, 2020. It is submitted by the plaintiff that it
                 was not aware of the adoption/registration of the mark of the defendants
                 as such registration was applied by the defendants for the goods in Class
                 19, that is, for a different class of goods.

                 47.      In view of this stand of the plaintiff, atleast at this stage, it cannot
                 be said that the plaintiff has acquiescence in the use of the mark
                                by the defendants for the goods covered in Class 11, that is,
                 sanitary ware and bathroom fittings. In M/s Power Control Appliances
                 and Others v. Sumeet Machines Pvt. Ltd, (1994) 2 SCC 448, the
                 Supreme Court has held as under:

                                            "26. Acquiescence is sitting by, when another is
                                            invading the rights and spending money on it. It is
                                            a course of conduct inconsistent with the claim for
                                            exclusive rights in a trade mark, trade name etc. It
                                            implies positive acts; not merely silence or
                                            inaction such as is involved in laches. In Harcourt
                                            v. White, (1860) 28 Beav 303: 54 ER 382, Sr.John

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                                            Romilly said: "It is important to distinguish mere
                                            negligence and acquiescence." Therefore,
                                            acquiescence is one facet of delay. If the plaintiff
                                            stood by knowingly and let the defendants build up
                                            an important trade until it had become necessary
                                            to crush it, then the plaintiffs would be stopped by
                                            their acquiescence. If the acquiescence in the
                                            infringement amounts to consent, it will be a
                                            complete defence as was laid down in Mouson
                                            (J.G.) & Co. v. Boehm, (1884) 26 Ch D 406. The
                                            acquiescence must be such as to lead to the
                                            inference of a license sufficient to create a new
                                            right in the defendant as was laid down in
                                            Rodgers v. Nowill. (1847) 2 De GM&G 614 : 22
                                            LJ KCH 404."

                 48.      Equally, the claim of the plaintiff cannot be said to be hit by delay
                 or laches. As noted herein above, the plaintiff has asserted knowledge of
                 the defendants adopting the impugned mark for sanitary goods and
                 bathroom fittings only in September, 2020. The plaintiff filed the present
                 suit in October 2020. In view of the above, therefore, no delay or latches
                 can be alleged against the plaintiff.

                 49.      In view of the above, the defendants are liable to be restrained by
                 way of an ad interim order from using the deceptively similar mark
                                for the goods of the defendants falling under Class 11, that is,
                 bath fittings and other sanitary ware.

                 50.      At the same time, the defendants are admittedly the registered
                 proprietor of the mark                     for the goods covered in Class 19. The
                 said registration is also valid and subsisting. As highlighted by the
                 learned counsel for the defendants, the plaintiff has not challenged the
                 said registration till date. The defendants have also filed documents on
                 record to show user of the mark                        for the said goods, especially
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BATRA
Signing Date:05.11.2022CS(COMM) 461/2020                                                     Page 20 of 22
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                 water closets. Section 28 of the Act vests a right in a registered proprietor
                 to use of the registered mark in relation to the goods or services in respect
                 of which the same is registered. The said mark has been allegedly in use
                 by the defendants atleast from the year 2014.

                 51.      In view of the above, in my opinion, the defendants cannot, at this
                 stage, be restrained from use of the mark                     for the goods covered
                 in Class 19, for which its marks stand duly registered. The balance of
                 convenience and the test of irreparable damage would warrant any such
                 injunction to be refused to the plaintiff at this stage for such goods.

                 52.      Accordingly, the present application is disposed of restraining the
                 defendants, their proprietors, partners, agents, assigns, representatives,
                 heirs, servants, dealers, distributors, manufacturers, franchisees and/or
                 anyone acting for and on their behalf from selling goods under the trade
                 mark                      or any other mark/name, which is identical or
                 deceptively/confusingly similar to the plaintiff's registered trade mark


                               or                 for bath fittings or other sanitary ware or other
                 similar goods in any manner whatsoever, so as to result in infringement
                 of the said registered trade mark of the plaintiff or its passing off, during
                 the pendency of the present suit. The defendants shall, however, be free
                 to use the mark                     for the goods covered in Class 19. As the
                 defendants‟ own case is that they are confined to the southern states of
                 India, especially in State of Kerala, they shall not expand their area of
                 operation to other parts of the country during the pendency of the present
                 Suit.
Signature Not Verified
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BATRA
Signing Date:05.11.2022CS(COMM) 461/2020                                               Page 21 of 22
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                 53.      It is clarified that the above ad interim arrangement is based on the
                 prima facie findings of the Court, which shall not influence the Court at
                 the final hearing of the Suit on the parties leading their respective
                 evidence.

                 CS(COMM) 461/2020

                          List the matter before the Joint Registrar (Judicial) for further
                 proceedings on 16th December, 2022.



                                                                              NAVIN CHAWLA, J.

NOVEMBER 04, 2022/ab/ais Signature Not Verified Digitally Signed By:SHALOO BATRA Signing Date:05.11.2022CS(COMM) 461/2020 Page 22 of 22 17:40:33