(iii) N.R. Dongre v. Whirlpool Corporation AIR 1995 Delhi 300
(DB): 1996 (16) PTC (Del) to contend that from prima facie
evidence of advertisements in international publications and
sale of products bearing the Whirlpool trademark in various
geographical regions of the world and inspite of sales in India
limited to the US Embassy and the US Aid Office in Delhi,
injunction was issued in this case.
In N.R. Dongre & Ors. v. Whirlpool Corp. & Anr., AIR 1995 Delhi
300, a Division Bench of this Court held that awareness of a
trademark in respect of goods of a trader is not necessarily restricted
only to the people of the country where such goods are freely available
but the knowledge and awareness reaches even shores of those
countries where the goods are not available. In para 15, the Division
Bench held as under:-
17. Second, evidence of reputation abroad may spill over in the
country through advertisement. The Division Bench of the Delhi
High Court in N.R. Dongre v. Whirlpool Corpn., AIR 1995 Del 300
(affirmed in appeal (1996) 5 SCC 714) said:
Section 34 of the Trade Marks Act, 1999
provides that nothing in this Act shall entitle the
registered proprietor or registered user to interfere
with the rights of prior user. Conjoint reading of
Section 34, 27 and 28 would show that the rights of
registration are subject to Section 34 which can be
seen from the opening words of Section 28 of the Act
which states "Subject to the other provisions of this
Act, the registration of a trade mark shall, if valid,
give to the registered proprietor...." and also the
opening words of Section 34 which states "Nothing
in this Act shall entitle the proprietor or a registered
user of registered trade mark to interfere......". Thus,
the scheme of the Act is such where rights of prior
user are recognized superior than that of the
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registration and even the registered proprietor
cannot disturb/interfere with the rights of prior user.
The overall effect of collective reading of the
provisions of the Act is that the action for passing off
which is premised on the rights of prior user
generating a goodwill shall be unaffected by any
registration provided under the Act. This proposition
has been discussed in extenso in the case of N.R.
Dongre And Ors. v. Whirlpool Corporation And
Anr. AIR 1995 Delhi 300 wherein Division Bench of
Delhi High Court recognized that the registration is
not an indefeasible right and the same is subject to
rights of prior user.
13. Mr. Man Mohan Singh relied upon the decision of the Division Bench of this court reported in N. R. Dongra and others v. Whirlpool Corporation (AIR 1995 Delhi 301), for the proposition that on a reading of Section 28(3) with Section 31(d) it is clear that the proprietor of the registered trade mark cannot file an infringement action against the proprietor of an identical or a similar trade mark. While Sections 28(3) and 31(b) on the one had dealt with the rights of registered proprietor of identical trade mark and bar action of infringement against each other, Section 27(2) on the other hand deals with the passing off action. The right of action under Section 27(2) are not affected by Section 28(3) and Section 31(d). Therefore, the registration of the trade mark under the Act is irrelevant in an action for passing of. The law of passing off as it has developed permits an action against a registered proprietor of a trade mark for its mendacious use for inducing and misleading the consumers into thinking that his goods are the goods of or are connected with the goods of a prior user of the trade mark. I fail to see how this proposition can at all be applied to the facts of this case.
15. Counsel for the plaintiff, on the other hand relied upon the Division Bench decision of this court in Shri Swaran Singh Trading and Appliances v. M/s. Usha Industries (India) New Delhi and anothers, , and also in the case of N. R. Dongre and another v. Whirlpool Corporation and another (1996 (2) Arb. LR. 488 (SC)), disposed of on 21.4.1995.