In the High Court of Judicature at Bombay Ordinary Original Civil Jurisdiction Notice of Motion No
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211-NMS2144-10-PIDILITE-F.DOC SHEPHALI IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION NOTICE OF MOTION NO. 2144 OF 2010 IN SUIT NO. 2130 OF 2010 1. PIDILITE INDUSTRIES LIMITED, A company incorporated under the Companies Act, 1956 and having its office at Regent Chambers, Nariman Point, Mumbai 4"" "#1 2. HARDCASTLE & WAUD MANUFACTURING CO. LTD., A company incorporated under Indian Companies Act, 1913 having its office at Brabourne Stadium, Gate No. 10, 1st *+oor, 8-, Veer Nariman Road, Mumbai !"" 0#" And also at/ 190!, G$DC, 'arigam (.a+sad District2, (u3arat ...P !"#$"%%& Versus 1. VILAS NEMICHAND JAIN, trading as Ne4 Era Adhesive Industries, %, Bhi6amchand 7ain Comp+e8, 7a+gaon – !#5 0"1, District 7a+gaon 1MS2 2. M'S. NEW ERA, %, Bhi6amchand 7ain Comp+e8, 7a+gaon – Bombay!#5 0"1, District 7a+gaon High 1MS2 A9'O A; Court Post Sa6+i, ;a+u6a Ya4a+, 7a+gaon, Maharashtra – 4#5 3"#) ...D(%(#)!#$& 1 *% 2+ ::: Uploaded on - 14/09/2015 ::: Downloaded on - 07/10/2015 10:40:45 ::: 211-NMS2144-10-PIDILITE-F.DOC APPEARANCES FOR THE PLAINTIFFS D,. V. V. T- .!/-,0!,1 Se#"*, A)2*3!$(, with Mr. Sandip Parikh, Mr. Ashish Kamat, Mr. Rahul Duote, Mr. Minesh Andharia & Mr. Hemant Thadani, i/ Krishna & Saurastri Asso!iates. FOR THE DEFENDANTS D,. B. Sa,!%, with Mr. Vinod "ha#at, Mr. Dhiren Karania & Mr. Punit $ain, i/ %.S. He#de & V. "ha#at, &or De&endants 'os. 1 and ). CORAM 4 G. S. P!$( 1 J. JUDGMENT RESERVED ON 4 4$h Sept(67(, 2018 JUDGMENT PRONOUNCED ON 4 9$h S(/$(67(, 2018 JUDGMENT4 1. ;his is the P+aintiffs= app+ication for a restraint order in an action for passing off) ;he riva+ mar6s are identica+/ LEAKGUARD) ;here is no >uestion, therefore, of assessing any simi+arity or deceptive simi+arity) Both sides c+aim to be using the mar6 in re+ation to so+vent cements and simi+ar chemica+s and compounds) A+though the Defendants are based in 7a+gaon, their sa+es do not appear to be territoria++y or geographica++y restricted) P+aintiff No.1 1?P")" "$(@2 is a 4e++A6no4n manufacturer of, among other things, various types of adhesive products) Plaintiff No. # 1?H!,)3!&$ ( & BombayW!-)@2 c+aims to have adoptedHigh the mar6 in >uestion Court and +ater assigned its rights to the 1st Plaintiff) 2 *% 2+ ::: Uploaded on - 14/09/2015 ::: Downloaded on - 07/10/2015 10:40:45 ::: 211-NMS2144-10-PIDILITE-F.DOC #) ;he Plaintiffs c+aim prior user since 1999. ;his is 4hen, according to them, P+aintiff No. #, Hardcastle & Daud, began using this name in respect of solvent cement as a +i>uid chemica+) On #9th Apri+ 1999, Hardcastle C Daud made App+ication No. ,53-! for registration of a +abe+ mar6 containing the 4ord ?LEAKGUARD@ a+ong 4ith the e8pression HOLDTITE for use in re+ation to industria+ chemica+s) ;his app+ication has since proceeded to registration. A fe4 years +ater, from #""1, Hardcastle C Daud began using the e8pression LEAKGUARD in respect of solvent cement specifica++y for 3oining various 6inds of pipes such as PVC, CPVC and so on. %) ;he Plaintiffs c+aim that between #""1 and #"", their sa+es have steadi+y increased) By #""-A#"", their sa+es of products using the e8pression LEAKGUARD 4ere in e8cess of Rs) #"" +a6hs) $n addition, the P+aintiffs have anne8ed a Chartered Accountant=s certificate to the effect that for the period from 1st Apri+ #"", to %1st March #""9 the Plaintiffs 1or, at any rate, the 1st Plaintiff 2 had sa+es of Rs) #%)"% mi++ion and for the period from 1st Apri+ #""9 to %1st March #"1", they had sa+es of Rs) %!)96 mi++ion in respect of their LEAKGUARD-branded products) *or these periods, their advertisement and sa+es e8penses 4ere, respective+y, ")"! mi++ion and ")17 mi++ion. Photographic samp+es of the P+aintiffs= products are at 58hibit “C@ to the p+aint at page %5. ;hese sho4 cans and bott+es 4ith the 4ord LEAKGUARD set be+o4 the other e8pression BombayHOLDTITE) :ther materia+ isHigh at page %6 of the p+aint. 58hibitCourt ?5” at page %, is a product brochure of the 1st P+aintiff) $t specifica++y sho4s LEAKGUARD being used independently to describe the PVC so+vent cement sold by the P+aintiffs) According to Dr) ;u+Eapur6ar for the P+aintiffs, this literature in the trade was 4ide+y circu+ated) 3 *% 2+ ::: Uploaded on - 14/09/2015 ::: Downloaded on - 07/10/2015 10:40:45 ::: 211-NMS2144-10-PIDILITE-F.DOC !) ;he year #""1 is of crucia+ importance) ;he Defendants c+aim to have started using the same e8pression LEAKGUARD in Apri+ #""5, and Dr) 'araf for the Defendants says that such evidence of use by the Plaintiffs as there is between #""1 and #"", is scanty indeed) On #1st *ebruary #"",, Hardcastle C Daud, the #nd P+aintiff, assigned a++ its rights, title and interest in respect of the by then registered trade mar6 LEAKGUARD to the 1st P+aintiff) ;his 4as under a Deed of Assignment dated #1st *ebruary #"",) A copy of this Deed of Assignment is anne8ed to the p+aint. 5. On 16th *ebruary #"",, the 0efendants themse+ves app+ied for registration of the trade mar6 LEAKGUARD under App+ication No. 17!!"#% in C+ass 1. At the time of the app+ication, they c+aimed user from the year #""") ;his 4as, Dr) 'araf says, an inadvertent error, and on %"th 7anuary #""9 the 0efendants app+ied for an amendment to correct the user c+aim from #""" to 1st Apri+ #""5. $n the meantime, the 1st P+aintiff, Pidi+ite $ndustries 9imited, a+so made an app+ication on 16th 0ecember #"", for registration of a +abe+ mar6 that inter alia inc+uded the e8pression LEAKGUARD) ;o comp+ete this part of the narrative, $ must note that Dr) 'araf says that the Defendants have since 4ithdra4n their app+ication. Bo4ever, this may not ma6e a materia+ difference for the present purposes) What is important is that the 0efendants did app+y for registration of this mar6) ;he ma6ing of that app+ication itse+f has Bombaycertain undeniab+e imp+ications High and +ega+ conse>uences Court at +east to one limb of the case) 6. ;he Plaintiffs c+aim that in September 2""9 they came across one of the Defendants= products 4ith the mar6 LEAKGUARD) On 17th 4 *% 2+ ::: Uploaded on - 14/09/2015 ::: Downloaded on - 07/10/2015 10:40:45 ::: 211-NMS2144-10-PIDILITE-F.DOC 'eptember #""9, the 1st P+aintiff sent a cease and desist notice to the 1st Defendant. ;he 1st Defendant rep+ied by his Advocates= +etter dated 6th October #""9 refusing to give up the use of the mar6) $n 7anuary #"10, the 1st Plaintiff noticed an advertisement in the ;rade Mar6s 7ourna+ of the 1st 0efendant=s app+ication for registration. 9ater that year, the P+aintiffs found that the 1st 0efendant 4as se++ing his goods under the impugned mar6 in Mumbai) ;his suit 4as fi+ed on #6th 7u+y #"1") ;he Notice of Motion 4as fi+ed at about the same time) Between #"1" and #"15, severa+ Affidavits to the stage of a 'urA'urARe3oinder have been fi+ed) -) $ must a+so note that in the five years since it 4as fi+ed, the suit itse+f has progressed to the stage 4here the P+aintiffs have fi+ed their compi+ations of documents, many of 4hich have been mar6ed in evidence) $ note this because one of Dr) 'araf=s thresho+d submissions is that no4 that the suit itse+f is at the stage of tria+, 4ith one of the P+aintiffs= 4itnesses a+ready e8amined, no injunction is necessary or appropriate) $ 4i++ dea+ 4ith this straighta4ay) $t has +ong been noticed1 that the de+ays in our 3udicia+ process are sometimes unimaginab+e and stretch to severa+ years even in respect of matters that, by a++ rights, shou+d end in a fe4 4ee6s, months at the most. ;he de+ay notwithstanding, a p+aintiff must sti++ ma6e out a prima &a!ie case) &ut a de+ay in +isting or ta6ing Bombayup an interim app+ication High is not itse+f a reason Courtto deny that app+ication. $f, on 4e++-estab+ished parameters, a case is made out, an injunction 4i++ fol+o4) Ho4ever, and most especia++y in a c+aim for an injunction in a passing off action, the de+ay might affect an 1 An#lo*+ren!h Dru#s & ,ndustries -td . /isen Pharmaceuti!al 0ompan1 Pvt. -td., 199, 1182 P;C 69# 1&om2 8 *% 2+ ::: Uploaded on - 14/09/2015 ::: Downloaded on - 07/10/2015 10:40:45 ::: 211-NMS2144-10-PIDILITE-F.DOC assessment of the ba+ance of convenience) $f, in the intervening years, the defendant in such an action has substantia++y gro4n his business and continued to use the mar6 comp+ained of, $ imagine this 4ou+d give any court of e>uity some pause, and it might not so readi+y grant an injunction as it might have done at an ear+ier point in time) ;he fact that a tria+ has a+ready begun must a+so receive some weightage, even if it is not by itse+f determinative) ,) At +east at this interim stage the facts are not many) ;he issue of +a4 is a+so narro4/ 4hether, in an action based not on a mar6=s registration but only on passing off in re+ation to a descriptive mar6, on a p+aintiff being ab+e to sho4 that it is a prior user of the mar6 in >uestion, and has ac>uired some reputation and good4i++, is it, ipso &a!to entit+ed to an injunction in passing offF $s it sufficient for a p+aintiff in such a case to demonstrate on+y prior user, reputation and good4i++ in that distinctive mar6, or must the p+aintiff demonstrate in addition, as Dr) 'araf says, not on+y that the mar6 has ac>uired distinctiveness at the hands of the p+aintiff but, necessari+y, given that it is a descriptive mar6, a+so sho4 that it has ac>uired Ga secondary meaning=F Dr) ;u+Eapur6ar for the P+aintiffs in this case submits that it is not a+4ays essentia+ to estab+ish that the descriptive mar6, for the purposes of passing off, has ac>uired a secondary meaning) ;his, he submits, is overbroad as an absolute proposition.