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M/S. Asha Seap Factory v. Dhanthak & Company And Another

Bombay High Court
Dec 7, 1983
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Smart Summary (Beta)

Structured Summary of the Opinion (Kantharia, J.)

Factual and Procedural Background

The plaintiffs (Respondent No. 1) sued defendant Nos. 1 and 2 in Short Cause Suit No. 601 of 1983 in the City Civil Court, Bombay, seeking permanent injunctions and accounts. The plaintiffs alleged they have manufactured a washing soap with a distinguishing trade mark consisting of two letters "BB" each within separate circles, used since 1952 and registered under the Trade and Merchandise Marks Act, 1958 (registration dated 6-6-1977, effective from 21-3-1975; Trade Mark No. 303948). They claimed defendant No. 1 had been manufacturing soaps bearing two figures "88" each within separate circles (allegedly similar or deceptively similar to "BB" in circles) and defendant No. 2 was selling those soaps. The plaintiffs asserted mala fide intention and an attempt to trade on their goodwill, and alleged defendant No. 1's soaps were of inferior quality causing risk to the plaintiffs' reputation.

The plaintiffs moved the trial court by Notice of Motion for interim reliefs. After affidavits and documentary evidence and hearing, the learned trial Judge made the Notice of Motion absolute in terms of prayer clauses (c) and (d), granting preventive interim injunctions restraining:

  • Defendant No. 1 (and their agents) from manufacturing or producing for sale washing soaps bearing a mark containing letters "BB" in two circles or numericals encircled in two circles similar to or deceptively similar to the plaintiffs' registered trade mark No. 303948, and from selling such infringing products or passing them off as plaintiffs' products; and
  • Defendant No. 2 (and their agents) from selling the said goods bearing the infringing trade mark.

Defendant No. 1 appealed the interim order to the court presided over by Kantharia, J.; the present opinion is the judgment on that appeal, dated from an earlier order of 18th March 1983 in Notice of Motion No. 603 of 1983.

Legal Issues Presented

  1. Whether the trial court was correct in granting a preventive interim injunction restraining defendant No. 1 from manufacturing and/or selling soaps bearing a mark of two figures "88" encircled (or other numericals encircled) on the ground that it is similar to the plaintiffs' registered "BB" in circles and likely to infringe or pass off.
  2. Whether defendant No. 1's prior registration and use of a mark "88" (registered 24-3-1966; asserted use from 1956) defeats the plaintiffs' claim for interim relief.
  3. Whether the plaintiffs' suit was barred or debarred by delay (laches), given allegations that defendant No. 1 began using a similar mark earlier (allegedly from 1980 or noticed in 1981) and that the suit was filed in 1983.
  4. How the balance of convenience and risk of irreparable injury should be assessed between the parties pending final disposal of the suit.

Arguments of the Parties

Appellant (Defendant No. 1) — Main Arguments

  • There cannot be a trade mark in respect of the shape of soap or simple geometrical designs such as circles; encircling figures or letters should not be afforded exclusive protection.
  • Defendant No. 1 had a prior registration for the mark "88" (registered 24-3-1966) and had been using "88" since 1956; thus the plaintiffs cannot object to their use.
  • The plaintiffs knew of these facts and suppressed them in the trial court.
  • The plaintiffs delayed filing suit despite defendant No. 1 allegedly using a similar mark from about 1980, raising a contention of delay against the plaintiffs.

Respondent (Plaintiffs) — Main Contentions

  • The plaintiffs are the longstanding manufacturers of the soap bearing the "BB" mark (used since 1952), registered and renewed, and their mark is a distinctive registered trade mark (Trade Mark No. 303948).
  • Defendant No. 1 adopted the mark consisting of two figures "88" each encircled in a manner deceptively similar to plaintiffs' "BB" circles, with mala fide intention to take advantage of the plaintiffs' goodwill; defendant No. 2 sold those soaps.
  • The defendant's products are of inferior quality and their sale under a deceptively similar mark would harm plaintiffs' reputation and goodwill irreparably.
  • On delay: plaintiffs explained earlier sightings in September 1981 and that products were not seen for a long time thereafter (creating impression of cessation), and only upon reappearance did plaintiffs promptly file suit.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The court's reasoning proceeds through factual comparison, assessment of documentary history, consideration of intention and timing, and application of interlocutory relief principles (prima facie case, balance of convenience, irreparable injury). The judge set out the analysis as follows:

  1. Comparison of marks and evidence:
    • The court inspected Xeroxed specimens of defendant No. 1's registered mark "88" and the plaintiffs' registered mark "BB". It found that the earlier form of defendant No. 1's mark (as shown in older documents) was distinguishable from the plaintiffs' mark because the overall appearance differed (for example, earlier bills showed the words "Asha Shop Factory" above the two figures "88" and the word "special" below, which made that earlier mark look different).
    • However, the later form of defendant No. 1's mark—two figures "88" each encircled separately and used in the present form at least from about 1980 (an admission in evidence)—gave an overall appearance very similar to plaintiffs' "BB" encircled marks, producing a deceptive likeness on mere inspection of the soap cakes themselves.
  2. On prior registration and abandonment:
    • Although defendant No. 1 had a registration dated 24-3-1966 and asserted prior use from 1956, the court found that what they used earlier was materially different in appearance and that the matter of earlier registration did not help them in defending the present form of use.
    • The Registrar of Trade Marks had objected to an earlier application by defendant No. 1 for registration of the encircled "88" mark; that application was not actively pursued by defendant No. 1, was allowed to be dismissed and held to be abandoned, with costs ordered to plaintiffs—this fact was treated as adverse to defendant No. 1.
  3. Inference of mala fide intention:
    • The court treated defendant No. 1's own admission that they were using the encircled "88" in the present form since about 1980 as evidence that they had adopted a form which drew near to the plaintiffs' mark, supporting an inference of mala fide intention to copy or trade on the plaintiffs' goodwill.
  4. Consideration of delay (laches):
    • The defendants argued plaintiffs delayed filing the suit; the plaintiffs explained they first noticed defendant No. 1's products in about September 1981, then the products disappeared from the market for a long time, causing plaintiffs to think production had ceased; when the products reappeared bearing the infringing mark, plaintiffs filed suit. The court accepted this explanation and rejected the contention that delay defeated plaintiffs' claim.
  5. Direct inspection and likelihood of confusion:
    • The judge personally examined the soap cakes of both parties and concluded that even a bare look showed "great similarity and/or resemblance" and that there was "every possibility of customers being misled and misguided into buying one soap for the other". This factual finding underpinned the court's view that a prima facie case of infringement and risk of passing off was made out.
  6. Balance of convenience and irreparable harm:
    • The court compared economic indicators: defendant No. 1's reported turnover peaked at Rs. 13,12,947 in 1980–81 and fell to Rs. 9,63,555 in 1981–82, indicating their business in this soap was not highly lucrative. In contrast, plaintiffs' turnover rose substantially from Rs. 117.69 lakhs in 1976 to Rs. 296.12 lakhs in 1981.
    • The court reasoned that if defendant No. 1 were allowed to continue selling infringing products, plaintiffs' business, reputation and goodwill would likely suffer and that such harm (loss of reputation through consumers being misled to buy inferior soap) could not be adequately compensated in money. Conversely, if defendant No. 1 were restrained from using the encircled form of mark, they could still use "88" without circles and would not be unduly harmed.
  7. Conclusion of interlocutory assessment:
    • On the cumulative effect of the documentary differences, defendant No. 1's admission of adoption of encircled "88" from about 1980, the evidence of abandonment of a previous application, the court's own inspection of the articles, and the balance of convenience/irreparable injury analysis, the court found that plaintiffs had made out a prima facie case for interim relief and that the trial court's grant of the preventive interim injunction was justified.

Holding and Implications

Core Ruling: The appeal by defendant No. 1 is dismissed and the impugned order of the trial court granting the preventive interim injunction (in terms of prayer clauses (c) and (d) of the plaintiffs' Notice of Motion) is upheld. The appeal is dismissed with costs. The interim orders passed in Civil Application No. 1439 of 1983 are vacated.

Implications (direct effects):

  • The trial court's interim injunction restraining defendant No. 1 from manufacturing/producing for sale soaps bearing encircled marks deceptively similar to plaintiffs' "BB" mark and restraining defendant No. 2 from selling such products remains effective (as upheld by this court) pending final disposal of the suit.
  • Defendant No. 1 is liable for costs of the appeal as ordered by the court.
  • The opinion does not purport to lay down any broader legal precedent beyond the adjudication of the interlocutory dispute in this factual matrix; it upholds the trial court's factual findings and interlocutory balancing as applied to these parties and this case.

This summary is prepared strictly from the contents of the provided opinion. No additional facts, precedents, or inferences beyond the text of the opinion have been added.

Show all summary ...

Kantharia, J.:— This is an Appeal from Order dated 18th March 1983 passed by the learned Judge of the City Civil Court, Bombay, in Notice of Motion No. 603 of 1983 taken out by Respondent No. 1 (hereinafter referred to as ‘the plaintiffs’) in Short Cause Suit No. 601 of 1983.

2. The facts and circumstances under which the present appeal came to be preferred are that the plaintiffs filed a suit in the trial Court for permanent injunction against the present appellants (hereinafter referred to as ‘the Defendant No. 1’) from manufacturing washing soaps bearing their trade mark or trade mark identical or simitar or deceptively similar to the plaintiffs trade mark and for permanent injunction restraining respondent No. 2 (hereinafter referred to as ‘the Defendant No. 2’) from selling such soaps and further ordering defendant Nos. 1 and 2 to render accounts of the business done in selling such soaps and ordering them to pay the profits derived from such business to the plaintiffs. The case of the plaintiffs was that they are the manufacturers of a kind of washing soap with a particular and distinguished mark of their product since the year 1952. According to them this distinguished mark was registered under the Trade and Merchandise Marks Act, 1958 on 6-6-1977, the registration being effective from 21st March, 1975. The trade mark consisted of two letters “BB” each within separate circles. This registration was initially for a period of seven years and was renewed in the year 1982 for a further period of seven years. They alleged that defendant No. 1 started manufacturing soaps having similar shape and having a mark of two figures “88” each within separate circles thus similar or deceptively similar to the trade mark of the plaintiffs, with a mala fide intention to take advantage of the popularity of the plaintiff's trade mark and with dishonest intention to trade upon the plaintiff's goodwill and reputation. Defendant No. 2 was selling the said soaps manufactured by defendant No. 1 in Kurla. The plaintiffs contended that the soaps manufactured by defendant No. 1 were of much inferior quality and therefore, they would lose their reputation and goodwill if such soaps were allowed to be sold in the market. The case of defendant No. 1 was that there could not be a trade mark regarding shape of soap or with regard to geometrical designs such as circles. They contended that they had got their trade mark “88” registered as on 24th March 1966 and the said registration is still valid and further that they were using the said trade mark since the year 1956. The also contended that the plaintiffs were aware of these facts which they suppressed from the trial Court.

3. A notice of motion was taken out by the plaintiffs, in the suit for certain reliefs and after the parties filed their documents and affidavits and after affording a reasonable opportunity of being heard the learned trial Judge by his impugned order made the Notice of Motion absolute in terms of prayer clauses (c) and (d) thereby ordering that during the hearing and final disposal of the suit, defendant No. 1 by themselves, their proprietors, servants and agents be restrained by a preventive interim injunction and order from manufacturing and/or producing for sale of the said washing soaps bearing a trade mark containing letters “BB” in two circles (each is one circle) or nubericals encircled in two circles similar to and/or identical with and/or deceptively similar to and/or, identical with the plaintiffs' said registered trade mark “BB” in two circles, duly registered under Trade Mark No. 303948 and/or from selling any such fake products under such infringing trade mark and/or from passing off their products as the products of the plaintiffs and further that during the hearing and till final disposal of the suit, defendant No. 2 by themselves, their servants agents and officer be restrained by a preventive interim injunction and order from calling the said lake goods, viz. the products of defendants No. 1 referred to above and bearing such infringing trade mark thereby violating plaintiffs Registered Trade Mark No. 303948. Aggrieved by this order defendant No. 1 preferred the present appeal.

4. Now, it is no doubt true that defendant No. 1 had got their trade mark “88” registered as back as on 24th March 1966. However, a specimen of the said trade mark, as and by way of a Xerox Copy is produced with the case papers which-clearly shows that the said trade mark was very much distinguishable from the one of the plaintiffs, a Zerox Copy of which is also brought on the record. Thus figures “88” shown encircled separately at that time in 1956 when compared to letters “BB” encircled separately give an altogether different appearance and, therefore, it would the correct and proper for defendant No. 1 to say that they had been using such a trade mark right from the year 1956 and as such now the plaintiffs can not take any objection to it in other words, what they were using as trade mark from 1956 was different from what they are trying to use now resembling the trade mark of the plaintiffs. On behalf of defendant No. 1 of a bill of the year 1957 was shown to me during the hearing. It appeals therefrom that two figures “88” in two separate circles were used on that bill but a bare look at it shows that those marks look very much different from the plaintiffs trade mark. Further, the trade mark as defendant No. 1 was them using was with the words “Asha Shop Factory” just above the two figures “88” and below these figures the word “special” was also inscribed or written. That made the whole difference between the trade mark of the plaintiffs and that of defendant No. 1 which they claim to be using from 1956. Therefore, to any that they have been using such a trade mark from the year 1956 and that of was registered in the year 1966 does not help defendant No. 1 in any manner, for, their trade mark then was basically looking different from the trade mark of the plaintiff. Still one more circumstance against defendant No. 1 is that they had applied for registration of a trade mark having two figures “88” encircled separately long time back which was objected to by the plaintiffs. At that them defendant No. 1 had taken no steps with a view to pursue their application for registration of such a trade mark and it was allowed to be dismissed which was held to be deemed to have been abandoned and defendant No. 1 were ordered to pay costs to the plaintiffs by the Registrar of Trade Marks. Again, a clinching circumstance against defendant No. 1 on their own admission is that they are using the trade mark “88” in two circles in the present form at least from the year 1980. If may be noted here that this contention was unwittingly raised by them with a view to make a point that the suit as filed by the plaintiffs was delayed inasmuch as although they came to know that defendant No. 1 started using such a trade mark from the year 1980, the suit was filed as late in the year 1983. But in their attempt in doing so, defendant No. 1 exposed themselves to the extent that they mischievously tried to copy the trade mark of the plaintiffs somewhere in the year 1980 with a view to go very near the trade mark of the plaintiffs. At this stage, I may also dispose of a contention raised on behalf of defendant No. 1 that the filing of the suit was delayed, as stated hereinabove. The explanation of the plaintiffs in this regard is that defendant No. 1's products were noticed in the market in or about September, 1981 but-thereafter the said products were not seen in the market for a long time and, therefore, the plaintiffs entertained an impression that defendant No. 1 had stopped production and/or using the said infringing trade mark of the plaintiffs and hence they did not take any action earlier against them. It is now when they again noticed the products of defendant No. 1 in the market bearing the infringing trade mark of the plaintiffs that the plaintiffs were shocked and surprised and filed the suit. Any way, that the defendant No. 1 started using a trade mark very much similar to that of the plaintiffs somewhere in the year 1980 goes to show that they had the mala fide intention of infringing the trade mark of the plaintiffs. Apart from all these circumstances, I have had a look at the soap cakes of both the plaintiffs and defendant No. 1. And I am convinced that even a bare look at these soap cakes clearly shows that there is great similarity and/or resemblance in them and as such there is every possibility of customers being misled and misguided into buying one soap for the other because the appearances of the trade marks of the plaintiffs and defendant No. 1 are very much deceptive being alike. Under the circumstances, I am more than satisfied that the plaintiffs have made out a prima facie case that their trade mark is being infringed.

5. Mr. Bhabha, learned Counsel appearing on behalf of defendant No. 1, drew my attention to a number of trade marks allotted to various manufacturers or traders with two letters encircled separately or to numerical figures encircled separately and urged that when geometrical designs like circles have no bearing so long as registration of trade mark is concerned, why should the plaintiffs be so very touchy that defendant No. 1 is marking use of such circles. The argument of Mr. Bhabha appears to be attractive but it should be remembered that there is great similarity between figures “88” and letters “BB” and when they are separately encircled that the appearance becomes very much deceptive as both trade marks look alike. Such use of the “figures” and “fetters” after they are encircled is bound to mislead or misguide the innocent customers in buying one kind of soaps for the other. It is also pertinent to note here that admittedly the trade mark of defendant No. 1 was registered with two figures “88”, then who and why are they interested in using those figures after encircling them unless they have mala fide intention to reach very near the trade mark of the plaintiffs. None can have any objection to their using their trade mark as “88” only but if they are interested in using also the circles, instead of using figures “88” they may use any other figures which may not have resemblance to letters “BB” belonging to the plaintiffs so that the trade mark of the plaintiffs be not infringed. It may also be noted here that the plaintiffs have absolutely no objection if defendant No. 1 make use of figures “88” only without they being encircled.

6. The balance of convenience also appears to be in favour of the plaintiffs. The business of defendant No. 1 in this particular kind of soap does not appear to be lucrative at all. On behalf of defendant No. 1, the figures of turn over from the year 1956 to 1981-1982 of the sale of their soap are shown to me and I find that the largest turn over was in the year 1980-1981 to the tune of Rs. 13,12,947/-. This amount was reduced to Rs. 9,63,555/- in the year 1981-1982. As against this the turn over of the business of the plaintiff's has been increasing by leaps and bounds. A statement as to the yearly turn over of the plaintiffs from 1972 to 1981 was shown to me. As rightly, pointed out on behalf of defendant No. 1 that the figures of turn over of the plaintiffs from 1972 to 1974 cannot be taken into consideration because admittedly the registration of the trade mark of the plaintiffs was effective from 1975. But even if we take into consideration the turn over of the plaintiffs business from the year 1975 we find that the turn over has been increasing year after year inasmuch as in the year 1976 it was to the tune of Rs. 117.69 lakhs and it went on increasing upto the extent of Re. 296.12 lakha in the year 1981. If, therefore, defendant No. 1 were allowed to sell their products infringing the trade mark of the plaintiffs, the business of the plaintiffs is not only likely to suffer but their reputation and goodwill are also likely to be adversely affected inasmuch as if people are misled in buying soap cakes of Inferior quality, they are bound to react by saying that the product of the plaintiffs was of inferior quality and this loss of reputation and goodwill cannot be compensated in terms of money. On the other hand, if defendant No. 1 manufactures their soaps with the same trade mark “88”, no harm or injury is likely to be suffered by them.

7. In the premises of what I have stated above, I find absolutely no infirmity in the impuged order. There is thus no substance in the appeal. The appeal. Therefore, stands dismissed with costs. The interim orders passed in Civil Application No. 1439 of 1983 stand vacated.