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Anglo-French Drugs & Industries Ltd. v. Eisen Pharmaceutical Company Pvt. Ltd.
Structured Summary of the Opinion (S.N. Variava, J.)
Factual and Procedural Background
Plaintiffs are registered owners of the trade marks "BEPLEX" and "BEPLEX-ZEE" and have substantial sales under those marks. In 1968 defendants began using the mark "LEEPLEX" for vitamin tablets. Plaintiffs originally sued (Suit No. 12 of 1968) in the District Court at Poona; that suit was dismissed on 24 March 1970 but, on First Appeal (No. 472 of 1970), a detailed judgment held that "LEEPLEX" was deceptively similar to plaintiffs' marks and restrained the defendants from using it. Defendants did not appear in the First Appeal hearing because they had discontinued use of "LEEPLEX".
In 1994 Yash Pharma Laboratories Pvt. Ltd. adopted the mark "ZEEPLEX". Plaintiffs filed Suit No. 1351 of 1994; by order dated 10 August 1994 (notice of motion No. 1003 of 1994) a judge of this Court held "ZEEPLEX" to be deceptively similar to the plaintiffs' mark and granted an injunction preventing Yash Pharma Laboratories from using "ZEEPLEX".
Defendants, after earlier failing in their effort to use "LEEPLEX", adopted the mark "ZEEPLEX" and had it registered in 1995. Plaintiffs discovered the registration in 1995 and filed an application for rectification of the Register, which is pending. Plaintiffs then instituted the present suit. At the ad-interim stage, plaintiffs' counsel (Mr. Tulzapurkar) restricted relief sought to prayer (a) and did not, at this stage, seek relief on the basis of infringement.
Legal Issues Presented
- Whether, at the ad-interim stage, the plaintiffs are entitled to an injunction (relief in prayer (a)) restraining defendants from using the mark "ZEEPLEX" on the basis that it is deceptively similar to plaintiffs' marks.
- Whether the defendants' adoption of the mark "ZEEPLEX" was honest, having regard to the defendants' prior knowledge of plaintiffs' marks and earlier attempts to use "LEEPLEX".
- Whether the existence of a registered trade mark in the defendant's name, or the passage of time and the defendant's asserted prior user, should weigh against the grant of ad-interim relief in a passing off action.
Arguments of the Parties
Plaintiffs' Arguments (as recorded)
- Plaintiffs contended that "ZEEPLEX" is deceptively similar to their marks, relying on their established reputation and substantial sales under "BEPLEX" and "BEPLEX-ZEE".
- Plaintiffs pointed to prior judicial findings, including the First Appeal decision on "LEEPLEX" and the 10 August 1994 order in Suit No. 1351 of 1994 holding "ZEEPLEX" deceptively similar, to support their entitlement to ad-interim relief.
- Plaintiffs emphasized defendants' knowledge of plaintiffs' marks and their prior unsuccessful attempt to use "LEEPLEX", arguing that adoption of "ZEEPLEX" was not honest and would cause irreparable injury if continued during court delay.
- At the stage of seeking a stay of the ad-interim order, plaintiffs opposed a stay, arguing that the court had already found dishonest adoption and that defendants had failed to produce sales figures predating 1995.
Defendants' Arguments (as recorded, advanced by Mr. Kadam)
- The suffix "PLEX" has become common in the trade (many vitamin tablets use the suffix), so the relevant comparison should focus on the uncommon parts of the marks; reliance placed on F. Hoffmann La Roche & Co. Ltd. v. Geoffrey Manners and Co. Pvt. Ltd. (1969 2 SCC 716).
- The adoption of "ZEEPLEX" was honest: "ZEE" denoted zinc and "PLEX" was taken from "B-Complex".
- Weight should be given to the fact that the defendants' mark is registered and registration is the product of an elaborate procedure; reliance placed on P.M. Diesels v. Thukral Mechanical Works (AIR 1988 Delhi 282) (para 8) to urge caution in granting interlocutory relief against a registered proprietor.
- If the packings (colour, get-up) and price differ materially, then relief ought not to be granted at the ad-interim stage; reliance placed on Kaviraj Pandit Durgat Dutt Sharma v. Navaratna Pharmaceutical Laboratories (AIR 1965 SC 980) and text authority (Narayanan's "Trade Marks").
- Defendants had been selling under "ZEEPLEX" since 1987 with no reported instances of deception and had built up substantial trade; damages would be an adequate remedy if plaintiffs ultimately succeed (citing Ciba Geigy Ltd. v. Sun Pharmaceutical Ltd., unreported SC 15.5.1992).
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| F. Hoffmann La Roche & Co. Ltd. v. Geoffrey Manners and Co. Pvt. Ltd., 1969 2 SCC 716 | Principle that if a component (e.g., the suffix "PLEX") is common in the trade and extensively used, attention shifts to the distinctive parts of marks, reducing likelihood of deception. | The court accepted the legal proposition but noted that the Hoffmann decision rested on evidence of extensive use (57 marks extensively used). No comparable evidence of widespread use of "PLEX" was presented here; additionally, an earlier 1994 order already found "ZEEPLEX" deceptively similar. Thus the court did not find the Hoffmann principle applicable on the present record. |
| P.M. Diesels Pvt. Ltd. v. Thukral Mechanical Works, AIR 1988 Delhi 282 | Argument that registration (after the trade mark registry's procedures) is a relevant circumstance against granting interlocutory relief; non-objection before registry relevant when considering temporary injunctions against a registered proprietor. | The court recorded the submission and the quoted passage from the judgment but noted that a Division Bench of the Delhi High Court later disagreed with the proposition and that Section 27 of the Trade Marks Act was not considered in that single-judge decision. The court was not persuaded to treat registration as decisive against interlocutory relief on the record before it. |
| N.R. Dongre & Ors. v. Whirlpool Corp. & Anr., 1996 PTC 476 (Division Bench) | Disagreed with the view in P.M. Diesels' single-judge decision; emphasized that Section 27 of the Trade Marks Act and subsequent Supreme Court authority must be considered when assessing the weight to be given to registration in interlocutory proceedings. | The court relied on the Division Bench's disagreement with the single-judge decision and cited a Supreme Court decision (reported in 1996 PTC 583) as establishing that interlocutory injunctions can be granted in passing off actions against registered proprietors. The court therefore did not accept the defendants' reliance on registration as a bar to interim relief. |
| Supreme Court decision reported in 1996 PTC 583 (case name not provided in the opinion) | Negated the contention that interlocutory injunctions should not be passed in a passing off action against a registered owner of a trade mark. | The court treated this Supreme Court authority as binding and decisive on the point that registration alone does not preclude interlocutory relief in passing off proceedings; this undermined the defendants' argument based on registration. |
| Kaviraj Pandit Durgat Dutt Sharma v. Navaratna Pharmaceutical Laboratories, AIR 1965 SC 980 | Submission that where packings (colour, get-up) and other differentiating features are materially different, an ad-interim injunction may not be warranted because such differences can prevent deception. | The court examined the packings and acknowledged the differences in colour and price, but found that those differences were insufficient to prevent deception: "ZEEPLEX" was prominently displayed in bold while other identifying words were in small type, and plaintiffs' reputation made confusion likely. The defendant's packaging argument was rejected on the record before the court. |
| Unreported Supreme Court judgment: Ciba Geigy Ltd. v. Sun Pharmaceutical Ltd., SC dated 15.5.1992 | Held that if damages are an adequate remedy, an injunction should not be granted (argument used to contend that interlocutory relief was unnecessary). | The court acknowledged the principle but found damages would not be adequate here, given prima facie deceptive similarity, defendants' conduct, delay in hearing notices of motion, and the risk of irreparable injury to plaintiffs. Hence the principle did not preclude injunction on the present facts. |
| Supreme Court decision reported at 1990 Supp SCC 727 (citation quoted in the opinion) | Sets out general principles governing interlocutory injunctions: the court must assess prima facie rights, balance of convenience, irreparable injury, and whether the interlocutory remedy is necessary to preserve the status quo. | The court applied these governing principles but concluded that, taking into account prior findings of deceptive similarity, defendants' apparent knowledge and dishonest adoption, the delays in reaching final hearing, and the absence of convincing evidence by defendants, the balance favored granting ad-interim relief to prevent irreparable harm to plaintiffs. |
Court's Reasoning and Analysis
The court proceeded by examining prior adjudications, the factual matrix, the evidence (or lack of it) before the court at the ad-interim stage, and settled principles for interlocutory relief:
- Prior Findings: The court gave significant weight to earlier judicial determinations. The First Appeal (No. 472 of 1970) held "LEEPLEX" deceptively similar, and an order dated 10 August 1994 in Suit No. 1351 of 1994 had already held "ZEEPLEX" deceptively similar. The judge expressly stated agreement with the 1994 view. These prior findings suggested a prima facie case of deceptive similarity.
- Commonality of "PLEX": The defendants relied on the argument that the suffix "PLEX" had become common in the trade (supported by F. Hoffmann La Roche), but the court noted Hoffmann rested on extensive evidence of widespread use. No such evidence was produced here, and the earlier 1994 order had been made at a time when, if "PLEX" were common, that fact would already have been apparent. Therefore the court did not accept the defendants' argument on the record before it.
- Honesty of Adoption: The court scrutinised the defendants' claimed reason for adopting "ZEEPLEX" (combining "ZEE" for zinc and "PLEX" from B-complex) against the backdrop of defendants' prior knowledge: their earlier attempt to use "LEEPLEX" and subsequent discontinuance. Given this history, the court found that, prima facie, the adoption of "ZEEPLEX" did not appear honest.
- Weight of Registration: The defendants stressed their registration and relied on P.M. Diesels. The court observed that a Division Bench (N.R. Dongre) had disagreed with the single-judge view in P.M. Diesels and cited a later Supreme Court decision reported in 1996 PTC 583 holding that registration does not preclude interlocutory relief in passing off actions. The court therefore did not accept the argument that registration should prevent interim relief here.
- Packing and Price Differences: The court inspected the packings. Although colour and price differed (defendants charged a higher price), the court concluded these differences were insufficient to prevent deception: defendants' packaging displayed "ZEEPLEX" prominently while other identifying information was in small, less readable letters, and many consumers would assume affiliation with the plaintiffs given plaintiffs' established reputation.
- Consideration of Delay and Adequacy of Damages: The court acknowledged settled principles governing interlocutory injunctions (including those in the 1990 Supp SCC 727 authority and Ciba Geigy). It concluded that prolonged delays in hearing notices of motion can prejudice plaintiffs and that, if defendants were allowed to continue using an allegedly deceptively similar mark during such delays, plaintiffs would suffer irreparable injury that could not be adequately compensated in damages. The court also observed that defendants had produced sales figures only from 1995 and had not shown earlier sales or advertising expenditure, undermining their claim to long prior user and the adequacy of damages.
Holding and Implications
Holding:
The court granted an ad-interim order in terms of prayer (a). The opinion clarifies that the observations are prima facie in nature.
Ancillary procedural disposition:
- The court stayed its order for 4 weeks to allow defendants an opportunity to have the order tested; defendants were ordered to file, in a sealed cover, accounts for these four weeks.
- It was clarified that all the court's findings in the order are prima facie observations (i.e., made at the interlocutory stage and subject to fuller adjudication at trial).
Implications:
- Direct effect on the parties: Plaintiffs obtained ad-interim relief restraining the defendants' use of "ZEEPLEX" in terms of prayer (a), albeit with a 4-week stay to permit testing of the order. Defendants must file four weeks' accounts in sealed cover for the stay period.
- No new binding legal principle or broader precedent was announced; the court emphasized that its observations were prima facie and interlocutory. The court relied on existing authorities and applied settled principles of interlocutory relief to the facts at hand.
Additional Notes (Procedural / Administrative)
- At the ad-interim stage plaintiffs limited relief to prayer (a); infringement was not pressed at this stage.
- The judge issuing this opinion is S.N. Variava, J., and the order contains specific directions concerning a 4-week stay and production of accounts in a sealed cover.
This summary is prepared strictly from the information contained in the provided opinion and does not add factual or legal matter beyond what the opinion itself records.
S.N Variava, J.:— At this ad-intcrim stage Mr. Tulzapurkar restricts his relief to prayer (a). At this stage, relief on basis of infringement is not applied for.
2. Plaintiffs are registered owners of trade marks “BEPLEX” and “BEPLEX-ZEE”. They have a large sale of products under these marks. In 1968 defendants started using mark “LEEPLEX” for vitamin tablets. Plaintiffs filed suit No. 12 of 1968 in the District Court at Poona. Same was dismissed on 24th March 1970. However in First Appeal no. 472 of 1970 by a detailed Judgement it was held that “LEEPLEX” was deceptively similar and defendants were restrained from using it. It must be mentioned that defendants did not appear at the hearing of the First Appeal because as Mr. Kadam puts it defendants had on their own discontinued using the mark “LEEPLEX”. Fact remains that this shows that defendants had knowledge of plaintiffs' marks and that the two marks were deceptively similar even according to the defendants.
3. In 1994 on Yash Pharma Laboratories Private Limited adopted mark “ZEEPLEX”. Plaintiffs filed Suit No. 1351 of 1994 in this Court. By Order dated 10th August 1994 in notice of motion No. 1003 of 1994 it is held that this mark is deceptively similar to plaintiffs' mark and an injunction preventing Yash Pharma Laboratories Pvt. Ltd. from using the mark “ZEEPLEX” is granted.
4. Defendants having failed in their effort to use mark “LEEPLEX” adopted mark “ZEEPLEX”. They have this mark registered in 1995. Plaintiffs having come to know of it in 1995 filed an application for rectification of Register. That application is pending. Plaintiffs have then filed this Suit.
5. As stated earlier, by an order dated 10th August 1994 in notice of motion No. 1003 of 1994 in Suit no. 1351 of 1994 one of the Judges of this Court has already come to the conclusion that the mark “ZEEPLEX” is deceptively similar to plaintiffs' mark. I am in agreement with the view.
6. Mr. Kadam submitted that earlier decisions about “LEEPLEX” and “ZEEPLEX” being dcceptively similar were given at a time when the word “PLEX” was not so common. Mr. Kadam submits that now there are a large number of vitamin tablets in the market with the suffix “PLEX”. He submits that this suffix has now become common to the trade. He submits that once this is common to the trade, then automatically attention is drawn to the un-common parts in the two marks. He submits that thus there would be no deception. In support of this, he relies on the decision of Supreme Court in the case of F. Hoffmann La Roche & Co. Ltd. v. Geoffrey Manners and Co. Private Ltd. . 1969 2 SCC 716.
7. There can be no dispute as to the proposition of law. However, the decision in F. Hoffmann's ease was based on evidence showing that all the 57 concerned marks had extensive users. At this stage, no such evidence has been brought before this Court. Also, as stated above, in this case it is very clear that the marks, if taken as a whole are deceptively similar. Further the Order dated 10th August 1994 in notice of motion No. 1003 of 1994 in Suit No. 1351 of 1994 has been passed in 1994. By this time also “PLEX” would have been common in trade, if at all it is common as claimed. Further, as is being set out hereafter, prima facie at least the adoption by defendants of the mark “ZEEPLEX” does not appear to be honest.
8. In this behalf Mr. Kadam submitted that defendants adopted the mark “ZEEPLEX” by combining “ZEE” for Zinc and “PLEX” from B-Complex. He submitted that adoption was honest. This submission ignores the fact that defendants knew that plaintiffs are owner of “BEPLEX” and “BEPLEX-ZEE”. They failed in their attempt to use “LEEPLEX” Conveniently they now adopt “ZEEPLEX”. At this prima facie stage the adoption does not appear to be honest.
9. Mr. Kadam next relied on Judgment in the case of P.M Diesels Private Limited…Plaintiff; v. Thukral Mechanical Works…Defendant. . AIR 1988 Delhi 282., he submitted that particularly at this ad interim stage, Court must take into account the fact that defendant's mark is registered. He strongly relied upon para 8 of this judgment which reads as follows:—
In order to appreciate the aforesaid question, it is pertinent to note that before trade mark is registered by the trade mark authorities elaborate procedure has been provided. Procedure, inter alia, requires application for registration of the trade mark being made, the application being advertised, objections, if any being invited and decided and then registration granted: In the present case all these formalities presumably, must have been undertaken prior to the grant of registration in 1965 in the name of Puran Chand Jain and Kailash Chand Jain of Agra. At that time, according to the averments of the plaintiffs, they were manufacturing centrifugal pumps bearing the trade mark “Field Marshal”. The plaintiffs, admittedly, did not raise any objection before the Trade Marks Registry against the proposed grant of registration of the mark “Field Marshal” in respect of the centrifugal pumps in favour of Puran Chand Jain and Kailash Chand Jain. It may be that, as sought to be contended by learned counsel for the plaintiff, non-raising of such an objection before the Trade Marks Registry does not preclude the plaintiffs from applying to this court for rectification of the register, but the non-filing of any objections before the Trade Marks Registry is certainly a circumstance which would be relevant while considering the request of the plaintiff for the grant of a temporary injunction against a registered proprietor of the trade mark.”
10. A Division Bench of the Delhi High Court had occasion to consider the above judgment. In the case of N.R Dongre & Ors. v. Whirlpool Corp. & Anr . 1996 PTC 476, the Division Bench has disagreed with the views expressed by the Learned Single Judge. This on the ground that Section 27 of the Trade Marks Act was neither considered not noticed. Also the position is now settled by the decision of the Supreme Court in the case reported in 1996 PTC page 583. In this case the Supreme Court has negatived a contention that no interlocutory injunction should be passed in a passing off action against a registered owner. The decision of the Supreme Court would be binding. Not possible to accept Mr. Kadam's submission that the position was conceded before the Supreme Court. Even otherwise an Obiter of the Supreme Court is also binding.
11. Relying on the decision of Supreme Court in the case of Kaviraj Pandit Durgct Dutt Sharma v. Navaratna Pharmaceutical Laboratories . AIR 1965 SC 980. Mr. Kadam submitted that if the packings, in which the goods of two parties are vended, are different by reason of colour, get up and other features then no relief should be granted at the ad interim stage. He also relied upon a passage in Narayanan's “Trade Marks” 4th Ed. Pg. 525 para 25-38 and submitted that in this case the prices are also different. He submitted that defendants charges Rs. 14 for a strip whilst plaintiffs charge Rs. 10.14 per strip. He submitted that all this would ensure that there was no passing off.
12. I have seen the packings. Undoubtedly the colours are different. However, that by itself or coupled with fact that the price is slightly higher would not enable the users of such products to so distinguish as suggested by Mr. Kadam. Plaintiffs have built up a large reputation as indicated by their sales figures. Defendants' packings have displayed in bold letters the words “ZEEPLEX” wherein everything else including their name is in small, unreadable letters. As the mark “ZEEPLEX” is deceptively similar, most people would be deceived and will automatically assume that this is plaintiffs product. Also at the cost of repetition it may be mentioned that defendants have adopted the mark with full knowledge of plaintiff s mark.
13. Mr. Kadam next relied upon the Judgment of Supreme Court reported in 1990 Supp SCC 727 wherein it is held as follows:
“Usually, the prayer for grant of an interlocutory injunction is at a stage when the existence of the legal right asserted by the plaintiff and its alleged violation are both contested and uncertain and remain uncertain till they are established at the trial on evidence. The Court, at this stage, acts on certain well settled principles of administration of this form of interlocutory remedy which is both temporary and discretionary. The object of the interlocutory injunction, it is stated:
……………is to protect the plaintiff against injury by violation of his rights for which he could not adequately be compensated in damages recoverable in the action if the uncertainty were resolved in his favour at the trial. The need for such protection must be weighed against the corresponding need of the defendant to be protected against injury resulting from his having been prevented from exercising his own legal rights for which he could not be adequately compensated. The Court must weigh one need against another and determine where the balance of convenience lies.
The interlocutory remedy is intended to preserve in status quo, the rights of parties which may appear on a prima facia case. The Court also, in restraining a defendant from exercising what he considers has legal right but what the plaintiff would like to be prevented, puts into the scales, as a relevant consideration, whether the defendant has yet to commence his enterprise or whether he has already been doing so in which latter case considerations somewhat different from those that apply to a case where the defendant is yet to commence his enterprise, are attracted.”
Mr. Kadam also relied upon an un-reported judgment of Supreme Court dated 15th May 1992 in the case of Ciha Geigy Ltd. v. Sun Pharmaceutical Ltd. . Unreported Judgment of SC dated 15.5.1992, wherein it is held that if damages are an adequate remedy then an injunction should not be granted.
14. Relying on above two judgments Mr. Kadam submitted that defendants have been selling their tablets under the name “ZEEPLEX” since 1987. He submitted that there has been no instance of deception. He submitted that defendants have built up voluminous trade in this product. He submitted that if plaintiffs ultimately succeed then they can be compensated in damages. He submitted that at this ad interim stage defendants should not be injuncted and their trade stopped as it would result in loss to the defendants.
15. There can be no dispute with the propositions of law. However now sad as it is, the reality is that notices of motion do not reach hearing for years. If therefore at the ad interim stage itself the Court is even prima facie satisfied that the marks are deceptively similar and that the adoption is dishonest, not to grant relief would amount to encouraging dishonest parties to use laws delays. If an injunction were to be refused defendants would continue to use the deceptively similar mark and the loss caused to plaintiffs would be irreparable. Also defendants have only disclosed figures showing sales from 1995. This inspite of plaintiffs calling upon them to show figures of earlier sales. No figures of advertisement costs are shown. In my view, this is a fit case where ad interim relief must be granted.
16. Accordingly, there will be an ad interim Order in terms of prayer (a).
17. Clarified that all the above are prima facie observations. Mr. Kadam applies for stay of Order for 4 weeks.
18. Mr. Tulzapurkar opposes. He submits that as the Court has given a finding that adoption is dishonest and as figures of earlier user are not given, no stay should be granted. In my view, defendants must be given an opportunity to have this Order tested. The Order is stayed for 4 weeks. Defendants to file in a sealed cover accounts for these four weeks.
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