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  • Sections 78 and 79 of the Trade and Merchandise Marks Act of 1958.4. Property
  • Sections 78 and 79, Indian Trade and Merchandise Marks Act of 1958
  • Sections 78 and 79 of the Trade and Merchandise Marks Act 1958
  • Sections 78 and 79 of the Trade and Merchandise Marks Act
  • Section 2(v) of the Trade and Merchandise Marks Act
  • SECTION 89 TRADE AND MERCHANDISE MARKS ACT
  • Sections 482 and 486 of the Indian Penal Code,
  • Sections 482 and 486, I.P.C
  • MERCHANDISE MARKS ACT
  • Section 479 I.P.C
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citation codes
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  • Sections 78 and 79 of the Trade and Merchandise Marks Act of 1958.4. Property
  • Sections 78 and 79, Indian Trade and Merchandise Marks Act of 1958
  • Sections 78 and 79 of the Trade and Merchandise Marks Act 1958
  • Sections 78 and 79 of the Trade and Merchandise Marks Act
  • Section 2(v) of the Trade and Merchandise Marks Act
  • SECTION 89 TRADE AND MERCHANDISE MARKS ACT
  • Sections 482 and 486 of the Indian Penal Code,
  • Sections 482 and 486, I.P.C
  • MERCHANDISE MARKS ACT
  • Section 479 I.P.C
Smart Summary

Factual and Procedural Background

The petitioners in these revision cases were convicted under Sections 482 and 486 of the Indian Penal Code (I.P.C) and sentenced to fines and imprisonment related to a criminal case initiated on a private complaint. The complaint alleged that the petitioners used a false property mark imitating that of the complainant, who manufactures and sells a bug killer liquid called “Byron.” The petitioners were accused of manufacturing and selling a bug killer named “Bairavan” in packaging similar to the complainant's products, thereby passing off their goods as those of the complainant.

Additionally, the petitioners faced prosecution in another case for similar allegations of property mark infringement. They raised a preliminary objection that the offences should be tried only by a magistrate not inferior to a First Class Magistrate under Sections 78 and 79 of the Indian Trade and Merchandise Marks Act, 1958, citing Section 89 of that Act. The Sub-Magistrate overruled this objection, leading to the present revision petitions challenging the jurisdiction of the Sub-Magistrate.

Legal Issues Presented

  1. Whether the trial Court (Sub-Magistrate) had jurisdiction to entertain complaints alleging offences under Sections 482 and 486 of the I.P.C relating to infringement of property marks, despite the offences also falling under Sections 78 and 79 of the Trade and Merchandise Marks Act, 1958.
  2. Whether offences under the Trade and Merchandise Marks Act must be exclusively tried by a magistrate not inferior to a First Class Magistrate, thereby excluding the jurisdiction of a Sub-Magistrate.
  3. The distinction between "property mark" under the Indian Penal Code and "trade mark" under the Trade and Merchandise Marks Act, and its impact on jurisdiction and trial of offences.

Arguments of the Parties

Petitioners' Arguments

  • The trial Court (Sub-Magistrate) lacked jurisdiction to try the complaints because the offences fell under Sections 78 and 79 of the Trade and Merchandise Marks Act, which under Section 89 of that Act are triable only by a magistrate not inferior to a First Class Magistrate.
  • Even if the complaints involved offences under both the Trade and Merchandise Marks Act and the I.P.C, the Sub-Magistrate was improperly assuming jurisdiction by trying the offences under the I.P.C while ignoring the Trade and Merchandise Marks Act offences.
  • The complaint filed by the respondent was solely for infringement of trade mark, not property mark.

Respondent's Arguments

  • The offences alleged are for infringement of property mark, which is distinct from trade mark infringement.
  • The complaint clearly states that the petitioners infringed the respondent's property mark by passing off their goods as those of the complainant, supported by evidence such as packaging and product similarity.
  • The Sub-Magistrate had jurisdiction to try offences under Sections 482 and 486 of the I.P.C related to property mark infringement.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Ratanlal's Law of Crimes (20th Edn.) Distinction between "trade mark" and "property mark" and their legal implications. The Court relied on this text to explain the conceptual and legal difference between trade marks and property marks, emphasizing that infringement of property mark is distinct and triable under the I.P.C.

Court's Reasoning and Analysis

The Court analyzed the nature of the offences and the statutory provisions governing them. It noted that "property mark," as defined in Section 479 of the I.P.C, denotes a mark indicating ownership of movable property, distinct from "trade mark" as defined in Section 2(v) of the Trade and Merchandise Marks Act, which relates to marks indicating connection in trade or manufacture.

The Court observed that after the enactment of the Trade and Merchandise Marks Act, offences relating to trade mark infringement were removed from the I.P.C, leaving property mark offences within the I.P.C's scope. The petitioners' contention that the complaint was solely for trade mark infringement was rejected because the complaint explicitly alleged infringement of property mark rights, supported by evidence of similarity in packaging and product presentation.

The Court further reasoned that the offences under the Trade and Merchandise Marks Act and the I.P.C are distinct. While the former must be tried by a magistrate not inferior to a First Class Magistrate as per Section 89 of that Act, the latter offences relating to property marks fall within the jurisdiction of the Sub-Magistrate. The Court concluded that the Sub-Magistrate had material and jurisdiction to take cognizance of the offences under Sections 482 and 486 of the I.P.C.

Therefore, the Court dismissed the petitioners' jurisdictional objections, holding that the Sub-Magistrate was not "clutching at jurisdiction" by trying the property mark offences despite the existence of trade mark infringement allegations.

Holding and Implications

The criminal revision cases are dismissed.

The Court upheld the jurisdiction of the Sub-Magistrate to try offences under Sections 482 and 486 of the Indian Penal Code relating to property mark infringement, notwithstanding simultaneous allegations under the Trade and Merchandise Marks Act. This decision directly affects the parties by affirming the validity of the trials conducted by the Sub-Magistrate. The opinion does not establish any new precedent beyond clarifying the jurisdictional boundaries between offences under the I.P.C and the Trade and Merchandise Marks Act.

    S.K Pothilingam Pillai And Another v. Nagoor Meeran Rowther .

    1. The petitioners in both these revision cases are the same. The first petitioner has been convicted under Sections 482 and 486, I.P.C and sentenced to pay a fine of Rs. 50/- on each count and in default to rigorous imprisonment for one month and the second petitioner has been convicted under Sec-486. I.P.C and sentenced to pay a fine of Rs. 50/- and in default to rigorous imprisonment for one month in C.C 1846 of 1965 on the file of the Sub-Magistrate of Sankarankoil. The criminal case was initiated on a private complaint filed by the respondent for an alleged offence of using false property mark imitating that of the complainant in manufacturing and selling be poison. The complainant is a manufacturer and seller of a bug killer liquid called “Byron” and his concern is known as Laila Co. M.O 1 is a card board box containing the bottle of bug killer. The second petitioner was originally working as an accountant under the complainant but he was discharged from service. The complainant's case is that the first petitioner manufactured bug killer by name “Bairavan” in bottles enclosed in card board box M.O 3, similar in shape, size and design to M.O 1 and that both the petitioners sold the said bug killer as: that of the complainant.

    2. Both the petitioners have been prosecuted in the Court of the Sub-Magistrate (1) Tirunelveli in C.C No. 1739 of 1966 for again infringing the property mark of the respondent complainant there the petitioners raised a preliminary objection that the complaint against them would also constitute offences under Sections 78 and 79, Indian Trade and Merchandise Marks Act of 1958 that such offences are triable, according to Section 89 of the said Act by a magistrate not Inferior to a First Class Magistrate and that they could not therefore be tried by a Sub-Magistrate. The Sub-Magistrate overruled the objection and the petitioners have filed Cri. R.C 747 of 1966 against that order. It is stated by the learned advocate for the respondent that a case has been filed in the Court of the Sub-Divisional Magistrate of Koilpatti, against the petitioners for infringement of the Trade Mark of the respondent complainant.

    3. The contention of the learned advocate for the petitioners in both these cases is that the trial Court, namely, the Court of the Sub-Magistrate, had no jurisdiction to entertain the complaints by virtue of Section 89 of the Trade and Merchandise Marks Act as the offences alleged against the petitioners really fall under Sections 78 and 79 of that Act. The further contention of the learned advocate for the petitioners is that even if the facts alleged in the complaint of the respondent amount to offences both under Sections 78 and 79 of the Trade and Merchandise Marks Act as well as under Sections 482 and 486 of the Indian Penal Code, the Sub-Magistrate would be clutching at jurisdiction in trying the offences under Sections 482 and 486, I.P.C ignoring the offences under Sections 78 and 79 of the Trade and Merchandise Marks Act of 1958.

    4. “Property mark” is defined in Section 479 I.P.C as a mark used for denoting that moveable property belongs to a particular person. “Trade mark” is defined in Section 2(v) of the Trade and Merchandise Marks Act as a registered Trade Mark or a mark used in relation to goods for the purpose of Indicating or so as to indicate a connection in the course of trade between the goods and some person having the right as proprietor to US2 the mark, in relation to Chapter X of that Act and in relation to other provisions of that Act as a mark used or proposed to be used in relation to goods for the purpose of indicating or so as to indicate a connection in the course of trade between the goods and some person having the right, either as proprietor or as registered user, to use the mark whether with or without any indication of the identity of that person and includes a certification of trade mark registered as such under the provisions of Chapter VIII of that Act. After the passing of the Trade and Merchandise Marks Act offences relating to infringement of Trade Marks have been omitted in the Indian Penal Code leaving intact offences relating to property mark.

    5. The term “property mark” as used in the Indian Penal Code, is not known to English law. The distinction between trade mark and property mark is however found in the Indian Penal Code. It a person passes off the goods of another as his own, the English Law, provided a cause of action for the same which is independent of the cause of action for infringement of the trade mark. It is pointed out in Ratanlal's Law of Crimes that the distinction between a ‘trade mark’ and a ‘property mark’ is, that the former denotes the manufacture or quality of the goods to which it is attached and the latter denotes the proprietor of them.

    6. I am unable to accept the contention of the learned advocate for the petitioners that the complaint filed by the respondent is only for infringement of trade mark. In para 2 of the complaint in C.C No. 1846 of 1965 on the file of the Sub-Magistrate, Sankarankoil, the complainant has stated that in respect of his bug poison under his trade mark “Bayron” and in respect of shape of bottles and shape or size of card board box, as stated in the previous paragraphs and with colour as found therein, they are distinctive of his goods and he has acquired property rights in respect of them. In fact in the subsequent paragraphs the complainant has stated that the petitioners have been passing off their goods as his goods by infringing his property mark. A mere comparison of M.Os II and 3 in the case is sufficient to convince the correctness of the findings of the Courts below that the petitioners have. Infringed the property mark of the respondent complainant in C.C 1846 of 1965. It is true the alleged infringement of property mark in the other case has yet to be enquired into. It is sufficient to state that the Sub-Magistrate, Sankarankoil, in the first revision case and the Sub-Magistrate I, Tirunelveli in the second case had materials before them to take cognizance of the offence for infringement of property mark, punishable under Sections 482 and 486, I.P.C on complaint of the respondent in respect of the same.

    7. The only other question to be considered is, whether by reason of the infringement of the trade mark, which is also evident from the complaints and which would amount to offences under Sections 78 and 79 of the Trade and Merchandise Marks Act 1958 the Sub-Magistrate would have no jurisdiction to entertain the complaints under Sections 482 and 486, I.P.C on the ground that he would be clutching at jurisdiction by ignoring obvious facts. The offence of infringement of trade mark is distinct from an offence of infringement of property mark. In fact the existence of such a distinction is dear from the provisions in the Penal Code with regard to trade mark prior to the enactment of the and Merchandise Marks Act, when the offences relating both to trade mark land property mark were triable by Sub-Magistrates.

    8. At page 1240 of Ratanlal's Law of Crimes (20th Edn.) it is pointed out that if A is known not to be the maker or manufacturer of the goods he sells, but only to have selected and put them up and he uses a certain mark to indicate to his customers that they will thus have the benefit of his skill in selection, then, in the terminology of the Penal Code, the mark would be a property mark and not a trade mark, but if the main purpose of the mark were to indicate the quality of the goods, then even though A was not the maker of them, it would be a trade mark and not a property mark. Even in cases of goods which have no trade mark or in cases in which the trade mark has not been registered, a person could have a cause of action both in civil and criminal Courts for infringement of property mark. It is only in respect of offences falling under Sections 78 and 79 of the Trade and Merchandise Marks Act the complaint should be filed before the First Class Magistrate.

    9. The complaints of the respondent in the cases before me are only for infringement of his property mark by reason of the conduct of the petitioners in trying to pass off their goods as his goods, by adopting the property mark of the respondent. I am therefore unable to accept the contention of the learned advocate for the petitioners that the Sub-Magistrate of Sankarankoil in the first case or the Sub-Magistrate (I) of Tirunelveli in the second case has no jurisdiction to try offences relating to infringement of the property mark of the complainant.

    10. The criminal revision cases are therefore dismissed.

    SSG/D.V.C

    11. Petition dismissed.

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    Comments

    S.K Pothilingam Pillai And Another v. Nagoor Meeran Rowther .
    (Nov 10, 1967)