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Smart Summary

Factual and Procedural Background

The plaintiff, a well-established manufacturer of pencils and stationery items since 1957, filed a suit for permanent injunction, infringement of trademark, copyright, passing off, and rendition of accounts against the defendants. The suit concerns the plaintiff’s registered trademarks NATARAJ and APSARA, and their associated devices, which are registered for various stationery goods including pencils, sharpeners, pens, erasers, pins, clips, and artistic materials. The plaintiff also holds copyright registration for the packaging cartons of NATARAJ.

In June 2003, the plaintiff became aware that the defendants were using the trademarks and devices of NATARAJ and APSARA on hard board state products, which the plaintiff claimed infringed its rights. The plaintiff alleged that both parties’ goods are sold at the same counters and cater to the same customer base, primarily school-going children, and that the defendants intended to benefit from the plaintiff’s goodwill by creating confusion.

The defendants were not permitted to file a written statement and did not apply for leave to do so thereafter. The plaintiff filed affidavit evidence through Mr. P.N. Thanawala, who proved the registration certificates of the trademarks and copyright. The suit proceeded on this basis.

Legal Issues Presented

  1. Whether the defendants’ use of the trademarks and devices identical or similar to the plaintiff’s registered marks NATARAJ and APSARA amounts to trademark infringement and passing off.
  2. Whether the plaintiff is entitled to a permanent injunction restraining the defendants from using the offending trademarks and devices.
  3. Whether the plaintiff is entitled to damages in light of the defendants’ non-participation in the judicial proceedings.
  4. The procedural question of deficiency in court fees and its impact on the decree.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Hero Honda Motors Ltd v. Shree Assuramji Scooters, 125 (2005) DLT 504 Even if a defendant absents from judicial proceedings, the plaintiff cannot be deprived of a claim for damages. The court applied this principle to hold that defendants who avoid court proceedings cannot escape liability for damages, thereby awarding damages to the plaintiff despite defendants’ non-participation.
Pfizer Products, Inc. v. B.L & Co. & Ors., 129 (2006) DLT 327 Deficiency in court fees must be rectified for the decree to be drawn up. The court referred to this precedent to grant the plaintiff time to pay the deficient court fees before drawing up the decree.

Court's Reasoning and Analysis

The court analyzed the evidence and found that the plaintiff held valid registrations for the trademarks NATARAJ and APSARA and their respective devices. The nature of goods sold by both parties was similar, targeting the same customer base, primarily children purchasing stationery items. The court observed that the defendants’ adoption of similar trademarks and devices, including a minor spelling variation (NATARAJ vs. NATRAJ), was insufficient to distinguish their products and amounted to dishonest intent to pass off their goods as those of the plaintiff.

The court emphasized that such imitation would likely confuse customers, thus constituting trademark infringement and passing off. Regarding damages, the court relied on the precedent that defendants cannot avoid liability by abstaining from proceedings, and awarded a token sum of Rs. 1 lakh as damages to the plaintiff. The court also noted the procedural issue of deficient court fees and allowed time for the plaintiff to rectify it before the decree is finalized.

Holding and Implications

DISPOSED OF

The court decreed the suit in favor of the plaintiff, granting a permanent injunction restraining the defendants and their agents from using the trademarks NATARAJ and APSARA or any similar devices in relation to hard board state or similar items. Additionally, the plaintiff was awarded damages of Rs. 1 lakh and costs of the suit. The decree is subject to the payment of deficient court fees by the plaintiff within the granted time frame.

No new legal precedent was set; the decision primarily enforces the plaintiff's existing trademark and copyright rights and reinforces the principle that defendants cannot escape damages by avoiding judicial proceedings.

    Hindustan Pencils Ltd. v. Aparna Enamel Industries

    Sanjay Kishan Kaul, J.— The plaintiff has filed the suit for permanent injunction, infringement of trademark, copyright, passing off, rendition of accounts against the defendants in respect of its trademarks NATARAJ and APSARA and the device of NATARAJ and APSARA.

    2. The plaintiff claims to be a well established manufacturer of pencils and other items of stationery, carrying on business since 1957. The plaintiff is a registered proprietor of various trademarks like NATARAJ and devices of NATARAJ, the details of which have been set out in para 3 of the plaint. The said registration is in respect of pencils, sharpeners, pens, erasers, pins, clips, stationery and artistic material. The plaintiff is also the registered proprietor of the trademark APSARA in respect of stationery goods and other items as set out in para 4 of the plaint.

    3. The cartons of NATARAJ with the device of NATARAJ have also been registered under the Copyright Act, 1957.

    4. The plaintiff has set out the sales figures for the year 2000-2001 as 95 crores and the expenses on advertisement alone are stated to be in the range of over Rs. 3 crores. In view thereof, it has been stated that both the trademarks NATARAJ and APSARA have acquired vast goodwill and reputation in the stationery business.

    5. In the last week of June, 2003 it came to the notice of the plaintiff that the defendants are using the trademarks and devices of NATARAJ and APSARA in respect of hard board state and thus the plaintiff claims that its trademark was being violated. The plaintiff's case is that goods of both the parties are sold at the same counter being really in the nature of stationery items and purchased by school-going children. The attempt of the defendants is thus to ride piggy-back on the reputation of the plaintiff.

    6. The defendants were not permitted leave to place the written statement on record by the order dated 27.9.2004 nor has any application been made thereafter by the defendants in this behalf. The plaintiff was granted leave to file affidavit of evidence and the affidavit of Mr. P.N Thanawala has been filed as Ex. PX.

    7. The suit was instituted by Sh. P.N Thanawala who has proved the power of attorney in his favour as Ex. P1. The registration certificates of the trademark and device Nataraj have been proved as Exs. P2 to P6 and the registration certificate of the trademark and device APSARA as Exs. P7 to P9. The plaintiff has also proved the copyright certificate of the packaging of the NATARAJ as Ex. P12. Mr. Thanawala has more or less stated what allegations have been set out in the plaint.

    8. The facts on record as also the evidence show that the plaintiff as a registered trademark in both NATARAJ and APSARA and the nature of goods sold by both the plaintiff and the defendant have similarity inasmuch as the customer is broadly the same. Such stationery items are purchased largely by children who would assume that the product of the defendants emanates from the plaintiff in view of the trademark. A perusal of the relevant exhibits would show that not only is the trademark being adopted by defendants but even the devices in both the cases are almost identical. The dishonest intention of the defendants is thus apparent as the defendants want to convey an impression that its products emanate from the plaintiff.

    9. It may be noticed that the defendants are only seeking to make a difference by spelling NATARAJ as NATRAJ while the plaintiff spells it as Nataraj which would in any case not make any difference.

    10. In view of the aforesaid facts, the plaintiff is entitled to a decree of permanent injunction restraining defendants or their agents from selling the hard board state or any other similar item offending the trademarks NATARAJ and APSARA similar and identical to that of the plaintiff including in respect of the devices.

    11. The last aspect to be considered is the question of damages. This Court has already taken a view in Hero Honda Motors Ltd…Plaintiff; v. Shree Assuramji Scooters…Defendant., 125 (2005) DLT 504, that even if the defendant stays away from the judicial proceedings, the plaintiff cannot be deprived of the claim for damages. This is so since the result of the defendant staying away from the judicial proceedings is that any inquiry into the accounts of the defendant for determination of damages cannot take place and a view to the contrary would amount to a premium on the conduct of such defendant. The result would be that parties who appear before the Court and contest the matter would be liable to damages while parties who choose to stay away from the Court after having infringed the right of the plaintiff would go scot-free. This position cannot be acceptable. No doubt it is not possible to give an exact figure of damages on the basis of actual loss, but certain token amounts on the basis of sales of the plaintiff can certainly be assessed. The plaintiff has unnecessarily been dragged into litigation and the defendant must bear the consequences thereof. I am of the considered view that taking into consideration the facts and circumstances of the case, the plaintiff is also entitled for a decree of damages against the defendants for a sum of Rs. 1 lakh apart from the costs of the suit. Decree sheet be drawn up accordingly.

    12. It is observed from the perusal of the plaintiff that the suit is deficiently stamped for purposes of Court fees in view of the judgment of this Court in C.S (OS) No. 1165/2001 titled 129 (2006) DLT 327, Pfizer Products, Inc.…Plaintiff; v. B.L & Co. & Ors.…Defendants. and Co., decided on 3.10.2005 Learned Counsel for the plaintiff, as prayed for, is granted fifteen days time to make up the deficiency of Court fees and the decree sheet be drawn up on the deficient Court fees being paid.

    IA. No. 8087/2003:

    IA. No. 11776/2003:

    13. The applications do not survive for consideration and are disposed of.

    Suit decreed.
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    Comments

    Hindustan Pencils Ltd. v. Aparna Enamel Industries
    (May 8, 2006)