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Opinion Summary — Leach C.J. (Passing Off; Diamond Twill)

Factual and Procedural Background

The opinion concerns two consolidated appeals arising from a suit on the Original Side for an injunction in a passing off action. The parties are described as the first plaintiff (a London company), the second plaintiff (a Madras piece-goods merchant) and the defendant (another Madras piece-goods merchant).

For about twelve years prior to the suit the second plaintiff had been buying a particular white twill from the first plaintiff and importing it into Madras. The twill bore a stamped gold device — a diamond picture with radiating lines and the words “diamond” above and “twill” below in distinctive lettering — referred to in the opinion as the “diamond” mark. The first plaintiff designed the mark and supplied the twill to the second plaintiff stamped with that mark; in a 12 July 1928 letter the first plaintiff promised not to supply other dealers with twill stamped with the second plaintiff’s trade mark. The first plaintiff, however, had never sold goods bearing the mark in India; his business, as conducted, involved selling the twill to the second plaintiff in England.

The defendant also imported and sold twill. From 1933–1935 he used a “gold-star” mark (a multi-pointed star with radiating lines and the words “gold-star” and “twill” in different lettering). In 1935 he altered his mark: (i) he adopted the distinctive letter-forms used by the second plaintiff; (ii) he filled in the central star, making it visually closer to the diamond device; and (iii) he thickened the radiating lines so they resembled those on the diamond mark. The plaintiffs alleged that this altered mark was a colourable imitation of the diamond mark and sought an injunction.

The case was tried by Gentle J., who found that the defendant deliberately changed his mark to resemble the diamond mark and that the altered mark constituted a colourable imitation. The trial judge rejected the claim that the plaintiffs were joint owners of the mark, but held that the second plaintiff had acquired association of the mark with his goods in the Indian market and thus was entitled to an injunction and Rs. 500 damages; the first plaintiff was dismissed from the suit. Both parties appealed: the defendant appealed against the decree; the first plaintiff appealed against his dismissal from the suit. The two appeals were heard together.

Legal Issues Presented

  1. Whether the first plaintiff had acquired such user or reputation in India in respect of the diamond mark as would give him a cause of action against the defendant (i.e., was joint ownership or Indian reputation established?).
  2. Whether the second plaintiff, who was an importer/seller rather than the manufacturer, could maintain a passing off action in respect of the diamond mark used on goods he sold in India.
  3. Whether, to succeed in a passing off action, the owner/claimant must show that the ultimate purchaser associates the mark with the claimant by name (i.e., must the ultimate purchaser know the actual name of the owner or importer?).
  4. Whether the injunction granted by the trial court (prohibiting use of the offending mark on all classes of piece goods) was overly wide.

Arguments of the Parties

First Plaintiff (as represented in the plaint)

  • The plaint claimed that the plaintiffs (first and second together) were jointly entitled to the exclusive use of the diamond mark and sought an injunction on that basis.
  • The learned Advocate for the first plaintiff argued at one stage that it was not necessary to emphasise the plea of joint ownership because the defendant had conceded that either the first plaintiff or the second plaintiff or both had the exclusive right to use the diamond mark in India.

Second Plaintiff (as reflected in the suit and trial judgment)

  • The second plaintiff asserted that the diamond mark had become associated in the Madras market with the twill he sold, entitling him to protection and injunctive relief against the defendant's colourable imitation.

Defendant's Arguments

  • The defendant admitted changing his mark but contended that the second plaintiff could not obtain relief because he was not the manufacturer but merely an importer; therefore, the defendant argued, the second plaintiff must show that the mark had become associated with his name specifically as importer/seller and not merely as the seller.
  • The defendant further argued that the second plaintiff must show that the ultimate purchaser associates the mark with his name (i.e., that purchasers know the owner/importer by name), and that these conditions had not been satisfied.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
The Imperial Tobacco Company of India v. Bonnan (Privy Council) Illustrates that an importer may acquire a valuable reputation by care in selection, transit/storage precautions, or local character such that competitors passing off goods as being imported by him gives a right of action. Referred to as an example showing circumstances in which an importer can acquire rights — but the court emphasised the statement is not exhaustive and does not limit other circumstances in which a seller/importer may be entitled to protection.
Ullman & Co. v. Casar Leuba Holds that where the trade in a locality belongs to the original importer, a manufacturer who has not carried on trade there may lack sufficient interest to found a cause of action. Distinguished on the facts: the court noted Ullman & Co. shows the principle that local trade may belong to the importer, but in the present case the second plaintiff had established reputation in India while the manufacturer had not used the mark in India.
Ebrahim Currim… (Plaintiff); v. Essa Abba Sait… (Defendant) Applied the principle similar to Ullman & Co. regarding local trade/importer interests. Referred to as a local application of the same principle; cited to show analogous reasoning previously applied by this Court.
The West End Watch Company… (Plaints); v. The Berna Watch Company… (Defs) Applied the principle that local importer/merchant rights can be determinative of who has the trade in that market. Referred to as another case applying the Ullman principle (by the Bombay High Court), supporting the discussion of importer v. manufacturer rights.
The Birmingham Vinegar Brewery Co. Ltd. v. Powell (the "Yorkshire Relish" case) Establishes that customers may seek a particular manufacture/description (e.g., "Yorkshire Relish") without knowing the maker's name; passing off can be a fraud even when purchaser does not know manufacturer's identity. Quoted at length to reject the defendant's contention that the ultimate purchaser must know the claimant's name; used to show reputation may be in a particular manufacture or device rather than the owner's name.
Madhavji Dharamsey Manufacturing Co. Ltd. v. The Central India Spinnings Weaving and Manufacturing Co. Ltd. Holds that when goods acquire a reputation by a particular description/combination/device, it is immaterial that customers do not know who the maker is. Invoked to support the proposition that the second plaintiff need not prove the ultimate purchaser knows his name; reputation in the market for the mark is sufficient.
Wotherspoon v. Currie Similar remarks about reputation and purchaser knowledge (contextual reference). Referred to in support of the proposition that purchasers need not know the maker's name for passing off protection to arise.
William Edge & Sons Ltd. v. William Niccolls & Sons Ltd.; Slazenger & Sons v. Spalding & Brothers; Wulfing v. Jivandas & Co. Cases cited for similar principles on reputation and passing off (as noted by Varadachariar, J.). Referred to collectively by Varadachariar, J. to underscore established authorities supporting the court's conclusion on purchaser knowledge and reputation.
Batchayi Rowther v. Ramaswami Pillai Earlier local judgment referenced; earlier observations had been relied on by appellant's counsel. Varadachariar, J. clarified that his earlier observations should not be read as supporting the defendant's contention that purchasers must know the owner by name; the Batchayi Rowther facts were materially distinct (lack of evidence of association).
Mahomed Esuf v. Rajaratnam Pillai Quoted in prior judgment on issues of establishing association in the public mind. Mentioned as part of Varadachariar, J.'s explanation of why the prior ruling did not support the defendant; used to show factual absence of association in that earlier case.

Court's Reasoning and Analysis

The court proceeded in distinct steps, applying established passing off principles to the facts before it:

  1. Ownership and user (first plaintiff): The court emphasised that under Indian law (in the absence of English-style Trade Mark Acts) relief for passing off depends on proof of user and reputation in the relevant market. A plaintiff must show actual use of the claimed mark on or in connection with the goods and that the mark has become associated in the public mind with those goods. On the evidence, the first plaintiff had not established reputation or user in India, and therefore had no cause of action in India; accordingly his appeal was dismissed.
  2. Deliberate imitation and likelihood of deception: The court accepted the trial judge's finding that the defendant deliberately altered his mark in 1935 to make it resemble the diamond mark, and that the alterations were of such a character as to make confusion or mistake likely. The court described this as a deliberate intention to defraud, thereby establishing the wrongful conduct element of passing off.
  3. Rights of an importer/seller vs. manufacturer: The court addressed the defendant's contention that an importer (or non-manufacturer) cannot claim protection unless the mark is associated with his name as importer. The court relied on authorities (including the Imperial Tobacco passage and Ullman & Co.) to show that importers may acquire rights in certain circumstances, but emphasised that those authorities do not exhaustively define all circumstances. The governing principle the court stated is that a merchant who sells particular goods under a particular trade mark is entitled to protection if he can show that the mark is associated in the market with the goods he sells — it does not matter whether the merchant had the goods made abroad or within the country.
  4. Association in the market, not name recognition: The court rejected the defendant's further contention that the ultimate purchaser must associate the mark with the claimant's name. Citing and quoting the "Yorkshire Relish" case and other authorities, the court held that it is sufficient for the purchaser to recognize that goods bearing the mark are the particular manufacture or quality he wants; the purchaser need not know the actual name of the maker or importer. Therefore, the second plaintiff's established reputation for the diamond mark in the Madras market sufficed.
  5. Remedies—damages and injunction: The court found the Rs. 500 damages awarded by the trial judge not excessive. As to the injunction, since the plaintiffs had sought an injunction in respect of all classes of piece goods and the defendant had not argued at trial that such an injunction would be too wide if rights were established, and because both parties dealt in the same kind of piece goods and the mark had become associated with the second plaintiff in the trade, the court saw no reason to alter the form of the injunction granted by the trial judge.

Holding and Implications

Holding: Both appeals were dismissed. The court upheld the trial judge's finding that the defendant's altered mark constituted a colourable imitation and that the second plaintiff had acquired a reputation in India for the diamond mark; accordingly the second plaintiff's injunction and the award of Rs. 500 in damages were sustained. The first plaintiff's appeal (seeking relief as co-owner) was dismissed for lack of reputation/user in India.

Additional dispositional details explicitly stated in the opinion:

  • The injunction in favour of the second plaintiff, as granted by the trial Court (prohibiting the use of the offending mark on all classes of piece goods), was left undisturbed.
  • Damages of Rs. 500 awarded to the second plaintiff were considered not excessive and were upheld.
  • Costs: in Appeal No. 20 the second plaintiff will be entitled to costs against the defendant; in Appeal No. 29 the defendant will be entitled to costs (having succeeded thereagainst the first plaintiff).

Implications: The opinion reiterates established principles of passing off in the Indian context — in particular, that user and reputation in the relevant market are essential, that an importer/seller can acquire rights by such user and reputation even if not the manufacturer, and that protection does not require that the ultimate purchaser know the actual name of the owner/importer. The court did not purport to lay down any novel legal rule or to extend precedent beyond these applications; the decision applies existing principles to the facts and determines the parties' rights accordingly.

Decree accordingly. (N.R.R.)

    S. Meera Sahib And Brothers v. Hajee M. Abdul Azeez Sahib

    Leach C.J:—This appeal and Appeal No. 29 of 1937 arise out of a suit which was filed on the Original Side of this Court for an injunction in a passing off action and as they have been heard together they will be dealt with in one judgment. The appellant in this appeal was the defendant in the suit, and the appellant in Appeal No. 29 was the first plaintiff. The respondent in this appeal was the second plaintiff. It will be convenient to refer to them as the first plaintiff, the second plaintiff and the defendant respectively.

    The second plaintiff is a piece goods merchant carrying on business in Madras. For twelve years before the suit he had been in the habit of buying white twill from the first plaintiff, a company carrying on business in London. For the purposes of the case the first plaintiff has been treated as the manufacturer of the goods, although he in fact did not make them. Having bought the twill from the first plaintiff and imported it into Madras the second plaintiff sold it in the Madras Presidency where it has become well known as “diamond” twill. It is known as “diamond” twill because on it is stamped in gold the picture of a diamond with lines representing radiation from the diamond. Above the diamond is printed in gold the word “diamond”, and below the word “twill”. The form of these letters is unusual. The mark was designed by the first plaintiff and so far as business in England is concerned it has been accepted as belonging to the first plaintiff, but it is common ground that the first plaintiff has never sold goods in India bearing this mark. His business has been confined to selling twill to the second plaintiff, who with the full consent of the first plaintiff has sold it in India as his own “diamond” twill. In fact, the goods have been shipped by the first plaintiff to the second plaintiff with the mark stamped on them and in a letter, dated the 12th July 1928, written by the first plaintiff to the second plaintiff the first plaintiff said:

    “We have already assured you that we would not under any conditions supply other dealers with twill stamped with your trade mark.”

    The words “your trade mark” refer to the diamond mark. In the plaint, however, it was claimed that the plaintiffs were jointly entitled to the exclusive use of the mark and an injunction was asked for on this basis.

    The defendant is also a Madras piece goods merchant doing business throughout the Presidency. He, like the second plaintiff, imports twills and other classes of piece goods for sale here. From 1933 to 1935 he was importing twill under a mark which he called the “gold-star” mark. It consisted of a five pointed star with another star in the centre of it. Around this central star were ten other smaller stars. From the star were thin lines intended to represent radiation. Above the star were the words “gold-star” and underneath the word “twill”. The lettering was of an entirely different character to the lettering of the mark used by the second plaintiff. In 1935, the defendant changed his mark in the following respects: (i) he altered the form of the letters to the very distinctive form used by the second plaintiff; (ii) he filled in the body of the star which had the effect of changing its appearance considerably and made it more in conformity with the plaintiff's diamond; and (iii) he changed the thin lines representing rays of light to thicker ones and thus made them more like the lines in the diamond mark. It is this new mark which the plaintiffs allege constitutes a colourable imitation of the diamond mark and in respect of which they seek the injunction.

    The case was tried by Gentle J. who held that the defendant had deliberately changed his mark for the purpose of making it look like the diamond mark and that in its altered form it constituted a colourable imitation of that mark. After discussing the evidence the learned trial Judge rejected the contention that the plaintiffs were the joint owners of the mark, but held that the second plaintiff was entitled to an injunction on the ground that the mark had become associated in the public mind with the goods sold by him. Accordingly he dismissed the first plaintiff from the suit, but granted an injunction to the second plaintiff with costs. He also awarded him a sum of Rs. 500 by way of damages. The defendant has appealed against the decree passed against him, and the first plaintiff has appealed against the order embodied in it dismissing him from the suit.

    I will first deal with the appeal against the dismissal of the first plaintiff from the suit. In India there are no statutory enactments of the nature of the Trade Mark Acts which have been passed in England, and relief here can only be granted on the ground that the defendant has done something which is calculated to deceive. It is essential in a passing off action to show that there has been a false representation. It is not enough for a plaintiff to claim that he has adopted a device as a trade mark and that the defendant has copied this device or used one so like it that deception is probable. The plaintiff must show that he has used the mark claimed by him on his goods or in connection with them and that the mark has become associated in the minds of the public with his goods. There must be user of the mark because without user no reputation can be acquired. In this case the evidence does not show any reputation in the first plaintiff so far as India is concerned and this finding is sufficient to dispose of the first plaintiff's appeal. It will be necessary to return to the question of user when discussing the position of the second plaintiff, but the first plaintiff having clearly failed to establish a cause of action against the defendant his appeal must be dismissed. I might add that in the course of his arguments the learned Advocate for the first plaintiff pointed out that it was not necessary for the plaintiffs, in view of the attitude of the defendants to lay any stress in the trial Court on the plea of joint ownership. The defendant there conceded that either the first plaintiff or the second plaintiff or both of them together had the exclusive right to the use of the diamond mark in India. We appreciate this, and it is our intention merely to deal with the case so far as it affects the defendant and to say as little as possible with regard to the rights of the plaintiffs inter se.

    Turning now to the defendant's appeal, I have no doubt that the defendant deliberately changed his mark in 1935 in order to make it resemble the mark used by the second plaintiff and that he did this with the object of acquiring part of the second plaintiff's trade. I am further of the opinion that the alteration was of such a character as to make it likely that the mark would be mistaken for the diamond mark. We have here a deliberate intention to defraud. The learned Advocate for the defendant, however, contends, that the second plaintiff is not entitled to the injunction granted to him for two reasons. In the first place he says that the second plaintiff is not the maker of the goods, but merely an importer and therefore he must show that the mark has become associated with his name in some special way as the importer of the goods, and not merely as the seller. In the second place he says that before the second plaintiff can obtain relief he must also show that the ultimate purchaser associates the mark with his name. He maintains that these conditions have not been fulfilled in this case.

    On the first point the learned Advocate for the defendant has cited many cases, but a detailed discussion of them is not called for. His argument is really based on a passage in the judgment of the Privy Council in the case of The Imperial Tobacco Company of India v. Bonnan, where it was pointed out that an importer might get a valuable reputation for himself and his wares by his care in selection or his precautions as to transit and storage, or because his local character is such that the article acquires a value by his testimony to its genuineness, and if, therefore, goods though of the same make are passed off by competitors as being imported by him he will have a right of action. But this statement does not pretend to be exhaustive and to declare all the circumstances in which an importer may acquire the right to the exclusive use of a trade mark. A merchant who sells particular goods under particular trade mark is entitled to protection for that mark if he can show that it is associated in the market with the goods which he sells, because the law will not permit a person to pass off his goods for those of another. This is the governing principle and it matters not whether the merchant has the goods made for him abroad or whether he has them made for him within the country. A decision of the Privy Council which has a direct bearing on this case is that of Ullman & Co. v. Casar Leuba. The plaintiffs there were manufacturers of watches in Switzerland and had acquired the business and trade marks of another Swiss firm of watch manufacturers. The firm from which the plaintiffs had acquired these trade marks had been in the habit of supplying watches to a customer carrying on business at Hong Kong who sold them under the manufacturers' trade marks. The plaintiffs instituted a passing off action in Hong Kong against another dealer there on the ground that he was infringing the rights which they had acquired. Their Lordships held that the trade in Hong Kong belonged to the original importer and that the plaintiffs had not sufficient interest to found a cause of action. The same principle was applied by this Court in Ebrahim Currim…(Plaintiff); v. Essa Abba Sait…(Defendant).* and by the Bombay High Court in The West End Watch Company…(Plaintiffs); v. The Berna Watch Company…(Defendants).* Co..

    In this case the evidence does establish the fact that the diamond mark is associated with the twill sold by the second plaintiff and having established his reputation in connection with this mark the fact that the suppliers of the goods have also acquired a reputation in connection with it in another country does not affect him. The manufacturer has never used the mark in India, and it was open to the second plaintiff to adopt it for his business in India, which, as I have already pointed out, he did with the full consent of the manufacturer. The defendant has altered his mark for the purpose of gaining for himself part of the business which his rival has built up and in view of the probability of deception the second plaintiff has a cause of action.

    The contention of the defendant that the second plaintiff must show that the ultimate purchaser associates this mark with his name is also fallacious. A reputation must be established, but that does not mean that the ultimate purchaser must know the actual name of the owner of the goods. In this connection I will refer to certain passages in the judgments in The Birmingham Vinegar Brewery Co. Ltd. v. Powell(4) which is the well known “Yorkshire Relish” case. Lord Halsbury observed (page 713):

    “It may be true that the customer does not know of care who the manufacturer is, but it is a particular manufacture that he desires. He wants “Yorkshire Relish” to which he has been accustomed, and which it is not denied has been made exclusively by the plaintiff for a great number of years. This thing which is put into the hands of the intended customer is not “Yorkshire Relish” in that sense. It is not the original manufacture. It is not made by the person who invented it. Under these circumstances it is a fraud upon the person who purchases to give him the one thing in place of the other.”

    In the same way it would be a fraud to place in the hands of a customer who wanted diamond twill, twill bearing the mark of the defendant.

    In the course of his judgment Lord Herschell said (page 715):

    “In the present case it seems to me that “Yorkshire Relish” meant the manufacture of a particular person. I do not mean that in the minds of the public the name of the manufacturer was identified, but that it meant a particular manufacture, and that when a person sold “Yorkshire Relish” as the defendants did, by selling it as “Yorkshire Relish” and calling it “Yorkshire Relish” they represented to the public that it was that manufacture which was known as and by the name of “Yorkshire Relish.”

    In Madhavji Dharamsey Manufacturing Co. Ltd. v. The Central India Spinnings Weaving and Manufacturing Co. Ltd., Scott C.J held that where goods have acquired by a particular fancy description, combination or device, a reputation in the market it is immaterial that the customers do not know who the maker is, and relied on the remarks of Lord Halsbury in the “Yorkshire Relish” case and similar remarks of Lord Hatherley in Wotherspoon v. Currie. It is, therefore, quite clear that the second plaintiff has not got to show that the ultimate purchaser knows his name and associates his name with the diamond mark. It is sufficient if the ultimate purchaser knows that goods bearing this mark have a reputation and that this mark denotes the goods which he wishes to buy.

    We do not regard the damages awarded as excessive and the only further question requiring consideration is the form of injunction. The learned trial Judge has issued an injunction prohibiting the use of the offending mark on all classes of piece goods. It has been said on behalf of the defendant that this is too wide. In their plaint the plaintiffs asked for an injunction in respect of all classes of piece goods and in the trial Court it was not contended by the defendant that an injunction of this nature would be too wide if the plaintiffs succeeded in establishing their rights to the diamond mark. It was in fact taken for granted that they would be entitled to an injunction in this form if the right to exclusive user was proved. The second plaintiff and the defendant deal in the same kind of piece goods and the diamond mark has become associated in the trade with the second plaintiff. In these circumstances we see no reason to alter the form of the injunction. Both the appeals are accordingly dismissed. In Appeal No. 20, the second plaintiff will be entitled to costs against the defendant, but the defendant, will be entitled to costs in Appeal No. 29, as he has been successful there.

    Varadachariar, J.—I agree. I wish to add a few words with reference to the decision in Batchayi Rowther v. Ramaswami Pillai, as the learned counsel for the appellant relied on some observations of mine there as supporting his contention that the plaintiff in a “passing off” action must show that the persons purchasing the goods knew of the manufacturer or merchant by name and associated such name with the goods. That this is not the law is shown by the observations quoted by my Lord from the “Yorkshire Relish” case, The Birmingham Vinegar Brewery Co. Ltd. v. Powell. To the same effect there are also statements in William Edge & Sons Ltd. v. William Niccolls & Sons Ltd. and Slazenger & Sons v. Spalding & Brothers. See also Wulfing v. Jivandas & Co.(5). As the observations of Lord Herschell in the “Yorkshire Relish” case have been referred to in my judgment in Batchayi Rowther v. Ramaswami Pillai it will not be a fair interpretation of that judgment to suggest that there is anything in it to support the appellant's present contention. The point I had then to determine was whether the plaintiff has shown a right to sue at all. He had certainly to establish some connection, in a sense known to law, such as manufacturer, seller, importer etc., between himself and the article which was alleged to have obtained a reputation. On the evidence in that case, it appeared that it was his brother that had been manufacturing and selling the goods but the plaintiff did not claim in his brother's right. There was very little evidence as to what happened after the brother's death. It was on those facts that after making a quotation from Mahomed Esuf v. Rajaratnam Pillai(6) I observed that there was

    “no evidence to establish any such association in the public mind between the plaintiff's business and the goods bearing the mark in question.”

    Decree accordingly.

    N.R.R

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    Comments

    S. Meera Sahib And Brothers v. Hajee M. Abdul Azeez Sahib
    (Aug 19, 1937)