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RAMAIAH LIFE STYLE CAFE v. EMINENT ENTERTAINMENT & ORS

Delhi High Court
Mar 15, 2017
Smart Summary (Beta)

Factual and Procedural Background

The plaintiff, a partnership firm part of the Ramaiah Group, operates a chain of cafes and restaurants and claims ownership and exclusive rights to the trade mark "RASTA" registered in Class 28 and Class 43. The plaintiff alleges that the defendants, who run entertainment and food services under the trade name "RAASTA," have infringed upon this trade mark and copyright. The plaintiff issued a cease and desist notice in 2012 upon learning of the defendants' use but received no response. The defendants filed for registration of the mark "RAASTA" in Class 43. The suit was instituted to restrain the defendants from using the mark and for ancillary reliefs.

The suit was first heard on 21 October 2016, when summons and notices were issued but ex-parte relief was denied due to the plaintiff's delay of four years in bringing the suit after learning of the alleged infringement.

Legal Issues Presented

  1. Whether the plaintiff, not being the registered proprietor of the trade mark as per the Trade Marks Register, is entitled to maintain a suit for infringement and seek interim relief.
  2. Whether the delay and conduct of the plaintiff in not registering the assignment of the trade mark affect its entitlement to interim injunction.
  3. The effect of amendments to Section 45 of the Trade Marks Act on the rights of an assignee without registered assignment.
  4. Whether the defendants' use of the mark "RAASTA" amounts to infringement or dishonest adoption of the plaintiff’s mark.

Arguments of the Parties

Plaintiff's Arguments

  • The plaintiff is the assignee of the registered trade mark "RASTA" by deed of assignment dated 9 December 2009 and has exclusive rights to use it.
  • Delay in instituting the suit does not bar injunction, citing precedents that delay does not preclude relief if infringement is proven.
  • Registration of assignment with the Registrar of Trade Marks is not essential to maintain a suit for infringement.
  • The defendants were aware of the plaintiff’s registration and abandoned their own registration applications due to objections based on the plaintiff’s rights.
  • Claimed infringement of copyright alongside trade mark infringement.

Defendants' Arguments

  • The plaintiff is not the registered proprietor of the trade mark and is only a permitted user, thus barred under Section 53 of the Trade Marks Act from suing for infringement.
  • The suit is barred by limitation as it was filed more than three years after the plaintiff learned of the alleged infringement.
  • The plaintiff firm is not registered under the Registrar of Firms, barring the suit under Section 69 of the Partnership Act.
  • The defendants adopted the mark "RAASTA" since 2011, with their logo conceptualized in 1999, and have gained significant popularity.
  • The word "RASTA" is generic and publici juris, meaning "road" or "route" in Hindi, and the defendants' mark is inspired by Rastafarian religion, with distinct labels and features.
  • The defendants' use of the mark is honest and not fraudulent.
  • The plaintiff’s restaurant and defendants’ restaurants cater to different markets and customers, negating likelihood of confusion.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Hindustan Pencils (P) Ltd. Vs. India Stationery Products Co., AIR 1990 Delhi 19 Delay does not bar injunction where defendant’s use is fraudulent. Held delay in this case was inordinate and no fraud found; thus delay barred interim relief.
Win-Medicare Pvt. Ltd. Vs. Galpha Laboratories Ltd., 226 (2016) DLT 711 Delay does not preclude injunction if infringement is established. Not applied for ex-parte relief here due to delay and no prima facie infringement found.
Midas Hygiene Industries P. Ltd. Vs. Sudhir Bhatia, (2004) 3 SCC 90 Delay does not bar injunction where infringement is shown. Relevant but not decisive at ex-parte stage in this case.
Modi Threads Limited Vs. Som Soot Gola Factory, AIR 1992 Delhi 4 Registration of assignment not essential to maintain infringement suit. Considered but distinguished due to plaintiff’s failure to apply for registration here.
T.I. Muhammad Zumoon Sahib Vs. Fathimunnissa alias Bibijan, AIR 1960 Mad 80 (DB) Supports non-essentiality of registration of assignment for suit maintenance. Referenced in support of plaintiff’s claim but balanced against statutory requirements.
Sun Pharmaceuticals Industries Limited Vs. Cipla Limited, 2009 (108) DRJ 207 Assignee acquires title upon assignment; registration of assignment is mandatory but non-registration does not bar suit if not due to plaintiff’s fault. Distinguished as plaintiff here delayed registration for years without explanation.
Parksons Cartamundi Pvt. Ltd. Vs. Suresh Kumar Jasraj Burad, 2012 SCC OnLine Bom 438 Post-amendment, registration of assignment is a mere formality. Supports view that registration is mandatory but procedural.
Collector of Central Excise Ahmedabad Vs. Vikshara Trading and Investment (P). Ltd., 2003 (27) PTC 603 Non-registration of assignment does not alter the position if assignment is undisputed. Supports plaintiff’s entitlement but weighed against plaintiff’s conduct here.
Nico Quality Products Vs. N.C. Arya Snuff and Cigar Co., MANU/TN/2680/2013 Where assignment is made without goodwill, filing for advertisement and registration is mandatory for assignment to take effect. Applied to cast doubt on plaintiff’s entitlement due to non-compliance.
Orchid Chemicals & Pharmaceuticals Ltd. Vs. Wockhardt Limited, MANU/TN/0391/2013 Supports requirement of advertisement and registration for assignment without goodwill. Reinforces mandatory procedural requirements not met by plaintiff.

Court's Reasoning and Analysis

The Court examined whether the plaintiff, not registered as proprietor of the trade mark in the official register, could maintain a suit for infringement and seek interim relief. The Court noted that while assignment of a trade mark vests title in the assignee immediately upon execution, registration of the assignment with the Registrar of Trade Marks under Section 45 of the Trade Marks Act is mandatory. The Court distinguished prior judgments where the plaintiff had applied for registration promptly and non-registration was due to Registrar’s inaction. Here, the plaintiff had not applied for registration for nearly eight years since assignment and had knowledge of infringement for nearly five years, indicating neglect.

The Court observed that the plaintiff’s failure to register the assignment and the absence of the assignor as a party raised doubts about the validity of the assignment. The Court found that granting interim relief despite such delay would undermine statutory provisions and encourage non-compliance.

Regarding the alleged infringement, the Court compared the plaintiff’s and defendants’ trade mark labels and found them to be distinct, with no dishonest or fraudulent intent by the defendants. The Court also considered the nature of the businesses, territorial limitation of goodwill for standalone restaurants, and the absence of likelihood of confusion between the parties’ marks.

Considering delay, laches, acquiescence, and waiver, the Court held that the plaintiff’s four-year delay after knowledge of infringement and lack of diligence disentitled it to interim relief. The balance of convenience favored the defendants, as wrongful injunction could cause incalculable loss to them, whereas any loss to the plaintiff could be compensated.

Holding and Implications

IA No. 13020/2016 is dismissed.

The Court denied interim injunction to the plaintiff due to plaintiff’s failure to register the assignment of the trade mark and the inordinate delay in seeking relief. The decision underscores the mandatory nature of statutory registration of trade mark assignments and the importance of diligent protection of trade mark rights. The ruling does not establish a new precedent but applies existing principles emphasizing compliance with procedural requirements and the equitable doctrine of laches in trade mark infringement suits.

Show all summary ...

HON'BLE MR. JUSTICE RAJIV SAHAI ENDLAW IA No.13020/2016 (u/O XXXIX R-1&2 CPC)

1. The plaintiff has instituted this suit to restrain the three defendants (i) from infringing / using the trade mark RASTA of the plaintiff registered in Class 28 against Registration No.1875323 and in Class 43 against Registration No.1887336; (ii) from infringing the copyright of the plaintiff; and, (iii) for ancillary reliefs.

2. It is the case of the plaintiff (a) that the plaintiff, a partnership firm is engaged in the business of running a chain of cafe and restaurants and is a part of Ramaiah Group; (b) that as per the Deed dated 9 December, 2009 of assignment of trade mark, the plaintiff owns / is authorised to use trade marks which are used by them in the course of its business in connection with the sale of their products, both in India and internationally; (c) that one of such trade mark is RASTA (with device) and appears on the entry gate of the plaintiffs cafe; (d) that the plaintiff has used the said trade mark in a unique and distinctive style, get-up, writing type and colour scheme and the CS(COMM) No.1433/2016 Page 2 of 18 said trade mark has become associated in the mind of public and potential visitors to the cafe of the plaintiff; (e) that the said trade mark has been developed by Ramaiah Group and is being used by the said group since the year 2009; (f) that the plaintiff has also filed a trade mark registration application No.1887336 dated 23 November, 2009 with the Trade Marks Registry, Chennai with respect to goods and services falling under Class 43; (g) that the said trade mark is already registered in the name of M/s Ramaiah Developers & Builders (P) Ltd. in 2011 and 2013 respectively; (h) that being the assignee of the trade mark, the plaintiff has the exclusive right to use the same and has been using the trade mark extensively and over a long period of time; (i) that the defendants are engaged in the business of running services of providing entertainment and cultural activities in the form of music, live bands, live performances, discotheque and also service of providing food and drinks at the establishment of the defendants or for home delivery, with the defendants No.2 & 3 being the partners of the defendant No.1; (j) that the defendants on their website www.dineout.co.in/delhi/raasta-hauz-khas-villagesouth-delhi-286 have displayed photographs of products, the packaging whereof bears the plaintiffs trade mark; (k) that the defendants trade mark RAASTA appears on the entrance gate of the lounge in a style identical to the plaintiffs trade mark RASTA; (l) that the defendants are promoting their restaurants / cyber / food cafe which are similar to that of the plaintiffs under the same trade name, even after knowing that the exclusive right to use the trade name belongs to the plaintiff; (m) that in or around the year 2012, the plaintiff, on coming to know about the infringing activities of the defendants, in November, 2012 issued a cease and desist notice to the defendants; no CS(COMM) No.1433/2016 Page 3 of 18 response was received from the defendants; (n) however, the defendants filed an application for registration of the trade mark RAASTA in Class 43.

3. The suit came up first before this Court on 21 October, 2016 when though summons of the suit and notice of the application for interim relief were issued but no ex-parte relief sought granted owing to the plaintiff having instituted the suit four years after learning of the allegedly infringing activities of the defendants.

4. The defendants have filed a common written statement pleading (i) that the trade mark seeking infringement of which the suit has been filed is not registered in the name of the plaintiff and the plaintiff is merely permitted user thereof and is barred by Section 53 of the Trade Marks Act, 1999 from instituting a suit for infringement thereof; (ii) that the suit is barred by limitation, as it could have been instituted only within three years of the plaintiffs learning of the allegedly infringing activities of the defendants; (iii) that the plaintiff firm is not pleaded to be registered with the Registrar of Firms and the suit is barred by Section 69 of the Partnership Act, 1932; (iv) that the defendants adopted and started using the name RAASTA for their restaurants since December, 2011; the logo of the defendants was conceptualised and designed way back in the year 1999; (v) that the defendants also host and maintain a website www.raastathestreet.in;

(vi) that the restaurants of the defendants under the name of RAASTA have gained great popularity; (vii) that the plaintiff runs a restaurant Rasta One Place in the State of Karnataka and the restaurant of the plaintiff and the restaurants of the defendants cater to and attract completely different crowds and it is impossible for either party to encroach upon the customer base and market of the other party; (viii) that it is rather the plaintiff who in order to CS(COMM) No.1433/2016 Page 4 of 18 take advantage of the success of the defendants restaurants changed the theme of its restaurants to as that of the defendants; (ix) that the plaintiff cannot claim any exclusivity over the term RASTA as the term RASTA is publici juris and is a generic term which in Hindi language means a Road or Route; (x) that the defendants adopted the mark RAASTA inspired from the Rastafrain Religion of Jamaica; the theme of the defendants restaurants is Caribbean; (xi) that the trade mark registration of the plaintiff is that of a label and logo and not the word RASTA; (xii) that the label of the plaintiff does not bear any similarity to the label of the defendants; (xiii) that the essential features of the two marks are different.

5. The counsels have been heard.

6. The counsel for the defendants at the outset has contended that the plaintiff is not entitled to any interim relief on the ground of laches, acquiescence and waiver.

7. The counsel for the plaintiff had on 21 October, 2016 relied on (i) Hindustan Pencils (P) Ltd. Vs. India Stationery Products Co. AIR 1990 Delhi 19; (ii) Win-Medicare Pvt. Ltd. Vs. Galpha Laboratories Ltd. 226 (2016) DLT 711; and, (iii) Midas Hygiene Industries P. Ltd. Vs. Sudhir Bhatia (2004) 3 SCC 90 to contend that delay does not come in the way of grant of injunction. However on that date ex-parte injunction was denied to the plaintiff observing that the said judgments may be relevant at the after notice stage but were not relevant for the ex-parte stage.

8. The counsel for the defendants has next contended that the plaintiff not being the registered proprietor is not even entitled to maintain a suit for infringement and for this reason also, the question of granting any interim relief to the plaintiff does not arise. Attention in this regard is drawn to CS(COMM) No.1433/2016 Page 5 of 18 pages 23 & 24 of the plaintiffs documents being Certificate of Registration of Trade mark bearing No.1887336 and 1875323 dated 23 November, 2009 and 22 October, 2009 of the label RASTA in Class 43 and in Class 28 respectively in the name of M/s Ramaiah Developers & Builders (P) Ltd. It is further contended that though the plaintiff has at page 21 of its documents filed a photocopy of a Deed of Assignment dated 9 December, 2009 of the trade mark aforesaid executed by M/s Ramaiah Developers & Builders (P) Ltd. in favour of the plaintiff but it is not the plea of the plaintiff that the said assignment has been registered with the Registrar of Trade Marks or that the name of the plaintiff appears as registered proprietor of the subject trade marks. It is contended that the plaintiff, without being the registered proprietor cannot maintain a suit for infringement of trade mark and in fact this suit is liable to be dismissed.

9. The counsel for the plaintiff has referred to Modi Threads Limited Vs. Som Soot Gola Factory AIR 1992 Delhi 4 and T.I. Muhammad Zumoon Sahib Vs. Fathimunnissa alias Bibijan AIR 1960 Mad 80 (DB) to contend that registration of assignment with the Registrar of Trade Marks is not essential for maintaining a suit for infringement.

10. The counsel for the plaintiff during the hearing, to show mala fides on the part of the defendants, handed over in the Court copies of the applications dated 14 January, 2013 and 26 April, 2013 made by the defendants No.2&3 for registration of the label mark RAASTA in Class 43 and the objection raised by the Registrar of Trade Marks thereto citing inter alia the registered trade mark in favour of the M/s Ramaiah Developers & Builders (P) Ltd. On the basis thereof it was argued that the defendants have throughout been aware of the registration in favour of the plaintiff and for CS(COMM) No.1433/2016 Page 6 of 18 this reason only had abandoned their applications.

11. Before proceeding further, I may notice that the plaintiff in the present suit has not claimed any relief on the ground of passing off and though has claimed relief, besides on the ground of infringement of trade mark also on the ground of infringement of copyright but no case for infringement of copyright is made out, as the trade mark (label) of the plaintiff and the defendants though have the word RASTA or RAASTA in common but otherwise are as distinct as day and night. The same would be obvious from the comparison herein below: Trade Mark (Label) of Plaintiff Trade Mark (Label) of Defendants

12. Thus, the first question to determine is, whether the plaintiff is entitled to maintain a suit for infringement or to interim relief therein, without its name on the register of the Registrar of Trade Marks as proprietor of the mark of which infringement is claimed.

13. The counsel for the plaintiff, on enquiry, whether the plaintiff has made an application to the Registrar of Trade Marks for registration of the assignment, states that it has not been filed so far, as need was not felt, the plaintiff being part of a closely held group but the application will now be CS(COMM) No.1433/2016 Page 7 of 18 filed.

14. I, in Sun Pharmaceuticals Industries Limited Vs. Cipla Limited 2009 (108) DRJ 207 had an occasion to deal with the question. The counsel for the defendant therein relied on Soundarapandian Match Works Vs. M. Jayarama Chetty (1950-2000) (Suppl) (2) PTC 145 (Mad) and Shaw Wallace & Co. Ltd. Vs. Superior Industries Ltd. 2007 (35) PTC 782 (Del). In the first of the said judgments, a learned Single Judge of the Madras High Court held that having regard to the rigour of Section 44 of the Trade and Merchandise Marks Act, 1958, as long as the registration of the assignment has not been completed, the assignee cannot seek to exercise any right. It was reasoned that the Registrar is entitled to refuse to register the assignment and till the assignment is registered, it cannot be known whether the registration would be effected or not. It was further held that without registration, the document of assignment is inadmissible to prove the title to the trade mark by assignment and thus till such registration, there is no right in the assignee to prevent anyone. In Shaw Wallace & Co. Ltd. supra, this Court held that till the time the Registrar, Trade Marks does not record the title in favour of the assignee, the deed of assignment cannot be admitted in evidence. I of my own referred to Ratansi Mulji Vs. Vinod Ratilal Gandhi AIR 1991 Bom 407 quashing the prosecution for unauthorised use of trade mark at the instance of a person assignment in whose favour had not been registered, holding that without registration of assignment, no rights can be pleaded on the ground of the trade mark having assigned or transmitted. Per contra, the counsel for the plaintiff in Sun Pharmaceuticals Industries Limited supra relied on Modi Threads Limited supra and Grandlay Electricals (India) Ltd. Vs. Vidya Batra 1998 PTC (18) Delhi holding that CS(COMM) No.1433/2016 Page 8 of 18 even if the application for getting transferred the registered trade mark in the office of the Registrar of Trade Marks is pending, that does not debar the party from protecting the violation of the trade mark at the hands of unscrupulous persons by filing an action in Court of law for injunction. It was reasoned that during the interregnum period when the application is kept pending for consideration by the Registrar of Trade Marks, dishonest persons cannot be allowed to make use of the said trade mark and to illegally enrich themselves. It was further held that title accrues on the execution of the assignment deed and all other follow up actions which are required to be taken under the Trade Marks Act do not change the title already acquired in this respect. It was yet further reasoned that if in spite of the party having applied to the Registrar of Trade Marks, no action is taken by the Registrar, the party cannot be blamed therefor.

15. I, in Sun Pharmaceuticals Industries Limited supra, on consideration of the aforesaid judgments held (i) that the reasoning which prevailed with the Madras High Court in Soundarapandian Match Works supra had not been considered in Modi Threads Limited supra and Grandlay Electricals (India) Ltd. supra; (ii) however another learned Single Judge of this Court in Astrazeneca UK Ltd. Vs. Orchid Chemicals and Pharmaceuticals Ltd. (2006) 32 PTC 733 had also taken the same view and held that the rights in the trade mark come on the basis of assignment deeds and the plaintiffs cannot be denied the rights in the trade mark which they had got on the basis of the assignment deeds in their favour on the ground that in the records of the Registrar of Trade Marks, the trade mark was still shown in the name of the assignor; (iii) the Supreme Court in Collector of Central Excise Ahmedabad Vs. Vikshara Trading and Investment (P). Ltd. 2003 (27) PTC CS(COMM) No.1433/2016 Page 9 of 18

603 though not directly concerned with the issue had held that once it was not in dispute that there was an assignment, the mere fact that the assignment was not registered could not alter the position; (iv) that the learned Single Judge of the Madras High Court in Soundarapandian Match Works supra had not considered the earlier judgment of the Division Bench of that Court in T.I. Muhammad Zumoon Sahib supra; (v) that registered trade mark is different from registered proprietor; (vi) that assignment under Section 2(b) is an assignment in writing by an act of parties concerned and does not require registration; (vii) that for assignment to be complete, the Registrar is not involved; (viii) that from the language of Section 45(1) of the Trade Marks Act also, the assignee acquires title to the registered trade mark on assignment and not by registration; (ix) that registration is of title acquired by assignment; (x) that a dispute as to assignment can be raised by the assignor or by some person claiming prior assignment and not by strangers or by persons claiming adversely to the assignor; (xi) that thus the assignee immediately on assignment acquires title to the registered trade mark and title to the registered trade mark exists in assignee even before registration under section 45(1); (xii) that what prevailed with the Madras High Court in Soundarapandian Match Works supra was the inaction of the plaintiff therein to even apply to the Registrar of Trade Marks; (xiii) that however the plaintiff in Sun Pharmaceuticals Industries Limited supra had applied for registration of the assignment as far back as in the year 2000 and there was nothing to show that the plaintiff was in any way to blame for the Registrar having not decided the application either way; the plaintiff could not be made to suffer for the actions of the Registrar; (xiv) that Section 45(2) of the Trade Marks Act prohibiting admission into evidence of any assignment till CS(COMM) No.1433/2016 Page 10 of 18 registered was in the nature of Section 35 of the Indian Stamp Act, 1899 prohibiting the Courts from admitting into evidence documents not duly stamped i.e. to ensure registration of assignments; (xv) thus the plaintiff, notwithstanding being not registered was held entitled to exercise rights as registered proprietor of the trade mark.

16. I have wondered whether the reasoning which prevailed with me in Sun Pharmaceuticals Industries Limited supra should prevail in the facts of the present case also, where the plaintiff inspite of assignment claimed in its favour as far back as on 9 December, 2009 and inspite of knowledge of infringement of the said trade mark by the defendants as far back as in 2012, has till date not taken any steps for registration of the assignment in its favour.

17. Section 45 as it existed at the time of Sun Pharmaceuticals Industries Limited supra as under:

45. Registration of assignments and transmissions (1) Where a person becomes entitled by assignment or transmission to a registered trade mark, he shall apply in the prescribed manner to the Registrar to register his title, and the Registrar shall, on receipt of the application and on proof of title to his satisfaction, register him as the proprietor of the trade mark in respect of the goods or services in respect of which the assignment or transmission has effect, and shall cause particulars of the assignment or transmission to be entered on the register: Provided that where the validity of an assignment or transmission is in dispute between the parties, the Registrar may refuse to register the assignment or transmission until the rights of the parties have been determined by a competent court. (2) Except for the purpose of an application before the CS(COMM) No.1433/2016 Page 11 of 18 Registrar under sub-section (1) or an appeal from an order thereon, or an application under section 57 or an appeal from an order thereon, a document or instrument in respect of which no entry has been made in the register in accordance with sub- section (1), shall not be admitted in evidence by the Registrar or the Appellate Board or any court in proof of title to the trade mark by assignment or transmission unless the Registrar or the Appellate Board or the court, as the case may be, otherwise directs. has w.e.f. 8 July, 2013 been substituted by the Trade Marks (Amendment) Act (40) of 2010 as under:

45. Registration of assignments and transmissions(1) Where a person becomes entitled by assignment or transmission to a registered trade mark, he shall apply in the prescribed manner to the Registrar to register his title, and the Registrar shall, on receipt of the application, register him as the proprietor of the trade mark in respect of the goods or services in respect of which the assignment or transmission has effect, and shall cause particulars of such assignment or transmission to be entered on the register. (2) The Registrar may require the applicant to furnish evidence or further evidence in proof of title only where there is a reasonable doubt about the veracity of any statement or any document furnished. (3) Where the validity of an assignment or transmission is in dispute between the parties, the Registrar may refuse to register the assignment or transmission until the rights of the parties have been determined by a competent court and in all other cases the Registrar shall dispose of the application within the prescribed period. (4) Until an application under sub-section (1) has been filed, the assignment or transmission shall be ineffective against a person acquiring a conflicting interest in or under the CS(COMM) No.1433/2016 Page 12 of 18 registered trade mark without the knowledge of assignment or transmission.

18. It needs to be considered whether Section 45 as it now stands requires re-consideration of the view taken in Sun Pharmaceuticals Industries Limited supra.

19. Sub-section (4) of Section 45 of the Trade Marks Act as it now stands is new. It makes the assignment ineffective against a person acquiring a conflicting interest in or under the registered trade mark without the knowledge of assignment or transmission. The defendants herein have however not acquired any conflicting interest in or under the registered trade mark.

20. There are certain other differences in Section 45 pre and post the amendment thereof w.e.f. 8 July, 2013. While under the sub-section 45(2) as it stood prior to the amendment w.e.f. 8 July, 2013, a document or instrument in respect of which no entry had been made in the register in accordance with the sub-section (1) was to be not admitted in evidence by any Court in proof of title to the trade mark by a assignment or transmission unless the Court otherwise directed, in the amended Section 45 such impediment on the Court has been removed. The amended Section 45 also grants liberty to the Registrar, Trade Marks to require the applicant to furnish evidence or further evidence in proof of title if entertains any doubt. It follows that while the prohibition contained on admission into evidence of a deed of assignment if not entered in the register has been removed, power has been given to the Registrar to ask applicant to furnish evidence or further evidence in proof of title under the deed of assignment or transmission of a CS(COMM) No.1433/2016 Page 13 of 18 registered trade mark.

21. The said changes in Section 45 however do not call for a change in the view taken in Sun Pharmaceuticals Industries Limited supra. I may however record that the Division Bench of the High Court of Bombay in Parksons Cartamundi Pvt. Ltd. Vs. Suresh Kumar Jasraj Burad 2012 SCC OnLine Bom 438 has held that though prior to the amendment registration of assignment under Section 45 could not be said to be a mere formality but is so after the amendment.

22. One thing which is however clear as a day light on a reading of Section 45 is that registration of assignment under Section 45 is mandatory. This is evident from the use of the word Shall in Section 45(1).

23. Thus it is mandatory for a assignee of a registered trade mark to apply in the prescribed manner to the Registrar, Trade Marks to register his title thereto.

24. Seen in this light what distinguishes the present case from Sun Pharmaceuticals Industries Limited supra and the judgments relied upon therein is that while in all those cases the plaintiff had applied to the Registrar, Trade Marks for registration of his title to the trade mark by assignment or transmission and non-registration was not attributable to any default on the part of the plaintiff therein, the plaintiff herein for the last nearly eight years from the date of the claimed assignment and for the last nearly five years since the admitted knowledge of claimed infringement has not even applied to the Registrar of the Trade Marks for registering the assignment of trade mark in its favour. The possibility of the plaintiff not doing so for reasons not spelled out before this Court cannot be ruled out. CS(COMM) No.1433/2016 Page 14 of 18 The fact that the plaintiff has not chosen to make M/s Ramaiah Developers & Builders (P) Ltd. as a party to this suit also raises doubt as to the validity of the assignment, on the basis whereof this suit for infringement has been filed.

25. Even otherwise, I am of the opinion that if this Court inspite of such delays and neglect on the part of the plaintiff grants to the plaintiff all the benefits and privileges to which a registered proprietor is entitled to, the same would amount to this Court allowing mandatory provisions of the statute to be flouted and/or not penalising the plaintiff therefor, making the statutory provisions otiose.

26. I may in this regard notice that Section 2(1)(v) of the Trade Marks Act defines a registered proprietor in relation to a trade mark as meaning the person for the time being entered in the register as proprietor of the trade mark and Section 28, on registration of a trade mark, gives to the registered proprietor of the trade mark right to obtain relief in respect of infringement of the trade mark. The words registered proprietor in Section 28 would take their meaning from Section 2(1)(v) meaning the person for the time being entered in the register as proprietor of the registered trade mark. The plaintiff till date is neither the person for the time being entered in the register as proprietor of the trade mark for infringement of which the suit has been filed nor has applied therefor.

27. I have also enquired, whether there is any time limit for applying under Section 45 of the Trade Marks Act.

28. The counsel for the plaintiff states that there is none.

29. Chapter IV of the Trade Marks Rules, 2002 deals with assignment and CS(COMM) No.1433/2016 Page 15 of 18 transmission and Rule 72 thereunder provides for impounding of instruments not properly or sufficiently stamped. From the copy of the Deed of Assignment filed by the plaintiff, it does not appear to be stamped. It would thus be liable to be impounded, if presented for registration of assignment.

30. Another thing which may be taken note of is that the assignment claimed is of a date, though after the date of the application for registration but prior to the date of registration. The Deed of Assignment filed shows the assignment to be otherwise than in connection with the goodwill of the business in which the mark was used. Per Section 42 of the Trade Marks Act, where the assignment of trade mark is made otherwise than in connection with goodwill of business, the assignment shall not take effect unless the assignee not later than the expiration of six months from the date of assignment applies to the Registrar for advertisement of assignment and advertises it in such form and manner as the Registrar may direct. Rule 79 also prescribes a period of six months for registration of such an application. The said period of six months has long since lapsed.

31. I may also record that High Court of Madras in Nico Quality Products Vs. N.C. Arya Snuff and Cigar Co. MANU/TN/2680/2013, after considering the amendment of Section 45 and relying inter alia on a judgment of the Division Bench of the High Court of Madras in Orchid Chemicals & Pharmaceuticals Ltd. Vs. Wockhardt Limited MANU/TN/0391/2013 has held that where assignment of trade mark is made without goodwill of business, filing of application to the Registrar of Trade Marks for the advertisement of assignment is mandatory and a condition precedent for assignment to take effect. Holding so, the application for CS(COMM) No.1433/2016 Page 16 of 18 interim relief was dismissed. Though appeals being O.S.A. Nos.28-29/2014 thereagainst were preferred to the Division Bench but were on 18 March, 2015 disposed of as not pressed.

32. All the said facts raise a doubt as to the entitlement of the plaintiff to sue for the relief of infringement and are enough to deny to the plaintiff the equitable relief of interim injunction.

33. The aforesaid facts also show the lackadaisical conduct of the plaintiff qua the trade mark. This Court while dealing with the applications for interim injunction is not to come to the rescue of a person who is found to be not diligent in protecting its rights.

34. In Hindustan Pencils (P) Ltd. supra cited by the counsel for the plaintiff to contend that delay, laches, acquiescence and waiver would not disentitle the plaintiff to the relief of permanent injunction, what was held was that inordinate delay would not defeat an action for grant of temporary injunction where the use by the defendant of the mark was found to be fraudulent. It was also held in the facts of that case that the delay on the part of the plaintiff was not inordinate. Similar was the reasoning in Midas Hygiene Industries P. Ltd. supra and in Win-Medicare Pvt. Ltd. supra.

35. On perusal of the label mark of the plaintiff and the defendants I am unable to at this stage hold the conduct of the defendants to be dishonest or fraudulent to hold that, notwithstanding the admitted delay of four years on the part of the plaintiff in approaching the Court after knowledge of use of mark by the defendants, the defendants are not entitled to set-up the plea of laches, acquiescence and waiver. The defendants though were made aware by the Registrar of the Trade Marks of the registration in favour of the CS(COMM) No.1433/2016 Page 17 of 18 plaintiff, cannot be said to have practised any fraud in adoption of the subject mark. In this regard the nature of the business for which the plaintiff as well as the defendants are using the mark also assumes significance. The use of the mark by both is for a stand-alone restaurant / eatery as distinct from restaurants in a chain of hotel. The goodwill and reputation of such stand- alone restaurant is mostly territorial i.e. confined to the city in which it is situated and at least at this stage no possibility can be fathomed of the patrons confusing between restaurants in far of cities even if of the same name. In fact some of the names like Quality, Embassy, Sher E Punjab, Pindi are common to restaurants in different cities.

36. Moreover a perusal of the two label marks also belies any fraud or dishonesty on the part of the defendants in incorporating the word RAASTA on their label mark. Label mark of the plaintiff as well as of the defendants are entirely different.

37. Yet another interesting factor which one has experienced in recent times in relation to eateries / restaurants / bars / lounges catering to the youngsters is that such restaurants have a limited shelf life with the patrons thereof desiring different experience and not wanting to repeat the experience. Recent years have witnessed the same owner / proprietor of a restaurant at the same premises, changing the name decor, Cuisine etc. of the restaurant to take advantage of the novelty factor, looking wherefor the patrons throng a new restaurant.

38. For all the aforesaid reasons I am of the view that the plaintiff has been unable to establish a prima facie case for grant of interim relief.

39. In the facts aforesaid, the balance of convenience is also not in favour CS(COMM) No.1433/2016 Page 18 of 18 of the plaintiff and is rather in favour of the defendants. The loss to the defendants from the grant of interim injunction would certainly be incalculable in the event of the plaintiff being ultimately not found to be entitled to the relief, while the loss which the plaintiff will suffer from non- grant of injunction if ultimately is to succeed in the suit can always be compensated.

40. IA No. 13020/2016 is accordingly dismissed. RAJIV SAHAI ENDLAW, J. MARCH 15, 2017 bs/pp (Corrected and released on 26 April, 2017).