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EDUSPARK INTERNATIONAL PRIVATE LIMITED  v. LAXMI PUBLICATIONS PRIVATE LIMITED

Delhi High Court
Apr 10, 2023
Smart Summary (Beta)

Factual and Procedural Background

The plaintiff, EDUSPARK INTERNATIONAL PRIVATE LIMITED, manages schools under the trademark "VIBGYOR" and publishes books for its students under the same mark. The plaintiff's predecessor, Kare Edumin Pvt. Ltd., established the first "VIBGYOR" school in 2004 and transferred all trademarks and assets to the plaintiff pursuant to a scheme of amalgamation sanctioned by the National Company Law Tribunal in 2017.

The defendant, LAXMI PUBLICATIONS PRIVATE LIMITED, is engaged in publishing and distributing books and uses the mark "VIBGYOR" in relation to its products. The plaintiff filed a suit seeking permanent injunction restraining the defendant from infringing its trademark and passing off goods as those of the plaintiff.

On 23rd August 2022, this Court granted an ad interim injunction restraining the defendant from selling products bearing the "VIBGYOR" mark. Subsequently, the plaintiff filed an application under Order XXXIX Rule 2A CPC alleging violation of the interim order by the defendant, who allegedly continued selling infringing books on third-party websites.

The defendant responded that it took immediate steps after the interim order to discontinue selling such books by communicating with its offices nationwide. The defendant also tendered an unconditional apology to the Court for any delay in compliance.

Legal Issues Presented

  1. Whether the defendant violated the interim injunction dated 23rd August 2022 by continuing to sell books bearing the "VIBGYOR" mark on third-party websites.
  2. Whether the plaintiff is entitled to a permanent injunction restraining the defendant from using the "VIBGYOR" trademark in relation to books and allied goods.
  3. Whether the defendant can claim the mark "VIBGYOR" as generic and deny the plaintiff's exclusive rights based on prior user and registration.
  4. Whether the goods of the plaintiff and defendant are similar or allied, impacting the likelihood of confusion and passing off.

Arguments of the Parties

Plaintiff's Arguments

  • The plaintiff is the registered proprietor of multiple trademarks including the word mark "VIBGYOR" in classes 16 and 41, with registrations dating back to 2006 and 2012 respectively.
  • The plaintiff's predecessor had prior user rights which were transferred to the plaintiff via amalgamation sanctioned by NCLT.
  • The defendant has no registrations for any device marks incorporating "VIBGYOR" and has not provided evidence of use of the mark.
  • The defendant falsely claimed ownership of the "VIBGYOR (LOGO)" mark in opposition proceedings.
  • The defendant admitted in its opposition notices that the goods of the plaintiff and defendant are allied, thus cannot now claim the goods are dissimilar.
  • Reliance placed on precedent that a party applying for registration of a mark cannot take a contradictory position that the mark is descriptive or generic.

Defendant's Arguments

  • The defendant has been using the "VIBGYOR" mark in relation to books since 2013, predating the plaintiff's use.
  • The plaintiff's use is only since 2018 and cannot claim benefit of prior user by its predecessor.
  • The goods of the defendant (books) and plaintiff (schools and educational services) are different, negating the claim of infringement.
  • The mark "VIBGYOR" is generic and the plaintiff cannot claim exclusive rights.
  • The plaintiff failed to provide proof of use of the trademark in relation to books.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Anchor Health and Beauty Care Pvt. Ltd. v. Procter & Gamble Manufacturing (Tianjin) Co. Ltd. and Ors., MANU/DE/1156/2014 Establishes that a party who applies for registration of a mark cannot take a contrary stand that the mark is descriptive or generic (principle of approbation and reprobation). The Court relied on this to hold that the defendant cannot deny similarity or claim genericness after having applied for registration of the "VIBGYOR" mark.
Nandhini Deluxe v. Karnataka Co-Operative Milk Producers Federation Ltd., MANU/SC/0779/2018 Concerns the use of trademarks in relation to different products and the impact on infringement claims. The Court held that this precedent did not assist the defendant since the defendant had admitted similarity of goods and the marks were used in allied educational fields.
Vintage Distillers Limited v. Ramesh Chand Parekh, MANU/DE/4587/2022 Affirms that a registered proprietor has exclusive rights and right to sue for infringement is not dependent on proof of use. The Court applied this to reject the defendant's argument that the plaintiff must prove use of the mark in relation to books.

Court's Reasoning and Analysis

The Court observed that there was no current violation of the interim injunction dated 23rd August 2022, but acknowledged a delay by the defendant in communicating the injunction to third-party sellers. The defendant's unconditional apology was accepted and the contempt application disposed of.

Regarding the main suit, the Court noted the plaintiff's extensive registrations of the "VIBGYOR" mark in classes 16 and 41, including registrations dating back to 2006 and 2012 respectively. The Court found the defendant's claim of genericness to be false, especially since the defendant itself had applied for registration of the mark.

The Court emphasized the principle of approbation and reprobation, holding that the defendant cannot deny similarity or allied nature of goods after having admitted the same in opposition proceedings.

The Court rejected the defendant's argument that the plaintiff could not claim benefit of prior user by its predecessor, relying on the scheme of amalgamation sanctioned by NCLT and the Registrar's recording of the plaintiff as proprietor with effect from 2012.

The Court found a prima facie case in favor of the plaintiff, with balance of convenience and irreparable injury considerations favoring grant of interim injunction.

The interim injunction granted on 23rd August 2022 was accordingly confirmed until final adjudication of the suit.

Holding and Implications

The Court confirmed the interim injunction restraining the defendant from using the "VIBGYOR" trademark in relation to books and allied goods until final disposal of the suit.

The defendant's application for contempt was disposed of on acceptance of its unconditional apology for delay in implementation of the interim order. The decision directly protects the plaintiff's trademark rights and prevents the defendant from continuing alleged infringing use pending final adjudication. No new precedent was established beyond confirmation of existing principles on trademark infringement, prior user rights, and approbation and reprobation.

Show all summary ...

2023:DHC:2419

CS(COMM) 573/2022 Page 1 of 11

* IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment Reserved on : 20th

March, 2023 Judgment Delivered on : 10th

April, 2023

+ CS(COMM) 573/2022 & I.A.20805/2022 (O-VIII R-1 CPC)

EDUSPARK INTERNATIONAL

PRIVATE LIMITED ..... Plaintiff Through: Ms.Anju Agrawal, Mr. Bikash and Mr.Rahul Maratha, Advocates. versus

LAXMI PUBLICATIONS PRIVATE

LIMITED ..... Defendant Through: Mr.Peeyoosh Kalra and Mr.Gaurav Kochhar, Advocates.

CORAM:

HON'BLE MR. JUSTICE AMIT BANSAL

JUDGMENT

AMIT BANSAL, J.

I.A. 16497/2022 (O-XXXIX R-2A of the CPC)

1. The present application has been filed on behalf of the plaintiff under the provisions of Order XXXIX Rule 2A of the Code of Civil Procedure, 1908 (CPC) against the defendant and its employees for having violated the interim order dated 23rd

August, 2022 passed by this Court.

2. It has been submitted on behalf of the plaintiff that despite the interim order passed by this Court on 23rd

August, 2022, the books of the defendant bearing the infringing "VIBGYOR" trademarks were still available on third- party websites such as Amazon.in, BuyBooksIndia.com and the like.

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3. Counsel for the alleged contemnors submits that immediately upon passing of the interim order by this Court, on 29th

August, 2022, the defendant had written emails to its various offices all over India to discontinue selling books bearing the mark "VIBGYOR".

4. I have heard the counsels for the parties.

5. It is an admitted position that as on date, there is no violation of the interim order dated 23rd

August, 2022. Yet, on the basis of the material on record, it cannot be denied that there was delay on the part of the defendant in communicating to the various third-party websites where the books of the defendant were sold, to discontinue selling books under the mark

"VIBGYOR". However, during the course of the hearing on 2nd

March, 2023, submission of the counsel for the defendant was recorded that the defendant is willing to file an unconditional apology. Affidavits have been filed on behalf of two of the directors as well as the authorized representative of the defendant, tendering an unconditional and unqualified apology to the Court and undertaking not to indulge in any activity that may amount to breach of the orders passed by the Court.

6. In the facts and circumstances of the case, the aforesaid apology is found satisfactory and is therefore, accepted by the Court.

7. In view thereof, no orders are required to be passed on this application, which stands disposed of as such.

I.A. 13138/2022 (O-XXXIX R-1 & 2 of the CPC)

8. The present suit has been filed seeking relief of permanent injunction restraining the defendant from infringing the trademark of the plaintiff, passing off their goods as that of the plaintiff and other ancillary reliefs.

9. Along with the plaint, the plaintiff also filed the present application

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for grant of interim injunction under Order XXXIX Rules 1 and 2 of the CPC. While issuing summons in the suit on 23rd

August, 2022, this Court had granted an ad interim injunction in favour of the plaintiff restraining the defendant from selling products/goods with the trademark "VIBGYOR".

CASE SET UP IN THE PLAINT

10. Briefly stated, the case set-up in the plaint is as under:

10.1. The plaintiff manages schools under the trademark "VIBGYOR".

The predecessor of the plaintiff, M/s. Kare Edumin Pvt. Ltd. [hereinafter "Kare Edumin"], set up the first "VIBGYOR" School in the year 2004 in Mumbai.

10.2. Vide order dated 27th

April, 2017 passed by the National Company Law Tribunal, Mumbai Bench, a scheme of amalgamation between Kare Edumin and the plaintiff was sanctioned, whereby all properties and assets, including trademarks of Kare Edumin, were transferred to the plaintiff with effect from 1st

June, 2017.

10.3. As on date, the plaintiff manages 39 schools all over India under the trademark "VIBGYOR". The plaintiff publishes its own books for its students under the trademark "VIBGYOR".

10.4. The plaintiff has received various awards and accolades from time to time, which are detailed in paragraph 11 of the plaint.

10.5. The plaintiff is the registered proprietor of various trademarks under the name of "VIBGYOR" and its formative marks in classes 16 and 41, the details whereof are given in paragraph 12 of the plaint. The plaintiff has been the registered proprietor of the word mark

"VIBGYOR" under class 41 with effect from 16th

January, 2012.

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Plaintiff has filed along with the suit the Legal Proceedings Certificates (LPC) in respect of some of the registered trademarks.

10.6. The plaintiff has given details of its annual sales and advertisements expenses from the year 2008-2009 till 2020-2021 along with the CA certificate.

10.7. In March, 2022, the plaintiff came to know that one Mr. Saurabh Gupta, director of the defendant company, had filed Oppositions on 22nd

January, 2020 to the plaintiff's trademark applications in class

41. This was when the plaintiff became aware of the defendant using the mark "VIBGYOR".

10.8. In May, 2022, the plaintiff came to know that the defendant has filed registrations in classes 16 and 41 in respect of the mark "VIBGYOR".

The aforesaid applications have been opposed by the plaintiff.

11. Accordingly, the present suit has been filed on behalf of the plaintiff.

CASE SET UP IN THE WRITTEN STATEMENT

12. The case set up by the defendant in the written statement is as under:

12.1. The defendant has been in the field of publishing books since 1974. The plaintiff is only involved in the business of running schools, whereas the defendant is in the business of publishing and distribution of books.

12.2. The word "VIBGYOR" is a generic word and the plaintiff cannot claim exclusive rights in the same.

12.3. Plaintiff cannot claim rights in mark "VIBGYOR" on the basis of its amalgamation with Kare Edumin.

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SUBMISSIONS ADVANCED ON BEHALF OF THE PARTIES

13. Counsel for the plaintiff made the following submissions:

13.1. The earlier registration of the plaintiff in class 16, of the device mark using the word "VIBGYOR", dates back to 18th

July, 2006. In the LPC dated 1st

July, 2022 filed by the plaintiff, under 'history data', it has been noted that the mark was originally registered in the name of Kare Edumin and subsequently, the plaintiff company was recorded as the proprietor of the said mark in 2018.

13.2. There is no registration granted in favour of the defendant for any of the device marks with the word "VIBGYOR".

13.3. No details have been given by the defendant with regard to use of the aforesaid trademark, nor have any documents been filed in this regard.

13.4. In the notice of opposition filed by the defendant against the trademark application filed by the plaintiff, it has falsely been stated that the trademark "VIBGYOR (LOGO)" is registered in the name of the defendant.

13.5. In the Notice of Opposition, the defendant has stated that the plaintiff is using the trademark "VIBGYOR RISE (LABEL)" in relation to allied goods. Therefore, now, the defendant cannot contend that the goods of the defendant and the plaintiff are not similar as this would amount to approbation and reprobation.

14. Per contra, the counsel for the defendant made the following submissions:

14.1. Defendant has been in the business of selling books using the trademark "VIBGYOR" since the year 2013.

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14.2. The user of the plaintiff is only from the year 2018 and the plaintiff cannot claim the benefit of the prior user by Kare Edumin.

14.3. The products of the defendant, in respect of which it uses the trademark "VIBGYOR", is different from that of the plaintiff. The plaintiff only has a registration of the word mark "VIBGYOR" in class 41 and on the basis of the aforesaid registration, the plaintiff cannot attempt to restrain the defendant from using the mark

"VIBGYOR" in respect of its books in class 16.

ANALYSIS AND FINDINGS

15. Plaintiff has a total of 28 registrations in class 16 with the word

"VIBGYOR". The earliest registration of the device mark of the plaintiff with the word "VIBGYOR" in class 16 is of 18th

July, 2006. The plaintiff is also the registered proprietor of the word mark "VIBGYOR" in Class 41 with effect from 16th

January, 2012. Counsel for the plaintiff has pointed out that in the Notice of Opposition filed by the defendant against the trademark registration application of the plaintiff under class 41, it has falsely been stated that the trademark "VIBGYOR (LOGO)" is registered in the name of the defendant. This submission has not been controverted by the counsel for the defendant. It is also clear from the record that there is no registration in favour of the defendant of the mark "VIBGYOR". Therefore, the aforesaid assertion of the defendant appears to be false.

16. It is not in dispute that the word mark "VIBGYOR" has been registered in favour of the plaintiff in class 41 since 16th

January, 2012. Even in respect of the device marks, the prominent feature of the marks of plaintiff and defendant is the word "VIBGYOR". Therefore, there is a

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deceptive similarity between the mark used by the defendant with the registered mark of the plaintiff. In all the notices of opposition filed on behalf of the defendant to the trademark registration application of the plaintiff in respect of the label mark with the word "VIBGYOR" the defendant has stated that the plaintiff's trademark "VIBGYOR RISE (LABEL)" is a mere copy of the defendant's trademark and has therefore, admitted to the similarity between the competing marks. The fact that the defendant itself has applied for registration of a device mark with the word

"VIBGYOR" also demolishes the submission of the defendant that the mark

"VIBGYOR" is a generic word and that the plaintiff cannot claim exclusive right in the same.

17. The counsel for the defendant also contended that the products of the defendant for which the defendant uses the trademark "VIBGYOR" are different from those of the plaintiff. In this regard, attention of the Court has been drawn to the Notice of Opposition filed by the defendant (page 506 of the documents filed by the plaintiff), the relevant extracts of which are given below:

"2. The Opponent has adopted the trademark VIBGYOR (LOGO) in the year 2013 in Hindi and English both and is still

stands registered, the trademarks to differentiate its products from that of others.

xxx xxx xxx

6. The Applicant's trademark "VIBGYOR RISE (LABEL)" now applied for is in respect of the allied same goods for which the Opponent is having Proprietary right. The trademark applied for is prohibited from being registered under the Act, the mark being deceptive. The Applicant's mark should not be allowed to be registered as it will create confusion in the market of educational field."

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18. Similar stand has also been taken in the notice of opposition filed at page 522 of the documents of the plaintiff.

19. It has clearly been admitted by the defendant that goods of the plaintiff and the defendant are allied goods. Therefore, now the defendant cannot be allowed to take a contrary stand to the effect that the goods of the plaintiff and the defendant are different. The defendant cannot be permitted to approbate and reprobate.

20. Counsel for the plaintiff has correctly placed reliance on the judgment of a Coordinate Bench of this Court in Anchor Health and Beauty Care Pvt. Ltd. v. Procter & Gamble Manufacturing (Tianjin) Co. Ltd. and Ors., MANU/DE/1156/2014, wherein it was held that where the defendants themselves have applied for registration of a mark, they cannot take a contrary stand that the aforesaid mark is descriptive. The defendant cannot be permitted to approbate and reprobate. In the present case also, once the defendant in the Notice of Opposition has taken a stand that the goods of the plaintiff and defendant are similar or allied, they cannot now be permitted to take a stand that the goods of the plaintiff and the defendant are different.

21. Counsel for the defendant has relied upon the judgement of the Supreme Court of India in Nandhini Deluxe v. Karnataka Co-Operative Milk Producers Federation Ltd., MANU/SC/0779/2018, in support of his contention that the "VIBGYOR" mark is being used in relation to different products. However, this judgement would not come to the aid of the defendant in view of the stand taken by the defendant that the goods of the plaintiff and the defendant are similar and allied. Further, in the present case, there is a similarity between the goods/services of the plaintiff and the defendant, inasmuch as the plaintiff uses the aforesaid mark in relation to

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education and educational services, including books to be used in the schools, whereas the defendant uses it in relation to books in the field of education. Therefore, it cannot be said that there is no similarity between the two.

22. It has been further contended on behalf of the defendant that the plaintiff has not filed proof of user of the aforesaid trademark in support of books. Even if that be so, the remedy of the defendant would be to seek rectification of the mark on the ground of non-user. Reference in this regard may be made to the judgment of a Coordinate Bench of this Court in

Vintage Distillers Limited v. Ramesh Chand Parekh, MANU/DE/4587/2022, wherein it was held that a plaintiff, being the registered proprietor of the mark, had an exclusive right to use the same and the right to sue for infringement was not dependent on the use of the mark by such registered proprietor.

23. Though the defendant claims to be using the "VIBGYOR" mark since the year 2013, no details have been given by the defendant with regard to the use of the aforesaid mark. It may be relevant here to mention that no documents have been filed on behalf of the defendant in support of this assertion.

24. The contention of the defendant that the plaintiff cannot claim benefit of prior user by the predecessor of the plaintiff, is completely misplaced. In this regard, reference may be made to relevant portion of the 'history data' of the LPC dated 31st

October, 2022 for the Trademark No.2266974, which is as under:

"PURSUANT TO A REQUEST ON FORM TM-P DATED

15/01/2018 AND ORDER THEREON DATED 22/03/2018

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EDUSPARK INTERNATIONAL PRIVATE LIMITED. HAS BEEN

BROUGHT ON RECORD AS SUBSEQUENT PROPRIETOR IN

RESPECT OF THE SAID REGISTERED TRADE MARK "BY VIDE

ORDER PASSED BY THE NATIONAL COMPANY LAW

TRIBUNAL, MUMBAI BENCH, ON APRIL 27, 2017 IN

COMPANY SCHEME PETITION NOS. 46 AND 47 OF 2017 WITH

EFFECT FROM JUNE 1, 2017 AN AFFIDAVIT OF PARESH A.

BHATELIA.

REGISTRATION RENEWED FOR A PERIOD OF 10 YEARS

FROM 16/01/2022 ADVERTISED IN JOURNAL NO.2037"

25. A perusal of the LPC dated 31st

October, 2022 issued in favour of the plaintiff shows that the mark was initially registered in favour of the predecessor of the plaintiff, Kare Edumin, which had been using the mark

"VIBGYOR" in relation to its services since the year 2006. In terms of the scheme of amalgamation approved by the NCLT on 27th

April, 2017, various properties/assets, including trademarks of Kare Edumin were transferred to the plaintiff. Taking into account the aforesaid, the Registrar has recorded the plaintiff as the proprietor of the "VIBGYOR" mark with effect from 16th

January, 2012. Therefore, there is no merit in the submission of the defendant that the plaintiff cannot claim the benefit of prior user.

26. In view of the findings above, a prima facie case is made out on behalf of the plaintiff. The balance of convenience is in favour of the plaintiff and against the defendant. Irreparable injury would be caused to the plaintiff if the defendant is allowed to use the impugned mark.

27. Accordingly, the present application is allowed and the order dated 23rd

August, 2022 granting interim injunction in favour of the plaintiff is confirmed till the final adjudication of the suit.

28. Needless to state, any observations made herein are for the purposes

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of adjudication of the present application and shall not have a bearing on the final outcome of the suit.

CS(COMM) 573/2022

29. List before the Joint Registrar on 12th

July, 2023.

AMIT BANSAL, J.

APRIL 10, 2023

dk

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