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  • Section 9(1)(a) of the Trade Marks Act, 1999.10.
  • Section 9(1)(a) of the Trade Marks Act, 1999.
  • Section 18(5) of the Trade Marks Act, 1999.
  • Section 18(5) of the Trade Marks Act
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Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • Section 9(1)(a) of the Trade Marks Act, 1999.10.
  • Section 9(1)(a) of the Trade Marks Act, 1999.
  • Section 18(5) of the Trade Marks Act, 1999.
  • Section 18(5) of the Trade Marks Act
Smart Summary

Factual and Procedural Background

The Appellant filed an appeal on July 25, 2019 against the Respondent's Order dated March 6, 2019 and the Statement of Grounds dated April 30, 2019, which refused the Appellant's trademark application No. 2822853 for registration of the mark in Class 09. The Respondent had earlier raised objections in the Examination Report dated January 1, 2016, on grounds that the mark lacked distinctiveness and was similar to existing marks "HIND" under Application No. 1197672 and Registration No. 1377375. The Appellant responded emphasizing the distinctiveness of the mark, its derivation from the name of an affiliate company, prior use since 1989, and prior registrations in India and internationally. Hearings were held before the Respondent on November 20, 2018 and February 27, 2019, with written submissions filed by the Appellant on March 2, 2019. The Respondent refused the application, leading to this appeal. No counter affidavit was filed by the Respondent.

Legal Issues Presented

  1. Whether the trademark applied for by the Appellant is devoid of distinctive character under Section 9(1)(a) of the Trade Marks Act, 1999.
  2. Whether the applied mark is deceptively similar to existing marks "HIND" on record, thereby justifying refusal of registration.
  3. Whether the Respondent complied with the procedural requirements under Section 18(5) of the Trade Marks Act, 1999 by providing grounds for refusal in the order.
  4. Whether the Respondent's refusal order is legally valid considering prior registration and use of the mark by the Appellant.

Arguments of the Parties

Appellant's Arguments

  • The mark "KHIND" is a coined, arbitrary term derived from the name of the Appellant's affiliate, having no meaning in English, and has been in use since 1989.
  • The mark is distinctive and ideologically dissimilar to the cited marks "HIND".
  • Prior registrations of the mark "KHIND" exist in India and internationally, including under Registration No. 1311478 in Class 09.
  • The judgments relied upon by the Respondent are inapplicable or out of context to the facts of the present case.
  • The Respondent failed to apply mind properly, blindly relying on irrelevant precedents and incorrect assumptions about the status of cited marks.
  • The Respondent's refusal order did not comply with statutory requirements to state grounds for refusal as mandated by Section 18(5) of the Trade Marks Act.
  • The Respondent incorrectly described the mark as "purely descriptive" in the Statement of Grounds, a finding not supported by the Examination Report or law.
  • The Respondent applied inconsistent standards by accepting a similar mark in Class 11 but refusing the present application in Class 09.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
British Sugar Plc v. James Robertson & Sons Ltd. [1996 RPC 281 at 302] Distinction between common laudatory words and arbitrary marks in trademark distinctiveness. Rejected applicability since the subject mark is not laudatory but a coined arbitrary term.
Paine & Co.'s Trade Marks [(1893) 10 RPC 217] Duty to maintain purity of Register by removing marks not justifiable as trademarks. Not applicable as the subject mark was already registered and validly used by the Appellant.
United Biotech Pvt. Ltd. v. Orchid Chemicals and Pharmaceuticals Ltd [(2012) 50 PTC 433 (Del.) (DB)] Removal of deceptively similar marks from Register. Distinguished as cited marks are ideologically and visually dissimilar to the Appellant's mark.
K.R. Chinna Krishna Chettiar v. Sri Ambal & Co. [(1969) 2 SCC 131 : AIR 1970 SC 146] Similarity of marks must be considered phonetically and visually. Supported Appellant’s argument of dissimilarity both phonetically and visually with cited marks.
Amritdhara Pharmacy v. Satyadeo Gupta [AIR 1963 SC 449] Overall similarity test for deceptive resemblance between marks. Accepted propositions but held they do not apply against the distinct mark of the Appellant.
Mex Switchgears Pvt Ltd. v. Omex Cables Industries [(2018) 76 PTC 209] Test of deceptive similarity between marks. Accepted but distinguished facts from present case.
Intellectual Property Attorneys Association v. The Controller General of Patents Designs & Trade Marks [W.P.(C) 3851/2019 & CM Appls. 17546/2019, 29362/2019] Requirement under Section 18(5) of Trade Marks Act to provide written grounds for refusal promptly. Held that Respondent failed to comply with this statutory requirement.
Siemens Engineering and Manufacturing Co. of India Ltd. v. Union of India [(1976) 2 SCC 981 : AIR 1976 SC 1785] Quasi-judicial orders must be supported by recorded reasons. Applied to hold that Respondent’s order was invalid for lack of reasons.

Court's Reasoning and Analysis

The Court examined the objections raised by the Respondent and the arguments of the Appellant in detail. It found that the Respondent had failed to properly apply mind to the facts and law, relying on irrelevant precedents and incorrect assumptions regarding the status of cited marks. The mark in question was identified as a coined, arbitrary term derived from an affiliate's name, with no meaning in English, and prior registrations and use established distinctiveness. The Respondent's refusal order lacked the required written grounds as mandated by Section 18(5) of the Trade Marks Act, 1999, and was thus arbitrary and perverse. The Court also noted inconsistency in the Respondent’s approach, as a similar mark was accepted in a different class. The Court referred to established principles requiring quasi-judicial authorities to record reasons for their decisions. Overall, the Court found the Respondent's order legally unsustainable and set it aside.

Holding and Implications

The appeal is allowed and the impugned Order dated March 6, 2019 and the Statement of Grounds dated April 30, 2019 are set aside. The Appellant's trademark application No. 2822853 for the mark in Class 09 is allowed to proceed further for registration as per the rules.

The direct consequence is that the Appellant's mark will move forward toward registration, correcting the procedural and substantive errors committed by the Respondent. No new legal precedent is established beyond the application of existing statutory and judicial principles in this context.

    Khind-Mistral Industries Sdn Bhd v. Registrar Of Trademarks

    Manmohan Singh, Chairman:— The Appellant has filed the instant Appeal on July 25, 2019 against the Order dated March 06, 2019 as well as Statement of Grounds of decision dated April 30, 2019 of the Respondent refusing the Appellant's Application No. 2822853 for the mark in Class 09. By this order we proposed to decide the above appeal. No counter affidavit has been filed by the respondent.

    2. After filing the application for registration of Trade Mark KHIND which is also dominate part of corporate name of the appellant, the respondent had raised objection in the Examination Report (ER) dated January 01, 2016 on grounds a) that the mark is devoid of any distinctive character, and b) similar marks exist on record i.e. HIND under Application No. 1197672 and HIND under Registration No. 1377375 (Annexure C).

    3. The Applicant, in its Response dated January 22, 2016 (Annexure D) emphasized on the distinctive character of the mark i.e. KHIND is a coined arbitrary term derived from the erstwhile name of the Appellant's affiliate viz. KEE HIN INDUSTRIES SDN BHD which has no meaning in the English language and was first used in the year 1989; numerous KHIND and KHIND formative marks are/had been registered by the Appellant in numerous countries of the world, including in India; complete and ideological dissimilarity of the trade mark vis-à-vis the cited application/registration; prior adoption by the Appellant of the trade mark/trade name KHIND; registration of the trade mark of the Appellant i.e. under No. 1311478 in Class 09 for the same/similar goods (Annexure E).

    4. Hearings were held on November 20, 2018 and February 27, 2019 before the Respondent. In addition to the submissions at the hearings, Written Submissions were filed on behalf of the Appellant on March 02, 2019.

    5. Counsel for the appellant has argued the appeal and he has referred few decisions in support of his submissions.

    a. It is stated by him that none of judgment referred by respondent is applicable to the facts of present case. It is argued by him that the observation in British Sugar Plc v. James Robertson & Sons Ltd. [1996 RPC 281 at 302] pertain to common laudatory word - ‘Treat’ for ‘desert sauces and syrups; all included in Class 30’ - which is not applicable to the case at hand as the subject trade mark - cannot be, in any manner, considered as laudatory.

    b. It is also argued that the ratio relied upon by the Respondent in Paine & Co.'s Trade Marks [(1893) 10 RPC 217] did not deal with the question of inherent distinctiveness of a trade mark. In this case, the Court held that it's duty to maintain the purity of the Register comes into play when its attention is called to entry on the Register of a trade mark which cannot in law be justified as a trade mark. The observations in the said decision are not applicable to the case at hand as was already on the Register in the name of the Appellant. The said trade mark had not been renewed on account of adoption of another stylized representation i.e. .

    c. He says that the observations relied upon in United Biotech Pvt. Ltd. v. Orchid Chemicals and Pharmaceuticals Ltd [(2012) 50 PTC 433 (Del.) (DB)] have no relevance as the subject matter of that case was removal of the mark FORZID for pharmaceutical preparations from the Register as it was found to be deceptively similar to the mark ORZID. In the instant case, the cited marks HIND (common Hindi language dictionary word which co-existed with the trade mark of the Appellant under No. 1311478) are ideologically and otherwise dissimilar to the trade mark.

    d. It is alleged by him that the decision rendered in K.R. Chinna Krishna Chettiar v. Sri Ambal & Co. [(1969) 2 SCC 131 : AIR 1970 SC 146] where ‘Sri Andal Madras Snuff was held to be similar to ‘Sri Ambal parimala snuff and it was observed that the resemblance between the two marks must be considered with reference to the ear as well as the eye, in fact assists the Appellant as the trade mark is both phonetically and visually dissimilar to the cited mark HIND.

    6. It is submitted by the counsel that the Appellant has no quarrel with the propositions laid down in Amritdhara Pharmacy v. Satyadeo Gupta [AIR 1963 SC 449] and Mex Switchgears Pvt Ltd. v. Omex Cables Industries [(2018) 76 PTC 209]. The said decisions emphasized on the overall similarity between the two names/marks and held ‘Lakshmandhara’ to be deceptively similar to Amritdhara’ and ‘OMEX GOLD’ deceptively similar to ‘MEX’, respectively.

    7. We totally agree with the argument of the counsel for the appellant. It appears that all the judgments referred by the respondent are out of context. The respondent has not applied his mind before referring those decisions. The respondent has blindly referred those cases without appreciating the facts and law.

    8. The subject mark is a prior coined arbitrary term derived from the erstwhile name of the Appellant's affiliate viz. KEE HIN INDUSTRIES SDN BHD which has no meaning in the English language, there can be no confusion/deception or likelihood of confusion with the cited marks. The Appellant is a bona fide proprietor and the question of adoption of the cited mark with any prefix and/or suffix does not arise.

    9. The Respondent has failed to take notice of the fact that the Appellant's trade mark was on the Register of Trade Marks under No. 1311478 and it was considered to be distinctive. Also, the Respondent had accepted Application No. 2822854 for the trade mark in Class 11 for registration (Annexure J). Thus, the Respondent wrongfully deployed a different yardstick to test registrability of the same mark albeit in a different Class on the ground of Section 9(1)(a) of the Trade Marks Act, 1999.

    10. The Respondent erroneously assumed that the cited mark HIND under No. 1197672 filed on May 09, 2003 was valid/registered when it had not even progressed beyond examination in over 15 years. The said approach of the Respondent is incorrect and perverse leading to miscarriage of justice and without application of mind. The approach of the respondent is one sided and without the law.

    11. The Respondent, in its Statement of Grounds, has erroneously stated the trade mark to be ‘purely descriptive’ of the goods in respect of which it has been applied for, however, objection was raised in the Examination Report under Section 9(1)(a) of the Trade Marks Act, 1999. The Respondent in the said order observed that the trade mark is ‘descriptive’ for the first time in the Statement of Grounds. The Respondent is now trying to justify his wrongful refusal of the subject trade mark. The said finding of the Respondent is perverse and lacks merit.

    12. The Order dated March 06, 2019 did not outline grounds for refusal and/or materials used by the Respondent in refusing the Application as envisaged in Section 18(5) of the Trade Marks Act, 1999. Thus, prima facie, the said Order is baseless, arbitrary, without any application of mind and in contravention of Section 18(5) of the Act. The Hon'ble High Court of Delhi in Intellectual Property Attorneys Association v. The Controller General of Patents Designs & Trade Marks [W.P.(C) 3851/2019 & CM Appls. 17546/2019, 29362/2019 decision passed on October 16, 2019] observed that ‘8…..the Registrar of Trade Marks is directed to strictly implement Section 18(5) of the Trade Marks Act by recording in writing grounds for refusal/conditional acceptance and the order containing the grounds of refusal/conditional acceptance be sent to the applicant within two weeks of the passing of the order.”

    The Order dated March 06, 2019 is also in contravention of the principle laid down by the Hon'ble Supreme Court in Siemens Engineering and Manufacturing Co. of India Ltd. v. Union of India [(1976) 2 SCC 981 : AIR 1976 SC 1785], where it was observed that “6………….It is now settled law that where an authority makes an order in exercise of a quasi-judicial function it must record its reasons in support of the order it makes. Every quasi-judicial order must be supported by reasons…”

    13. The impugned Order as well as Statement of Grounds of decision is bad and perverse, both in law and facts. Both orders are set aside by allowing the appeal. The appellant's Application No. 2822853 for registration of the trade mark in Class 09 in the name of the Appellant is allowed and shall proceed further for registration as per rules.

    14. No costs.

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    Khind-Mistral Industries Sdn Bhd v. Registrar Of Trademarks
    (Jul 27, 2020)