No Acts & Articles mentioned in this case
IAL.37828.2024.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
INTERIM APPLICATION (LODGING) NO. 37828 OF 2024
IN
COMMERCIAL IP SUIT (LODGING) NO. 32867 OF 2024
Astra Chemtech Private Limited & Ors. ...Applicants
IN THE MATTER BETWEEN:
Pidilite Industries Limited ...Plaintiff
Versus
Astra Chemtech Private Limited & Ors. ...Defendants
***
Dr. Virendra Tulzapurkar, Senior Advocate, a/w. Ms. Purnima Thacker,
Jeyhaan Carnac and Nishi Jain, i/b. Mulla and Mulla for for Applicant in
IAL/37828/2024 and for Defendant Nos.1 to 3.
Mr. Sharan Jagtiani, Senior Advocate, a/w. Mr. Hiren Kamod, Mr.Nishad
Nadkarni, Mr. Aasif Navodia, Ms. Khushboo Jhunjhunwala, Ms. Jaanvi
Chopra and Ms. Rakshita Singh i/by Khaitan & Co. for Respondent in
IAL/37828/ 2024 and for Plaintiff.
***
CORAM :MANISH PITALE, J.
RESERVED ON :16
th
JANUARY, 2025.
PRONOUNCED ON:06
th
FEBRUARY, 2025.
ORDER
1. The defendants have filed the present application under first
proviso to Order XXXIX Rule 4 of the Code of Civil Procedure, 1908 (CPC)
for vacating order dated 24
th
October, 2024, passed by this Court
(Coram :
R.I. Chagla, J.)
, whereby ex-parte ad-interim reliefs were granted in favour of
the plaintiff. The defendants claim that the plaintiff knowingly made false
and misleading statements in relation to material particulars in their pleadings
while obtaining the aforesaid order dated 24
th
October, 2024. The defendants
Shrikant Malani
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SHRIKANT
SHRINIVAS
MALANI
Digitally signed by
SHRIKANT
SHRINIVAS MALANI
Date: 2025.02.06
14:42:30 +0530 2025:BHC-OS:1821
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have principally raised two grounds in support of the said prayer. Firstly, that
the plaintiff deliberately misrepresented the registered trade mark of the
defendants and placed comparison between the registered trade mark of the
plaintiff on the one hand and a misrepresented version of the registered trade
mark of the defendants on the other, in order to obtain
ex-parte ad-interim
reliefs. Secondly, it is alleged that the plaintiff quoted only a portion of the
reply sent on behalf of the defendants to the plaintiff to the cease and desist
notice, so as to give a distorted version of the assertions made on behalf of the
defendants in the said reply, while obtaining the said
ex-parte ad-interim
reliefs. It is the case of the defendants that by indulging in such acts, the
plaintiff violated the mandate of the law laid down in various judgments in the
context of the first proviso to Order XXXIX Rule 4 of the CPC and on that
basis, the defendants are seeking to vacate the order dated 24
th
October, 2024.
2. The pleadings in this application were completed wherein the
parties have made allegations and counter allegations. The documents and
material on record are sought to be interpreted by the parties in support of
their respective stands. In that light the learned counsel for the parties were
heard.
3. Dr. Virendra Tulzapurkar, learned senior counsel appearing for
the defendants submitted as follows :
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(A) The plaintiff deliberately made misleading and false
statements in the plaint as well as the interim application,
suppressing material facts, thereby obtaining
ex-parte ad-
interim reliefs as per order dated 24
th
October, 2024. The
plaintiff deliberately depicted the trade mark of the
defendants as consisting of two rhinos moving in opposite
directions, thereby misrepresenting that the registered
trade mark of the defendants consisted of only a pair of
rhinos depicted in the aforesaid manner. The said
misrepresented mark of the defendants was juxtaposed
against the registered trade mark of the plaintiff, which
consists of a pair of elephants pulling in opposite
directions, to create an impression before this Court that
there was deceptive similarity between the two. Such an
assertion and distorted depiction of the registered trade
mark of the defendants was repeated at various places in
the plaint, as also in the interim application filed on behalf
of the plaintiff.
(B) Although the registration certificate issued for the trade
mark of the defendants was annexed as a document in the
voluminous plaint and exhibits, while highlighting
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comparative analysis of the rival marks, the entire
registered trade mark of the defendants consisting of six
rhinos i.e. three rhinos on each side moving in opposite
directions, was not placed before this Court while
obtaining the order dated 24
th
October, 2024. This is
evident from the manner in which the order dated 24
th
October, 2024, recorded the submissions of the plaintiff
and thereupon proceeded to compare the rival marks.
(C) If the plaintiff had been fair and the entire registered trade
mark of the defendants was placed before this Court in an
honest manner, this Court would have had the opportunity
to compare the rival marks in the correct perspective. By
insisting on ad-interim reliefs without notice to the
defendants and at the same time representing the
registered trade mark of the defendants in a truncated
manner, so as to wrongly highlight the alleged similarity
between the rival marks, the defendants were deprived of
an opportunity to appear before this Court and point out
the correct position on facts as well as law.
(D) It was submitted that the explanation now sought to be
given on behalf of the plaintiff when the present
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application is filed and pressed by the defendants, to the
effect that the comparison between the rival marks was
given on the basis of the assertions made by the defendants
in their reply to the cease and desist notice, cannot be
accepted. It was submitted that even if the contents of the
reply sent on behalf of the defendants is taken into
consideration, the depiction of the rival marks as made by
the plaintiff in the plaint and the interim application is not
justified and this is another reason why the order dated
24
th
October, 2024, needs to be vacated because the
defendants were deprived of an opportunity to
demonstrate the correct position on facts. In any case, the
order dated 24
th
October, 2024, does not show that the
plaintiff had asserted that the comparison of the rival
marks was being shown in a particular manner because of
the assertions made in the reply sent by the defendants to
the cease and desist notice.
(E) It was submitted that the explanation now sought to be
given on behalf of the plaintiff can also not be accepted
that on the label on the defendant’s product as placed on
the circular plastic jar or bucket shows that from the front
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angle only two rhinos in a fighting posture are seen and
this can confuse the consumer. This was not the assertion
made before this Court when the
ex-parte ad-interim order
dated 24
th
October, 2024, was passed.
(F) It was further submitted that the plaintiff deliberately
quoted only a portion of the entire sentence contained in
the reply sent by the defendants on 19
th
May, 2022, to the
cease and desist notice of the plaintiff. This was done with
the deliberate intention of the plaintiff to portray before
this Court, when
ex-parte ad-interim order was obtained,
that the defendants had admitted to the likelihood of
confusion between the rival marks / products. It was
submitted that a reading of the entire sentence in the
relevant portion of the reply i.e. paragraph No.3(k)
thereof, would show that there was no such admission on
the part of the defendants. This clearly amounts to false
and misleading statements being made about material
particulars and therefore, a strong ground is made out for
vacating the order dated 24
th
October, 2024.
(G) It was further submitted that even with regard to the mark
“SH”, the plaintiff falsely claimed that the defendants were
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using the mark “SH” as such, while the defendants used
the mark “SH”, always in conjunction with other words. It
was further claimed that “SH” was common to trade. It
was emphasized that if the defendants were put to notice
all these factors could have been placed before this Court at
the time of considering the prayer for ad-interim reliefs
made on behalf of the plaintiff
(H) The learned senior counsel for the defendants submitted
that the aforesaid acts on the part of the plaintiff amount to
fraud committed on this Court. He submitted that as per
the law laid down by the Supreme Court in the case of S.P.
Chengalvaraya Naidu Vs. Jagannath
1
, since fraud vitiates
everything, the order dated 24
th
October, 2024, passed in
favour of a dishonest litigant like the plaintiff herein,
ought to be vacated forthwith.
(I) The learned senior counsel appearing for the defendants
also relied upon judgment of the Supreme Court in the
case of Ramrameshwari Devi & Ors. Vs. Nirmala Devi &
Ors.
2
, in support of his contention that the better course
for the Court is to give a short notice to hear both parties
1 (1994) 1 SCC 1
2 (2011) 8 SCC 249
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and then pass suitable bipartite orders and that in any case,
the Court has to be cautious and extremely careful while
granting
ex-parte ad-interim injunctions.
(J) Reliance was further placed on judgment of the Division
Bench of this Court in the case of
Kewal Ashokbhai Vasoya
& Anr. Vs. Surabhakti Goods Pvt. Ltd.
3
to submit that the
Court, while considering such an application under Order
XXXIX Rule 4 of the CPC, is required to consider various
factors, including the aspect as to whether the plaintiff has
neutrally and objectively presented all disclosures, that
there is material to support the insistence of the plaintiff
for such
ex-parte urgent ad-interim reliefs, that the plaintiff
has disclosed before the Court anticipated defence or
arguments likely to be taken in opposition and that
attention of the Court is invited to all factual, legal or
procedural issues. The emphasis is on ensuring the
integrity of the process of the Court. It was submitted that
the plaintiff in the present case violated the integrity of the
process of the Court by indulging in such truncated
pleadings and failing to honestly and correctly place the
entire facts before this Court while obtaining the order
3 2022 SCC Online Bom 3335.
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dated 24
th
October, 2024. In this regard, reliance was also
placed on judgment of the Delhi High Court in the case of
Kent Ro Systems Ltd. & Anr. Vs. Gattubhai and Ors.
4
Reliance was placed on judgments of this Court in the
cases of RKRM International Products Private Limited &
Ors. Vs. Laser Shaving (India) Private Limited (Order
dated 02
nd
May, 2024 passed in Interim Application
(Lodging) No.7226 of 2024 in Commercial IP Suit No.44
of 2024), Pidilite Industries Limited Vs. Chirpal Industries
Limited, (order dated 09
th
March, 2023, passed in Interim
Application (Lodging) No.12828 of 2021 in Commercial
IP Suit No.452 of 2021) and ATYATI Technologies
Private Limited Vs. COGNIZANT Technologies
Solutions US Corp. and another
5
4. On the other hand, Mr. Sharan Jagtiani, learned Senior Counsel
appearing for the plaintiff made the following submissions :
(A) It was asserted that the plaintiff did not make any false and
misleading statements in the plaint in relation to the
representation of the trade mark of the defendants. Much
emphasis was placed on the reply dated 19
th
May, 2022,
4 2022 SCC OnLine Del 791
5 2024 SCC OnLine Bom 1680
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sent on behalf of the defendants to the cease and desist
notice wherein, according to the plaintiff, the defendants
themselves countered the assertions made on behalf of the
plaintiff by referring to and relying upon only a pair of
rhinos in a fighting posture. It was submitted that when
the understanding of the defendants about their own mark
was depicted in the said reply and in that backdrop, the
cease and desist notice was resisted, the plaintiff was
entitled to place its case for grant of
ex-parte ad-interim
reliefs by comparing the registered trade mark of the
plaintiff with the said depiction of the mark of the
defendants.
(B) It was submitted that the defendants cannot claim that the
plaintiff had tucked away the registration certificate of the
trade mark of the defendants and buried it in the
voluminous plaint, for the reason that the entire registered
trade mark of the defendants was shown as it is in
paragraph No.46 of the plaint, giving entire honest
disclosures. As a result, even in the
ex-parte ad-interim
order dated 24
th
October, 2024, the entire registered trade
mark of the plaintiff showing all six rhinos was referred to
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in paragraph No.24 of the order with a specific mention of
the details of the registrations of the trade marks of the
defendants at paragraph No.46 of the plaint being noticed
in the said order. According to the learned senior counsel
appearing for the plaintiff, this clearly demonstrates the
fact that the contentions raised on behalf of the
defendants are without any substance.
(C) As regards the allegation that the plaintiff placed only part
of a sentence contained in the reply sent by the defendants
to the cease and desist notice of the plaintiff and slicing
the sentence while quoting the same in the plaint, it was
submitted that the relevant paragraph of the plaint i.e.
paragraph No.37 would show that before quoting part of
the sentence from the reply of the defendants dated 19
th
May, 2022, the plaintiff paraphrased the stand of the
defendants, thereby placing before this Court the meaning
of the entirety of paragraph No.3(k) of the reply. It was
submitted that the quotation in paragraph No.37 cannot
be read out of context to claim that the plaintiff misled
this Court in any manner. It was submitted that in any
case, the aforesaid quoted portion of part of the reply of
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the defendants is not the basis for this Court to have
passed the
ex-parte ad-interim order dated 24
th
October,
2024. On this basis, it was submitted that such ground is
also without any substance and there is no question of
suppression or misrepresentation on the part of the
plaintiff.
(D) It was further submitted that the defendants are wholly
unjustified in claiming that the
ex-parte ad-interim order
granted in the context of mark “SH” deserves to be
vacated, for the simple reason that while making such a
claim the defendants are seeking to enter into the merits of
the matter, which is impermissible in such an application
filed under Order XXXIX Rule 4 of the CPC. It was
submitted that the defendant cannot claim that the mark
“SH” is descriptive in nature or that it is common to trade,
as any enquiry into the said aspect of the matter would
necessarily touch upon the merits. Therefore, the
contention that the defendants by using the mark “SH” in
conjunction or combination with other trade marks
demonstrates that there is no infringement, cannot be
considered at all in the present application.
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(E) It was submitted that the stand now being taken on behalf
of the defendants in respect of the trade mark “SH” is
absolutely dishonest, as it is diametrically opposite to their
stand in the reply to the cease and desist notice, wherein
they conceded that they would stop using the said mark.
It was submitted that the defendants are in the habit of
indulging in such dishonest conduct because they have
been caught using infringing marks and when caught on
the wrong foot they are in the habit of giving undertakings
to discontinue use of such infringing marks. Therefore, it
was submitted that it cannot lie in the mouth of such
defendants to claim any relief in the instant application.
(F) It was further submitted on behalf of the plaintiff that the
first proviso to Order XXXIX Rule 4 of the CPC
specifically provides that the Court shall vacate the
injunction unless, for reasons to be recorded, it considers
that it is not necessary so to do in the interest of justice. In
this regard reliance was placed on judgment and order
dated 20
th
December, 2023, passed by this Court in
Interim Application (Lodging) No.26759 of 2023 in
Commercial IP Suit (Lodging) No. 22293 of 2023 (K.L.F.
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Nirmal Industries Pvt. Ltd. Vs. Marico Limited). It was
submitted that the
ex-parte ad-interim order cannot be
vacated on the basis of conjectures and surmises and that
even if the plaintiff makes an incorrect or inadvertent
statement, it cannot constitute a ground for vacating such
an order. Reliance was also placed on judgment and order
dated 22
nd
December, 2022, passed by this Court in
Interim Application (Lodging) No.37027 of 2022 in
Commercial IP Suit (Lodging) No. 26527 of 2022
(
Farooq Usman Batliwala Vs. Hindustan Unilever
Limited), to contend that the ex-parte ad-interim order
can still be continued in the interest of justice. Further
reliance was placed for the said proposition on the order
passed in the case of Asma Farid Noorani Vs. Haji Ali
Fresh Juices and Others
6
, as also order passed in the case
of Dharampal Satyapal Foods Ltd. Vs. Parle Products
Private Limited and Anr.
7
5. The instant application is to be considered on the touch stone of
the first proviso to Order XXXIX Rule 4 of the CPC, whereby the Court can
vacate, vary or set aside an order of injunction granted without notice to the
6 2022 SCC OnLine Bom 4995
7 2024 SCC OnLine Bom 3452
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opposite party, provided it is demonstrated that the applicant obtained the
order of injunction by knowingly making a false or misleading statement in
relation to a material particular. According to the defendants herein, the
applicant/plaintiff in the present case indulged in such conduct and that this
Court was misled into granting
ex-parte ad-interim injunction by order dated
24
th
October, 2024. The aforesaid provision is based on the general principle
that fraud of any nature would vitiate everything. The learned senior counsel
appearing for the defendants is justified in relying upon judgment of the
Supreme Court in the case of
S.P. Chengalvaraya Naidu Vs. Jagannath (supra),
to contend that if it is demonstrated that a party has obtained a particular
order or any manner of relief by committing fraud on the Court, such an order
needs to be recalled forthwith, as deception and fraud practiced on the Court
cannot be tolerated. In this context, the extent of care and caution required to
be exercised by the Court while granting
ex-parte ad-interim injunctions is
also indicated in the judgment of the Supreme Court in the case of
Ramrameshwari Devi & Ors. Vs. Nirmala Devi & Ors. (supra). The said
judgment emphasizes that ordinarily the Court is required to issue notice, even
if a short notice, to the opposite party so that both parties can be heard and
then a suitable bipartite order can be passed in a given case.
6. It is in this backdrop that the material placed on record in the
present case needs to be appreciated, particularly in the light of the said
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position of law being explained in detail in the Division Bench judgment of
this Court in the case of Kewal Ashokbhai Vasoya & Anr. Vs. Surabhakti
Goods Pvt. Ltd. (supra). In the said judgment, the Division Bench has heavily
relied upon the principles distilled from the judgment of the Division Bench
of Commercial Court of England and Wales in the case of Alexendar
Tugushev v. Vitaly Orlov
8
. The Division Bench also referred to the judgment
of a learned Single Judge of this Court in the case of Sun Pharmaceutical
Industries Ltd. V. Emil Pharmaceutical Industries Pvt. Ltd. & Anr. (order
passed in Interim Application (Lodging) No.10937 of 2021 in Commercial IP
Suit (Lodging) No.10928 of 2021). The principles culled out in the aforesaid
Division Bench judgment in the case of Kewal Ashokbhai Vasoya & Anr. Vs.
Surabhakti Goods Pvt. Ltd. (supra), are elaborate and they cover multiple
situations where the Court can be faced with a prayer for discharging, varying
or modifying an
ex-parte ad-interim order on the ground that either false
statements were made or that the Court was misled into passing such an order.
7. It would be appropriate to specifically refer to some of those
principles, which in the opinion of this Court, can be said to be relevant for
the factual position that has emerged on the basis of the documents and facts
brought to the notice of this Court by the parties. The said principles
specifically relevant for the facts of this case are as follows :
8 (2019) EWHC 2031 (Comm).
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(i) The fundamental and the most important aspect in such
cases is the high duty on the part of the litigants before
this Court to ensure the integrity of the process of the
Court.
(ii) The party approaching the Court seeking urgent
ex-parte
ad-interim reliefs is not expected to act with the design of
only promoting its own interests but such a party is
expected, in a fair and and evenhanded manner to draw
the attention of the Court to the relevant material and also
arguments that can reasonably be anticipated in the
absence of the opposite party.
(iii) A high duty is cast upon the party seeking such
ex-parte
ad-interim reliefs to disclose all such matters of which it is
expected to be aware on making reasonable enquiries.
The material that has been disclosed through such
reasonable enquiries is required to be placed in all fairness
and without any attempt at presenting such material in a
particular manner, with the sole intention of promoting its
own interests.
(iv) It is not enough for such a party seeking
ex-parte ad-
interim reliefs to place documents on record amongst
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voluminous exhibits, without highlighting the most
crucial aspects of the matter. It is expected to clearly place
before the Court the possible arguments that can be raised
by the opposite party. This is crucial because such ad-
interim reliefs are sought without notice and in the
absence of the opposite party. All the issues that the
opposite party could raise if notice was to be issued must
be placed in an objective and neutral manner by the party
seeking such
ex-parte ad-interim reliefs.
(v) The party seeking such
ex-parte ad-interim reliefs cannot
merely highlight before the Court what it believes or
interprets to be the effect of the documents and material
placed on record, as this would encourage the tendency of
such a party deliberately giving a spin to the material on
record, so as to somehow lead the Court to grant such
reliefs.
(vi) Any act on the part of the party seeking to obtain
ex-parte
ad-interim reliefs by misleading the Court in the aforesaid
manner, after the same is brought to the notice of the
Court in such a proceeding under Order XXXIX Rule 4 of
the CPC, should result in such
ex-parte ad-interim reliefs,
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being vacated or varied.
(vii) At the same time, the first proviso to Order XXXIX Rule
4 of the CPC leaves enough scope for the Court, not to
vacate the
ex-parte ad-interim order either fully or partly if
the Court thinks it necessary to do so in the interest of
justice. This Court is of the opinion that by leaving such a
scope for the Court to ensure justice in the facts and
circumstances of each individual case, the aforesaid
provision ensures that a balanced approach is adopted and
in a given case such an
ex-parte ad-interim order can be
only partly vacated instead of the entire order being
vacated or set aside.
8. Keeping in mind the aforesaid principles, this Court proceeds to
now deal with the material on record in the light of the rival submissions.
While the learned senior counsel appearing for the defendants submits that in
the light of the plaintiff having misled this Court into passing the
ex-parte ad-
interim order, the entire order stands vitiated, it is submitted on behalf of the
plaintiff that in the facts and circumstances of the present case, firstly, there is
no ground for vacating the
ex-parte ad-interim order and that in any case, that
part of the order pertaining to the registered trade mark “SH” of the plaintiff
deserves to be retained without any interference.
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9. The thrust of the submissions made on behalf of the defendants
is that while the registered trade mark of the defendants consists of six rhinos,
three on each side facing in the opposite directions, the plaintiff deliberately
projected the trade mark of the defendants in a truncated manner, showing
only a pair of rhinos facing each other in a fighting posture. This was done
deliberately to compare the same with the pair of elephants forming part of the
registered trade mark of the plaintiff, in order to allege that the defendants had
made an attempt to come as close as possible with the registered trade mark of
the plaintiff. In this regard much emphasis was placed on the number of times
the plaintiff showed only a pair of rhinos as the registered trade mark of the
defendants and particularly the manner in which the same was depicted in the
comparative table in the plaint. In this regard, a perusal of the plaint shows
that at several places in the plaint, the plaintiff has indeed boldly asserted that
the registered trade mark of the defendants consists of a pair of rhinos facing
each other in a fighting pose i.e. .
10. It is also a matter of record that the certificate of registration of
the entire trade mark of the defendants consisting of six rhinos was indeed
placed on record as an Exhibit alongwith the plaint. But, it is to be
appreciated that the same is part of the voluminous plaint running into
hundreds of pages. It is to be noted that while making specific allegations
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against the defendants in the plaint with regard to infringement of the
registered trade mark of the plaintiff or with regard to the action of passing of,
at every place the plaintiff depicted the registered trade mark of the defendants
as . In fact, the aforesaid depiction of the trade mark was shown in
conjunction with other trade marks of the defendants consisting of pair of
animals i.e. facing in a opposite directions and also . In
paragraph No.42 of the plaint, the plaintiff specifically placed a table of
comparison between its registered trade marks and the alleged infringing trade
marks of the defendants. In this table also, on the one hand the plaintiff
depicted its registered trade mark consisting of two elephants pulling in the
opposite directions and on the other hand the registered trade mark of the
defendants was depicted as consisting only of a pair of rhinos, without any
reference to the fact that the two rhinos facing each other in a fighting pose
formed only a truncated part of the entire registered trade mark of the
defendants consisting of six rhinos. Although in paragraph No.46 of the
plaint, the plaintiff has shown the registered trade mark of the defendants
consisting of six rhinos, but its depiction is in a smaller version and in any case
it is not highlighted as compared to the manner in which only a pair of rhinos
is shown.
11. These pleadings in the plaint are reflected in the contents of the
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ex-parte ad-interim order dated 24
th
October, 2024 in all the paragraphs
leading up to paragraph No.29 of the order, except paragraph No.24 thereof.
This Court in the order dated 24
th
October, 2024 has recorded the assertions
made on behalf of the plaintiff consisting of two elephants pulling in the
opposite directions i.e. / and it has considered and analyzed it
in the context of only the truncated version of the registered trade mark of the
defendants i.e. . In the said order, while recording the
assertions made on behalf of the plaintiff, it has been repeatedly recorded that
defendants have been using the logo/device of . This Court is
of the opinion that the manner in which the trade mark of the defendants has
been appreciated, examined and analyzed by this Court, while comparing the
same with the registered trade mark of the plaintiff, particularly in paragraph
No.29, which contains the comparative table, it becomes clear that the
conclusion regarding infringement was reached on the basis of such
comparison, without any reference to the entirety of the registered trade mark
of the defendants i.e. .
12. Although in paragraph No.24 of the
ex-parte ad-interim order
dated 24
th
October, 2024, this Court has recorded that attention was invited to
paragraph No.46 of the plaint, which consisted of various trade marks of the
defendants found in the Trade Mark Registry, including the aforesaid trade
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mark consisting of six rhinos, its depiction is in an extremely small size, in
black and white and there is nothing to indicate that the comparison between
the two marks was made on the basis of the entirety of the registered trade
mark.
13. Therefore, this Court is of the opinion that the manner in which
the case has been pleaded by the plaintiff in its plaint, particularly the manner
in which only the truncated version of the registered trade mark of the
defendants i.e. has been highlighted, it can be said that the plaintiff
knowingly made a misleading statement in relation to the most material
particular in the present case i.e. the true description and depiction of the
registered trade mark of the defendants. This Court is not impressed with the
contention of the plaintiff that the comparison table given in the plaint, which
was reflected in the
ex-parte ad-interim order also, was based on the contents
of the reply dated 19
th
May, 2022 sent by the defendants to the cease and
desist notice of the plaintiff. It was claimed that since the defendants
themselves perceived their trade mark as consisting of a pair of rhinos while
denying the claims made in the cease and desist notice, the plaintiff was
entitled to plead its case by treating the trade mark of the defendants as
consisting of only two rhinos facing each other in a fighting pose.
14. This Court has perused the contents of the reply dated 19
th
May,
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2022, sent by the defendants to the cease and desist notice. The contents
thereof in no manner demonstrate any concession made on behalf of the
defendants or any impression given by them to the plaintiff that their trade
mark consisted of only two rhinos i.e. . In fact, the contents of the
reply indicate a vehement denial on the part of the defendants with regard to
the allegation of infringement. It is not enough for the plaintiff to claim that
since copy of the reply dated 19
th
May, 2022, was annexed as exhibit to the
plaint, it cannot be said that the plaintiff made any attempt to mislead the
Court. This is for the simple reason that nowhere in the pleadings in the
plaint is it stated that although the registered trade mark of the defendants
consists of six rhinos, three on each side facing in the opposite directions i.e.
, the plaintiff is claiming infringement on
the basis that even the defendants have treated their trade mark in a truncated
manner consisting of only two rhinos facing each other in a fighting pose. In
the absence of such pleadings, this Court finds that the defendants are justified
in claiming that throughout the pleadings in the plaint and considering the
number of times the plaintiff depicted the registered trade mark of the
defendants only as , an impression was sought to be created that the
defendants had made an attempt to come as close as possible to the registered
trade mark of the plaintiff i.e. / . This is also reflected in the
contents of the order dated 24
th
October, 2024 and therefore, this Court is of
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the opinion that the plaintiff did make the aforesaid misleading statements
with regard to the material particular of the true nature the registered trade
mark of the defendants.
15. This Court is also unable to accept the contention of the plaintiff
that since the registered trade mark of the defendants consisting of six rhinos
is depicted on the label wrapped around a circular jar in which the adhesive
product of the defendants is sold, from a particular angle only two of the six
rhinos are visible to the consumer. In that regard, reliance was sought to be
placed on exhibits showing the impugned goods of the defendants. This
Court is of the opinion that the plaintiff has nowhere pleaded in the plaint
that although the registered trade mark of the defendants consists of six
rhinos, it is seen and observed by the consumer only in the form of a pair of
rhinos on the label affixed in the alleged impugned goods of the defendants.
It is not the projected case of the plaintiff in the plaint at all. In fact, even
when the interim application of the plaintiff was taken up for consideration
urgently on 24
th
October, 2024, it was not argued in this manner and hence, it
is not even reflected in the
ex-parte ad-interim order dated 24
th
October,
2024. It is only when the defendants have filed the present application under
Order XXXIX Rule 4 of the CPC that the plaintiff has come up with the said
arguments, obviously as an afterthought and as an attempt to justify its
conduct of depicting the registered trade mark of the defendants in a truncated
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manner at various places in the plaint. This further reinforces the conclusion
of this Court that the plaintiff in that regard did indulge in making misleading
statements in respect of the most material particular in the facts and
circumstances of the present case. This is completely covered under the first
proviso to Order XXXIX Rule 4 of the CPC.
16. The second aspect highlighted by the defendants is that the
plaintiff deliberately quoted only part of a sentence from their reply dated 19
th
May, 2022 in response to the cease and desist notice of the plaintiff and that
this was done with the intention of creating a wrong impression before this
Court. It was emphasized that by slicing the entire sentence and quoting only
part of it, the plaintiff deliberately sought to given an impression that the
defendants had conceded to the plaintiff’s claim that the registered mark of the
defendants had a tendency of creating confusion in the minds of the
consumers when compared with the registered trade made of the plaintiff. The
plaintiff has resisted the aforesaid contention by claiming that in the paragraph
of the plaint in which a part of the sentence from the reply of the defendants
was quoted, the entire stand of the defendants in the said part of their reply
was paraphrased and thereafter, a part of the sentence was quoted.
17. This Court is of the opinion that the aforesaid explanation sought
to be given on behalf of the plaintiff can also be said to be an afterthought,
after the defendants have caught the plaintiff on the wrong foot. Here again
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the plaintiff is not justified in contending that since the entire copy of the
reply dated 19
th
May, 2022 was placed as an exhibit with the plaint, it cannot
be said that any misleading statement was made by the plaintiff.
18. This Court has perused the relevant paragraph of the reply dated
19
th
May, 2022, i.e. paragraph No.3(k). The entire portion from which only
part of the sentence is quoted in the plaint, reads as follows:
“k. With reference to point 11 statements made are not only
false but faux and erroneous in nature. We do not agree to
anything mentioned here from any length and breadth.
The trademarks used by our clients are honestly coined,
conceived, continually used on bonafide grounds since
inception and they are only connected to our client’s
company. Person with any kind of intellect/stature can
very much differentiate or register some aspects of the
product very much that can maintain one’s identity and
not correlate or associate with each other’s product i.e. the
tradenames/ labels/ devices/ packaging/ size/ color
combination/ shape of the container/ quantity of the
products etc. We have no doubt in regards to any
educated person getting confused while buying your
products/brands but when it comes to an average person
like a carpenter or construction worker, possibly they may
forget the names but will surely register/remember the
device mark/colour of packaging etc. and can very well tell
the shop vendor to give either Hippo/ Rhino/ Elephant
items without any apprehension/confusion. We are living
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in 21
st
century and in such high-tech world where
everyone learnt to use smart phone, device, gadgets,
digital transactions etc. do you honestly feel such things
matter or really consumer will be misguided or will fall
prey to wrong products or associate between two products
and companies. Thus, our client is not able to understand
how using of their own coined marks be unauthorized
that could lead to civil and criminal offense? Rather our
client’s feel the matter is unnecessarily hyped/publicized
with wrong intentions. Your client is trying to
monopolize the market and eat away all small/average size
manufacturers and traders by sending such notices.”
19. A perusal of the above quoted entire paragraph No.3(k) of the
reply dated 19
th
May, 2022, would show that the defendants nowhere
conceded that their trade mark could be said to be infringing the registered
trade mark of the plaintiff and the entirety of the sentence, only part of which
is quoted in the plaint, specifically asserts that the persons, who actually go to
buy the products would be able to distinguish between the products of the
plaintiff on the one hand and the those of the defendants on the other,
without any apprehension or confusion. This Court is of the opinion that by
quoting only part of the sentence, the plaintiff can be said to have made an
attempt to give an impression that the defendants had admitted the charge
levelled against them about having adopted the impugned trade mark in order
to create confusion amongst the consumers. The attempt on the part of the
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plaintiff to claim that it had paraphrased the meaning of the aforesaid
paragraph No.3(k) of the reply dated 19
th
May, 2022 in its plaint, can be of no
consequence, as this Court finds that the plaintiff was expected to honestly
reproduce the entire sentence, or better still, the entire paragraph in the plaint,
if at all it did choose to incorporate part of the reply dated 19
th
May, 2022, in
its pleadings in the plaint. Such pick and choose and slicing of sentences does
constitute an act on the part of the plaintiff to mislead or to present the stand
of the defendants in a manner that would advance only the interests of the
plaintiff, without giving a balanced and appropriate depiction of the same.
Hence, the aforesaid second ground raised on behalf of the defendants while
alleging that the plaintiff indeed made misleading statements, also deserves to
be accepted.
20. This Court is the opinion that the entire thrust in the
aforementioned provision i.e. first proviso to Orde XXXIX Rule 4 of the CPC
and the settled position of law recognized in the various judgments,
particularly in the Division Bench judgment of Kewal Ashokbhai Vasoya &
Anr. Vs. Surabhakti Goods Pvt. Ltd. (supra), is on maintaining the integrity of
the process of the Court. Hence, any attempt on the part of the plaintiff to
pollute the process, is to be frowned upon and the plaintiff cannot claim that it
innocently placed the aforementioned comparison of the two marks, in the
facts of the present case, on its interpretation of the reply of the defendants
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dated 19
th
May, 2022, to the cease and desist notice. Once it is found that the
plaintiff indulged in an act which has the effect of polluting the process of the
Court, the consequences as indicated in Order XXXIX Rule 4 of the CPC
must follow. It is for this reason that in the case of Ramrameshwari Devi &
Ors. Vs. Nirmala Devi & Ors. (supra), the Supreme Court has cautioned that
the better course for the Court is to give a short notice and then to pass
suitable bipartite orders. It is also observed that experience has shown that
ex-
parte
ad-interim injunction orders in some cases can create havoc and to get
them vacated or modified in our existing judicial system has become a
nightmare. Consequently, the burden on the plaintiff approaching the Court
for
ex-parte ad-interim reliefs is that much more and any impression gathered
by the Court that the plaintiff indulged in acts that could be said to be
misleading the Court into granting
ex-parte ad-interim injunctions must result
in adverse orders against such a plaintiff.
21. In this regard, it is also to be appreciated that if notice was to be
issued to the defendants, they could have remained present before this Court
to indicate their stand in the matter and to highlight the fact that their
registered trade mark consists of six rhinos facing each other and not just a pair
of rhinos in a fighting pose. The defendants were deprived of this opportunity
and this led to a situation where the plaintiff walked away with an
ex-parte ad-
interim order, which perhaps may not have been granted, had the defendants
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been given an opportunity to appear before the Court. It is a different manner
that this Court even after the hearing the defendants may well have found it fit
to grant ad-interim reliefs, but the crucial aspect in such cases is that the
defendants are deprived of an opportunity to place their version before the
Court. If only the defendants were put to notice, they could have very well
relied upon their own reply dated 19
th
May, 2022, to demonstrate that the
plaintiff cannot claim any act of infringement on their part on a proper
comparison of the registered trade mark of the defendants with the registered
trade mark of the plaintiff. It cannot be said that the plaintiff in the present
case truthfully and honestly stated the possible defense of the defendants,
which was reflected in their reply dated 19
th
May, 2022, sent to the cease and
desist notice. This Court is unable to accept the contention of the plaintiff
that the stand of the defendants in their reply to the cease and desist notice
indicated that they themselves were treating only the pair of rhinos as their
registered trade mark.
22. But, at the same time, this Court finds that the defendants cannot
claim that if notice was issued to them, they could have given their own
version in respect of the registered trade mark “SH” also. In the reply dated
19
th
May, 2022, to the cease and desist notice, the defendants themselves
specifically stated in paragraph No.3(e) that they would be removing the mark
“SH” from all their products. This was also stated in paragraph No.3(c) of the
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reply and it was asserted that the defendants have agreed to stop using the
“SH” mark to avoid confusion or chaos in the business and trade circles.
23. Having taken such a stand in the reply dated 19
th
May, 2022, the
defendants in the present application cannot be heard to say that they are
entitled to use their “SH” mark, as it is used in conjunction with other marks
or that such a mark can be said to be common to trade. This is because such
contentions would invite this Court to enter into the merits of the matter,
which is impermissible in the present application. Even if notice was to be
served on the defendants before considering ad-interim reliefs, in the light of
their own stand in the reply dated 19
th
May, 2022, concerning the trade mark
“SH” and the specific statement that they had agreed to stop and they would
stop using the said mark, the defendants may not have been able to resist ad-
interim reliefs in the face of the documents placed on record by the plaintiff as
regards its registrations for the trade mark “SH”. To that extent, the plaintiff is
justified in contending that this Court may consider retaining that portion of
the
ex-parte ad-interim order, which concerns the registered trade mark “SH”,
even if this Court were to partly vacate or vary the
ex-parte ad-interim order
dated 24
th
October, 2024. This Court is of the opinion that the first proviso to
Order XXXIX Rule 4 of the CPC leaves enough power with the Court to stop
short of vacating the entire
ex-parte ad-interim order for reasons to be
recorded and where it considers that it would be in the interest of justice so to
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do.
24. The judgments and orders relied upon by the plaintiff in this
context i.e. K.L.F. Nirmal Industries Pvt. Ltd. Vs. Marico Limited (supra) and
Asma Farid Noorani Vs. Haji Ali Fresh Juices and Others (supra), are apposite
and this Court is inclined to follow the dictum to partly retain the effect of the
ex-parte ad-interim order dated 24
th
October, 2024.
25. While reaching the conclusion that this Court in the facts and
circumstances of the present case ought to exercise power under first proviso
to Order XXXIX Rule 4 of the CPC to partly vacate the
ex-parte ad-interim
order dated 24
th
October, 2024, the position of law clarified in the judgments
in the case of
Kent Ro Systems Ltd. & Anr. Vs. Gattubhai and Ors. (supra),
ATYATI Technologies Private Limited Vs. COGNIZANT Technologies
Solutions US Corp. and another (supra), RKRM International Products
Private Limited & Ors. Vs. Laser Shaving (India) Private Limited (supra) and
Pidilite Industries Limited Vs. Chirpal Industries Limited (supra), is being
followed.
26. In view of the above, the application is partly allowed by
directing that
ex-parte ad-interim order concerning the registered trade mark
of the defendants
is vacated, with the
result that the ad-interim relief granted in terms of prayer clause (c) is entirely
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vacated, while the ad-interim order granted in terms of prayer clauses (e) and
(h) stands vacated to the extent that it concerns the aforesaid registered trade
mark of the defendants consisting of six rhinos
.
27. At the same time, the
ex-parte ad-interim reliefs granted in the
context of registered trade mark “SH” of the plaintiff are maintained. As a
consequence, the goods of the defendants that were seized and sealed by the
Court Receiver while executing the
ex-parte ad-interim order dated 24
th
October, 2024, which bear the registered trade mark of the defendants
consisting of six rhinos i.e.
, shall be de-
sealed and handed over to the defendants. It is made clear that all such goods
of the defendants that were seized and sealed by the Court Receiver while
executing the said order, which bear the mark “SH” shall continue to be seized
and sealed and in the constructive possession of the Receiver until further
orders in Interim Application (Lodging) No.33054 of 2024.
28. The instant application i.e. Interim Application (Lodging)
No.37828 of 2024, stands disposed of in above terms
(MANISH PITALE, J.)
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