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As per case facts, Plaintiff sued Defendants for trade mark infringement and passing off related to the 'MANTRA' mark. Defendants sought to challenge the Plaintiff's trade mark registration and requested
...a stay of the suit under Section 124 of the 1999 Act. The Trial Court framed an issue on the validity of the Plaintiff's mark but refused to stay the suit. The Defendants appealed to the High Court, arguing the Trial Court erred in not staying the suit given the prima facie challenge to the trade mark's validity. The question arose whether a Trial Court can decide trade mark validity when rectification is sought, if Section 124 mandates staying both infringement and passing off claims, or if they can be split. Finally, the High Court ruled that if invalidity is prima facie tenable, Section 124 mandates a stay for rectification; it applies only to infringement, not passing off. It ordered the infringement claim stayed for three months for rectification, while the passing off suit proceeds separately due to trial delays.
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