Bombay High Court Dismisses Appeal Against Injunction in Trade Mark Infringement Suit. Prior user of trade mark 'City Collection' entitled to interim protection despite pending registration under Trade Marks Act, 1999.

High Court: Bombay High Court Bench: NAGPUR In Favour of Prosecution
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Case Note & Summary

The appeal arose from an order of injunction passed in a Trade Mark Suit filed by the respondents (plaintiffs) temporarily restraining the appellant (defendant) from using the trade mark or trade name 'City Collection' in any manner for business purposes during the pendency of the suit. The plaintiffs, a registered partnership firm, had been carrying on business since 2001 using the trade name 'City Collection' for sale of mobile phones, cameras, perfumes, etc. The trade name was registered under the Copyright Act, 1957 on 29th August 2013, and an application for registration under the Trade Marks Act, 1999 made on 28th December 2011 was pending. The plaintiffs claimed that their brand was well recognized and they had acquired immense goodwill and reputation. They found that the defendant, by using a deceptively similar mark 'Orange City Mobile Collection', had started business in the same locality, causing confusion and deception. The trial court granted an interim injunction. The defendant appealed under Order XLIII Rule 1(r) of the CPC. The High Court examined the pleadings and documents, noting that the plaintiffs had been using the mark since 2001, while the defendant started business in 2013. The court found that the plaintiffs had made out a prima facie case, balance of convenience was in their favour, and they would suffer irreparable loss if injunction was not granted. The appeal was dismissed with costs.

Headnote

A) Trade Marks Act, 1999 - Section 28, Section 29 - Interim Injunction - Prior User - The plaintiffs, using the trade name 'City Collection' since 2001, sought injunction against the defendant using a deceptively similar mark 'Orange City Mobile Collection' for similar business. The court held that the plaintiffs had established prima facie case of prior adoption and use, balance of convenience in their favour, and irreparable loss if injunction not granted. The appeal against the injunction order was dismissed. (Paras 1-10)

B) Civil Procedure Code, 1908 - Order 39 Rules 1 and 2 - Temporary Injunction - Principles - The court reiterated that for grant of temporary injunction, three conditions must be satisfied: prima facie case, balance of convenience, and irreparable loss. The trial court's order was found to be based on proper application of these principles. (Paras 5-10)

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Issue of Consideration

Whether the plaintiffs have made out a prima facie case for grant of temporary injunction restraining the defendant from using the trade mark 'City Collection' pending disposal of the suit.

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Final Decision

The appeal is dismissed with costs. The order of injunction passed by the trial court is upheld.

Law Points

  • Interim injunction
  • Trade mark infringement
  • Prior user
  • Deceptively similar mark
  • Balance of convenience
  • Irreparable loss
  • Prima facie case
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Case Details

2017 LawText (BOM) (02) 113

Appeal against Order No. 81 of 2014

2017-02-28

A.S. Chandurkar, J.

Mr. R. L. Khapre for appellant; Mr. G.E. Moharir with Mr. D. Pathak for respondents

M/s. Orange City Mobile Collection

M/s. City Collection & Ors.

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Nature of Litigation

Appeal against order of temporary injunction in a trade mark infringement suit.

Remedy Sought

The plaintiffs sought temporary injunction restraining the defendant from using the trade mark 'City Collection'.

Filing Reason

The defendant started using a deceptively similar trade name 'Orange City Mobile Collection' causing confusion and deception.

Previous Decisions

The trial court granted temporary injunction in favour of the plaintiffs.

Issues

Whether the plaintiffs have a prima facie case for grant of temporary injunction? Whether the balance of convenience lies in favour of the plaintiffs? Whether the plaintiffs would suffer irreparable loss if injunction is not granted?

Submissions/Arguments

Appellant argued that the plaintiffs had not obtained registration of the trade mark and that the mark 'City Collection' is descriptive and not distinctive. Respondents argued that they are prior users since 2001 and have acquired goodwill and reputation, and the defendant's mark is deceptively similar.

Ratio Decidendi

A plaintiff who is a prior user of a trade mark and has acquired goodwill and reputation is entitled to interim injunction against a subsequent user of a deceptively similar mark, even if the plaintiff's registration is pending, provided prima facie case, balance of convenience, and irreparable loss are established.

Judgment Excerpts

An order of injunction passed in the Trade Mark Suit filed by the respondents temporarily restraining the appellant from using the trade mark or trade name 'City Collection', in any manner, whatsoever, for business purposes during pendency of the suit is the subject-matter of challenge in this appeal. The plaintiffs have been using the trade name 'City Collection' since 2001 and have acquired immense goodwill and reputation.

Procedural History

The plaintiffs filed a Trade Mark Suit seeking injunction. The trial court granted temporary injunction. The defendant appealed under Order XLIII Rule 1(r) of CPC. The High Court heard the appeal and dismissed it.

Acts & Sections

  • Civil Procedure Code, 1908: Order XLIII Rule 1(r), Order 39 Rules 1 and 2
  • Trade Marks Act, 1999: Section 28, Section 29
  • Copyright Act, 1957:
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High Court Bombay High Court Dismisses Appeal Against Injunction in Trade Mark Infringement Suit. Prior user of trade mark 'City Collection' entitled to interim protection despite pending registration under Trade Marks Act, 1999.
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