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2000 DIGILAW 1047 (MAD)

Mars, Incorporated v. Chanda Softy Ice Creams and Others

2000-10-23

I.DAVID CHRISTIAN

body2000
Judgment :- I. DAVID CHRISTIAN, J. 1. Applications have been filed under Sections 10 to 12 of the Contempt of Courts Act. These two applications have been filed by the plaintiffs in the suit in C.S. No. 718 of 1999 drawing the attention of the court about the wilful and deliberate disobedience of the order passed in O.A. Nos. 579 & 580 of 1999 dated 23.9.1999 by the respondents, who are the defendants in the suit. In the affidavit filed in support of the applications, following averments are made:- 2. Suit and original applications were filed by M/s. Mars Incorporated, Mclean, Virginia, United States of America, a company incorporated as per the laws in United States of America and the plaintiff company is represented by its power of attorney. The suit was filed against the defendants, who are now respondents in these applications alleging infringement of plaintiff's trademark rights and act of passing off by the respondents/defendants. Interim applications were filed in O.A. Nos. 579 & 580 of 1999. Interim injunction in those applications is to restrain the respondents, their partners, their legal representatives, etc., from in any manner infringing their registered trademark 'Galaxy' and 'Milky way'. Other application was filed for interim injunction restraining the defendants/respondents from passing off their goods as that of the plaintiffs. By a common order dated 23.9.1999 passed in O.A. Nos. 579 & 580 of 1999, this Court passed an order as follows:- "that (1) Chanda Softy Ice Creams, G-7, Wellington Estate, 24, C-in-C Road, Egmore, Madras - 600 105, (2) Mr. Bhushan Goyal, (3) Mr. By a common order dated 23.9.1999 passed in O.A. Nos. 579 & 580 of 1999, this Court passed an order as follows:- "that (1) Chanda Softy Ice Creams, G-7, Wellington Estate, 24, C-in-C Road, Egmore, Madras - 600 105, (2) Mr. Bhushan Goyal, (3) Mr. Girish Gupta, (4) Milky Way, Galaxy of Ice Creams, G-7, Wellington Estate, 24, C-in-C Road, Egmore, Chennai - 600 105, the respondents herein, their partners, heirs, legal representative, stockists, or any of them be and hereby restrained by an injunction until further orders of this court from (a) in any manner infringing the applicant's registered Trade Marks 'Galaxy' and 'Milky Way' by use of Trade Marks 'Galaxy' and 'Milky Way' or any similar thereto (b) in any manner passing off or enabling others to pass off the respondent's business and goods as and for the business and goods of the applicant by use of 'Galaxy' and 'Milky Way' or any mark similar thereto the Trade Marks and as part of trading style/business name in respect of ice creams, frozen goods, snack foods or in any other manner whatsoever." Copy of the said order was duly served on the respondents. The respondents have not even filed any application till date to vacate the order of injunction. First respondent is a partnership firm and the respondents 2 & 3 are the partners of the said firm. Fourth respondent is a firm and the respondents 2 & 3 are associated and connected with, having a close trade nexus with Fourth respondent. Inspite of the interim injunction granted by this Court, the respondents still continue to use the Trademarks 'Galaxy' and 'Milky Way' on their name board prominently displayed outside their premises. Therefore, the respondents are deliberately and wilfully violating the order of injunction passed by this Court. A copy of photograph taken on 18.11.1999 in front of the respondents shop clearly shows that the trademarks Galaxy and Milky Way appear on the name board and signboard which clearly shows that the respondents are wilfully violating the order of this Court. Copies of the photographs are filed along with the documents. Photos were again taken on 28.3.2000 prior to filing of this affidavit only to show that the respondents are continuously violating the order with all impunity. Copies of the photographs are filed along with the documents. Photos were again taken on 28.3.2000 prior to filing of this affidavit only to show that the respondents are continuously violating the order with all impunity. Illegal activities of the respondents being carried on in violation of the order passed by this Court cause irreparable loss and injury to the plaintiff's goodwill, reputation and the business carried on by the plaintiff. Therefore, the respondents are guilty of committing contempt of court and defiance of the order passed by this Court and hence they are liable to be punished according to law. The respondent 1 to 3 appeared on receipt of notice and the second respondent Bhushan Goyal has sworn to a counter-affidavit for himself and also on behalf of the first and third respondents making the following averments:- The first respondent Chanda Softy Ice Creams is a partnership firm in which the respondents 2 and 3 are partners. These respondents did not receive any notice in the application filed by the plaintiff for interim injunction i.e., in respect of O.A. Nos. 579 and 580 of 1999 in C.S. No. 718 of 1998. The plaintiff has not served the order of injunction purported to have been obtained against these respondents in the above stated O.As. Annexures filed along with the plaint such as documents, copy of the plaint, affidavit, Judge's summons have not been served on the respondents 1 to 3. Postal acknowledgment said to have been filed in proof of service would only show that a cover has been served on the wife of the second respondent, both for and on behalf of the respondents 2 & 3. Third respondent Girish Gupta is living and carrying on business at Hyderabad and as such there is no valid service of order of injunction. Wife of the 2nd respondent has received a letter from the plaintiff's counsel but it did not contain any enclosures. Plaintiff seems to have manipulated to obtain the signature of the wife in the postal acknowledgement second respondent in respect of the cover addressed to Chanda Softy Ice Creams. She has no connection with the business carried on in the name and style 'Chanda Softy Creams'. Fourth respondent is not an existing firm or an individual. Suit summons have been received by the respondents and they have filed written statement in the suit. She has no connection with the business carried on in the name and style 'Chanda Softy Creams'. Fourth respondent is not an existing firm or an individual. Suit summons have been received by the respondents and they have filed written statement in the suit. They became aware of the interim applications and the order passed thereon only when they were served with typed set of papers relied upon by the petitioner/plaintiff. Plaintiff's counsel has subsequently furnished some copies of affidavits, order, Judge's summons, etc. These respondents have never committed any contempt nor violated the orders passed by this Court. These respondents have great respect to the orders of this court and as such they express their sincere and unconditional apology if a misconception has been created with regard to their conduct. Accepting the apology, action may be dropped. 3. Both sides were heard. 4. Plaintiff M/s. Mars Incorporated is a Corporation registered under the relevant laws in force in United States of America and it is a Multi-National company engaged in manufacturing chocolates, ice creams and other soft foods. The company was originally started in the year 1921 and subsequently it has made a steady progress and growth and the company has got manufacturing units and subsidiary companies registered in foreign countries like Germany, Australia, France and other countries. Plaintiff company has been manufacturing and marketing ice creams and chocolates under the registered trade marks 'Galaxy' and 'Milky Way'. Their total turn over runs to several 100's of Millions of US Dollars and they are also marketing their products in India through Customs Duty Free Shops. Indians, who are living abroad or who go on foreign visits, used to return with these goods manufactured by the plaintiff and in India also the plaintiffs enjoys a very good reputation and market in respect of its goods marketed under the trade marks Milky Way and Galaxy. Plaintiffs have also registered their trade marks Milky Way and Galaxy in India even in the year 1991. Plaintiff company is spending hundreds of Millions of Dollars for advertising their products and there is a huge turnover annually in respect of plaintiff's products Galaxy and Milky Way. Plaintiffs have also registered their trade marks Milky Way and Galaxy in India even in the year 1991. Plaintiff company is spending hundreds of Millions of Dollars for advertising their products and there is a huge turnover annually in respect of plaintiff's products Galaxy and Milky Way. Products of the plaintiff have come to acquire very good reputation and consumers every where including India have come to identify the products, ice creams, chocolates sold under the trademarks Galaxy and Milky way as exclusively belonging to and emanating from the plaintiff's company. Obviously with a view to cut into the market enjoyed by the plaintiff and with a view to make wrongful gain, the respondents/defendants 1 to 3 have started using the trademarks 'Galaxy' and 'Milky way' in respect of their own products Ice Creams which they are selling in their shops situated in commander in Chief Road, Egmore, Chennai, in a posh apartment Flat. 5. Coming to know of the unlawful act of the respondents/defendants, the plaintiff has filed the suit and applications and an order of injunction has been also passed by this Court dated 23.9.1999 restraining the respondents/defendants from using the trademarks of the plaintiff, Milky Way and Galaxy in respect of ice cream. An order of interim injunction was passed in O.A. Nos. 579 & 580 of 1999 in C.S. No. 718 of 1999. Interim injunction has been granted against the defendants 1 to 4, who are the respondents 1 to 4 in these applications. Interim injunction is dated 23.9.1999. These orders of injunction have been served on the defendants and copies of the orders have been received by the wife of the second respondent on behalf of the respondents 1 to 3. Copies of the orders passed in these applications have been served through post by sending necessary copies of the order under properly sealed covers and obviously the postal authorities have served the cover on the wife of the second respondent, who must have had authority to receive the postal articles on behalf of the respondents 1 to 3. Service made on the second defendant's wife is therefore valid service on behalf of the respondents 1 to 3. 6. Service made on the second defendant's wife is therefore valid service on behalf of the respondents 1 to 3. 6. Some averments are made in the initial counter filed by the second respondent making it appear as if that they have not received any orders in respect of the interim order passed by this Court in the applications referred to. Respondents took time to file counter in these applications stating that they have to first ascertain from the Registry as to whether any notice has been served on them. Subsequently they filed a counter affidavit no doubt admitting the service of a postal cover on them, but denying the postal cover containing any order passed by this Court or copy of the applications praying for interim injunction or documents necessary to accompany those notices. So, the respondents who attempted to say that they never received copy of the notice for these applications or any orders passed therein in respect of which these contempt applications have been filed, finally admitted that they have been served with postal cover purporting to contain those copies of the documents. But it is alleged by the respondents that they only received empty covers. This contention on the part of the respondents is only stated to be rejected. If any fraud is stated to be accomplished by the plaintiff by serving empty postal cover on receipt of the same, the respondents should have immediately filed an affidavit to that effect and they would have also taken steps to have the ex-parte injunction order set aside. 7. It is significant to note that the respondents/defendants have even filed their written statement setting out their defence to the suit filed by the plaintiff and even at that time they never complained about an empty cover having been served on them. That there is no element of truth in the allegations made by the respondents is clear from the fact that they have not even chosen to file the alleged empty cover containing no papers which have been served on them by post through the wife, who must have authority from these respondents to receive the postal cover. Not even an affidavit is sworn to by the wife on whom postal cover has been served stating that cover did not contain any contents. Not even an affidavit is sworn to by the wife on whom postal cover has been served stating that cover did not contain any contents. Therefore, this would not only expose the hollowness of the claim of the respondents but would show to what extent these respondents are prepared to go and they have no regard for truth. Therefore, I have no hesitation in holding that interim injunction order passed in the applications referred to above have been duly served on these respondents 1 to 3. 8. First respondent is M/s. Chanda Softy Ice Creams, which is a partnership firm and the respondents 2 & 3 Bhushan Goyal and Girish Gupta are the partners of the said firm. No doubt now it turns out that there is no existing firm or entity known as Milky Way Galaxy of Ice Creams which has been mentioned as 4th respondent in the application. So, contempt charge is to be considered only against the respondents 1 to 3, namely M/s. Chanda Softy Ice Creams and its two partners. Counter affidavit is sworn to by the second respondent Bhushan Goyal on behalf of M/s. Chanda Softy Ice Creams and other partners, Bhushan Goyal and Girish Gupta, namely the respondent 2 and 3. It is admitted that the respondent 2 & 3 are the partners of the first respondent firm. It is also not denied that the first respondent firm is running an ice cream parlour in a posh flat at G-7 Wellington Estate situated in Door No. 24, C-in-C Road, Egmore, Chennai. 9. The plaintiff has produced a copy of The Hindu dated 12.5.2000 wherein at the instance of these respondents, a full page advertisement-cum-news letter is published in a prominent manner with colour photos wherein it is claimed that the second respondent and his brother have established Eating Restaurants wherein they are serving Mexican and Italian cuisine. It is also stated therein that they are running a Restaurant in the address given above in C-in-C Road under the name and style 'Planet Yumm' described on 'fun place'. It is also stated therein that they are running a Restaurant in the address given above in C-in-C Road under the name and style 'Planet Yumm' described on 'fun place'. It is proudly stated that the second respondent and his brothers have started a parlour in the address stated above and they are offering fresh ice creams made out of best Italian machines installed in the above premises and Planet Yumm is the second outlet in the city and the ice cream offered for sale is under the brand name 'Milky Way'. 10. Plaintiffs have also produced copies of colour photos taken by them showing that hoardings and boards have been erected by these respondents in the premises at C-in-C Road displaying their trade name Milky Way, Galaxy of ice creams. The respondents do not deny that they are running ice cream parlour in the above stated premises and hoardings and name boards have been erected by them and they have also caused advertisements running to a full page in 'The Hindu' appearing as news item also wherein they have proudly stated that they were offering best ice creams made by Italian machines. Plaintiff has been using the trademarks Milky Way and Galaxy in respect of chocolates, ice creams and similar products for the past many years and they command International market and they enjoy transborder reputation in respect of the said trade marks Galaxy and Milky Way. They have also taken precaution and care to have the trademarks Milky Way and Galaxy registered under the Trade and Merchandise Marks Act. The respondents have been using the identical trademark which is definitely an act of infringement of plaintiff's trademark rights and also an act of passing off their goods as that of the plaintiff. Aggrieved at the unlawful act of the respondents, the plaintiff has filed the suit and they have also obtained interim orders from this Court. The respondents even though served with this order have been going on merrily flouting and disobeying the order and they continued their trade even after the order of injunction and making use of the trademarks of the plaintiff 'Milky Way' and 'Galaxy'. 11. It was stated only at the time of argument that hoardings and name boards installed in the premises of the respondents have been since removed. 11. It was stated only at the time of argument that hoardings and name boards installed in the premises of the respondents have been since removed. But photos have been taken long after the interim order passed in this case and the news item is also only long after the order of injunction granted in favour of the plaintiff. Only after the contempt applications are filed and that too when after learning they took long time for filing their counter, finally it seems that they now removed the name board and hoardings. It has been clearly established by the plaintiff/petitioner that the defendants/respondents 1 to 3 by continuously displaying the trade marks, in respect of which they have been restrained by an order of injunction by this court, have wilfully and wantonly defied the order only with a view to make wrongful gain and also to cause loss to the plaintiff which also incidentally is causing injury to their reputation and goodwill. Therefore, it has been proved that the respondents/defendants 1 to 3 have committed acts of contempt in wilful disobeyance of the order passed by their Court on 23.9.1999. 12. The respondents 2 & 3, who have appeared before this Court, have initially obtained orders dispensing their personal appearance before the Court pending the Contempt Applications and therefore, they are directed to be present before this Court to receive appropriate orders. They are directed to appear before this Court on 23.10.2000. Held : Plaintiff has been using the trademarks Milky Way and Galaxy in respect of chocolates, ice creams and similar products for the past many years and they command International market and they enjoy transborder reputation in respect of the said trade marks Galaxy and Milky Way. They have also taken precaution and care to have the trademarks Milky Way and Galaxy registered under the Trade and Merchandise Marks Act. The respondents have been using the identical trademark which is definitely an act of infringement of plaintiff's trademark rights and also an act of passing off their goods as that of the plaintiff. Aggrieved at the unlawful act of the respondents, the plaintiff has filed the suit and they have also obtained interim orders from this Court. The respondents have been using the identical trademark which is definitely an act of infringement of plaintiff's trademark rights and also an act of passing off their goods as that of the plaintiff. Aggrieved at the unlawful act of the respondents, the plaintiff has filed the suit and they have also obtained interim orders from this Court. The respondents even though served with this order have been going on merrily flouting and disobeying the order and they continued their trade even after the order of injunction and making use of the trademarks of the plaintiff 'Milky Way' and 'Galaxy'. It was stated only at the time of argument that hoardings and name boards installed in the premises of the respondents have been since removed. But photos have been taken long after the interim order passed in this case and the news item is also only long after the order of injunction granted in favour of the plaintiff. Only after the contempt applications are filed and that too when after learning they took long time for filing their counter, finally it seems that they now removed the name board and hoardings. It has been clearly established by the plaintiff/petitioner that the defendants by continuously displaying the trade marks, in respect of which they have been restrained by an order of injunction, have wilfully and wantonly defied the order only with a view to make wrongful gain and also to cause loss to the plaintiff which also incidentally is causing injury to their reputation and goodwill. Therefore, it has been proved that the respondents have committed acts of contempt in wilful disobeyance of the order passed by this Court. Held : Plaintiff has been using the trademarks Milky Way and Galaxy in respect of chocolates, ice creams and similar products for the past many years and they command International market and they enjoy transborder reputation in respect of the said trade marks Galaxy and Milky Way. They have also taken precaution and care to have the trademarks Milky Way and Galaxy registered under the Trade and Merchandise Marks Act. The respondents have been using the identical trademark which is definitely an act of infringement of plaintiff's trademark rights and also an act of passing off their goods as that of the plaintiff. They have also taken precaution and care to have the trademarks Milky Way and Galaxy registered under the Trade and Merchandise Marks Act. The respondents have been using the identical trademark which is definitely an act of infringement of plaintiff's trademark rights and also an act of passing off their goods as that of the plaintiff. Aggrieved at the unlawful act of the respondents, the plaintiff has filed the suit and they have also obtained interim orders from this Court. The respondents even though served with this order have been going on merrily flouting and disobeying the order and they continued their trade even after the order of injunction and making use of the trademarks of the plaintiff 'Milky Way' and 'Galaxy'. It was stated only at the time of argument that hoardings and name boards installed in the premises of the respondents have been since removed. But photos have been taken long after the interim order passed in this case and the news item is also only long after the order of injunction granted in favour of the plaintiff. Only after the contempt applications are filed and that too when after learning they took long time for filing their counter, finally it seems that they now removed the name board and hoardings. It has been clearly established by the plaintiff/petitioner that the defendants by continuously displaying the trade marks, in respect of which they have been restrained by an order of injunction, have wilfully and wantonly defied the order only with a view to make wrongful gain and also to cause loss to the plaintiff which also incidentally is causing injury to their reputation and goodwill. Therefore, it has been proved that the respondents have committed acts of contempt in wilful disobeyance of the order passed by this Court.