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2009 DIGILAW 5184 (MAD)

WITCO (India) Pvt. Ltd. Rep. by its Director v. P. Nurdeen Chennai VS NITCO rep. by its Partners Zakir Hussain & Anis Fathima Chennai & Others

2009-11-30

K.K.SASIDHARAN, PRABHA SRIDEVAN

body2009
Judgment :- K.K.SASIDHARAN, J. These two original side appeals are directed against the common order dated 37. 2009 in O.A. Nos. 428 & 429 of 2009 in C.S.No.372 of 2009 whereby and whereunder the application filed by the appellant for an order of interlocutory injunction during the pendency of the Civil Suit was dismissed. 2. The appellant filed a suit in C.S.No.372 of 2009 against the respondents for the following reliefs:- (i) For a permanent injunction, restraining the defendants, their partners, servants, agents, men or any one claiming through them from in any manner infringing the registered trade/service mark of the plaintiff viz., "WITCO" in any form deceptively similar to the business name of the plaintiff. (ii) For a permanent injunction restraining the defendants their partners, servants, agents, men, or anyone claiming through them from marketing, distributing, offering, advertising or using the Mark "NITCO" in any form or variation in English language and or any other vernacular language with or without tag-line "The luggage Expert" or similar surrounding names or any other mark deceptively similar to the plaintiffs mark "WITCO" with identical colour scheme, get up and lay out in the course of their trade/services and passing off goods or services or enabling others to pass off the goods or services as the goods of the plaintiff or as services provided by the plaintiff. (iii) For a mandatory injunction directing the defendants to deliver to the plaintiff all the business materials, goods, invoices, bills, receipts, books of accounts, cartons, advertisement materials, hoardings, letter-heads, visiting cards, office stationery and all or any other materials containing/bearing the Mark "NITCO" with or without the logo "The Luggage Expert" or any other deceptively similar mark or labels for destruction. (iv) directing the defendants to pay to the plaintiff a sum of Rs.10,00,000/- by way of damages for the acts of infringement and passing off. (v) For a preliminary decree directing the defendants to render account for profits made by them by the use of the mark "NITCO" with or without the logo/tag-line "The Luggage Expert" as and from 22. 2009 and for a final decree in favour of the plaintiff for the amount of profits found to have been made by the defendants after rendering accounts; and (vi) directing the defendants to pay to the plaintiffs the cost of the suit. 3. 2009 and for a final decree in favour of the plaintiff for the amount of profits found to have been made by the defendants after rendering accounts; and (vi) directing the defendants to pay to the plaintiffs the cost of the suit. 3. In the plaint in C.S.No.372 of 2009 the appellant as plaintiff contended inter alia thus:- (a) The predecessor-in-interest of the plaintiff by name Thiru M.P.C. Mohammed founded West India Plastic Trading Company in the year 1951. The business was conducted in a shop located at George Town. In the course of time the firm also started manufacturing handcrafted luggage and launched "WITCO" as a brand name being the abbreviation of the firms name, and incidentally it is also a coined word to deal with travel goods and accessories. (b) In the early 1970s "WITCO" gradually spread its wings geographically to other districts in Tamil Nadu and Kerala and during late 1970s the wholesale business of the firm was transformed to retail business. Subsequent to the demise of the founder M.P.C.Mohammed, his sons took over the business with a vision to become Indias leading retailer in travel requisites. Therefore with an intention of doing business in travel goods in a grand manner, they have incorporated a company in the name and style of "WITCO (India) Private Limited". The incorporation was on 111. 1988. (c) The plaintiff company retails internationally and nationally renowned premium travel brands like Samsonite, Antler, VIP, Delsey, American Tourister, Giordano, etc. The plaintiff company, being a leading player in the luggage industry, has about thirteen retail outlets in Chennai, Kochi and Calicut. It has to its credit six prominent stores at T.Nagar, Anna Nagar, Mount Road, Cathedral Road, Luz and Adyar to cater to the needs of the elite Chennai. The plaintiff company has employed over one hundred dedicated and experienced staff for its in-store, marketing and administrative work. A state of art computerized system has been put into place on a Corporate level in all its stores to handle professionally and effectively the point of sale operations, re-order level, tracking of product movement, accounting, etc. (d) The plaintiff company made very many efforts and spent substantial sums in establishing the brand and the trade mark "WITCO" in the travel goods and services through aggressive retailing, involving special programmes, apart from participating in various bag exhibitions. (d) The plaintiff company made very many efforts and spent substantial sums in establishing the brand and the trade mark "WITCO" in the travel goods and services through aggressive retailing, involving special programmes, apart from participating in various bag exhibitions. The plaintiff has also spent considerable amount towards advertisement in establishing value for its brand and trade mark "WITCO". The brand has been built over fifty years by good governance, quality, service and advertising over Radio, Cinema, Television, Press, Outdoor, Direct Mail, Sponsoring of Events and (e) The plaintiff company emerged as a leader when the moulded luggage industry was witnessing its major growth in phases in India. The plaintiff was also recognized as No.1 retailer for Samsonite in India and VIP luggage in South India. The plaintiff company has won a silver medal in Advertising Club Chennai Awards 2003 for best outdoor campaign for luggages. The plaintiff company has engaged the best consultants available in the market for media planning and for market research and other allied activities. Their services were utilised to promote the trade and service mark "WITCO" which now enjoys great loyalty amongst its customers. (f) The plaintiff company has been using the tagline "The Luggage Expert" till recently along with the name "WITCO". However after "WITCO" introduced premium apparels about six months back in five of its stores to cater to the needs of the travelling customers, the tagline was changed from "The Luggage Expert" to "Travel in Style". Even now, the original tagline namely, "The Luggage Expert" which was continuously used by "WITCO" for the past several decades is identified by the general public with the brand name of the plaintiff. (g) While so, on 28-2-2009, the defendants with malafide intention opened a show room in the name and style of "NITCO" adjacent to the premises and within the same building where the plaintiff is running an exclusive store "WITCO" for the past more than nineteen years located at No.109, Ground Floor, "W" Block, Third Avenue, Anna Nagar, Chennai-600 040. The defendants have adopted the trade mark "NITCO" with respect to same services and goods as that of the plaintiff. The defendants have also used visually and phonetically similar mark to distract and confuse the customers of the plaintiff and the general public. The defendants have adopted the trade mark "NITCO" with respect to same services and goods as that of the plaintiff. The defendants have also used visually and phonetically similar mark to distract and confuse the customers of the plaintiff and the general public. The defendants are also surreptitiously trying to convey to the public that they were acting under the aegis of the plaintiff, while, in fact, there was no such connection between the plaintiff and the defendants. (h) The defendants have displayed the confusingly similar artistic work having the same get up, paneling and same scheme of arrangement both in look and phonetically along with the tagline "The Luggage Expert". This leads to confusion and deception among the public in general. The defendants are making illegal gains and commercially exploiting the goodwill and reputation earned by the plaintiff all these years. In fact the malafide intention of the defendants is also evident from the pending rent control proceedings initiated by the third defendant and her brother against the plaintiff for evicting them from the premises at Anna Nagar. (i) The plaintiff is the prior adopter and user of the mark "WITCO". The plaintiff is also the registered proprietor of the trade mark "WITCO" under clause 42 and 16 in the Fourth Schedule to the Trade Marks Rules, 2002 pertaining to luggage, travel bags and travel accessories, paper articles, printed matter as per Registration No.692172 granted by the Trade Marks Registry pursuant to the Application No.1249060 dated 111. 2003. The trade mark "WITCO" has been continuously used by the plaintiff since the year 1951 and as such, has been adopted to distinguish their goods and services. By reason of such continued and extensive use of the said trade/service mark in the market and by reason of the high standard of the goods concerned, "WITCO" has come to be exclusively associated in the minds of the purchasing public with the goods dealt with by the plaintiff company. (j) The defendants have dishonestly adopted the identical mark with respect to their goods and services with a view to monetarily enrich themselves. (j) The defendants have dishonestly adopted the identical mark with respect to their goods and services with a view to monetarily enrich themselves. The conduct of sale and services rendered by the defendants is nothing but a fraud on the public calculated to deceive the customers of the plaintiff and make them to believe that the defendants business, services and the goods dealt with by them are in some way or the other connected with the plaintiff. The defendants are therefore causing injury not only to the public but also to the plaintiff resulting in huge financial loss to them. In such circumstances the plaintiff has filed the suit for injunction. 4. The appellant has also filed an application for interlocutory injunction in O.A.Nos.428 and 429 of 2009 to restrain the respondents , their partners, servants, agents, men or anyone claiming through them from in any manner infringing the registered trade/service mark of the plaintiff viz., "WITCO" in any form deceptively similar to the business name of the plaintiff or using the mark "NITCO" in any form or variation in English language or any other Vernacular Language with or without the tagline "The Luggage Expert" or similar sounding names or any other mark deceptively similar to the plaintiffs mark "WITCO" with identical colour scheme, get up and layout in the course of their trade/services and passing off goods or services or enabling others to pass off the goods or services as the goods of the plaintiff or as services provided by the plaintiff during the pendency of the suit. 5. The respondents who entered on caveat in the subject proceedings filed their common counter affidavit in O.A.Nos.428 and 429 of 2009. The material contentions as found in the counter affidavit filed by the second respondent reads thus:- (a) The Commercial Complex bearing Door No.W-109, 3rd Avenue, Anna Nagar, Rountana, Chennai-600 040 consisting of ground and two floors were owned by Mr.K.A.Abdul Ali, father of the third respondent and father-in-law of the second respondent. He retained part of ground floor portion on the northern side of the building and was carrying the business of departmental stores in the name and style of "Gaylord Stores" from 1975 onwards. In the year 1990, the departmental stores was closed and "Gaylord Shoe Store" was started in the said premises and thereafter with effect from 111. He retained part of ground floor portion on the northern side of the building and was carrying the business of departmental stores in the name and style of "Gaylord Stores" from 1975 onwards. In the year 1990, the departmental stores was closed and "Gaylord Shoe Store" was started in the said premises and thereafter with effect from 111. 2007, the Gaylord Shoe Store was renamed as "Gaylord Luggage and Bag Stores". (b) The business was run by the brother of the third respondent and his family members. They were doing retail business in marketing luggages, bags, raincoats, ladies hand bags, school bags and leather articles. The predecessor-in-interest of the respondents Thiru K.A.Abdul Ali executed a deed of settlement in favour of his children, wherein the southern portion of the complex consisting of ground, first and second floor was given to his son and grand son and the northern portion of the complex consisting of ground, first and second floor was given to the third respondent, being his only daughter. (c) Subsequently an eviction proceeding was initiated by the third respondent against her brother and the matter was settled and a memorandum of understanding was made on 22. 2009 whereby and whereunder the northern side of ground floor portion was delivered to the third respondent with an undertaking that no such business in the name of "Gaylord or Gaylord Stores" should be conducted by the third respondent. (d) Subsequently the second and third respondents formed a partnership in the name and style of "NITCO" in pursuance of a partnership deed dated 22. 2009 with an idea of providing services to the customers for the purpose of purchasing luggages, bags and other travel accessories. Accordingly an application was submitted before the Commercial Tax Department to do business with effect from 22. 2009. The first respondent firm had applied for registration with the Registrar of Firms and the name "NITCO" was entered in the register maintained by the Registrar of Firms on 22. 2009. (e) Similarly application was submitted before the Registrar of Trade Marks for registering the service mark "NITCO" under the Trade Marks Act, 1999. The said application was submitted on 22. 2009. (e) Similarly application was submitted before the Registrar of Trade Marks for registering the service mark "NITCO" under the Trade Marks Act, 1999. The said application was submitted on 22. 2009 vide application No.17900230 and the registration was sought in respect of rendering services of bringing together, for the benefit of others, of a variety of goods, enabling customers to conveniently view and purchase goods pertaining to luggage and bags, travel accessories, shoes and garments which services fall under Clause 35 of IV Schedule or Trade Mark Rules, 2002. (f) The word "NITCO" was coined and invented as a unique name for the first respondent firm as a result of the fusion of words "knitting" and "Consumers" which was envisaged in Clause 35 of the IV Schedule of Trade Mark Rules, 2002. The first respondent firm deals only in retail sale of luggage, bag and travel accessories to its customers and they are not manufacturers of any of those goods. (g) The service mark "NITCO" is followed by three words "The Luggage Expert" in the bottom of the board and on the extreme right side of the board, the word "NITCO" has been incorporated in Tamil. The name board has been shown in black colour and the words are written in white colour. The service mark applied for "NITCO" carries "N" as capital letter and other words in small letters in order to distinguish its label from other companies carrying the name "NITCO". (h) The service mark registered under the Trade Mark Act, 1999 in respect of the plaintiffs company was displayed in white colour with a black background carrying the word "WITCO" in all capital letters. A mere perusal of both the mark/label would show that they are neither identical nor deceptively similar and as such there would be no confusion to the general public in distinguishing the trade name. The service mark registered by the first respondent firm is totally a different mark from that of the plaintiff. (i) The alleged use of tagline "The Luggage Expert" till recently along with the name "WITCO" and changing of new logo to "Travel in Style" would not confer any right to the plaintiff to use it for their exclusive usage in the absence of registration of the said logo before the registering authority. (i) The alleged use of tagline "The Luggage Expert" till recently along with the name "WITCO" and changing of new logo to "Travel in Style" would not confer any right to the plaintiff to use it for their exclusive usage in the absence of registration of the said logo before the registering authority. The People of Chennai are elite group and more specifically the people residing at Anna Nagar are all educated people with ability to purchase products from traders without persuasion and it is not possible to mislead or confuse them and as such the apprehension raised by the plaintiff has no basis. Accordingly the respondents prayed for dismissal of the applications. JUDGMENT OF THE JUDGE:- 6. The learned Single Judge considered both the interlocutory applications together and was of the view that there is no infringement of trade mark of the appellant as the term "WITCO" and "NITCO" are totally different names. According to the learned Judge, there is no phonetic similarity and the word "The Luggage Expert" is only a coinage of common usage and there cannot be any right over the usage of such term. The learned Judge also opined that the test of common man and the class of goods dealt with by both the parties cannot be tested on the touch stone of an ordinary street man as both of them are not manufacturers of goods and they are doing retail selling of branded items in their shops. Therefore there is no question of infringement to the reputation. Accordingly the learned Judge arrived at a factual finding that no prima facie case was made out for granting an order of interlocutory injunction. In short both the applications were dismissed. 7. The order dated 37. 2009 in O.A. Nos. 428 & 429 of 2009 are the subject matter of these Original Side Appeals. SUBMISSIONS:- 8. The learned Senior Counsel for the appellant contended thus:- (a) The word "NITCO" being deceptively identical with and similar to the trading name of the appellant is bound to mislead an unsuspecting average customer and the similarity in the trade name adopted by the respondents would be sufficient to warrant the grant of an order of temporary injunction. (b) The words used in the trade name of the appellant are not mere descriptive words of common use. (b) The words used in the trade name of the appellant are not mere descriptive words of common use. It is in fact invented/abbreviated and a generic word which has come to acquire a distinctive or secondary meaning in connection with their business and therefore the use of those words or anything similar to that either phonetically or visually in the trade name adopted by the respondents are likely to deceive the public. (c) The decisions relied on by the learned Single Judge to deny the relief of interlocutory injunction are factually different. (d) The third respondent along with her brother initiated action for eviction of the appellant and the commencement of business in the next door by using the impugned trade mark "NITCO" is yet another attempt to compel the appellant to close their business. (e) In an action for passing off the Court must take into consideration the broad features and in case those features are so similar and it is likely to deceive an ordinary purchaser of goods the same is a ground to grant injunction in favour of the appellants. (f) The impugned mark "NITCO" bears such an over all similarity to the trade mark "WITCO" that it would mislead not only the ordinary customer but even the elite customer. (g) The appellants mark "WITCO" has three dots above the letter "i" whereas "NITCO" has two similarly placed dots apart from adopting the tagline "The Luggage Expert" was promoted all these years by "WITCO" and therefore the word "NITCO" with the get-up and colour scheme is confusingly similar to the appellants trade name. The said fact has not been appreciated by the learned Judge. (h) The learned Single Judge has not considered the balance of convenience as well as prima facie case in favour of the appellant inasmuch as the brand name of the appellant has already been registered. However the application submitted by the first respondent for registration is still pending. The said fact has not been considered by the learned Judge. (i) The learned Senior Counsel for the appellants placed reliance on the following judgments in support of his contention that the appellants have made out a case for interlocutory injunction. However the application submitted by the first respondent for registration is still pending. The said fact has not been considered by the learned Judge. (i) The learned Senior Counsel for the appellants placed reliance on the following judgments in support of his contention that the appellants have made out a case for interlocutory injunction. (a) National Sewing Thread Co., Ltd., v. James Chandwick & Bros., Ltd., ( AIR 1953 SC 357 ); (b) Amritdhara Pharmacy v. Satya Deo Gupta ( AIR 1963 SC 449 ); (c) Cadila Health Care Ltd. v. Cadila Pharmaceuticals Ltd. ( 2001(5) SCC 73 ). 9. The learned Senior Counsel for the respondents would submit:- (a) The alleged use of tagline "The Luggage Expert" was not registered before the registrar of Trade Mark and as such the appellant is not entitled for the exclusive use of the said tagline. (b) The appellant as well as respondents are dealing only in the luggage manufactured by reputed manufacturers. It is only the elite customers,, who would purchase those articles and as such there is no question of confusion. (c) There is no phonetic similarity between the words "WITCO" and "NITCO" as those two terms are entirely different. Similarly the appellants are not entitled to use the word "The Luggage Expert" as it is only a coinage of ordinary usage and as such no right could be claimed on the basis of such usage. (d) The learned Senior Counsel for the respondents relied on the judgment of a Division Bench of this Court in Aravind Laboratories v. M.A.Rahim ( 2007 (1) CTC 392 ). DISCUSSION:- 10. The appellant is the registered user of the trade mark "WITCO". The registration was given in pursuance of their application dated 111. 2003. The appellant has redesigned the logo and according to them the present logo type was designed in the (i) lower case - to give it a young, casual, friendly and fresh look and (ii) bold – to represent strength and stability. According to the appellants the three dots above the letter "i" in "WITCO" is the logo-graphic signifies (i) travel and commute; (ii) movement & motion and (iii) going ahead and progress. The new logo applications have been adopted in all the WITCO Store name-boards. 11. The appellant has got an exclusive store "WITCO" functioning at No.109, Ground Floor, "W" Block, Anna Nagar, Chennai-600 040. The new logo applications have been adopted in all the WITCO Store name-boards. 11. The appellant has got an exclusive store "WITCO" functioning at No.109, Ground Floor, "W" Block, Anna Nagar, Chennai-600 040. They are in possession of part of the ground floor and the entire first floor. The respondents are in possession of a portion of the ground floor as well as second floor. The photographs produced in the typed set of papers shows that the respondents have put up their name board on the side wall of the building as well as in the second floor, besides on the eastern side of the shopping complex. The appellant has put their name board in the remaining area in the ground floor as well as in the first floor. It is found from the photographs that the names "WITCO" and "NITCO" are so similar. In fact the coinage of the words are more or less similar and prima facie we are convinced that except the mark "•••" the coinage and the look out of the word "NITCO" is deceptively similar to "WITCO". 12. The following table would show as to how the name "WITCO" and "NITCO" are similar. TABLE The arm of "W" in dotted lines is the only difference. The font and the slant of the letters are identical. From a distance, even an educated customer may be deceived into mistaking one for the other. 13. According to the plaintiff they have been doing business in the name and style of "WITCO (India) Private Limited" with the trade mark "WITCO" in the premises at Anna Nagar for the last more than nineteen years. The respondents were doing business in the name and style of "Gaylord Luggage and Bag Stores" with effect from 111. 2007. Initially they were conducting departmental store in the said premises. It was only during February, 2009 the respondents constituted a partnership in the name and style of "NITCO". Their application for registration of the service mark "NITCO" is still pending on the file of Registrar of trade mark. 14. The learned Single Judge appears to have proceeded on the basis that the trade name of the respondents were also registered. However the learned Senior Counsel for the respondents would fairly submit that no such statement was made before the learned Judge as the respondents are yet to get their registration. 15. 14. The learned Single Judge appears to have proceeded on the basis that the trade name of the respondents were also registered. However the learned Senior Counsel for the respondents would fairly submit that no such statement was made before the learned Judge as the respondents are yet to get their registration. 15. The admitted facts clearly shows that the appellant has obtained the name "WITCO" registered long back. They are the prior user of the word "WITCO". According to the appellant, the usage of the word "NITCO" would mislead the public and as both the business establishments are located in the very same premises, it would confuse not only the common man but even the elite class. 16. In an action for passing off the Court should sit in the arm chair of a consumer and an attempt should be made to determine as to whether the trade name of the infringer was distinctively different from that of the person, who alleges such dishonest action. The Court is expected to compare the trade name for the purpose of coming to a definite conclusion as to whether the trade name was similar and the similarity would create confusion in the mind of the consumers. It is true that while considering an issue like this the nature of the product and the type of customers who would buy such kind of products also is a relevant fact. 17. The society is progressing day-by-day and the commodity hitherto considered as that of the product for the elite class are no longer the same. The advancement of science and technology has its own effect on the economy. Merely because the consumers are illiterates, it could no longer be said that there was no scope for them to purchase branded items by paying visit to Mega-mall. The element of confusion which would be caused to the consumers in the case of goods has to be considered in the light of the development of our economy and increase in the purchasing power of even the middle class. Therefore it cannot be said that some of the articles are exclusively kept for the purchase of elite class and therefore there would be no element of deception or confusion, even if two trade names are similar. What was considered as items of luxury yesterday are part of essentials today. LEGAL PRINCIPLES:- 18. Therefore it cannot be said that some of the articles are exclusively kept for the purchase of elite class and therefore there would be no element of deception or confusion, even if two trade names are similar. What was considered as items of luxury yesterday are part of essentials today. LEGAL PRINCIPLES:- 18. The Supreme Court in Laxmikant V. Patel v. Chetanbhai Shah ( 2002(3) SCC 65 ) held that the principles which apply to trade mark is applicable to trade name also. Therefore the decisions pertaining to the trade mark could be usefully referred to for deciding the issue regarding infringement of trade name and passing off. 19. In Corn Products Refining Co. v. Shangrila Food Products Ltd., ( AIR 1960 SC 142 = (1960) 1 SCR 968 ), the dispute was regarding registration of the mark "Gluvita" and the appellant in the said case had a registered mark "Glucovita". Before the Supreme Court it was contended that the words "Gluvita" and "Glucovita" were not visually or phonetically similar and that there was no reasonable likelihood of any deception being caused by or any confusion arising from, the use of the trademark "Gluvita". The Supreme Court considered the question of reputation accrued to the trade mark and observed thus:- "11. .........It seems clear to us that what is necessary is that the reputation should attach to the trade mark; it should appear that the public associated that trade mark with certain goods. The reputation with which we are concerned in the present case is the reputation of the trade mark and not that of the maker of the goods bearing that trade mark. A trade mark may acquire a reputation in connection with the goods in respect of which it is used though a buyer may not know who the manufacturer of the goods is." 20. In Corn Products Refining Co. case, the Supreme Court confirmed the views expressed by Desai, J of the Bombay High Court and the note of confirmation reads thus:- "17. ......... It is well known that the question whether the two marks are likely to give rise to confusion or not is a question of first impression. It is for the court to decide that question. case, the Supreme Court confirmed the views expressed by Desai, J of the Bombay High Court and the note of confirmation reads thus:- "17. ......... It is well known that the question whether the two marks are likely to give rise to confusion or not is a question of first impression. It is for the court to decide that question. English cases proceeding on the English way of pronouncing an English word by Englishmen, which it may be stated is not always the same, may not be of much assistance in our country in deciding questions of phonetic similarity. It cannot be overlooked that the word is an English word which to the mass of the Indian people is a foreign word. It is well recognised that in deciding a question of similarity between two marks, the marks have to be considered as a whole. So considered, we are inclined to agree with Desai, J., that the marks with which this case is concerned are similar. Apart from the syllable “co” in the appellant’s mark, the two marks are identical. That syllable is not in our opinion such as would enable the buyers in our country to distinguish the one mark from the other. 18. ..................Again, in deciding the question of similarity between the two marks we have to approach it from the point of view of a man of average intelligence and of imperfect recollection. To such a man the overall structural and phonetic similarity and the similarity of the idea in the two marks is reasonably likely to cause a confusion between them." 21. The Concept of passing off was considered by the Supreme Court in Ruston & Hornsby Ltd. v. Zamindara Engineering Co., (1969) 2 SCC 727 and the observation reads hereunder. "4. It very often happens that although the defendant is not using the trade mark of the plaintiff, the get up of the defendant’s goods may be so much like the plaintiff’s that a clear case of passing off would be proved. It is on the contrary conceivable that although the defendant may be using the plaintiff’s mark the get up of the defendant’s goods may be so different from the get up of the plaintiff’s goods and the prices also may by so different that there would be no probability of deception of the public. It is on the contrary conceivable that although the defendant may be using the plaintiff’s mark the get up of the defendant’s goods may be so different from the get up of the plaintiff’s goods and the prices also may by so different that there would be no probability of deception of the public. Nevertheless, in an action on the trade mark, that is to say, in an infringement action, an injunction would issue as soon as it is proved that the defendant is improperly using the plaintiff’s mark." 22. In Ruston & Hornsby Ltd. v. Zamindara Engineering Co., case cited supra, the Supreme Court indicated the test to be applied in an action for infringement and passing off thus:- "3. The distinction between an infringement action and a passing off action is important. Apart from the question as to the nature of trade mark the issue in an infringement action is quite different from the issue in a passing off action. In a passing off action the issue is as follows: “Is the defendant selling goods so marked as to be designed or calculated to lead purchasers to believe that they are the plaintiff’s goods?” But in an infringement action the issue is as follows: “Is the defendant using a mark which is the same as or which is a colourable imitation of the plaintiff’s registered trade mark.” 23. The legal position with respect to an action for infringement as well as passing off was considered in detail by the Supreme Court in Durga Dutt Sharma v. Navaratna Pharmaceuticals Laboratories ( AIR 1965 SC 975 = (1965) 1 SCR 737 ). The relevant paragraph would read thus:- "28. ..............While an action for passing off is a Common Law remedy being in substance an action for deceit, that is, a passing off by a person of his own goods as those of another, that is not the gist of an action for infringement. The action for infringement is a statutory remedy conferred on the registered proprietor of a registered trade mark for the vindication of the exclusive right to the use of the trade mark in relation to those goods” (Vide Section 21 of the Act). The action for infringement is a statutory remedy conferred on the registered proprietor of a registered trade mark for the vindication of the exclusive right to the use of the trade mark in relation to those goods” (Vide Section 21 of the Act). The use by the defendant of the trade mark of the plaintiff is not essential in an action for passing off, but is the sine qua non in the case of an action for infringement. No doubt, where the evidence in respect of passing off consists merely of the colourable use of a registered trade mark, the essential features of both the actions might coincide in the sense that what would be a colourable imitation of a trade mark in a passing off action would also be such in an action for infringement of the same trade mark. But there the correspondence between the two ceases. In an action for infringement, the plaintiff must, no doubt, make out that the use of the defendant’s mark is likely to deceive, but where the similarity between the plaintiff’s and the defendant’s mark is so close either visually, phonetically or otherwise and the court reaches the conclusion that there is an imitation, no further evidence is required to establish that the plaintiff’s rights are violated. Expressed in another way, if the essential features of the trade mark of the plaintiff have been adopted by the defendant, the fact that the get-up, packing and other writing or marks on the goods or on the packets in which he offers his goods for sale show marked differences, or indicate clearly a trade origin different from that of the registered proprietor of the mark would be immaterial; whereas in the case of passing off, the defendant may escape liability if he can show that the added matter is sufficient to distinguish his goods from those of the plaintiff. 24. In Cadila Health Care Ltd. v. Cadila Pharmaceuticals Ltd., { (2001) 5 SCC 73 }, the Supreme Court opined that while dealing with the sale of consumer items in India, in the light of the decisions in English Courts, the difference in situation between England and India should be taken note of. The relevant paragraph reads thus:- "33. 24. In Cadila Health Care Ltd. v. Cadila Pharmaceuticals Ltd., { (2001) 5 SCC 73 }, the Supreme Court opined that while dealing with the sale of consumer items in India, in the light of the decisions in English Courts, the difference in situation between England and India should be taken note of. The relevant paragraph reads thus:- "33. The decisions of English courts would be relevant in a country where literacy is high and the marks used are in the language which the purchaser can understand. While English cases may be relevant in understanding the essential features of trade mark law but when we are dealing with the sale of consumer items in India, you have to see and bear in mind the difference in situation between England and India. Can English principles apply in their entirety in India with no regard to Indian conditions? We think not. In a country like India where there is no single common language, a large percentage of population is illiterate and a small fraction of people know English, then to apply the principles of English law regarding dissimilarity of the marks or the customer knowing about the distinguishing characteristics of the plaintiff’s goods seems to overlook the ground realities in India. While examining such cases in India, what has to be kept in mind is the purchaser of such goods in India who may have absolutely no knowledge of English language or of the language in which the trade mark is written and to whom different words with slight difference in spellings may sound phonetically the same. While dealing with cases relating to passing off, one of the important tests which has to be applied in each case is whether the misrepresentation made by the defendant is of such a nature as is likely to cause an ordinary consumer to confuse one product for another due to similarity of marks and other surrounding factors. What is likely to cause confusion would vary from case to case." 25. In Cadila Health Care Ltd. Case cited supra, the Supreme Court indicated the factors to be considered in an action for passing off thus:- "35. What is likely to cause confusion would vary from case to case." 25. In Cadila Health Care Ltd. Case cited supra, the Supreme Court indicated the factors to be considered in an action for passing off thus:- "35. Broadly stated, in an action for passing-off on the basis of unregistered trade mark generally for deciding the question of deceptive similarity the following factors are to be considered: (a) The nature of the marks i.e. whether the marks are word marks or label marks or composite marks i.e. both words and label works. (b) The degree of resembleness between the marks, phonetically similar and hence similar in idea. (c) The nature of the goodsin respect of which they are used as trade marks. (d) The similarity in the nature, character and performance of the goods of the rival traders. (e) The class of purchasers who are likely to buy the goods bearing the marks they require, on their education and intelligence and a degree of care they are likely to exercise in purchasing and/or using the goods. (f) The mode of purchasing the goods or placing orders for the goods. (g) Any other surrounding circumstances which may be relevant in the extent of dissimilarity between the competing marks." 26. The Supreme Court made a reference of the judgment "Ervin Warnink BV v. J. Townend & Sons (1979 (2) ALL ER 927)" in Cadila Health Care Ltd. cited supra to indicate the five elements in the modern tort of passing off. It reads thus:- "10. ........ As per Lord Diplock in Erven Warnink BV v. J. Townend & Sons1 the modern tort of passing off has five elements i.e. (1) a misrepresentation, (2) made by a trader in the course of trade, (3) to prospective customers of his or ultimate consumers of goods or services supplied by him, (4) which is calculated to injure the business or goodwill of another trader (in the sense that this is a reasonably foreseeable consequence), and (5) which causes actual damage to a business or goodwill of the trader by whom the action is brought or (in a quia timet action) will probably do so. 27. In Laxmikant V. Patel v. Chetanbhai Shah, (2002) 3 SCC 65 , the plaintiff was doing business of Colour Lab and Studio in the name and style of "Muktajivan Colour Lab". 27. In Laxmikant V. Patel v. Chetanbhai Shah, (2002) 3 SCC 65 , the plaintiff was doing business of Colour Lab and Studio in the name and style of "Muktajivan Colour Lab". Subsequently the defendant, who was originally doing business in the name and style of "Gokul Studio" made an attempt to commence business in the name and style of "Muktajivan Colour Lab and Studio." The District Court as well as High Court rejected the prayer for interlocutory injunction on various grounds which includes the plea taken by the defendant that the business premises of the plaintiff was four to five kilometres away from the place where the defendant intended to do business. In the said factual context, the Supreme Court considered, the essential features of an action for passing off and observed thus: "10. A person may sell his goods or deliver his services such as in case of a profession under a trading name or style. With the lapse of time such business or services associated with a person acquire a reputation or goodwill which becomes a property which is protected by courts. A competitor initiating sale of goods or services in the same name or by imitating that name results in injury to the business of one who has the property in that name. The law does not permit any one to carry on his business in such a way as would persuade the customers or clients in believing that the goods or services belonging to someone else are his or are associated therewith. It does not matter whether the latter person does so fraudulently or otherwise. The reasons are two. Firstly, honesty and fair play are, and ought to be, the basic policies in the world of business. Secondly, when a person adopts or intends to adopt a name in connection with his business or services which already belongs to someone else it results in confusion and has propensity of diverting the customers and clients of someone else to himself and thereby resulting in injury. 11. ........... 12. Secondly, when a person adopts or intends to adopt a name in connection with his business or services which already belongs to someone else it results in confusion and has propensity of diverting the customers and clients of someone else to himself and thereby resulting in injury. 11. ........... 12. In Oertli v. Bowman1 (at p. 397) the gist of passing-off action was defined by stating that it was essential to the success of any claim to passing-off based on the use of given mark or get-up that the plaintiff should be able to show that the disputed mark or get-up has become by user in the country distinctive of the plaintiff’s goods so that the use in relation to any goods of the kind dealt in by the plaintiff of that mark or get-up will be understood by the trade and the public in that country as meaning that the goods are the plaintiff’s goods. It is in the nature of acquisition of a quasi-proprietary right to the exclusive use of the mark or get-up in relation to goods of that kind because of the plaintiff having used or made it known that the mark or get-up has relation to his goods. Such right is invaded by anyone using the same or some deceptively similar mark, getup or name in relation to goods not of plaintiff. The three elements of passing-off action are the reputation of goods, possibility of deception and likelihood of damages to the plaintiff. In our opinion, the same principle, which applies to trade mark, is applicable to trade name. 13. In an action for passing-off it is usual, rather essential, to seek an injunction, temporary or ad interim. The principles for the grant of such injunction are the same as in the case of any other action against injury complained of. The plaintiff must prove a prima facie case, availability of balance of convenience in his favour and his suffering an irreparable injury in the absence of grant of injunction. According to Kerly (ibid, para 16.16) passing-off cases are often cases of deliberate and intentional misrepresentation, but it is well settled that fraud is not a necessary element of the right of action, and the absence of an intention to deceive is not a defence, though proof of fraudulent intention may materially assist a plaintiff in establishing probability of deception." 28. In Khoday Distilleries Ltd. v. Scotch Whisky Assn., (2008) 10 SCC 723 , the Supreme Court observed that in an action for passing off, in addition to the nature and kind of customers, who would likely to buy goods, surrounding circumstances must also be considered as this plays an important factor. The judgment reads thus:- "75*. The tests which are, therefore, required to be applied in each case would be different. Each word must be taken separately. They should be judged by their look and by their sound and must consider the goods to which they are to be applied. Nature and kind of customers who would likely to buy goods must also be considered. Surrounding circumstances play an important factor. What would be likely to happen if each of those trade marks is used in a normal way as a trade mark of the goods of the respective owners of the marks would also be a relevant factor. 29. In Aravind Laboratories case ( 2007 (1) CTC 392 ) the issue was regarding the usage of the mark "IRIS" in Tamil character, which was registered in the name of the appellant. The respondent adopted the word "EVERIS" in English. The contention of the appellant was that the respondent was committing a fraud by adopting the word "EVERIS" as an English rendition of his actual registered trade mark in Tamil "IRIS". The Division Bench found that the trade mark of the appellant consisted of a word mark in English reading "EYETEX" along with an artistic feature of a human eye. However the trade mark of the respondent consisted of word mark in Tamil reading as "IRIS". The Division Bench held that there was no structural, overall or visual similarity and confirmed the order of the Registrar made in the rectification application. However in the case on hand, the phonetic similarity, overall structural similarity and visual similarity are present and as such the decision in Aravind Laboratories case has no application to the facts of this case. 30. The registration of trade mark and the continuous use of the said trade mark would prima facie shows that the appellant has got a legal right to protect. 30. The registration of trade mark and the continuous use of the said trade mark would prima facie shows that the appellant has got a legal right to protect. Therefore while the appellant approached the court with a grievance that there was infringement of his trade mark or there was an attempt on the part of the respondents to sell their goods as that of another constituting an act of passing off, the Court was obliged to consider the prima facie case, irreparable injury as well as balance of convenience. LAW OF INJUNCTION:- 31. In SEEMA ARSHAD ZAHEER & ORS v. MUNICIPAL CORPORATION OF GREATER MUMBARI & ORS. (2006(5) Scale 263) the Supreme Court laid down the salient principles governing the grant of injunction thus:- "The discretion of the court is exercised to grant a temporary injunction only when the following requirements are made out by the plaintiff: (i) existence of a prima facie case as pleaded, necessitating protection of plaintiffs rights by issue of a temporary injunction; (ii) when the need for protection of plaintiffs right is compared with or weighed against the need for protection of defendants right or likely infringement of defendants rights, the balance of convenience tilting in favour of plaintiff; and (iii) clear possibility of irreparable injury being caused to plaintiff if the temporary injunction is not granted. In addition, temporary injunction being an equitable relief, the discretion to grant such relief will be exercised only when the plaintiffs conduct is free from blame and he approaches the court with clean hands." 32. In Laxmikant V. Patel case, the Supreme Court observed that refusal to grant an injunction in spite of availability of facts necessarily would occasion a failure of justice. The observation reads thus:- "17. .............A refusal to grant an injunction in spite of the availability of facts, which are prima facie established by overwhelming evidence and material available on record justifying the grant thereof, occasion a failure of justice and such injury to the plaintiff as would not be capable of being undone at a later stage. The discretion exercised by the trial court and the High Court against the plaintiff, is neither reasonable nor judicious. The grant of interlocutory injunction to the plaintiff could not have been refused, therefore, it becomes obligatory on the part of this Court to interfere." 33. The discretion exercised by the trial court and the High Court against the plaintiff, is neither reasonable nor judicious. The grant of interlocutory injunction to the plaintiff could not have been refused, therefore, it becomes obligatory on the part of this Court to interfere." 33. The prima facie case is clearly on the side of the appellant in this matter. Their trade mark was registered as of the date 111. 2003. The appellant is the prior adopter and user of the mark "WITCO". They are doing business since long. The very partnership in the name and style of "NITCO" was constituted only on 22. 2009 and the business commenced only thereafter. The document produced by the appellant shows their volume of business. The respondents have started the business in the very same shopping complex just adjacent to the showroom of the appellant. The name "NITCO" is written in such a manner that it would appear as if it was also the concern of the appellant. Both the appellant and respondents are dealing with the very same goods. The location of the shop, the manner in which the name boards were put up and the similarity in the names would cause confusion to the consumers. Therefore the appellant fully satisfied the factors for the grant of an interlocutory injunction. 34. The way in which the word "NITCO" was coined as well as the advertisement put up in the shop where they are doing business clearly shows that the intention in using the trade name "NITCO" was not bonafide and was intended to create confusion among the consumers. There would be chances of confusion on account of the similarity in name as well as proximity of two shops. 35. Therefore we are of the considered view that the appellant has made out a case for interlocutory injunction. CONCLUSION:- 36. In the result, the order dated 37. 2009 in O.A.Nos.428 and 429 of 2009 are set aside. There would be chances of confusion on account of the similarity in name as well as proximity of two shops. 35. Therefore we are of the considered view that the appellant has made out a case for interlocutory injunction. CONCLUSION:- 36. In the result, the order dated 37. 2009 in O.A.Nos.428 and 429 of 2009 are set aside. There shall an be an ad interim injunction in favour of the appellant restraining the respondents, their partners, servants, agents and men or anybody claiming through them from in any manner infringing the registered trade mark/service mark "WITCO" in any form deceptively similar to the name of the appellant and from marketing, distributing, advertising or using the mark "NITCO" in any form or variation in English or any other vernacular language with mark deceptively similar to the mark "WITCO" with identical colour scheme, set up and lay out in the course of their trade/services and passing off goods or services as the goods of the appellant pending disposal of the suit. However we make it clear that whatever we have observed and indicated above will have absolutely no bearing in the trial of the suit as it was made only for the purpose of deciding the interlocutory applications. Consequently the connected Mps are closed. No costs.