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Mrs. Kiran Jain vs Mr. Janki Dass Jain And Others
2009 Latest Caselaw 1245 Del

Citation : 2009 Latest Caselaw 1245 Del
Judgement Date : 8 April, 2009

Delhi High Court
Mrs. Kiran Jain vs Mr. Janki Dass Jain And Others on 8 April, 2009
Author: S.N. Aggarwal
*           IN THE HIGH COURT OF DELHI AT NEW DELHI

+    I.     IA No. 2552/2004 in CS(OS) No. 155/2004

# Mrs. Kiran Jain                                      ..... Plaintiff

!                     Through: Mr.Shailen Bhatia, Mr.Amit Jain and
                               Ms.Vandana Nathan, Advocates

                               Versus

$ Mr. Janki Dass Jain & Ors.                       .....Defendants

^                     Through: Mr.Sudhir Chandra Aggarwal, Sr.
                                Advocate with Mr.Amarjit Singh,
                                and Mr.Mahendra Rana, Advocates.
                               [For Arihant Group)


+    II.    IA No. 2551/2004 in CS(OS) No. 156/2004

# Mr. Jaininder Jain & Ors.                          ..... Plaintiffs

!                     Through: Mr.Shailen Bhatia, Mr.Amit Jain and
                               Ms.Vandana Nathan, Advocates

                               Versus

$ Mr. Arihant Jain & Ors.                          .....Defendants

^                     Through: Mr.Sudhir Chandra Aggarwal, Sr.
                               Advocate with Mr.Amarjit Singh,
                               and Mr.Mahendra Rana, Advocates.


+    III.   IA No. 2550/2004 in CS(OS) No. 157/2004

# Mr. Arihant Jain & Ors.                            ..... Plaintiffs

!                     Through: Mr.Sudhir Chandra Aggarwal, Sr.
                               Advocate with Mr.Amarjit Singh,
                               and Mr.Mahendra Rana, Advocates.

                               Versus

$ Mr. Jaininder Jain & Ors.                         .....Defendants

^                     Through: Mr.Shailen Bhatia, Mr.Amit Jain and
                               Ms.Vandana Nathan, Advocates



CS(OS)Nos.155-157/2004                              Page 1 of 37
                 Date of Decision: April 08, 2009

CORAM:

HON'BLE MR. JUSTICE S.N. AGGARWAL

1.

Whether reporters of Local paper may be allowed to see the judgment? YES

2. To be referred to the reporter or not?YES

3. Whether the judgment should be reported in the Digest?YES

S.N.AGGARWAL, J These three interim injunction applications filed by the parties

against each other in their separate suits are proposed to be

decided by this common order. The dispute in all these three

applications relate to the use of trademark 'KANGARO'.

2 Briefly stated the facts of the case are that there are three

partnership firms namely M/s Kangaro Industries (Regd.), M/s Jain

Manufacturing Company and M/s Kanin (India) consisting of

partners from the family of Mr. Janki Dass Jain.

3 In the year 1959, Mr. Janki Dass Jain had established M/s

Kangaro Stationary Industries as a sole proprietorship firm, which in

1963 was converted into a partnership firm M/s Kangaro Industries

(Regd.) with Mr. Janki Dass Jain and Mr. Arihant Jain as its partners.

With the passage of time, other firms and companies were

formed/incorporated which included Jain Manufacturing Company

incorporated in the year 1978, M/s Kanin (India) Pvt. Ltd. in

September, 1983; M/s Kangaro (India) Pvt. Ltd. In May, 1987 and

M/s Kanin (India) in the year 1990. In all these units Mr. Janki Dass

Jain and his family members were either partners or Directors or

shareholders.

4 From time to time, five trademarks were registered as

'KANGARO' in respect of goods manufactured and produced by the

aforesaid firms/companies, the description of which is as follows:-

Sl. No. Regd. No. Name Class Date of registration 1 376224 Kangaro 16 25.05.1981 2 384556 Kangaro 16 23.12.1981 3 463530 Kangaro 7 24.11.1986 4 486516 Kangaro 8 26.02.1988 5 486510 Kangaro 16 26.02.1988

5 The first four registrations referred above are in favour of M/s

Kangaro Industries (Regd.) and fifth registration is in favour of M/s

Jain Manufacturing Company.

6 Mr. Janki Dass Jain had three sons namely Mr. Arihant Jain, Mr.

Jaininder Jain and Mr. Vishwa Jain. They along with their wives were

either partners or Directors in the firms/companies established by

the Jain family of Ludhiana from time to time. We are here

concerned with the dispute regarding use of mark of 'KANGARO' by

the three partnership firms namely M/s Kangaro Industries (Regd.),

M/s Jain Manufacturing Company and M/s Kanin (India). The

constitution of these three firms with the change made in its

constitution from time to time is as follows:-

"FIRM M/S KANGARO INDUSTRIES (REGD.)

03.04.1963 Arihant Jain & Janki Dass Jain took over the business of proprietorship firm of Janki Dass Jain

01.04.1974 Janki Dass Jain Arihant Jain

Vishwa Jain } New Partners Mrs. Kiran Jain}

31.03.1978 Retirement of Vishwa Jain

01.04.1978 Arihant Jain Janki Dass Jain Mr. Kiran Jain

31.03.1995 Retirement Deed Retirement of Mrs. Kiran Jain.

       01.04.1995        Partnership Deed
                         Arihant Jain
                         Janki Dass Jain
                         Vishwa Jain      }
                         Mrs. Raman Jain  } New Partners
                         Mrs. Neelam Jain }

       15.05.1995        Retirement Deed
                         Retirement of
                         Janki Dass Jain


       16.05.1995        Partnership Deed
                         Arihant Jain
                         Vishwa Jain
                         Mrs. Raman Jain
                         Mrs. Neelam Jain

                    FIRM M/S KANIN (INDIA)

       01.04.1989        Jaininder Jain
                         Mrs. Neelam Jain

       01.01.1995        Partnership Deed
                         Jaininder Jain
                         Mrs. Neelam Jain

                         Arihant Jain       }
                         Vishwa Jain        }
                         Mrs. Raman Jain    }
                         Ambrish Jain s/o   }   New Partners
                         Vishwa Jain
                         Ms. Archna Jain    }
                         D/o Arihant Jain

       31.03.1995        Retirement Deed
                         Retirement of
                         Jaininder Jain

       01.04.1995        Partnership Deed
                         Mrs. Neelam Jain
                         Arihant Jain
                         Vishwa Jain
                         Mrs. Raman Jain
                         Ambrish Jain
                         Ms. Archna Jain

       15.05.1995        Retirement Deed
                         Retirement of
                         Ambrish Jain
                         Ms. Archna Jain



        16.05.1995        Partnership Deed
                         Mrs. Neelam Jain
                         Arihant Jain
                         Vishwa Jain
                         Mrs. Raman Jain

              FIRM M/S JAIN MANUFACTURING COMPANY

       1978              Smt. Saraswati Jain
                         Mr. Vishwa Jain
                         Mrs. Raman Jain

       1988              Smt. Saraswati Jain expires

                         Mr. Vishwa Jain
                         Mrs. Raman Jain

       01.01.1995        Partnership Deed
                         Mr. Vishwa Jain
                         Mrs. Raman Jain

                         Janki Dass Jain       }
                         Jaininder Jain        }   New Partners
                         Mrs. Kiran Jain       }

       31.03.1995        Retirement Deed
                         Retirement of
                         Mr. Vishwa Jain
                         Mrs. Raman Jain

       01.04.1995        Partnership Deed
                         Janki Dass Jain
                         Jaininder Jain
                         Mrs. Kiran Jain.



7    It may be seen from the constitution of the three partnership

firms given above that the change in the partnership was brought

out in these three firms on or about 31st March, 1995 when

partnership deeds & retirement deeds were executed between the

incoming and outgoing partners of these firms. The result of

reconstitution on or about 31st March/1st April, 1995 was that the

two firms namely M/s Kangaro Industries (Regd.) and M/s Kanin

(India) came to be owned by Mr. Arihant Jain and Mr. Vishwa Jain

and their families except that Mr. Janki Dass Jain remained partners

in M/s Kanin (India) Regd. till 15.05.1995 when he retired from the

said firm and after his retirement the above mentioned two firms

were exclusively owned by Mr. Arihant Jain and Mr. Vishwa Jain and

their families. The third firm M/s Jain Manufacturing Company came

to be owned by Mr. Jaininder Jain, his wife Mrs. Kiran Jain & father

Mr. Janki Dass Jain.

8 In the year 1992, an agreement was made between the above

three firms on 20.03.1992 that each of these firms will hold

registration of the trademark 'KANGARO' only in respect of the

goods actually manufactured and sold by them so as to avoid

overlapping of the goods. It is provided in the said agreement that

M/s Kangaro Industries (Regd.) will have a right to the use of

trademark 'KANGARO' in respect of paper punches and board clips,

M/s Kanin (India) will have a right in respect of staplers, staple pins

and staple pin removers and M/s Jain Manufacturing Company will

have a right in respect of Index file clips and base plates thereof.

9 On 16.08.1994, necessary requests were made in Form TM-36

to the Registrar, Trademarks for carrying out

modifications/amendments in Trademark No. 376244 and

Trademark No.486510 in conformity with the agreement dated

20.03.1992. Modifications/ amendments were carried out on

25.08.1994.

10 In the later half of December, 1994, differences arose between

the members of the Jain family and accordingly in December, 1994,

it was mutually agreed and decided to separate and distribute the

various concerns, their management and control amongst the

family members of Mr. Janki Dass Jain. It was decided that Mr.

Arihant Jain, Mr. Vishwa Jain along with their families will separate

from the rest of the family. It was agreed and understood that Mr.

Arihant Jain, Mr. Vishwa Jain together will take over the two

partnership firms namely M/s Kangaro Industries (Regd.) and M/s

Kanin (India). As regard the third partnership firm M/s Jain

Manufacturing Company, it was decided that the same will be taken

over by Mr. Jaininder Jain and his family. These understandings

were acted upon. The cross holdings in the three firms were

streamlined by execution of formal retirement deeds. Mrs. Kiran

Jain wife of Mr. Jaininder Jain retired from M/s Kangaro Industries

(Regd.), Mr. Jaininder Jain retired from M/s Kanin (India) and Mr.

Vishwa Jain and Mrs. Raman Jain retired from M/s Jain

Manufacturing Company on 31.03.1995 and thereafter the

partnership of the said businesses were reconstituted. Mr. Janki

Dass Jain also retired from M/s Kangaro Industries (Regd.) on

15.05.1995.

11 Consequent upon change in the constitution of three

partnership firms referred above, large sums of money as were

payable in terms of the respective retirement deeds were also paid

inter-se parties.

12 Even after the agreement of 1992 and the retirement and

reconstitution of the firms in 1995 but before the retirement of Mr.

Janki Dass Jain, there was rumbling and dissatisfaction between the

three brothers (S/sh Arihant Jain, Jaininder Jain and Mr. Vishwa Jain)

with regard to land, building and machinery. As a result thereof, the

three brothers on the persuation of their father agreed to refer the

disputes relating to land, building and machinery of partnership

firms to arbitration vide agreement dated 10.04.1995. Mr. Ram

Kumar Jain and Mr. Raj Kumar Behal were appointed as arbitrators.

13 On 14.04.1995, a document purporting to be a family

arrangement was prepared and was signed by all the three

brothers, their father Mr. Janki Dass Jain and also the two arbitrators

namely Mr. Ram Kumar Jain and Mr. Raj Kumar Behal.

14 On 23.11.1995 Form TM-24 was filed by Mr. Arihant Jain etc.

with the Registrar, Trademarks for removal of the names of Mr.

Janki Dass Jain and Mrs. Kiran Jain (wife of Mr. Jaininder Jain) from

the register of Trademarks and for assignment/transfer of the

trademark No.376224 and No. 463530 in his favour and in favour of

his brother Mr. Vishwa Jain and their respective wives. While this

application in Form TM-24 dated 23.11.1995 was pending, on

01.07.1996 yet another application in Form TM-24 was filed for the

same purpose duly signed by Mr. Arihant Jain. This second

application in Form TM-24 pertains to assignment/transfer of all the

four trademark Nos. 376224, 384556, 463530 & 486516 in the

names of Mr. Arihant Jain and Mr. Vishwa Jain and their families

being partners in M/s Kangaro Industries (Regd.) and M/s Kanin

(India). The transfer/ assignment was asked for on the basis of

change in the constitution of these firms as per retirement deeds

and new partnership deeds dated 31st March/1st April, 1995 and the

retirement deed dated 15.05.1995 and new partnership deed dated

16.05.1995.

15 Similarly on 28.02.1996 an application in Form TM-24 was also

filed by Mr. Janki Dass Jain, Mr. Jaininder Jain and Mrs. Kiran Jain for

recording them as registered proprietors of T.M. No. 486510 that

stood registered in favour of the firm M/s Jain Manufacturing

Company. The basis of their Form TM-24 was also the retirement

deeds/partnership deeds as relied by the Arihant Group.

16 On 20.08.1996, Mr. P.K. Talwar, Advocate for Mr. Janki Dass

Jain and Mrs. Kiran Jain sent a letter to the Registrar, Trademarks

stating that the trademark matter between the retiring and the

continuing partners of M/s Kangaro Industries (Regd.) has not been

decided finally and therefore the Registrar was asked not to allow

any change in the constitution of firm M/s Kangaro Industries

(Regd.) till his clients were heard in the matter. On 02.09.1996 Mr.

K.N. Naik, Advocate of Mr. Arihant Jain etc. sent a letter to the

Registrar, Trademarks along with an affidavit of Mr. Arihant Jain

stating that the retiring partners of M/s Kangaro Industries (Regd.)

have relinquished their rights after receiving their shares from the

partnership business. The said affidavit was supported by copy of

ledger account of the retiring partners certified by the Chartered

Accountant, certificate from the bank confirming payments made to

the retiring partners and the Registrar, Trademarks was requested

to allow their Form TM-24 and record assignment/transfer of

trademark 'KANGARO' in the name of continuing partners (Mr.

Arihant Jain, Mr. Vishwa Jain, Mrs. Raman Jain and Mrs. Neelam Jain)

of M/s Kangaro Industries (Regd.).

17 On 25.09.1996, the Registrar, Trademarks in reply to letter of

Mr. P. K. Talwar, Advocate requested him (Mr. P.K. Talwar) to

furnish the supportive documents within 21 days from the date of

the said letter. The copy of the said letter was also sent to Mr. K.N.

Naik, Advocate and also to Mr. Arihant Jain etc. On 18.10.1996, the

Registrar, Trademarks received a letter from Mr. K.N. Naik,

Advocate on behalf of Mr. Arihant Jain etc. in response to its letter

dated 25.09.1996 requesting the Registrar, Trademarks to take

necessary action on Form 24 in case no reply is received from Mr.

Jaininder Jain etc. by the Registry and in the absence of any proof

furnished by them. Since no reply was received by the Registrar

either from Mr. Jaininder Jain or from counsel in spite of lapse of 21

days, the Registrar on 30.10.1996 decided the case of Form TM-24

in respect of four trademark Nos. 376224, 384556, 463530 &

486516 in favour of Mr. Arihant Jain etc. trading as M/s Kangaro

Industries (Regd.).

18 Immediately after passing of order dated 30.10.1996 by the

Registrar, Trademarks allowing Form TM-24 of Mr. Arihant Jain etc.

in regard to above referred four trademarks, Mr. Jaininder Jain etc.

group became active and started protesting against the order

passed by the Registrar, Trademarks on 30.10.1996. On

01.11.1996, Mr. P.K. Talwar, Advocate sent a telegram to the

Registrar, Trademarks and asked him not to allow Form TM-24 of

Mr. Arihant Jain etc. On 04.11.1996, the Registrar, Trademarks

passed the following order:-

"Telegram from Mr. P.K. Talwar, Advocate has been received at 4 PM on 01.11.1996. This telegram is sent in response to this office letter dated 25.09.1996. Since the abovenamed Advocate has failed to comply with the official requirement within stipulated period, no further correspondence is required to be made with him. However to provide full natural justice, other parties may be given a chance to furnish necessary documentary evidence in support of their claim. 30 days time to be given for compliance, failing which no further correspondence had to be entertained.

This case was dealt by me hence Ld. C.G. has directed me to put up.

Sd/.

04.11.1996'

19 While the objections of Mr. Jaininder Jain etc. against the order

of Registrar dated 30.10.1996 were pending consideration before

the Registrar, litigation started between the parties in December,

1996.

20 On 06.12.1996 Mr. Jaininder Jain etc. (hereinafter to be

referred to as the 'Jaininder group') filed a civil suit in the Court at

Ludhiana. This suit was filed for grant of a decree of declaration

that the parties are bound by the terms and conditions made under

the family arrangement dated 10/14.04.1995 and permanent

injunction restraining the defendants (Mr. Arihant Jain etc.) from

getting the trademark 'KANGARO' transferred in their favour or in

favour of any other firm falling to their share in the family

arrangement dated 10/14.04.1995 and restraining them from

selling, manufacturing, exhibiting and advertising in any manner

the said trademark. This suit is CS(OS) No. 156/2004 in this Court.

21 On 17.01.1997 Mr. Arihant Jain, Mr. Vishwa Jain, Mrs. Raman

Jain and Mrs. Neelam Jain (hereinafter to be referred to as the

'Arihant group') also filed a suit in the Court of Additional District

Judge, Ludhiana for permanent injunction restraining Jaininder

group from using the trademark "KANGARO'. This suit is CS(OS)

No.157/2004 before this Court.

22 On 10.02.1997, the Jaininder group filed a rectification petition

being C.O.4/1997 in this Court under Section 56 of the Trade and

Merchandise Marks Act, 1958 for removal of entry made by the

Registrar of Trademarks on 30.10.1996. In the said rectification

petition, the Jaininder group raised dispute regarding recordal of the

names of Arihant group as continuing partners of reconstituted firm

M/s Kangaro Industries (Regd.) by the Registrar vide order dated

30.10.1996. The Jaininder group also claimed that their names

should be recorded as subsequent registered owners of the

trademark registered in favour of partners of M/s Kangaro Industries

(Regd.) in view of family settlement dated 10/14.04.1995.

23 Before the Registrar could decide the objections against the

order dated 30.10.1996, the Registrar was informed by the

Jaininder group to keep his hands off as a civil suit had been filed

before the District Court of Ludhiana.

24 On 30.03.1998, Mr. Jaininder Jain's wife Ms. Kiran Jain filed a

suit in Ludhiana Court {CS (OS) No. 155/2004 in this Court} for

declaration that there has been a family arrangement dated

10/14.04.1995 settling the dispute between the parties and in the

alternative, she also prayed that she may be declared to be a

continuing partner in M/s Kangaro Industries (Regd.). She further

prayed for dissolution of partnership firm M/s Kangaro Industries

(Regd.) and for permanent injunction restraining Ms. Neelam Jain

and Mr. Vishwa Jain from carrying on the business in the name and

style of M/s Kangaro Industries (Regd.) and for rendition of

accounts.

25 All these suits filed by the parties against each other in the

Court at Ludhiana were accompanied with an application for interim

injunction seeking an injunction against each other from using the

trademark 'KANGARO'. The Court at Ludhiana passed an interim

order in CS(OS) No. 156/2004 on 07.01.1997 and directed the

parties to maintain status quo regarding the use of trademark

'KANGARO' by them.

26 All the three suits as per details whereof given hereinabove,

filed by the parties against each other in Ludhiana Court were

transferred to this Court vide order dated 08.09.2003 passed by the

Hon'ble Supreme Court in Transfer Petition (Civil) No. 198-203/2003.

Subsequent to their transfer from Ludhiana Court to this Court,

these suits have been registered as CS(OS) Nos. 155/2004,

156/2004 & 157/2004.

27 In the rectification petition being C.O. No. 4/1997, an

application for interim injunction was filed by the Jaininder group

seeking stay of operation of the order of the Registrar, Trademarks

dated 30.10.1996 whereby the names of Mr. Arihant Jain, Mr.

Vishwa Jain, Mrs. Raman Jain and Mrs. Neelam Jain trading as M/s

Kangaro Industries (Regd.) were recorded as subsequent registered

proprietors of Trade Mark Nos. 376224, 384556, 463530 & 486516.

It was further prayed in the application that the said partners of the

firm be restrained from using the entries of registered trademarks

made in their favour in any other proceedings.

28 The said application being IA No. 1397/1997 was dismissed by

a reasoned order passed by the Single Judge of this Court on

01.05.1997 {reported as 2004 PTC (29) 157}. It was observed by

the Single Judge that the retirement of Mr. Janki Dass Jain and Mrs.

Kiran Jain as well as the fact of their having received large sums of

money in consideration thereof was admitted by the Jaininder

group. The alleged family settlement relied upon by Jaininder group

was considered to be a disputed document and interim injunction

application filed by them was dismissed by the Single Judge vide

order dated 01.05.1997 holding that the fair opportunity of hearing

was granted by the Registrar before recording the names of the

subsequent registered proprietors.

29 Aggrieved by the order passed by the Single Judge dated

01.05.1997 dismissing their interim injunction application, the

Jaininder group filed an appeal being FAO(OS) No.130/1997 before

the Division Bench of this Court who by its reasoned order dated

10.05.2002 dismissed the appeal and confirmed the order of the

Single Judge. This order of the Division Bench is reported in 2004

PTC (29) 160. The Division Bench did not find any infirmity in the

order passed by the Registrar or by the Single Judge. It was held

that the question as to whether the document purported to be a

family settlement relied upon by the Jaininder group is in the nature

of family settlement or mere proposal and also the legality and

validity of the said document were held to be disputed questions

required to be proved in accordance with law in the civil suits

transferred from Ludhiana Court to this Court.

30 The Jaininder group being dissatisfied with the order of the

Division Bench of this Court dated 10.05.2002, preferred a Special

Leave Petition being SLP (Civil) No.17535/2002 before the Supreme

Court of India, which was also dismissed on 08.09.2003. The order

of the Hon'ble Supreme Court dismissing the SLP is reported in 2004

(29) PTC 174 (SC).

31 It may be noted that while the appeal against the order of the

Single Judge was pending before the Division Bench, the civil suit

filed by the parties against each other did not proceed because of

assurance given by the parties to the Division Bench that they will

not proceed with their suits pending hearing of the appeal.

32 Thereafter, vide order passed by this Court on 05.10.2005, all

the three suits referred above filed by the parties against each

other were consolidated and were ordered to be heard and decided

along with the rectification petition filed by the Jaininder group

being C.O.4/1997. Consolidated issues were also framed in all these

cases on 05.10.2005.

33 The dispute between the parties relate to use of mark

'KANGARO' coined and founded by their late father Mr. Janki Dass

Jain. Mr. Janki Dass Jain being the creator of the said mark has

expired during the pendency of proceedings of these suits on

17.02.2005. The family of late Mr. Janki Dass Jain is split into two

groups. Mr. Jaininder Jain, his wife and son represent one group

(Jaininder group) whereas Mr. Arihant Jain, Mr. Vishwa Jain their

wives and children represent the other group known as Arihant

group. There appears to be a serious dispute between them for

over a decade about the use of mark 'KANGARO' by each one of

them for different items of stationary manufactured and marketed

by them. Both of them claim a right to use the mark 'KANGARO' and

have prayed for interim injunction against each other from using

the mark 'KANGARO'.

34 I have heard the arguments of learned counsel for both the

parties and have also gone through their written synopsis and the

entire material available on record.

35 The trademark 'KANGARO' is a well-known trademark in the

line of stationery items and this mark appears to have international

reputation. The fight over the use of this mark for different items of

stationery is between three real brothers. Two brothers, namely,

Mr. Arihant Jain and Mr. Vishwa Jain, are on one side and the third

brother Mr. Jaininder Jain is on the other side. The mark 'KANGARO'

is the creation of their late father, Shri Janki Dass Jain who had

adopted and started using the said mark since 1959 and

thereafter, several firms and companies were formed in which the

family members of late Janki Dass Jain were either partners or

Directors. Five registrations in respect of trademark 'KANGARO'

were obtained on different dates, four were got in the name of the

firm M/s. Kangaro Industries (Regd.) and one mark was obtained in

the name of the firm, M/s. Jain Manufacturing Company.

36 Details of four registrations of mark 'KANGARO' obtained in

the name of firm M/s. Kangaro Industries (Regd.) are as under :-

  REGISTERED        CLASS           GOODS              DATE OF
  TRADE MARK                                         REGISTRATION
      NO.
     376224           16      Paper Punches and       25.05.1981
                                 Board Clips
     384556           16        Staple Presses        23.12.1981
                               (Office use) and
                             other staples thereof
     463530           07       Punching Machine       24.11.1986
     486516           08          Hand Tools          26.02.1988


37 The details of the fifth registration mark obtained in the name

of the firm M/s. Jain Manufacturing Company are as under :

  REGISTERED        CLASS           GOODS              DATE OF
  TRADE MARK                                         REGISTRATION
      NO.
     486510           16         Index File Clip      26.02.1988


38   Because of     inter se dispute amongst the three brothers

relating to their business carried on by them in the name of three

firms, namely, i) M/s. 'KANGARO' Industries (Regd.); ii) Kanin (India);

and iii) M/s. Jain Manufacturing Company, an agreement dated 20th

March, 1992 was arrived at between these three firms and as per

the said agreement, the firm M/s. Kangaro Industries (Regd.) was

given the right to use the mark 'KANGARO' for paper punches and

board clips; the firm M/s. Kanin (India) was given the right in

respect of staplers, staple pins and staple pin removers and the

firm M/s. Jain Manufacturing Company was given the right to use

the mark 'KANGARO' for manufacturing and marketing index file

clips and base plates thereof.

39 It seems that in order to further streamline the business

carried on by the three brothers with their wives and children along

with their late father Shri Janki Dass Jain in the names of above

mentioned three firms, the three brothers decided to have

complete control over the affairs of one firm each and since the two

brothers Shri Arihant Jain and Shri Vishwa Jain decided to remain

together, on or around 31st March, 1995, the two firms namely M/s.

Kangaro Industries (Regd.) and the firm M/s. Kanin (India) went to

their exclusive share whereas the firm M/s. Jain Manufacturing

company came to the share of the third brother, Mr. Jaininder Jain

and his family. Consequent thereto, retirement deeds and new

partnership deeds were executed between the incoming and

outgoing partners of these three firms on 31st March, 1995/1st April,

1995. The father of the three brothers, Late Shri Janki Dass Jain,

who continued to remain partner in M/s. Kangaro Industries (Regd.)

at the time of this change, also retired from the firm M/s. Kangaro

Industries (Regd.) on 15.05.1995 and consequent thereto, a

retirement deed dated 15.05.1995 and a new partnership deed

between the continuing partners of the said firm was executed on

16.05.1995.

40 After change in the constitution of the three firms mentioned

above was brought about around 31.03.1995/01.04.1995, the three

brothers on persuation of their late father Shri Janki Dass Jain

entered into an arbitration agreement on 10.04.1995 and agreed to

refer their dispute regarding land, building and machinery owned

by these firms to the arbitration of Shri Ram Kumar Jain and Shri Raj

Kumar Behal. A document dated 10/14th April, 1995 was prepared

which bears the signatures of all the three brothers as also of both

the arbitrators, Shri Ram Kumar Jain and Shri Raj Kumar Behal.

41 The document dated 10/14th April, 1995 is admittedly in the

handwriting of Mr. Arihant Jain. However, there exists a dispute

between the three brothers, hereinafter to be referred to as 'Arihant

Group' and 'Jaininder Group' about the legality, validity and

enforceability of document dated 10/14th April, 1995 purported to

be a family settlement. The Arihant Group has disputed the

authenticity of the document dated 10/14th April, 1995 stating that

the said document according to them was in eight sheets whereas

according to the Jaininder Group, the document, they are relying, is

only in six sheets. The Arihant Group in support of its contention

that the document purported to be a family settlement, is in eight

sheets has relied upon the affidavits of the arbitrators namely Mr.

Ram Kumar Jain and Mr. Raj Kumar Behal (their affidavits are at

pages 38 and 49 of the convenience file of the Arihant Group) who

in their separate affidavits sworn by them before the notary public

on 09.07.2002 have deposed that the instrument dated 10/14th

April, 1995 was in eight sheets and was signed by all the three

brothers and also by both of them. On the other hand, Mr. Bhatia

learned counsel appearing on behalf of the Jaininder Group has also

referred and relied upon the affidavits of the same arbitrators sworn

by them before the notary public on 20.09.2002 to contend that the

instrument dated 10/14th April, 1995 has only six sheets. The

affidavits of the arbitrators relied upon by the Jaininder Group were

not placed on record earlier and they were filed by the learned

counsel for the Jaininder Group along with his short additional

submissions filed on 01.04.2009 after the arguments on interim

injunction application were concluded and the case was reserved

for orders.

42 Upon considering the fact of two contradictory affidavits filed

by the arbitrators regarding the number of sheets used for

preparing the document dated 10/14th April, 1995 purported to be a

family settlement, I am of the view that this raises a serious dispute

regarding the authenticity of the said document. Whether this

document was having six sheets or eight sheets is a question of

fact which cannot be decided at this initial stage in the absence of

evidence of the parties on this aspect. At this stage, what is

relevant to be noted is that photocopies of all the eight sheets of

document dated 10/14th April, 1995 purported to be a family

settlement is on record and is available at pages 39 to 48 of the

convenience file submitted by the Arihant Group. All the eight

sheets of this document are in the handwriting of Shri Arihant Jain.

The said document purports to contain two alternative proposals

which both have been signed by all the three brothers, their late

father Shri Janki Dass Jain and also by both the arbitrators.

Reference for the same can be made to pages 45 and 48 of the

convenience file of the Arihant Group. The two alternative

proposals, firmwise and productwise, mooted by the parties in the

presence of the arbitrators, are as follows :-

PROPOSALS

I. FIRMWISE :

     PARTIES              PROPOSAL I                  PROPOSAL II
Arihant Jain and -Kangaro           Industries -Kangaro          Industries
Vishwa Jain      (Regd.)                       (Regd.) Unit II
                 -Kangaro           Industries -Kangaro          Industries
                 (Regd.) Unit II               (Regd.)
                 - Kanin (India)               -Jain         Manufacturing
                                               Company
                                               -Jindal Stationery
                                               Manufacturing Co.
                                               -Kangaro (India) Pvt. Ltd.
                                               - Kanin (India) Pvt. Ltd.
Jaininder Jain     - Jain Manufacturing Co.     - Kanin (India)
                   -Jindal Stationery
                   Manufacturing Co.
                   -Kangaro (India) Pvt. Ltd.
                   - Kanin (India) Pvt. Ltd.





 II.    PRODUCTWISE :

      PARTIES            PROPOSAL I                PROPOSAL II
Arihant Jain and All types of paper punches   All  types    of  paper
Vishwa Jain      and     staplers    except   punches, stapler No. 10,
                 stapler HD-10N, HD-10D,      10B, HP-10, 10-JA, 45-L,
                 M-10, HP-45 and staple       HP-45,   M-10,    staple
                 remover SR-300               remover and stapler HD-
                                              12S/17
Jaininder Jain    Index file clip and stapler Index file clip, HD-10N,
                  HP-45,     M-10,     Staple 10-D, HD-45, 555 and 999
                  remover SR-300, stapler
                  HD-10N and HD-10D


43     As per the first proposal contained in the document dated

10/14th April, 1995, the trade mark 'KANGARO' has gone to the

share of the Jaininder Group and the trade mark 'KANIN' has come

to the share of Arihant Group. The trade name 'KANGARO' has

gone to the share of Arihant Group and the trade name 'KANIN' has

come to the share of Jaininder Group. The second proposal

contained in the document, does not deal with the distribution of

either the trademark or the trade name as dealt with in the first

proposal.

44 Mr. Shailen Bhatia, learned counsel appearing on behalf of the

Jaininder Group has argued that the trademark 'KANGARO' is the

property of the joint family and the right in the said trademark does

not belong to any individual. He has placed heavy reliance on the

document dated 10/14th April, 1995 which according to him is a

family settlement regarding use of trademark 'KANGARO' for

different stationery items manufactured and marketed by the three

firms. The argument of Mr. Bhatia is that in terms of family

settlement dated 10/14th April, 1995 the trademark 'KANGARO'

exclusively belongs to the Jaininder Group and according to him,

the Arihant Group has no legal right to use the said mark in relation

to its stationery business. Mr. Bhatia has referred and relied upon

the pleadings of the Arihant Group contained in their two

applications, one under Section 34 of the Arbitration Act, 1940 and

the second under Section 8 of the Arbitration and Conciliation Act,

1996, filed for stay of suit of Jaininder Group being CS(OS) No.

156/2004. It was contended that the Arihant Group itself has relied

upon document dated 10/14th April, 1995 as a ground for stay of the

above referred suit of Jaininder Group. It was submitted that the

Arihant Group itself has stated in its applications under Section 34

and Section 8 that the parties had agreed to refer their remaining

unsettled disputes for the decision of the arbitrators whose decision

was agreed to be final and binding on all the three brothers. It was

further contended by Mr. Bhatia that this Court should not doubt

the document dated 10/14th April, 1995 which according to him is a

family settlement as the said document is admittedly in the

handwriting of Mr. Arihant Jain. His further contention was that in

case, the said document had eight sheets and not six sheets, then

why Arihant Group did not produce the original of the last two

missing sheets which contained an alternative proposal allegedly

given by the Arihant Group.

45 Mr. Bhatia learned counsel appearing on behalf of the

Jaininder Group has referred and relied upon the judgments of the

Hon'ble Supreme court in K.K. Modi versus K.N. Modi & Ors., 1998

(3) SCC 573; Ram Kishore Lal & Anr. Versus Kamal narayan & Ors.

AIR 1963 SC 890 and RamCharan Dass Versus Girija Nandini Devi

AIR 1966 SC 323, in support of his contention that the family

settlement arrived at by the parties to this suit by way of document

dated 10/14th April, 1995 should not be lightly interfered by this

Court because according to him, the settlement has already been

acted upon by some of the members of the family.

46 On the other hand, Mr. Sudhir Chandra Aggawal, learned

senior counsel, appearing on hehalf of the Arihant Group has

argued that the document dated 10/14th April, 1995 was not a

family settlement and according to him, this document contains

only two alternative proposals, one given by the Jaininder Group

and the other by the Arihant Group. He responded to the argument

of Mr. Bhatia regarding non-production of the originals of two

missing sheets by the Arihant Group by submitting that the original

of document dated 10/14th April, 1995 (eight sheets) was in fact

retained by the arbitrators with themselves and the parties were

given only the photocopies of the said document. The learned

senior counsel for the Arihant Group in support of his above

contention has relied upon the admission of Jaininder Group in its

written statement filed on 24.01.1997 in CS(OS) No. 157/2004

where in para 2 of its written statement, the Jaininder Group has

admitted that the original of document dated 10/14th April, 1995

was retained by the arbitrators in their possession. It was further

contended that the document dated 10/14th April, 1995 cannot be a

family settlement because it contains two alternative proposals,

and the document does not state as to which out of these two

proposals, were finally accepted by the parties.

47 The contention of the learned senior counsel appearing on

behalf of the Arihant Group was that the rights of the parties, i.e., of

Arihant Group and of Jaininder Group to use the trade mark

'KANGARO' in relation to different items of staitonery manufactured

and marketed by different firms/companies flow from the

partnership deeds and the retirement deeds executed between the

incoming and outgoing partners of the three firms during 1995.

48 The Arihant Group and the Jaininder Group also have dispute

between them about the nature of agreement dated 20.03.1992.

Mr. Bhatia appearing on behalf of the Jaininder Group had argued

that the agreement dated 20.03.1992 was an agreement between

the three brothers whereby all three of them decided to represent

one firm each. However, the argument of the Arihant Group is that

the agreement of 20.03.1992 was an agreement between the three

firms to streamline their business and in terms of the said

agreement, the goods were divided and demarcated between

Kangaro Industries (Regd.), Kanin (India) and Jain Manufacturing

Company. It was submitted that the three firms, on restructuring,

were taken over by the respective continuing partners, with all

assets, property and goodwill. It was only for this reason that

registered trade mark 'KANGARO' registered under No. 486510 for

index file clips was acquired by Jain Manufacturing Company.

49 I have given my anxious consideration to the above rival

arguments advanced by learned counsel for the parties. I do not

find any merit in the argument of the counsel for the Jaininder

Group that the property in the trademark 'KANGARO' belongs to a

joint family and not to the individual family members. It may be

noted that the constitution of the three partnership firms was

changed from time to time when ultimately, around first half of

1995, the two firms namely M/s. Kangaro Industries (Regd.) and

M/s. Kanin (India) came to the exclusive share of the Arihant Group

whereas the third firm M/s. Jain Manufacturing Company went to

the share of Jaininder Group.

50 I also do not find any merit in the argument of Mr. Bhatia that

the agreement of 20.03.1992 was between the three brothers inter

se and not between the three firms of which either they themselves

or their wives were partners. The Jaininder Group in fact has

admitted in its written statement in CS(OS) No. 157/2004 that the

agreement dated 20.03.1992 was between the three firms, namely,

M/s. Kangaroo Industries (Regd.), Jain Manufacturing Company and

M/s. Kanin (India). This admission on the part of the Jaininder Group

in its written statement belies their stand that the agreement dated

20.03.1992 was between the brothers inter se and not between the

firms. It appears that an attempt is made on the part of the

Jaininder Group to show as if the business done by the three

brothers in the name of the three firms was a joint family business

and they vide their agreement dated 20.03.1992 had simply

decided as to which firm in which they were partners will deal in

what item. It is a matter of record that four registrations in respect

of trademark 'KANGARO' vide registration no. 376224, 384556,

463530 and 486516 were obtained on different dates in the name

of the firm M/s. Kangaro Industries (Regd.) in which the wife of Shri

Jaininder Jain also remained one of its partners till 31.03.1995. On

account of dispute between the parties in relation to their business

carried on by them in the name of three firms, the parties had

agreed to separate the control and management of all the three

firms so that each of these three firms could be exclusively

controlled by one or the other group. Pursuant thereto, the firms

Kangaro Industries (Regd.) and M/s. Kanin (India) came to the share

of Arihant Group whereas the Jain Manufacturing Company went to

the share of Jaininder Group. This was in the year 1995.

Retirement deeds and new partnership deeds were executed

between the incoming and outgoing partners of all the three firms

in March/April, 1995 and again on 15.05.1995. As per these

partnership deeds/retirement deeds, the Jaininder Group acquired

right in the trademark 'KANGARO' for different items of stationery

covered by the four registrations being registration no. 376224,

384556, 463530 and 486516 and the Jaininder Group acquired the

right in the trademark registered as per registration no. 486510 in

Class 16 for index file clips and base plates registered in favour of

Jain Manufacturing Company.

51 The Jaininder Group is relying upon the document dated

10/14th April, 1995 which according to it is a family settlement in

terms whereof the trademark 'KANGARO' exclusively belongs to

them. A serious dispute exists between the parties about the

genuineness and authenticity of the said document. The said

document purports to contain two alternative proposals which are

both inconsistent to each other. The document does not state as to

which out of the two proposals was agreed to be treated as final

and binding by the parties. The contention of the Jaininder Group,

that since the Arihant Group itself has admitted in its applications

under Section 34 of the Arbitration Act, 1940 and application under

Section 8 of the Arbitration and Conciliation Act, 1996 that the

parties vide their agreement dated 10/14th April, 1995 had agreed

to refer their remaining unsettled disputes to the arbitrators, and

therefore, the Arihant Group cannot be permitted to wriggle out of

its admission to dispute the genuineness of the family settlement,

seems to hold no water. The Jaininder Group does not dispute the

existence of document dated 10/14th April, 1995. What it disputes

is the nature of the said document, whether the document is a

family settlement or merely a proposal. Hence, the stand taken by

the Arihant Group in their application under Section 34 of the Indian

Arbitration Act, 1940 and application under Section 8 of the

Arbitration & Conciliation Act, 1996 regarding existence of an

agreement cannot be taken in aid by the Jaininder Group to say

that the document relied upon by them is a family settlement.

The mere fact that the said document is in the handwriting of Mr.

Arihant Jain is also of no help to Jaininder Group because mere

admission of handwriting of a document does not ipso facto amount

to proof of its contents, particularly when the nature of the said

document is in dispute.

52 In Ramji Dayawal & Sons (P) Ltd. Vs. Invest Import, AIR 1981

SC 2085, it was held by the Hon'ble Supreme Court as under :-

"Undoubtedly, mere proof of the handwriting of a document would not tantamount to proof of all the contents of the facts stated in the document. If the truth of facts stated in a document is in issue, mere proof of the handwriting and execution of the document would not furnish evidence of the truth of the facts or contents of the document. The truth or otherwise of the facts or contents so stated would have to be proved by admissible evidence, i.e., by the evidence of those persons who can vouchsafe for the truth of the facts in issue."

53 In view of the above judgment of the Supreme court, I have no

hesitation in saying that the document dated 10/14th April, 1995

relied upon by the Jaininder Group at this stage cannot be said to

be a family settlement only because the said document happens to

be in the handwriting of Mr. Arihant Jain. There is a serious dispute

between the parties, whether this document was in eight sheets or

in six sheets. If the document relied upon by the Jaininder Group is

found to have eight sheets, then another question will arise as to

why two alternative inconsistent proposals were made in the said

document, if it was to be treated as a family settlement, final and

binding on the parties.

54 The document dated 10/14th April, 1995 relied upon by the

Jaininder Group as a family settlement is further shrouded in

suspicion. If a final settlement has been arrived at between the

parties regarding use of trademark 'KANGARO' by each one of them

for different stationery items, then why this fact was not reflected in

the retirement deed dated 15.05.1995 executed on the retirement

of Shri Janki Dass Jain. This fact of alleged family settlement was

not even mentioned in the new partnership deed dated 16.05.1995

executed between the continuing partners of the firm M/s. Kangaro

Industries (Regd.). It may be noted that the retirement deed dated

15.05.1995 as well as new partnership deed dated 16.5.95 were

executed shortly just within one-two days of the purported family

settlement dated 10/14th March, 1995. The things were fresh in the

mind of the parties at the time they had executed the retirement

deed/partnership deed in May, 1995 and in case there was any

conclusive family settlement with regard to use of trademark

'KANGARO' then this fact must have find mentioned in the said

documents. It may further be noted that the Jaininder Group had

filed TM 24 in the office of Registrar, Trademarks on 28.02.1996 for

recordal of change of proprietorship of trademark no. 486510 in

favour of continuing partners of M/s. Jain Manufacturing Company.

This TM 24 was filed by the Jaininder Group on 28.02.1996 on the

basis of retirement deed/partnership deed dated

31.03.1995/01.04.1995 and 15.05.1995/ 16.05.1995. without any

whisper about the alleged family settlement. In case, the alleged

family settlement was arrived at between the parties as contended

by the Jaininder Group, then why this fact was not disclosed by this

group while filing TM 24 ,filed after about 9 months of the alleged

family settlement. The fact of alleged family settlement was not

even disclosed in the letter dated 19.08.1996 sent by Shri P.K.

Talwar (Advocate for Shri Janki Dass Jain and Mrs. Kiran Jain) to the

Registrar, Trademarks. Furthermore, it may also be noted that the

firm M/s. Jain Manufacturing Company of which Mr. Janki Dass Jain,

Mrs. Kiran Jain and Mr. Jaininder Jain were partners, admitted before

the Excise authorities in the year 1997 that the Jaininder Group is

proprietor of trademark 'KANGARO' for which they hold

registrations. M/s. Jain Manufacturing Company claimed right to

trademark 'KANGARO' only for 'index file clips' as subsequent

proprietors of trademark no. 486510 in terms of agreement of

1992. All these facts prima facie create a serious doubt on the

nature, legality and validity of the document invoked by the

Jaininder Group as document of the family settlement.

55 The purported family settlement dated 10/14th April, 1995

even otherwise does not prima facie appear to be admissible in

evidence in view of the provisions of the Indian Registration Act,

Stamp Act and Section 45 of the Trade Marks Act, 1999. The said

document purports to create or extinguish right in the immovable

property and was, therefore, required to be executed on non-

judicial stamp papers and also required compulsory registration.

The alleged agreement of family settlement is pursuant to an

arbitration agreement of 10th April, 1995 to which all the partners of

the three firms, are not parties. In view of provisions contained in

Section 19 of the Partnership Act, one partner cannot effect transfer

of partnership assets in the absence of express or implied consent

of the other partners. Since this document purported to be a family

settlement does not bear the signatures of all the partners of the

three firms, the said document prima facie appears to be not

tenable in law.

56 In view of what has been discussed by me above, I am of the

view that the above referred judgments on the point of family

settlement relied upon by counsel for the Jaininder Group are not

applicable to the facts and circumstances of the present case

because in all those cases, the family settlement considered by the

Court was not in dispute whereas in the present case, the alleged

family settlement is shrouded in strong suspicion.

57 The learned senior counsel appearing on behalf of the Arihant

Group has referred and relied upon an order dated 30.10.1996

passed by the Registrar, Trade Marks allowing TM 24 of the Arihant

Group in regard to four registrations of trademark 'KANGARO' being

registration nos. 376224, 384556, 4365380 and 483516 and

recorded the Arihant Group as proprietors of the trademark vide

these registrations on the basis of retirement deed/partnership

deed of 31.03.1995/01.04.1995 and 15/05/1995/16.05.1995. The

argument of the learned senior counsel for the Arihant Group was

that the Arihant Group being the registered proprietor of trademark

'KANGARO' as per the above referred registration nos., the said

group has a statutory right to protect its registration in view of

provisions contained in Section 28, 29 31 and 135 of the Trade

Mark Act, 1999. It was submitted that the use of an identical

deceptively similar mark by anybody which even includes Jaininder

Group also, constitutes an act of infringement and, therefore, the

Jaininder Group is liable to be restrained from using the trademark

'KANGARO' in respect of goods covered by the registrations in its

favour referred above.

58 On the other hand, Mr. Bhatia, learned counsel appearing on

behalf of the Jaininder Group has argued that the order dated

30.10.1996 was procured by the Arihant Group from the Registrar,

Trademarks by concealing the fact of family settlement and also by

not filing the affidavits of the retiring partners of M/s. Kangaroo

Industries (Regd.) that they have relinquished their right in the use

of trademark 'KANGARO' in favour of the continuing partners of the

said firm, as is the established practice in the trade mark registry.

The Jaininder Group has pleaded fraud against the Arihant Group in

regard to order dated 30.10.1996 of the Registrar, Trademarks. Mr.

Bhatia has relied upon a decision of this Court in Anand Kumar

Deepak Kumar & Another Versus Haldi Ram Bhujiawala &

Anr. 1999 PTC (19) 466 to buttress his argument that the fraud

vitiates all transactions and that the registration of trademark

obtained by fraud would not acquire finality or immunity from

challenge under Section 32(a) of the Trade and Merchandise Marks

Act, 1958.

59 Mr. Bhatia has also argued that the order dated 30.10.1996

recording the Arihant Group as registered proprietor of trademark

'KANGARO' is even otherwise violative of the principles of natural

justice and fair play. In support of his said contention, he has relied

upon another judgment of this Court in Kohinoor Paints

Faridabad (P) Ltd. Versus Paramveer Singh 1996 PTC (16)

69, wherein it is held as under :-

"it is well-settled that once an order is passed in violation of the principles of natural justice, the order is void in law and if that order is relied upon for any purpose, it can be challenged whenever and wherever it is produced."

60 I have given my anxious consideration on the plea of fraud

and violation of principles of natural justice in regard to order dated

30.10.1996 urged on behalf of the Jaininder Group but on giving my

anxious consideration to the same, I have not been able to

persuade myself to agree with the submissions made on behalf of

Jaininder Group in regard to the above. The judgment on these

aspects relied on its behalf are not applicable to the facts of the

case. The court at this stage is only considering which party has a

prima facie case for restraining the other party from using the

trademark 'KANGARO' for different stationery items covered vide

registration no. 376224, 384556, 463530 and 486516.

61 The question regarding legality, validity and enforceability of

the purported family settlement dated 10/14th April, 1995 has been

considered upto the Supreme Court. Right upto the Supreme Court,

the courts have declined to stay the operation of order of Registrar,

Trademarks, dated 30.10.1996. Detailed reasons for the same are

given in the judgments both of the single judge and also of the

division bench. Right upto the Supreme Court all the arguments

which have been advanced on behalf of the Jaininder Group in

support of the family settlement dated 10/14th April, 1995 have

been considered and held that it cannot be said that the order

dated 30.10.1996 recording the Arihant Group as registered

proprietor of trademark registration no. 376224, 384556 463530

and 486516 was passed without giving fair opportunity to the

Jaininder Group. It has also been held upto the Supreme Court that

the document purported to be a family settlement is a disputed

document and its legality, validity and enforceability is to be

established by the Jaininder Group in accordance with law in these

suits. Reference for the orders of the Single Judge, the Division

Bench and of the Supreme Court may be made to PTC 2004 Volume

(29) at pages 157, 160 & 174 respectively. In this view of the

matter, I am of the considered opinion that the alleged family

settlement relied upon on behalf of the Jaininder Group cannot be

acted upon at this stage for deciding the interim injunction

applications in these three suits.

62 What emerges from the above discussion is that the Arihant

Group as on date holds a valid registration of trademark 'KANGARO'

in its favour in respect of goods covered by trademark nos. 376224,

384556, 463530 and 486516. The Arihant Group is shown to hold

registration of trademark 'KANGARO' in 37 countries. The Arihant

Group is stated to have acquired an international reputation in the

trademark 'KANGARO'. The foreign courts of Germany, Israel and

Indonesia have recognized the trademark 'KANGARO' of the Arihant

Group in infringement action set up by it against third parties and in

one case, before the three-Judge bench of the Frankfurt Court, the

Arihant Group had brought an infringement action against the

company owned by the Jaininder Group in which also the Jaininder

Group in its defence had relied upon the same family settlement of

10/14th April, 1995 but the three-Judge Bench of the Frankfurt Court

vide its detailed judgment delivered on 19.11.2003 declined to

recognize the said family settlement and prohibited the Jaininder

Group from using the trademark 'KANGARO' for paper punches,

staplers, staple removers and paper pins. The judgment of the

Frankfurt Court is reported in PTC 2004 Volume (29) at page 201.

63 For the foregoing reasons, I have no hesitation in holding that

the Arihant Group has made out a strong prima facie case for

restraining the Jaininder Group from using the trademark

'KANGARO' in relation to its business in respect of goods covered by

trademark nos. 376224, 384556, 463530 and 486516. The balance

of convenience for grant of such injunction also lies in favour of the

Arihant Group and against the Jaininder Group. In case, the

Jaininder Group is not restrained by way of interim injunction from

using the trademark 'KANGARO' in relation to its business in respect

of goods covered by trademark no. 376224, 384556, 463530 and

486516, the Arihant Group who has acquired an international

reputation in the use of the said trademark, is likely to suffer an

irreparable injury which is unlikely to be compensated in terms of

money. I, therefore, restrain the Jaininder Group from using the

trademark 'KANGARO' for stationery items covered by trademark

no. 376224, 384556, 463530 and 486516 till the final decision of

these suits. Any observation made in this order will not influence

the final decision of the case on merits.

64 In view of the above, IA No. 2552/2004 in CS(OS) No.

155/2004 & IA No. 2551/2004 in CS(OS) No. 156/2004 are

dismissed and IA No.2550/2004 in CS(OS) No. 157/2004 is allowed.

Needless to state that the status quo order dated 07.01.1997

passed by the Ludhiana Court in CS(OS) No. 156/2004 stands

vacated and that the right of the parties to the suit for use of

trademark 'KANGARO' will be governed in terms of injunction order

passed by this Court in favour of Arihant group and this interim

order will continue without prejudice to the rights and contentions

of the parties on merit of the case till the suits are finally decided.

April 08, 2009                                S.N.AGGARWAL
a/ma                                               [JUDGE]





 

 
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