Citation : 2010 Latest Caselaw 1773 Del
Judgement Date : 6 April, 2010
THE HIGH COURT OF DELHI AT NEW DELHI
% Judgment Reserved on: 21.01.2010
Judgment delivered on: 06.04.2010
IA No. 12561/2009 & IA No. 13358/2009
in CS(OS) No. 1839/2009
M/S THREE-N-PRODUCTS PVT LTD ..... PLAINTIFF
Vs
M/S HOLISTIC HEALTH CARE PVT LTD ..... DEFENDANT
Advocates who appeared in this case:
For the Plaintiff : Mr Sudhir Chandra, Sr. Advocate with Mr Gopal Trivedi, Ms Sonal Madan &
Mr Chetan Chadha, Advocates
For the Defendant: Mr Ravi Gupta, Sr. Advocate with Mr Vikramajit Banerjee & Mr Sumit Attri,
Advocates
CORAM :-
HON'BLE MR JUSTICE RAJIV SHAKDHER
1.
Whether the Reporters of local papers may be allowed to see the judgment ? Yes
2. To be referred to Reporters or not ? Yes
3. Whether the judgment should be reported Yes in the Digest ?
RAJIV SHAKDHER, J
IA No. 12561/2009 (O.39 R.1&2 CPC by pltf.) & IA No. 13358/2009 (O.39 R.4 of CPC by Deft.)
1. By this order, I propose to dispose of the captioned interlocutory applications
(hereinafter referred to singularly as „IA‟ and collectively as „IAs‟). IA No. 12561/2009
has been filed by the plaintiff under the provisions of Order 39 Rule 1 & 2 of the Code of
Civil Procedure, 1908 (hereinafter referred to as the „CPC‟) and IA No. 13358/2009 has
been filed by the defendant under the provisions of Order 39 Rule 4 of the CPC for
seeking vacation of the order dated 25.09.2009.
2. First let me articulate the plaintiff‟s case.
2.1 The plaintiff was initially constituted as a partnership firm which was reorganized
into a private limited company w.e.f. 01.01.1993. The plaintiff claims that it is engaged
in the manufacture and marketing of bleaching preparations, soaps, cosmetics, lotions,
essential oils, cream, scouring, kumkum, nail polish and other beauty care products. It is
also claimed by the plaintiff that it is in the business of providing services related to
health and beauty care for the past several years. The plaintiff also claims that it provides
treatment for neuro-muscular disorders, hemiplegia, chronic, rheumatic disorders,
neurological disorders etc. and for rejuvenation etc. It is averred that the plaintiff is
running an institute under the name „AANB‟ which is an acronym for "Ayur Academy of
Natural Beauty".
2.2 It is further averred that the plaintiff is a registered proprietor of trade mark
„AYUR‟ in classes, 3, 5, 16, 21, 29, 30, 31, 32, 33, 34, 41 and 42. It is averred that the
plaintiff‟s mark „AYUR‟ has a global reputation which has been bonafidely adopted by it
since 1984. It is claimed that since then the plaintiff has been using this trade mark
„AYUR‟ openly, extensively and exclusively in relation to its businesses.
2.3 It is specifically averred that the plaintiff is providing services under class 42 of
Fourth Schedule of the Trade Marks Act, 1999 (hereinafter referred to as the „Trade
Marks Act‟) which includes amongst other services, beautician services, massage
services, health farm, beauty spa, beauty treatment, manicuring, provision of sauna
facilities, solarium facilities, consultancy services, nutrition and beauty care and cosmetic
care services.
2.4 It is also averred that the products of the plaintiff falls in various classes including
the ones that fall in classes 3 and 5 which are directly related to the services provided by
the plaintiff. The plaintiff has further averred that the defendant had sought registration
of its trade mark „AYURCARE‟ in classes 5 and 42 vide two separate applications being
no. 1398930 and 1398929 of even date, i.e., 14.11.2005, respectively. These
applications were advertised in the trade mark journal bearing nos. 1373 (Regular) and
1374(Regular) on 01.08.2007 and 16.08.2007. The plaintiff, on coming across the said
advertisements of the defendant‟s mark, filed a notice of opposition in accordance with
the provisions of Section 21(1) of the Trade Marks Act.
2.5 It is, in connection with the above, averred by the plaintiff (in paragraph 19 of the
plaint) that the defendant in respect of its application under class 5 for registration of its
mark „AYURCARE‟ withdrew the same. For this purpose the plaintiff has relied upon
the letter dated 18.01.2008 issued by the defendant‟s attorneys Daswani & Daswani. It is
also averred that the defendant abandoned its other applications filed for registration of
its mark „AYURCARE‟ under class 42. To be noted, this aspect of the matter has been
vociferously disputed by the defendant. I have dealt with this aspect in the latter part of
my judgment.
2.6 In view of the above the plaintiff has averred that it did not pursue the matter any
further; however, in the third week of August, 2009 the plaintiff came across brochures
and pamphlets issued by the defendant with respect to free consultation camps, which the
defendant was supposed to hold at an Ayurvedic Wellness Center going by the name of
„AYURCARE‟ situate at B-368, 1st Floor, Meera Bagh, Paschim Vihar, Delhi- 110063.
It is averred that the defendant‟s adoption of deceptively similar trade mark, i.e.,
„AYURCARE‟ is malafide. It is stated that the infringement of the plaintiff‟s trade mark
has been carried out by the defendant with the sole purpose of encashing the reputation
and goodwill of the plaintiff. It is averred that the plaintiff‟s registered mark „AYUR‟ is
distinctive of the goods manufactured and sold, as also services offered by the plaintiff.
It is thus the case of the plaintiff that not only has the defendant infringed the registered
trade mark of the plaintiff, but also has committed tort of passing off its goods and
services as those manufactured and rendered by the plaintiff only to make wrongful gains
at the expense of the plaintiff. It is further averred that the defendant‟s trade mark
„AYURCARE‟ is visually, phonetically and structurally similar to the plaintiff‟s
registered trade mark „AYUR‟, and hence would cause confusion in the minds of unwary
customers as to the origin and source of the goods and services offered by the plaintiff.
Defendant‟s case
3. The defendant claims that it is involved in providing traditional and traditional
inspired healthcare services. The said business, the defendant claims, is carried out
under the name and style of "AYURCARE" under the tag line "Ayurcare: The Ayurvedic
Wellness Centre".
3.1 It is the stand of the defendant that it first started its business in the city of
Hyderabad in 2005; followed by a center in the city of Bangalore, in 2007. The
defendant contends that at the aforementioned wellness centers it offers various types of
therapies and other health care spa services as also services for wellness of body and
spirit through both traditional as also modern Indian and International techniques. It is
contended that the defendant‟s centers are popular with the public at large and, have thus
been extensively covered by the press. The consequent publicity, that the defendant has
received, is evident from the press coverage it has received since 2006. It is contended
that even though there has been extensive use of the word mark „AYURCARE‟ by the
defendant since 2006 no action was taken by the plaintiff and consequently the objection,
if any, stands waived in respect of the use of the word „AYUR‟ (as part of its mark
„AYURCARE‟) by the defendant. This is without prejudice to the defendant‟s right that
the plaintiff did not have a legal right in the word „AYUR‟.
3.2 The defendant has specifically clarified the fact that even though it had filed an
application for registration of its mark „AYURCARE‟ in both classes 5 and 42 of the
Fourth Schedule of the Trade Marks Act it had only abandoned its application under class
5 after it was opposed by the plaintiff because of the joint venture business, which the
defendant had conceived of which, did not bear fruit. It is specifically denied that the
defendant had abandoned its application filed under class 42 as alleged or at all.
3.3 It is contended that the defendant‟s application for registration of its trade mark
filed under class 42 is pending adjudication. It is not disputed, however, that even the
application filed under class 42 by the defendant has been opposed by the plaintiff.
3.4 It is further contended that the plaintiff has never been in the business of
providing traditional massage therapies or services which is a business which falls under
class 42 of Fourth Schedule of the Trade Marks Act. It is contended that the plaintiff, if
at all, is providing such services under the name and style of "AANB Rejuvenation" and
not „AYUR‟. Even though the receipts filed by the plaintiff in respect of the said
business are in the name of "Ayur Academy of Natural Beauty" the business is not
conducted under the said name. The receipts filed are also for the period of 2006
onwards, which are written in hand, and hence demonstrate that the plaintiff has had a
negligible business in this sector. The plaintiff‟s business in class 42 is restricted to
beauty care which is outside the purview of the services offered by the defendant. The
word „AYUR‟ has been adopted by a large number of manufacturers and traders in the
market. A large number of registered trade marks have „AYUR‟ as part of their trade
mark, and such goods, are freely available in the market. Therefore, the plaintiff cannot
lay an exclusive claim over the word mark „AYUR‟. The word mark „AYUR‟ is a
generic Hindi word which lacks distinctiveness. On the other hand, the defendant‟s
mark „AYURCARE‟ is a coined and invented term. The defendant has denied that the
word „AYUR‟ is either distinctive or has become synonymous with the plaintiff in
connection with goods and services offered by the plaintiff. It is also denied that the
plaintiff enjoys any goodwill and reputation especially in relation to therapeutic services
or that the defendant‟s mark „AYURCARE‟ is deceptively similar to the trade mark of
the plaintiff.
Submissions of Counsels
4. In support of its case Mr Sudhir Chandra, learned senior counsel appearing for the
plaintiff, apart from reiterating the submissions made in the plaint, laid stress and sought
to clear the controversy surrounding the averment made in the plaint with regard to the
alleged abandonment by the defendant of its application under class 42. It was submitted
that in January, 2005 the defendant had applied for registration of the mark Dhanwantri
Ayur Clinic The Super Speciality Ayur Vedic Therapy Centre vide application no.
1335151. The said application was filed in class 42. The application was published in
the journal 1336 (Regular) dated 15.11.2005. To this application an opposition was filed
by the plaintiff on 06.07.2006 vide opposition no. MAS 229516. The defendant chose
not to file any counter statement to the opposition. The application was clearly
abandoned as is demonstrable from the order of the Deputy Registrar dated 20.02.2008.
4.1 There was another application filed by the defendant being application no.
1398929 dated 14.11.2005 for registration of its mark „AYURCARE‟ under class 42.
This application was published in the trade mark journal as 1374 (Regular) dated
16.08.2007. This journal was made available o the public on 30.10.2007. As is evident,
on a perusal of the said application the defendant had indicated that it "proposed" to use
the mark.
4.2 It was submitted that there was a third application filed by the defendant being no.
1398930 dated 14.11.2005 for registration of its mark „AYURCARE‟ in class 5. This
application was published in journal 1373 (Regular) dated 01.08.2007. The journal was
made public on 25.10.2007. The defendant had claimed user from the date of the
application, i.e., 14.11.2005. The plaintiff filed its opposition to the said application vide
its opposition bearing no. MAS-713888 dated 15.12.2007. This application the defendant
withdrew after an opposition was filed by the plaintiff.
4.3. It was submitted that in view of the defendant having withdrawn its application
under class 5 there was, therefore, no user by the defendant of the applied mark in class
5; similarly the abandonment of the defendant of its application no. 1335151 in class 42
for registration of its mark Dhanwantri Ayur Clinic The Super Speciality Ayur Vedic
Therapy Centre, after the counterstatement had been filed by the plaintiff would show
that it recognized the right of the plaintiff. The learned counsel submitted that the reason
given by the defendant for abandoning its application; which was, the failure of the joint
venture was clearly an after thought. It was abandonment of this application in class 42
which led to the inadvertent averment in paragraph 19 of the plaint.
4.4 Mr Chandra submitted that the plaintiff has adopted the mark „AYUR‟ since
1984. The plaintiff has using the mark extensively for its goods and services. While
„AYUR‟ was used by the plaintiff in respect of its goods under classes 3 and 5 it was
extended to services under class 42 in the year 1985. The registration in respect of it was
obtained vide certificate bearing no. 1244815 dated 22.10.2003 after services were
brought within the ambit of the Trade Marks Act.
4.5 It was further contended that this court in the judgment entitled Three-N-
Products Pvt. Ltd. vs Yaswant & Ors 2002 (24) PTC 518 (Del.) has recognized the
plaintiff‟s right in the mark „AYUR‟. The defendant, on the other hand, has been using
the name Dhanwantri Vaidyashala at least till 14.11.2005 since it applied for the mark
„AYURCARE‟ only on 14.11.2005 under classes 5 and 42 of the Fourth Schedule of the
Trade Marks Act. In these circumstances, Mr Chandra claimed that it has not only a
good prima facie case but the balance of convenience also lie in favour of the plaintiff.
4.6 As regards delay it was contended that delay is no defence in a case of
infringement. Reliance in this regard was placed on Midas Hygiene Industries (Pvt) Ltd
vs Sudhir Bhatia & Co 2004 (28) PTC 121 (SC). In any event, it was submitted that,
there is no delay in filing the suit. The defendant‟s adoption of the plaintiff mark is
dishonest. The learned senior counsel relied upon the following judgments:
Ayurherbs Pharmaceuticals Pvt. Ltd vs Three-N-Products Pvt Ltd 141 (2007) DLT 609; Laxmikant V. Patel vs Chetanbhat Shah & Anr 2002 (24) PTC 1 SC; Ambalal Sarabhai Enterprises vs Ms Sarabhai Pharmaceuticals & Ors 1982 PTC 214; and M/s Avis International Limited vs M/s Avi Footwear Industries & Anr AIR 1991 Del. 22.
5. The learned senior counsel for the defendant Mr Ravi Chopra, while reiterating
the stand of the defendant taken in the pleadings stressed upon the following:
(i) that the interim order was obtained by the plaintiff by misleading the court with
regard to the fact that the defendant had abandoned its application under class 42
whereas, the defendant‟s application was pending adjudication. For this purpose reliance
is placed on the written statement made in paragraph 14 of its application under Order 39
Rule 4 of the CPC;
(ii) he further stressed the fact that the plaintiff‟s registration in class 42 is limited to
„beauty care‟ and hence, would not extend to the therapies and other cognate services
offered by the defendant; and
(iii) lastly, that the defendant had applied on 13.10.2009 for cancellation of plaintiff‟s
trade mark under class 42 and the same is pending adjudication.
5.1 In support of its case the defendant placed reliance on the following judgments:
Warner Bros. Entertainment Inc and Anr. vs Harinder Kohli 2008 X AD (D) 508; Om Prakash Gupta vs Praveen Kumar 2001 VII AD (D) 1137; Udai Chand vs Shankar Lal & Ors. AIR 1978 SC 765; Uniply Industries Ltd vs Unicorn Plywood Pvt. Ltd. & Ors. 2001 (5) SCC 95 and S.M. Dyechem vs Cadbury (India) Ltd. 2000 (5) SCC 573.
Reasons
6. I have considered the case set up by both parties in their pleadings as well as
heard the submission of counsels in support of their respective cases. The plaintiff has
undoubtedly obtained registration with respect to the word mark „AYUR‟ in the
following classes: under classes 3, 5, 10, 13, 14, 15, 16, 18, 20, 21, 29, 30, 31, 32, 33, 41
and 42 in India. It has also obtained registration in classes 3, 5, 16, 21, 29, 30, 33 and 42
in Britain and Northern Ireland; under classes 9, 24 and 25 in Bhutan; under classes 5,
16, 21, 30 and 33 in Nepal; under classes 3, 5, 16, 21, 29, 30, 33 and 44 in New Zealand;
in classes 3, 5, 16, 21, 29, 30 and 44 in Australia; under classes 3, 5, 16 and 30 in U.A.E.;
under classes 3, 5, 16, 21, 29, 30, 33 and 42 in U.K.; in classes 3, 5, 33, and 42 in South
Africa; in classes 25, 35 and 41 in Benelux; in classes 3, 16, 29, 30, 31, 41 and 44 in
Malaysia; and under class 5 in Pakistan. The plaintiff has also provided his sales
revenue figures for the year 1984-85 in which it grossed a turnover of Rs 1.27 lacs. This
has, in the year ending 2006-07, increased to Rs 48.06 crores. Similarly, the plaintiff has
indicated that its advertisement spend has increased for Rs 4,980/- in 1984-85 to Rs 42.30
lacs for the year ending 2006-07. Similarly, the plaintiff has also filed copies of
magazine entitled „Pearl Beauty‟ which relates back to July-September, 2003 to
demonstrate that it has been offering beauty and health care services which includes
personality development, panchkarma (Ayurvedic Therapeutic Treatments), Meditation
& Stress Management, Health & Fitness (Yoga, Aerobics & Dance Classes), Abstract
Body Art, Acupressure and Su-Jok, Spiritual and Wholistic Healing, Personal Grooming,
Cosmetology and Aesthetic Skin Diploma under "Ayur Academy of Natural Beauty".
This title is used alongside the acronym AANB. The plaintiff has also filed invoices of
treatments given and fee charged by its division AANB rejuvenation. In my view, the
plaintiff has been able to, at least prima facie, establish that the trade mark „AYUR‟ is
well known and associated with the goods and services offered by it. The submission of
the defendant that the plaintiff‟s registration in class 42 is limited to beauty care is not
quite accurate. While the academy run by the plaintiff AANB (as indicated above a term
which is a shortened version of „Ayur Academy of Natural Beauty‟) offers courses for
both beauty and health care, its division under the name AANB Rejuvenation seems to
render services even for health care. The submission of the plaintiff in this regard is,
according to me, untenable. A bare perusal of the registration certificate would show that
the plaintiff has obtained registration in class 42 for the following services:
"Beautician Services, Massage Services, Health Farm, Beauty Spa, Beauty Treatment, Manicuring, Provision of Sauna Facilities, Provision of Solarium Facilities, Consultancy Services in the field of Herbal Remedies, Nutrition and Beauty Care, Cosmetic Research Services included in class 42."
7. The defendant has claimed that it has been in the business of offering traditional
health services under the impugned mark "Ayurcare" under the tag line "Ayurcare: The
Ayurvedic Wellness Centre" only from 2005. It has admitted that the first centre was
opened in 2005 in the city of Hyderabad, while the second centre was opened in
Bangalore in 2007. As against this the plaintiff‟s registration in class 42 relates back to
05.12.2003. The plaintiff has thus made prior use of the mark „AYUR‟. In these
circumstances, I am of the opinion that the plaintiff is entitled to enforce its rights as a
registered proprietor of the mark „AYUR‟. Even if, for the sake of argument, it was
assumed that the plaintiff was not in the same line of business as that of defendant, since
the plaintiff at least prima facie has been able to establish that its mark is well known and
acquired wide reputation not only in India but also in various countries across the globe;
the plaintiff ought to in my view be in a position to enforce its statutory rights under the
Trade Marks Act, in the circumstances, that the defendant‟s use of the mark is not only
detrimental to the distinctive character and repute of the registered trade mark of the
plaintiff but also has been used by the defendant to take unfair advantage.
8. The other submission of the learned counsel for the defendant that the plaintiff
has obtained the injunction by misleading the court seems to have been satisfactorily
explained by the plaintiff. It is quite clear that the defendant had abandoned its
registration of the mark Dhanwantri Ayur Clinic The Super Speciality Ayur Vedic
Therapy Centre filed under class 42 as is evident from the order of the Deputy Registrar
dated 20.02.2008. The plaintiff it seems inadvertently referred to defendant‟s
application bearing no. 139829 dated 14.11.2005 filed for registration of its word mark
„AYURCARE‟ in class 42 as the one having been abandoned. This mistake appears to
be unintended. The fact remains that defendant has not only withdrawn its application
under class 5 for registration of its mark „AYURCARE‟ but also, as indicated above,
abandoned its application for registration of the mark Dhanwantri Ayur Clinic The Super
Speciality Ayur Vedic Therapy Centre filed under class 42. Moreover, the defendant has
been an entrant in the business admittedly since 2005, and is said to have acquired
exclusive user of the mark „AYURCARE‟ only in the year 2006; as against this, the
plaintiff has been using the mark „AYUR‟ in relation to its goods and services for a much
longer period of time. As indicated above, the plaintiff has expended a vast amount of
money towards advertisement and has substantially increased its revenue since it first use
of the mark in 1984-85. Therefore, given the large turnover of the plaintiff and the extent
of use both in geographical terms as well as in terms of time frame the balance of
convenience appears to be in favour of the plaintiff. The defendant, on the other hand,
has not made any averment in the written statement or its application under Order 39
Rule 4 of the CPC with regard to its sales revenue or advertisement expense. Taking a
holistic view of the matter, I am of the opinion that on a balance the interim order dated
25.09.2009 deserves to be confirmed.
9. The submission of the defendant that the word „AYUR‟ is common or a
descriptive word and hence the plaintiff cannot have monopoly over it is a submission
which cannot be countenanced in the facts of the present case at this stage at least. It
cannot be said, as absolute proposition of law, that a common or a descriptive word mark
cannot attain trade mark significance. Much depends on the distinctiveness that the
mark acquires on account of its use by the proprietor. In the instant case at this stage it
appears that the plaintiff has been able to demonstrate that the mark „AYUR‟ has become
distinctive of the products and services offered by the plaintiff.
10. The other submission of the learned counsel for the defendant that injunction
should be vacated on the ground of delay in approaching the court is also untenable. The
defendant‟s claim that the plaintiff was aware of the fact that it was using the impugned
mark since 2006 is explained, in the facts of this case, by reference to the conduct of the
defendant. It is not disputed that the defendant withdrew its application for registration
of the mark „AYURCARE‟ under class 5 which was communicated by the defendant‟s
attorney Daswani & Daswani to the plaintiff vide their letter dated 18.01.2008. It is also
not disputed that the defendant had withdrawn its application for registration of its mark
Dhanwantri Ayur Clinic The Super Speciality Ayur Vedic Therapy Centre after an
opposition was filed by the plaintiff; a fact which came to be recorded in the Deputy
Registrar‟s order dated 20.02.2008. Therefore, there is nothing on record to disbelieve
the averment of the plaintiff that they came to know about the defendant‟s impugned
actions only in August, 2009 when they came across of the brochures and pamphlets with
respect to the defendant‟s use of the mark „AYUR‟ in August 2009. The plaintiff
approached the court immediately thereafter, in September, 2009. Therefore, in my view
there has not been delay, of the kind, which would disentitle the plaintiff from seeking
protection of this court. In any event, delay and latches itself cannot come in the way of
seeking enforcement of a statutory right conferred on the plaintiff pursuant to registration
of its mark „AYUR‟. [see Midas Hygiene (supra) and Bihar Tubes Ltd vs Garg Ispat
Ltd CS(OS) 1633/2009 dated 26.10.2009].
11. The judgments cited by the defendant in the case of Warner Bros (supra), Om
Prakash Gupta (supra) and Udai Chand (supra) are predicated on a deliberate
suppression of material facts. As indicated by me above, the plaintiff‟s assertion with
regard to abandonment of the defendant‟s application under class 42 was unintended. On
facts the said judgments are distinguishable.
11.1 The case of Uniply Industries Ltd (supra) is also distinguishable on facts. In this
case the appellant, who was in the business of manufacturing quality plywood, laminates,
block boards etc., claimed that it had established its business in 1996 and was selling its
goods under the trade marks Uniply, Uniboard and Uniwud. The appellant also claimed
before the Court that it has registered office in Tamil Nadu and branches in Kerala,
Karnataka and Andhra Pradesh with distributors and agents in Maharashtra, Gujarat,
Delhi and Calcutta. The respondent, on the other hand, claimed that it had established a
small-scale industry in 1993 in the same field of activity, i.e., manufacture of plywood
which was sold under the trade mark Uniply, Uniboard and Unidoor. Both the appellant
and the respondent filed suits in the year 1999. While temporary injunction in the case
of respondent was declined, an interim order came to be passed in the appellant‟s case,
which was revoked subsequently, on the trial court taking the view that the respondent
had been able to establish that it had set up its factory in 1993-94 and, since then have
been using the aforementioned marks. It is in these circumstances that the court in
paragraph 7 observed that:
"7. It is no doubt true that advertisement of goods had been made by the respondents in 1993 itself. Whether that was followed up by goods being dealt with the trade marks in question is not clear as is to be seen by the following discussion:...."
11.2 After posing the question the court came to the conclusion that in this case the
trial court will have to come to a conclusion with regard to prior user. The court below
according to the Supreme Court merely looked at the prima facie case when it was
required to consider other aspects of the matter, including the fact that the appellant may
have honestly and concurrently used the trade mark. It is, in these circumstances, the
Supreme Court declined to grant injunction either in favour or against the appellant.
11.3 In the instant case, as discussed above, the plaintiff has obtained a registration in
class 42 which relates back to 05.12.2003. The defendant has admitted use of the mark
only since November, 2005 onwards when an application for registration of the mark
„AYURCARE‟ in class 42 was filed. The defendant has admittedly abandoned its earlier
registration under class 42 as noticed above, as also in class 5. Therefore, on facts the
case of Uniply Industries Ltd (supra) is not applicable.
12. It may only be pointed that S.M. Dyechem Ltd (supra) stands overruled by the
judgment of a larger bench in the case of Cadila Health Care Ltd vs Cadila
Pharmaceuticals Ltd (2001) 2 SCC 73. The learned senior counsel for the defendant has
relied upon the observations made in paragraph 19 to 21 of the judgment. Applying the
principle enunciated in the case of S.M. Dyechem Ltd (supra) bearing in mind that the
said observations perhaps remained unaffected by the decision in Cadila Health Care Ltd
(supra) and on a comparative assessment of the plaintiff case with that of the defendant
in the instant case, I am not persuaded to hold that the plaintiff‟s case is weak. On the
other hand, in view of the discussions above, I am of the view that the plaintiff has made
out a strong prima facie case as also the balance of convenience is entirely in favour of
the plaintiff. In the event the interim order dated 25.09.2009 is not confirmed the
plaintiff‟s interest may be jeopardized.
13. Accordingly, in my considered opinion the injunction order dated 25.09.2009 is
confirmed. IA No. 12561/2009 of the plaintiff is allowed and that of the defendant being:
IA No. 13358/2009, is dismissed. Needless to say any observations made hereinabove
will not be held against the defendant at the stage of final adjudication.
RAJIV SHAKDHER, J APRIL 06, 2010 kk
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