Intra Moot-Plaintiff 1
Intra Moot-Plaintiff 1
Intra Moot-Plaintiff 1
V.
(ii)
CASES
1. Tata Motors Limited vs Jsc Vtb Bank Ltd, 2012(130) DRJ142.
2. Dhariwal Industries Ltd. & Anr vs M/S M.S.S. Food Products, A.I.R 2005 S.C. 1999.
3. Reckitt and Colman vs. Borden, [1990] 1 WLR 491.
4. Laxmikant V. Patel v. Chetanbhai Shah and Anr, A.I.R 2002 SC 275.
5. Perry v. Truefitt, (1842) 6 Beav. 66.
6. T.V. Venugopal vs. Ushodaya Enterprises Ltd. and Ors., JT 2011(3) SC 225.
7. Wockhardt Limited Vs. Torrent Pharmaceuticals Ltd. and Ors., A.I.R 2018 SC 5106.
8. Palm Grove Beach Hotels Pvt. Ltd. vs. Royal Palms (India) Pvt. Ltd, 2016 (6) BomCR 366.
9. Pidilite industries v. Poma-Ex products, 2017 (72) PTC 1 (Bom).
10. Puma Se & Anr. v. Nikhil Thermoplast Ltd. & Ors, CS(COMM) 992/2016.
11. Century Traders Vs. Roshan Lal Duggar Co., AIR 1978 Delhi 250.
12. Hindustan Radiators Co. v. Hindustan Radiators Ltd, AIR 1987 Del 353.
13. Sun Pharma Laboratories Ltd. v. Lupin Ltd. & Anr, 2018 (74) PTC 103 (Del).
14. Win-Medicare Ltd. vs Dua Pharmaceuticals Pvt. Ltd, AIR 1996 Del 612.
(iii)
BOOKS
1. Christopher Wadlow, Law of Passing Off, 1995 Edition
ONLINE SOURCES
1. Manupatra online resources, http://www.manupatra.com
2. Lexis Nexis Academica, http://www.lexisnexis.com/academica.
3. Indian Kanoon, https://indiankanoon.org.
(iv)
The jurisdiction of Delhi High Court is invoked and has been approached under Section 20 of
Code of Civil Procedure, 1908. Interlocutory injunction is being heard by the court under Order
XXXIX Rule 1 of the Code of Civil Procedure, 1908.
(v)
Legends has it that to ensure a nutritious diet Shah Jahan’s wife ordered to prepare a dish with
meat and rice with spices and saffron that is cooked over wood fire. And that’s how Biryani was
originated. For more than three centuries, the recipe for the perfect traditional Mughlai biryani
was passed on within generations.
After independence, Khudabaksh a descendent from the family of the Shahi Khansama opened a
restaurant in Chandni Chowk called Shahi Mughlai Darbar popularly known as SMD. It was
ranked as one of the best places in Delhi to have Biriyani. It was so popular that many tour
guides would include a meal at the restaurant as a part of the local sightseeing itinerary. Despite
the growing demand and several opportunities, Khudabaksh never opened another branch of his
restaurant as he didn’t want to compromise with the quality of the food being served. Later his
son Taimur took over the business of managing the restaurant.
Sam Maxwell was an entrepreneur based in Mumbai. In 2012 he started a range of packaged
food products with new technology to preserve non-veg food for longer duration and could be
cooked in no time using microwave. The response to packaged mutton biriyani was very
positive. So, adapting to the requirement of the market Sam focused entirely on packaged Mutton
Biryani. He launched a new Brand called Sam’s Mutton Delight and released in Mumbai and
Pune in 2014. In 2015 he applied for the registration of trademark SMD.
As a part of expanding the business, in 2019 he introduced the packaged Mutton biryani in Delhi
under the brand name SMD. There was no launch event or marketing held for the product. It was
as if one fine day people found packets of packaged mutton biriyani in supermarkets. Word
spread that Shahi Mughlai Darbar has spread its wing and has entered into the foray of packaged
good items, the sales of SMD packaged biryani skyrocketed.
When Taimur got to know about it he issued a legal notice to Sam Maxwell calling him to cease
and desist from selling packaged mutton biryani in the name and style of SMD on the following
grounds:
1. The trade description is false and misleading.
2. Shahi Mughlai durbar has a prior and bonafide use of the mark SMD.
3. The mark SMD use by Sam is deceptively similar to the one use by the restaurant.
(vi)
(vii)
I. Whether the current suit filed by Taimur seeking an order of injunction is maintainable?
II. Whether this is a case of passing off?
III. Whether the adoption of the mark SMD by the respondent is diluting the distinctiveness of
the applicant’s trade mark and is the applicant entitled to injunction?
(viii)
III. Whether the adoption of the mark SMD by the defendants is diluting the
distinctiveness of the Applicant’s trade mark and is the applicant entitled to
injunction?
The trademark used by defendants is deceptively similar i.e. Biryani so the customer targeted
are also similar. For injunction three aspects need to be prove i.e. Prima facie case need to be
established which is very clear from the facts, Balance of convenience and irreparable
damage, which are satisfactorily proven, thus the applicant is entitled to injunction.
(ix)
Section 20 of CPC:1
Other suits to be instituted where defendants reside or cause of action arises. - Subject to the
limitations aforesaid, every suit shall be instituted in a Court within the local limits of whose
jurisdiction—
(a) The defendant, or each of the defendants where there are more than one, at the time of the
commencement of the Suit, actually and voluntarily resides, or carries on business, or personally
works for gain; or
(b) any of the defendants, where there are more than one, at the time of the commencement of
the suit, actually and voluntarily resides, or carries on business, or personally works for gain,
provided that in such case either the leave of the Court is given, or the defendants who do not
reside, or carry on business, or personally work for gain, as aforesaid, acquiesce in such
institution; or
1
Code of Civil Procedure, 1908, Sec20.
On examining the section 27(2) of Trademark Act 1999, it is evident that the usage of the terms
‘Nothing in this Act’ gives an overriding effect over section 27(1) and 134(c) of Trademark Act
1999, and thus will not bar this court from entertaining this suit.
And as in case of Dhariwal Industries Ltd. & Anr vs M/S M.S.S. Food Products it was clearly
contended that-
“The rights of action under section 27(2) are not affected by section 28(3) and section 30(l)(d).
Therefore, registration of a trade mark under the Act would be irrelevant in an action for passing
off. Registration of a trade mark in fact does not confer any new right on the proprietor thereof
than what already existed at common law without registration of the mark. The right of goodwill
& reputation in a trade mark was recognized at common law even before it was subject of
statutory law. Prior to codification of trade mark law there was no provision in India for
(xi)
2
Tata Motors Limited vs Jsc Vtb Bank Ltd, 2012(130) DRJ142.
This clearly explains the superiority of Protection of Passing off over infringement.
And for all these reasons we request the court to entertain the present suit.
3
Dhariwal Industries Ltd. & Anr vs M/S M.S.S. Food Products, A.I.R 2005 S.C. 1999.
4
Reckitt and Colman vs. Borden, [1990] 1 WLR 491.
5
Factsheet, Para 1.
6
Factsheet, Para 2.
7
Factsheet, Para 3.
8
Laxmikant V. Patel v. Chetanbhai Shah and Anr, A.I.R 2002 SC 275.
From the above mentioned facts of the case it is evident that Shahi Mughlai Darbar had gained
extensive reputation in Delhi and as it was held in the Laxmikant V. Patel v. Chetanbhai Shah
and Anr that when with lapse of time the business or services acquire a reputation or goodwill it
becomes a property which is protected by courts and no later developed business or services
must whether or not with good intention be allowed to carry on under the name or trademark of
the prior user which would lead to confusion and therefore result in substantial damage to the
original user of the mark.
2. Misrepresentation
From the facts of the case it is evident that when Sam Maxwell as a part of expanding his
business introduced his packaged Mutton Biriyani under the brand name SMD in Delhi
there was no launch event or marketing held for the introduction of the product also the
name and style of the mark SMD used by Sam Maxwell was deceptively similar to the
mark SMD of Shahi Mughlai Darbar and from the facts of the case we know that People
woke up to find packaged mutton biriyani in the market under the name SMD and
believed that it was originating from Shahi Mughlai Darbar because they had never heard
of Sam’s Mutton Delight as there was no advertisement or news and SMD used by Sam
Maxwell was deceptively similar to mark SMD used by Shahi Mughlai and this SMD had
(xiii)
9
Perry v. Truefitt, (1842) 6 Beav. 66.
10
T.V. Venugopal vs. Ushodaya Enterprises Ltd. and Ors., JT 2011(3) SC 225.
11
Wockhardt Limited Vs. Torrent Pharmaceuticals Ltd. and Ors., A.I.R 2018 SC 5106.
3. Damage
From the facts of the case it is clear that when the news spread that Shahi Mughlai Darbar
has spread its wings the sales of packaged mutton biriyani skyrocketed, this is sufficient
to establish damage to plaintiff’s business as people bought packaged mutton biriyani
under the impression that it was from Shahi Mughlai Darbar.
Also time and again it has been reiterated in several cases that only if goodwill and
misrepresentation is proved damage is presumed and also that foreseeability of damage is
sufficient in passing off cases and proving of actual damage is caused is not necessary.
In Palm Grove Beach Hotels Pvt. Ltd. vs. Royal Palms (India) Pvt. Ltd12 G.S. Patel, J has
reaffirmed that –
“A plaintiff need not prove actual or special damage; a reasonably foreseeable probability
is sufficient”.
Christopher Wadlow in Law of passing Off (1995 Edition at p.3.06) states that the
plaintiff does not have to prove actual damage in order to succeed in an action for passing
off. Likelihood of damage is sufficient.
III. Whether the adoption of the mark SMD by the defendants is diluting the
distinctiveness of the Plaintiff’s trade mark and is the plaintiff entitled to
injunction?
In Pidilite Industries Limited v. Poma-Ex Products & Ors13.
(xv)
12
Palm Grove Beach Hotels Pvt. Ltd. vs. Royal Palms (India) Pvt. Ltd, 2016 (6) BomCR 366.
13
Pidilite industries v. Poma-Ex products, 2017 (72) PTC 1 (Bom).
of the Plaintiff “FEVIKWIK” and the mark of the Defendants “KWIKHEAL”, as the
word “KWIK” is a dominant part of the Plaintiff’s trademark. The Court issued an
injunction in favor of the Plaintiff.
Even in the present case the mark SMD used by the defendants is prima facie deceptive
and misleading as there is phonetic similarity.
Also in Puma Se & Anr. v. Nikhil Thermoplast Ltd. & Ors14 it was held that-
The Court considered the evidences and arguments submitted by the Plaintiff and held
that due to extensive use over a substantial period of time, the Plaintiffs’ PUMA mark
along with the Form Strip Logo has acquired reputation and goodwill. The Court further
opined that the use of the impugned mark by the Defendant is bound to cause
incalculable loss of reputation and sales to the Plaintiff. The Court, therefore, granted a
permanent injunction in favor of the Plaintiff.
In granting or not granting ad interim injunction, it is settled law. three factors have to be
kept in view, namely, the establishment of a prima facie case, the balance of convenience
between the parties and whether if the interim injunction is not issued it will cause
irreparable injury to the applicant15.
Prima Facie case
From the facts of the case we know that Shahi Mughlai Darbar was set up after
independence in old Delhi which was popularly known as SMD, so it is apparent that it
was a prior user and it was often ranked as one of the best places to have Biriyani in
(xvi)
14
Puma Se & Anr. v. Nikhil Thermoplast Ltd. & Ors, CS(COMM) 992/2016.
15
Century Traders Vs. Roshan Lal Duggar Co., AIR 1978 Delhi 250.
16
Hindustan Radiators Co. v. Hindustan Radiators Ltd, AIR 1987 Del 353.
A perusal of above stated facts show that the plaintiff in the instant case has prima facie
established all these ingredients which farther leads to the conclusion that plaintiff has
established a prima facie case for grant of ad interim injunction in the instant matter.
Balance of convenience
As it is already established that plaintiff had acquired extensive goodwill and
reputation so much so that people had come to associate Shahi Mughlai Darbar
with its exceptional biriyani and when the news spread that Shahi Mughlai Darbar
has spread its wings the sales of the Sam Maxwell’s packaged Biriyani
skyrocketed because people bought it under the impression that it originated from
Shahi Mughlai Darbar as they had never heard of the existence of the brand Sam’s
Mutton delight and there was deceptive similarity between the marks all this made
it convenient for the defendant to make good profits. Therefore, the general public
was deceived and is still likely to be deceived if the defendant is allowed to carry
on the business which causes major harm to the plaintiff’s business and also it is
invasion of the proprietary rights invested in the plaintiff which it has acquired by
being early user and having invested large sums into the business over time,
Plaintiff has successfully established a prima facie case and for all the reasons
mentioned above the balance of convenience lies in the favor of plaintiff.
If the interim order as prayed is not granted the plaintiff will be put to greater
hardship and cause irreparable loss. On the other hand, no hardship is going to
cause defendants.
(xviii)
Irreparable Damage
In Win-Medicare Ltd. vs Dua Pharmaceuticals Pvt. Ltd18 it was observed that-
Once a prima facie case is established, balance of convenience would follow. Even otherwise the
question of balance of convenience would arise only when the parties are practically on the same
level and their rights are equal. However, in the case in hand the plaintiff's position is definitely
superior to that of the defend ant who intends to use the trade name deceptively similar to the
trade name of the plaintiff and consequently there is no difficulty in holding that balance of
convenience at this stage lies in the grant of ad interim injunction in favor of the plaintiff.
24. Coming to the question of irreparable injury, it needs to be mentioned here that where the
plaintiff has established a prima facie case and the balance of convenience is also in favor of the
plaintiff, the Court can assume that irreparable injury would necessarily follow if an ad interim
injunction, as prayed for, is not granted. The irreparable injury in the present case would be the
likely confusion that may because if the defendant is allowed to use the trade name which is
prima facie the trade name of the plaintiff. Moreover, it will take quite some time before this suit
is finally decided and if the defendant is not restrained by means of an ad interim injunction, it
would continue to use the trade name deceptively similar to the trade name of the plaintiff and
(xix)
17
Sun Pharma Laboratories Ltd. v. Lupin Ltd. & Anr, 2018 (74) PTC 103 (Del).
18
Win-Medicare Ltd. vs Dua Pharmaceuticals Pvt. Ltd, AIR 1996 Del 612.
(xx)
Wherefore in the lights of facts stated, issues raised, authorities cited and arguments
advanced, it is most humbly prayed before this Hon’ble court that it may adjudge and
declare:
AND/OR
Pass any other order, direction or relief that it deems fit in the interest of Justice, Equity
and Good Conscience.
(xxi)