Tribunals and CommissionsDivision Bench(2011) 08 IPAB CK 0004

Anupam Khemka, Trading As Sarvsidhi Fashion, At 4, Chowringhee Lane, Diamond Chamber, Block 1 & 2, Unit-1(L), First Floor, Kolkata 700016 West Bengal vs M/s Shreesidhi Creations Pvt. Ltd., 4, Chorinhee Lane, Diamond Chambers, Block IV, Unit 2C & 2D, 2nd Floor, Kolkata 700016 And The Registrar Of Trade Marks, Trade Marks Registry, Kolkata, Intellectual Property Office, Intellectual Property Office Building, CP-2, Sector-V, Salt Lake City, Kolkata 700091

Intellectual Property Appellate Board · Decided on 10 August 2011

HON’BLE JUDGES
Prabha Sridevan, J · S. Usha, J
RESULT
Allowed
CASE NUMBER
ORA/88-91/2010/TM/KOL

AI Structured Summary

Not yet generated for this judgment

Judgment

117 paragraphs · 2,390 words

1 . The four rectification applications have been filed for removal of the trade mark SARVASIDHI in class 24 under application No. 1725535 in class

25 under No. 1725536, in class 35 under No. 1725537 and in class 42 under No. 1725538 under the provision of the Trade Marks Act 1999

(hereinafter referred to as the Act).

2 . Before going into the facts of the case, we herewith give below as to what transpired in the court as regards the absence of the Respondent.

22.06.2011

In this matter one Mr. C.P. Dharanidhar appeared when the matter was about to be heard and submitted that the counsel was present on the day and

then left and therefore there should be an adjournment. Learned Counsel for the applicant had just been reading out the order of the IPAB where it

was recorded that the accountant was deputed to appear and thereafter he sought adjournment. If there had been any inconvenience it was open to

the counsel who is alleged to have been present and request for adjournment either before the Board raised for lunch or resumed sitting after lunch

because at that time we had permitted counsel to make their requests regarding convenient hearings. In these circumstances to ensure that there is

bonafide in the request for adjournment, we impose a cost of Rs. 10,000/- payable to the Respondent by tomorrow. The matter is adjourned to

23.06.2011.

23.06.2011

Yesterday the accountant of the Respondent was present and prayed for adjournment on the ground that the Respondent was unwell. We see from

the order sheets that this practice has been adopted by the Respondent who does not care to appear before the Board. We informed the accountant

that to show his bonafide he should pay cost of Rs. 10,000/- and only thereafter he would be heard. He agreed for the same. We also made it clear

that the matter would be decided only after payment of cost. Today, we waited till 3.30. p.m. But nobody appeared on behalf of the Respondent,

neither his counsel nor Mr. Dharanidhar who appeared yesterday. We have heard the counsel for Appellant who made his submissions. Orders

Reserved.

3 . The brief facts of the case is that the applicant, started a business of boutique under the name & style ""SIDHVIS"" which was coined from the

names of the applicant's children namely SIDHARTH her son & PALLAVI her daughter in the yea 2004. They are engaged in the business of

manufacturing & marketing of unstitched

& semi stitch patterns of Salwar Suits and dress material since its incorporation in the year 2007. The applicant namely Smt. Anupam Khemka trading

as SARVASIDHI FASHION along with one Shri Bimal Kumar Goenka formed the 1st Respondent company - Shreesidhi Creations Pvt. Ltd. The

1st Respondent company carried on the business in unstitched & semi stitched salwar for some time. In 2007, the applicant resigned as the Director of

the 1st Respondent company as dispute arose between the applicant and Shri Bimal Goenka.

4 . In September, 2007, the applicant started her own business under the name & style of ""SARVASIDHI FASHOIN"". They carried on the business

of manufacturing & selling unstitched & semi stitched salwar suits & dress materials & adopted the trade mark SARVASIDHI. The business has

since inception grown steadily and has acquired reputation and goodwill of high order as a result of high quality products and good designs. In

November, 2007, the applicant and her husband formed a new company under the name ""SARVASIDHI FASHION PVT. LTD. The applicants is a

member of th Council of Kolkata Unstitched Salwar Suits (COKUSS) for the purpose of promotion of the products under their brand SARVASIDHI.

5 . By virtue of excellent quality of the applicants products, the trade mark has acquired tremendous goodwill and reputation among the public and in

the trade. The people associate and identify the applicants goods under the trade mark ""SARVASIDHI FASHION"". The annual turnover for the

period 2007 -2008 to Rs 1,53,44,489 which increased to Rs. 3,69,83,254 in the year 2009 - 2010. The applicants spent huge sum towards promotion

and advertisement.

6 . In 2008, Mr. Bimal Kumar Goenka along with Mr. Kundan Kumar Singh the then employee formed a firm under the name SARVASIDHI

FASHON (not FASHION) whic had its business in the same place where the applicant are situated. The identical adoption by the 1st Respondent

was only to steal the orders of the applicants some of which used to come by courier and by post, by confusing the courier and postal delivery

personnel. The said firm SARVASIDHI FASHON was formed solely in order to create confusion and deception. The firm was formed with an

interior motive and malafide intention to take advantage and encash upon the reputation and goodwill of the applicants and the trade name

SARVASIDHI FASHION"" of the applicants and thereby deceive and cheat people by representing themselves as the existing concern of the

applicant and pass off their goods as that from the house of the applicant. The 1st Respondent had opened an account in Development Corporation

Bank, Brabourne Road Branch, Kolkata in the name of ""SARVASIDHI FASHON"" with the intension o intercepting and encashing cheques of the

applicant.

7 . The 1st Respondents conduct in adopting a similar trade name has been unfair, dishonest and illegal. The Respondents business being located in the

same premises have in collusion with the courier services have been misappropriated and encashed 2 outstation cheques for Rs. 55,436/- and Rs.

92,371/-. The applicants came to know of the same when it had demanded the amounts due from the customers. The applicants, therefore, lodged a

complaint with the Posta Police Station against the Respondent. The 1st Respondent, i.e. Mr. Kundan Kumar Singh tendered apology to the applicant

and requested for withdrawal of the complaint and also stated that he would close his company SARVASIDHI FASHON.

8 . On 04.12.2009, the applicant came to know from a caution notice issued by the 1st Respondent in the leading Hindi Newspaper ""SANMARG

dated 04/2009 that they were the registered proprietors of the trade mark ""SARVASIDHI"" and they also claimed user since 2006. On the basis of this

caution notice, the applicant came to know that the trade mark 'SARVASIDHI' was registered under Nos. 1725535 to 1725538 in classes 24, 25, 35

& 42 respectively. The applicants filed a police complaint. Thereafter on 12.12.2009 one D. Sen & Co on behalf of the 1st respondent issued a legal

notice to the applicant falsely claiming ownership in respect of the trade mark ""SARVASIDHI"".

9.

The applicants are using the trade mark ""SARVASIDHI"" since its inception. The 1st Respondent has been using the trade marks Bfour &

Shreesidhi Creators right from its inception and have never used the trade mark SARVASIDHI.

10.

The applicants have no trade connection with the 1st Respondent but the 1st Respondent is only trying to carry on the business on the goodwill of

the applicants. The applicants have been using the trade mark openly, continuously and extensively and by virtue of such use, the mark has acquired

tremendous goodwill and reputation. The 1st Respondents adoption is therefore, not bonafide. The applicants have made a search of the registration

files in the Registry of Trade Marks and have seen the sales figures given in the affidavit of user filed before the Registrar of Trade Marks in the

registration proceedings for all the 4 classes are one and the same which goes to prove that the malafide intention of the 1st Respondent.

11.

The applicant then filed a suit before the City Civil Court, Calcutta in T.S. No. 6583 of 2009 for permanent injunction. In the suit, the applicant also

prayed for an interim injunction. After hearing the applicant on 23.12.2009 the Court passed an order of injunction restraining the Respondents from

using the trade mark ""SARVASIDHI"" or SARVASIDHI FASHON or any similar trade mark, which order i subsisting an on date. On 06.01.2010, the

applicant filed a complaint under Section

107 of the Act before the Registrar of Trade Marks against the impugned trade mark registration. On 18.02.2010, a reminder was sent to the

Registrar regarding the complaint. In spite of the complaint, the registration certificates have been issued in March, 2010.

12.

On 23.03.2010, representation under Section 19 of the Act was made before the Registrar of Trade Marks.

13 . Against the order of injunction, the 1st Respondent preferred appeal and the same was dismissed after hearing the parties with a direction to

dispose of the interim application by April 29, 2010. This order was communicated to the 2nd Respondent i.e. in the Registrar of Trade marks, but the

Registrar ignored the same and issued the certificates as well ignored the representation under Section 19 of the Act.

1 4 . The applicant being a party aggrieved has made these applications for rectification on the following grounds:

(a) that the applicant is the prior and original adopter of the trade mark ""SARVASIDHI"";

(b) that the 1st Respondent has dishonestly adopted the impugned trademark and therefore cannot claim to be the proprietor of the Trademark

SARVASIDHI"";

(c) that the 1st Respondent has falsely claimed user since 20.02.2006;

(d) that the use of the impugned trade mark will cause confusion & deception among the public;

(e) that the impugned registration is wrongly made in suppression of material facts and wrongly remains on the Register.

(f) that the registration of the impugned trade mark is in contravention of the provisions of Sections 9,11,18(1) & 57(2) of the Act;

(g) that the registration has been obtained in bad faith and therefore in contravention of the provisions of the Section 18(1) of the Act;

(h) that the registration if allowed to continue on the register would be detrimental to the rights of the applicant as well as the public;

(i) that the entry affects the purity of the Register of Trade marks;

(j) that the registration remains on the register without sufficient cause;

15.

The entries of the impugned trademark therefore be removed from the Register of

16.

Learned Counsel S. Majumdar made his submissions on behalf of the applicants Trade Marks. reiterating all the facts stated in the application for

rectification. The counsel brought to our notice the affidavit of user filed in support of the application for registration before the Registrar where the

sales turnover was one and the same in all the classes of goods i.e. 24,25,35 & 42 and submitted that false statements have been made in the affidavit

and the registration has been obtained by playing fraud. He also pointed out that the 1st Respondent had stated that invoices are annexed with the

affidavit but no such annexure were filed. The counsel then stated that as seen from the 1st Respondents website, the trade mark Bfour is mentioned

whereas there is no mention of ""SARVASIDHI:. The counsel, therefore submitted that the 1st Respondent has obtained the impugned registrations

malafidely and the same deserves to be expunged.

17.

We have heard and considered the arguments of the counsel for the applicant.

18.

The main issue to be decided is whether the applicant is a person aggrieved to file and maintain an application for rectification. The marks are

identical, the goods are identical and the trade channels are also the same. The applicant being aggrieved by the 1st Respondents' use has filed a suit

before the Civil Court. A person who had used a trade mark before the registration is a person aggrieved.

Bower J in Powells TM case has held that persons who are in some way or the other substantially interested in having the mark removed from the

register, or persons who would be substantially damaged if the mark remained. It is very different to frame a narrower definition than that

19.

In the instant case, there is no doubt the applicant being a prior user is suffering loss on account of the 1st Respondents mark on the register. The

applicant is, therefore, a person aggrieved and has a locus stand to file and maintain this application for rectification.

20.

The next issue for consideration would be the 1st Respondents adoption of the trade mark. The 1st Respondent had not appeared before us inspite

of the notice. On perusal of the records, it is seen that on account of confusion the cheques which were to be delivered to the applicants were

delivered to the 1st Respondent and the same were encashed by the 1st Respondent. The applicant had, therefore, on

22.

01008 sent a letter in this regard to the Council of Kolkata Unstitched Salwar Suits where both the applicant and the 1st Respondents are

members. On 23.01.2008, the 1st Respondent had replied apologizing for the mistake. They had also undertaken to close the company with immediate

effect and requested the applicant to withdraw the complaint. A letter was also sent to the council by the 1st Respondent. The Respondent has

subsequently on 26.08.2009 after having undertaken to close the company had applied for registration claiming user since 20.02.006. The user,

therefore, claimed is a false statement in our considered opinion. That apart from the user affidavit filed in support of the application for registration

seems to be one created for the purpose of the case. The 1st Respondent has filed a similar affidavit of user for registration of the trade mark

SREESIDHI"" under the classes 24,25,34 & 42 where also the sales figures are identical. This only shows the malafide intension of the 1st

Respondent.

2 1 . In spite of service, the 1st Respondent has not appeared before us for substantiating their case with proper evidence. We, therefore do not

consider the 1st Respondent's adoption to be honest.

22.

When the adoption is not honest and the statement made before the Registrar of Trade Marks for registration are false the intentions are to be

taken and considered as malafide. In such circumstances, we do not consider it fit to allow the marks to continue on the Register.

23.

Accordingly, we direct the Registrar of Trade Marks to remove/cancel the trade mark ""SARVASIDHI"" registered under Nos. 1725535 class 24,

1725536 in class 25, 1725537 in class 35 and 1725538 in class 42 from the Register of Trade Marks. Accordingly, the applications for rectification are

allowed without any order as to costs.