RENAISSANCE HOTEL HOLDINGS INC. vs. B. VIJAYA SAI

Case Type: Civil Appeal

Date of Judgment: 19-01-2022

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REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION  CIVIL APPEAL NO. 404  OF 2022 [Arising out of SLP(C) No. 21428 of 2019] RENAISSANCE HOTEL HOLDINGS INC.    ...APPELLANT(S) VERSUS B. VIJAYA SAI AND OTHERS        ...RESPONDENT(S) J U D G M E N T B.R. GAVAI, J. Leave granted. 1. 2. This appeal challenges the judgment and order dated th 12  April 2019 passed by the Single Judge of the High Court of Karnataka at Bengaluru in Regular First Appeal No. 1462 of   2012,   thereby   allowing   the   appeal   filed   by   the respondents­defendants   herein   and   setting   aside   the judgement   and   decree   of   the   Principal   District   Judge, Bangalore Rural District, Bangalore (hereinafter referred to 1 st as the “trial court”), dated 21  June 2012 passed in O.S. No. 3 of 2009, in favour of the appellant­plaintiff herein. 3. The facts in brief giving rise to the filing of the present appeal are as under: The appellant­plaintiff filed a suit being O.S. No. 3 of 2009 before the trial court claiming a decree of permanent injunction to restrain the respondents­defendants from using the trade mark “SAI RENAISSANCE” or any other trade mark identical   with   the   appellant­plaintiff’s   trade   mark “RENAISSANCE”,   and   from   opening,   operating,   managing, franchising, licensing, dealing directly or indirectly in hotels, restaurant or hospitality services of any manner under the trade mark “RENAISSANCE”, and to deliver all the goods, label or any other printed material bearing the impugned mark   “SAI   RENAISSANCE”   or   “RENAISSANCE”   and   for damages   amounting   to   Rs.3,50,000/­   for   having   used   its trade mark. 4. It   is   the   case   of   the   appellant­plaintiff   that   it   is   a company   incorporated   under   the   laws   of   the   State   of Delaware, United States of America.  It is the further case of 2 the appellant­plaintiff that it is the holder and proprietor of the trade mark and service mark “RENAISSANCE” in relation to hotel, restaurant, catering, bar, cocktail lounge, fitness club, spa services, etc.  It is the further case of the appellant­ plaintiff that the trade mark “RENAISSANCE” has also been used in relation to a wide variety of goods commonly found in the appellant­plaintiff’s hotels such as bath robes, slippers, shirts, hats, matchboxes, writing paper, candies, etc.  These products   are   imprinted   with   the   appellant­plaintiff’s   trade mark “RENAISSANCE”. It is the case of the appellant­plaintiff that the trade mark “RENAISSANCE” has been used by it for its hospitality business throughout the world since the year 1981.  That it is one of the world’s largest and leading chains of hotels.  That it is using the trade mark “RENAISSANCE” in India since 1990.  It is the case of the appellant­plaintiff that it also runs a hotel and convention centre in Mumbai and in Goa.  That it also owns a registration for the domain name www.renaissancehotels.com   and   spends   about   US$   14 million   annually   for   worldwide   advertisements   and promotional activities. 3 5. It is the further case of the appellant­plaintiff that it has the   registration   for   the   trade   mark   and   service   mark “RENAISSANCE” in India, under Registration No. 610567 in Class 16 for “printed matter, periodicals, books, stationery, manuals,   magazines,   instructional   and   teaching   materials and office requisites” and Registration No. 1241271 in Class 42 for “hotel, restaurant, catering, bar and cocktail lounge services, provisions of facilities for meetings, conferences and exhibitions, reservation services for hotel accommodations”, respectively. 6. According to the appellant­plaintiff, it came across a website   at   www.sairenaissance.com   through   which   it discovered that the respondents­defendants were operating one hotel in Bangalore and another one in Puttaparthi under the   impugned   name   “SAI   RENAISSANCE”,   which   wholly incorporates the appellant­plaintiff’s well­known trade mark and   service   mark   “RENAISSANCE”.   The   appellant­plaintiff immediately instructed that an investigation be carried out and sought legal advice with regard to the violation of its intellectual   property.     Upon   investigation,   it   was   revealed 4 that the respondents­defendants were running one hotel at Kadugodi,   near   Whitefield   Railway   Station,   Bangalore   and another one at By­Pass Road, Puttaparthi.   It was further revealed   that   the   respondents­defendants   were   copying appellant­plaintiff’s trade mark “RENAISSANCE”, its stylized representation, signage and business cards and leaflets.  It is the case of the appellant­plaintiff that this was done in such a manner so as to suggest an affiliation, association, nexus or connection  with  the   business  of   the  appellant­plaintiff. The appellant­plaintiff, therefore, claimed infringement of its registered trade mark “RENAISSANCE” in Class 16 and Class 42.  The appellant­plaintiff further contended that a similar suit instituted by it at Kochi being C.S. No. 5 of 2005 before the District Court at Ernakulam was decreed in its favour st vide judgment dated 31  January 2008. 7. The respondents­defendants resisted the claim of the appellant­plaintiff  by filing  their  written statement.  It  was contended   that   the   suit   was   liable   to   be   dismissed   on account of delay, laches and acquiescence.   It was further contended that “RENAISSANCE” is a generic word and no 5 such exclusive rights can be claimed over it in India as it is neither a well­known mark, nor it has any reputation built up   by   the   appellant­plaintiff.   It   is   the   case   of   the respondents­defendants that they are ardent devotees of Sri Shirdi Sai Baba and Sri Puttaparthi Sai Baba.  It is the belief of   all   the   devotees   of   Sri   Sai   Baba   including   the   first respondent­defendant that Sri Puttaparthi Sai Baba is the reincarnation of Sri Shirdi Sai Baba and therefore, the first respondent­defendant   used   the   dictionary   word “RENAISSANCE” after the name of Sri Shirdi Sai Baba and adopted the name “SAI RENAISSANCE”. It is the case of the first   respondent­defendant   that   he   has   been   running   the hotel for the last 15 years.  According to the first respondent­ defendant,   the   hotel   at   Kadugodi   near   Whitefield   was established  in  the  year  2001  near  the  Ashram  of  Sri  Sai Baba.   It is the case of the first respondent­defendant that the hotel was established so as to provide facilities to the devotees of Sri Sai Baba. The respondents­defendants further submitted that even the first respondent­defendant was not aware that the appellant­plaintiff had established any such 6 hotel by incorporating the word “RENAISSANCE” in its name till he received suit summons in the said case. 8. It is contended by the respondents­defendants that the word “RENAISSANCE” is commonly found in the dictionary and is used by a large number of people and therefore, the trade mark “RENAISSANCE” has not become distinctive with the appellant­plaintiff as claimed by it. It is submitted by the respondents­defendants   that   “RENAISSANCE”   is   neither   a coined word nor an inventive mark. It is further the case of the   respondents­defendants   that   the   appellant­plaintiff’s mark “RENAISSANCE” registered under Class 42 is subject to   rectification   proceedings,   and   as   such,   the   appellant­ plaintiff cannot claim that they are the registered proprietors of the said trade mark “RENAISSANCE”. 9. It is the further case of the respondents­defendants that the   class   of   customers   to   which   they   were   catering   was totally different from the class of customers to which the appellant­plaintiff   was   catering.     It   is   their   case   that   the services provided by them and the appellant­plaintiff were also totally different. It was contended that the respondents­ 7 defendants did not provide non­vegetarian food and alcoholic drinks to its customers.   It was therefore contended that there was no possibility of confusion being created in the minds of the customers that the hotel of the respondents­ defendants  belonged  to  or   was  affiliated  to  the   appellant­ plaintiff. 10. The trial court framed the following issues:  “1. Whether   the   Plaintiff   is   the   registered proprietor   of   the   trade   mark/service   mark “RENAISSANCE”   under   the   Trade   Mark   Act 1999? 2. Whether the plaintiff is the proprietor of trade mark/service mark “Renaissance” on account of prior adoption and use in relation to hotels and hospitality business? 3. Whether the plaintiff proves that the defendant is infringing the trade mark of the plaintiff? 4. Whether the plaintiff proves that the action of defendant is one of passing off? 5. Whether the plaintiff is entitled to an order for delivery of goods, labels or any other printed materials? 6. Whether   plaintiff   is   entitled   for   rendition   of accounts and damages? 7. To   what   reliefs   and   decree   the   parties   are entitled for? Additional Issues 8 1. Whether the suit is not maintainable for want of   signing   and   verification   of   the   plaint   by person having locus standi? 2. Whether the defendants prove that they have been   honestly   and   continuously   using   the trade mark Hotel SAIRenaissance?” 11. The trial court answered the aforesaid issues as under: “12. My answer to the above issues are as under:
Issue No.1:Affirmative
Issue No.2:Affirmative
Issue No.3:Affirmative
Issue No.4:Negative
Issue No.5:Negative
Issue No.6:negative
Additional Issue<br>No.1:Affirmative
Additional Issue<br>No.2:does not arise for<br>consideration”
12. The trial court after considering the evidence on record and   contentions   raised   on   behalf   of   the   parties,   partly decreed the suit  by restraining the respondents­defendants from using the trade mark “SAI RENAISSANCE” or any other trade mark which incorporates the appellant­plaintiff’s trade mark   “RENAISSANCE”   or   is   deceptively   similar   thereto   in relation   to   or   upon   printed   matter,   periodicals,   books, instructional   and   teaching   materials,   stationery,   manuals, 9 magazines and office requisites amounting to infringement of the appellant­plaintiff’s registered trade mark No. 610567 in Class 16 and for hotel, restaurant, catering, bar and cocktail lounge   services,   provision   of   facilities   for   meetings, conferences   and   exhibitions,   reservation   services   for   hotel accommodations amounting to infringement of the appellant­ plaintiff’s registered trade mark No. 1241271 in Class 42. The trial court further restrained the respondents­defendants from   opening,   operating,   managing,   franchising,   licensing, dealing   directly   or   indirectly   in   hotels,   restaurant,   or hospitality services of any manner under the trade mark or service   mark   “RENAISSANCE”   or   any   deceptively   similar mark   “RENAISSANCE”   or   any   deceptively   similar   mark including   on   the   internet   as   a   domain   name   www.sairenaissance  .com  or in any manner so as to pass off their services as those of or concocted with the appellant­ plaintiff.   The trial court, however, rejected the claim of the appellant­plaintiff for damages. Being aggrieved thereby, the respondents­defendants appealed before the High Court. 10 13. The High Court observed that the evidence produced by the appellant­plaintiff did not disclose that a trans­border reputation was earned by it to uphold its plea in that regard. The High Court further observed that the appellant­plaintiff is a 5 Star hotel but the respondents­defendants’ hotel is not of that standard.   The High Court further observed that no evidence was produced by the appellant­plaintiff to show that the respondents­defendants were taking unfair advantage of its   trade   mark   or   that   the   use   of   the   word   “SAI RENAISSANCE” was detrimental to the distinctive character or reputation of the appellant­plaintiff’s trade mark. 14. Insofar as the judgment of the Kerala High Court in the case   of   M/s   The   RENAISSANCE,   Cochin   v.   M/s 1 RENAISSANCE Hotels Inc. Marriotr   in which injunction was   granted   in   favour   of   the   plaintiff   against   the   Hotel (RENAISSANCE,   COCHIN)   is   concerned,   the   High   Court observed that the said judgment was not applicable to the facts of the present case.   It was observed that in the said case, one of the customers had claimed that he was misled to th 1 RFA No. 235 of 2008 dated 28  April, 2009 11 believe that “The RENAISSANCE, COCHIN” was a part of the plaintiff’s hotel chain and therefore, he resided there.   The High Court observed that in the present case, none of the customers had made such a claim.  It further observed that the witness of the appellant­plaintiff had admitted that the respondents­defendants serve only vegetarian food without liquor   and   that   he   had   no   idea   that   the   respondents­ defendants had established two hotels exclusively for serving the   devotees   of   Satya   Sai   Baba   at   Puttaparthi   and Bengaluru, respectively.   The High Court further observed that   the   evidence   on   record   shows   that   the   respondents­ defendants   have   not   taken   unfair   advantage,   or   that   its existence   was   detrimental   to   the   distinctive   character   or reputation of the appellant­plaintiff’s trade mark.  The High Court, therefore, observed that there was no infringement of trade mark, and as such, allowed the appeal filed by the respondents­defendants   herein   by   setting   aside   the st judgement and decree dated 21   June 2012 passed by the trial court and dismissed the suit.  Being aggrieved thereby, the appellant­plaintiff has approached this Court. 12 15. We have heard Shri K.V. Viswanathan, learned Senior Counsel appearing on behalf of the appellant­plaintiff and Shri B.C. Sitarama Rao, learned counsel appearing on behalf of the respondents­defendants.  16. Shri   Viswanathan   submitted   that   the   test   under Sections 29(1), 29(2) and 29(3) of the Trade Marks Act, 1999 (hereinafter referred to as the “said Act”) would be applicable in the present case, where the class of goods or services is identical or similar. He submitted that, however, the High Court   has   grossly   erred   in   applying   the   test   as   provided under   Section  29(4)  of   the   said   Act.     The   learned   Senior Counsel submitted that the High Court has further erred in only   referring   to   the   condition   stipulated   in   clause   (c)   of Section 29(4) of the said Act.   He submitted that Section 29(4) of the said Act would be applicable only if all the three conditions specified therein are satisfied.  The learned Senior Counsel   further   submitted   that   the   High   Court   has   also failed to take into consideration that since the respondents­ defendants   were   using   the   appellant­plaintiff’s   registered trade mark “RENAISSANCE” as a part of their trade name for 13 the   hotels   and   as   a   part   of   the   name   of   their   business concern, it squarely falls under sub­section (5) of Section 29 of the said Act and therefore, the respondents­defendants were liable for infringement of registered trade mark. Shri   Viswanathan   further   submitted   that   merely 17. because the respondents­defendants were using the prefix “SAI”   before   the   registered   trade   mark   of   the   appellant­ plaintiff,   it   would   not   save   them   from   an   action   for infringement   of   the   registered   trade   mark.    He   further submitted that the High Court, even after observing that the appellant­plaintiff was a prior user and registered proprietor in respect of the mark “RENAISSANCE” and having held that the respondents­defendants had adopted and had been using the   registered   trade   mark   of   the   appellant­plaintiff “RENAISSANCE” along with the prefix “SAI” and that both of them are in the hotels and hospitality business, has totally erred   in   holding   that   there   was   no   infringement   of   the appellant­plaintiff’s trade mark.  The learned Senior Counsel in support of this proposition, relies on the judgment of this 14 Court in the case of   Laxmikant V. Patel v. Chetanbhai 2 . Shah and Another 18. Shri   Viswanathan   further   submitted   that   the   test   of deception or confusion has been wrongly applied by the High Court inasmuch as, in an action for infringement, where the respondents­defendants’   trade   mark   is   identical   with   the appellant­plaintiff’s trade mark, such a test would not be applicable.   In support of this proposition, he relies on the judgment of this Court in the case of   Ruston & Hornsby 3 . Limited v. Zamindara Engineering Co. 19. Shri   Viswanathan   submitted   that   in   an   action   for infringement, where the similarity between the plaintiff’s and the defendant’s mark is close either visually, phonetically or otherwise, and once it is found by the Court that there is an imitation, no further evidence is required to establish that the plaintiff’s rights are violated.  Reliance in this respect is placed on the judgment of this Court in the case of  Kaviraj 2 (2002) 3 SCC 65 3 (1969) 2 SCC 727 15 Pandit   Durga   Dutt   Sharma   v.   Navaratna 4 . Pharmaceutical Laboratories 20. The learned Senior Counsel further submitted that the High Court, while reversing the judgement and decree passed by the trial court, has not applied the law correctly, as laid down by this Court in the case of  Midas Hygiene Industries 5 (P) Limited and Another v. Sudhir Bhatia and Others . 21. Shri Sitarama Rao, learned counsel appearing on behalf of the respondents­defendants, submitted that the very suit filed   by   the   appellant­plaintiff   itself   was   not   maintainable inasmuch as the appellant­plaintiff was not a legal person.  It is   further   submitted   that   “RENAISSANCE”   is   a   generic English   word   and   the   appellant­plaintiff   cannot   claim monopoly of the same.   He submitted that the respondent No. 1 was named “Vijaya Sai” by his parents as they believed that he was born as a result of the prayers made to Sri Sai Baba.   It is further submitted that “RENAISSANCE” means “re­birth”   and   that   the   name   “SAI   RENAISSANCE”   was 4 [1965] 1 SCR 737 5 (2004) 3 SCC 90 16 adopted for his hotel to signify the birth of Sri Puttaparthi Sai Baba as a reincarnation of Sri Shirdi Sai Baba and that the use   of   mark   “SAI   RENAISSANCE”   amounts   to   honest concurrent use under Section 12 of the said Act.  He further submitted   that   the   appellant­plaintiff   acquiesced   to   the respondents­defendants’ use of the mark inasmuch as the suit came to be filed after a long time gap. 22. Shri Sitarama Rao submitted that the High Court has rightly held that the respondents­defendants’ use   was honest and that the reasoning given by them for adopting the word “SAI RENAISSANCE” was justifiable.   He further submitted that   the   High   Court   has   rightly   held   that   the   class   of customers   to   which   the   appellant­plaintiff   and   the respondents­defendants were catering was totally different, and as such, had rightly allowed the appeal and dismissed the suit. 23. The   learned   counsel   appearing   on   behalf   of   the respondents­defendants relies on the judgments of this Court in the cases of   Khoday Distilleries Limited (Now known as Khoday India Limited) v. Scotch Whisky Association 17 6 and OthersNandhini Deluxe v. Karnataka Cooperative 7 ,   Milk   Producers   Federation   Limited Corn   Products 8 Refining  Co.  v.  Shangrila Food Products Limited   and Neon   Laboratories   Limited   v.   Medical   Technologies 9 Limited and Others . 24. Shri   Viswanathan,   in   rejoinder,   has   placed   certain documents   on   record   to   show   that   the   respondents­ defendants have already discontinued the use of the term “RENAISSANCE” from the name of their hotel, signage, etc., and   as   such,   accepted   that   their   use   of   the   term “RENAISSANCE” amounted to infringement of the appellant­ plaintiff’s trade mark. For   appreciation   of   the   rival   controversy,   it   will   be 25. appropriate   to   briefly   refer   to   the   legislative   scheme   with regard to the trade mark laws.   26. On the day when India attained independence, the law with regard to registration and effective protection of trade 6 (2008) 10 SCC 723 7 (2018) 9 SCC 183 8 [1960] 1 SCR 968 9 (2016) 2 SCC 672 18 marks   was   governed   by   The   Trade   Marks   Act,   1940 (hereinafter referred to as the “1940 Act”).  Section 21 of the 1940 Act provided for the right conferred by registration and the exclusive right to use of the trade mark to the registered proprietor   of   the   trade   mark   and   infringement   thereof. Section 21 of the 1940 Act reads thus:
“21. Right conferred by registration.— (1) Subject<br>to the provisions of Sections 22, 25 and 26, the<br>registration of a person in the register as proprietor<br>of a trade mark in respect of any goods shall give to<br>that person the exclusive right to the use of the<br>trade mark in relation to those goods and, without<br>prejudice to the generality of the foregoing<br>provision, that right shall be deemed to be infringed<br>by any person who, not being the proprietor of the<br>trade mark or a registered user thereof using by way<br>of the permitted use, uses a mark identical with it<br>or so nearly resembling it as to be likely to deceive<br>or cause confusion, in the course of trade, in<br>relation to any goods in respect of which it is<br>registered, and in such manner as to render the use<br>of the mark likely to be taken either—
(a) as being used as a trade mark; or
(b) to import a reference to some person<br>having the right either as a proprietor or<br>as registered user to use the trade mark<br>or to goods with which such a person as<br>aforesaid is connected in the course of<br>trade.”
19 The legislature noticed that the 1940 Act was enacted 27. prior   to   attaining   independence,   and   after   attaining independence, the development in the field of commerce and industry   was   quite   rapid,   and   it   was   found   that   the   law relating to trade marks was not adequate enough to meet the growing demands. Accordingly, The Trade and Merchandise Marks Act, 1958 (hereinafter referred to as the “1958 Act”) was   enacted.   Section   29   of   the   1958   Act   dealt   with   the infringement of trade marks, which reads thus: “ 29.   Infringement   of   trade   marks . —(1)   A registered trade mark is infringed by a person who, not being the registered proprietor of the trade mark or   a   registered   user   thereof   using   by   way   of permitted use, uses in the course of a trade mark which is identical with, or deceptively similar to, the trade mark, in relation to any goods in respect of which   the   trade   mark   is   registered   and   in   such manner as to render the use of the mark likely to be taken as being used as a trade mark. (2) In an action for infringement of a trade mark registered in Part B of the register an injunction or other relief shall not be granted to the plaintiff if the defendant establishes to the satisfaction of the court that   the   use   of   the   mark   of   which   the   plaintiff complains is not likely to deceive or cause confusion or to be taken as indicating a connection in the course   of   trade   between   the   goods   in   respect   of which the trade mark is registered and some person having the right, either as registered proprietor or as registered user, to use the trade mark.” 20 Thereafter, in view of the developments in trading and 28. commercial practices, increasing globalization of trade and industry,   the   need   to   encourage   investment   flows   and transfer of technology, and the need for simplification and harmonization of trade mark management systems, it was found necessary by the Parliament to repeal the 1958 Act and enact a new Act, i.e., the said Act.  It will be relevant to refer to the Statement of Objects and Reasons of the said Act: “The Trade and Merchandise Marks Act, 1958 has served its purpose over the last four decades.  It was felt that a comprehensive review of the existing law be   made   in  view of   developments   in  trading   and commercial   practices,   increasing   globalization   of trade   and   industry,   the   need   to   encourage investment flows and transfer of technology, need for simplification and harmonization of trade mark management systems and to give effect to important judicial decisions.   To achieve these purposes, the present Bill proposes to incorporate, inter alia the following, namely:­  ….. (j) prohibiting use of someone else’s trade marks as part of corporate names, or name of business concern; ……” 21 The Trade Marks Bill of 1999 was passed by both the 29. Houses of Parliament and the assent of the President was th th received on 30  December 1999.  It came into force on 15 September 2003.   It will be relevant to refer to Sections 28 and 29 of the said Act: “ 28. Rights conferred by registration .—(1) Subject to the other provisions of this Act, the registration of a trade mark shall, if valid, give to the registered proprietor of the trade mark the exclusive right to the use of the trade mark in relation to the goods or services   in   respect   of   which   the   trade   mark   is registered   and   to   obtain   relief   in   respect   of infringement   of   the   trade   mark   in   the   manner provided by this Act. (2) The exclusive right to the use of a trade mark given under sub­section (1) shall be subject to any conditions and limitations to which the registration is subject. (3)   Where   two   or   more   persons   are   registered proprietors of trade marks, which are identical with or nearly resemble each other, the exclusive right to the use of any of those trade marks shall not (except so far as their respective rights are subject to any conditions or limitations entered on the register) be deemed to have been acquired by any one of those persons   as   against   any   other   of   those   persons merely by registration of the trade marks but each of those persons has otherwise the same rights as against  other   persons   (not   being   registered   users using by way of permitted use) as he would have if he were the sole registered proprietor. 29. Infringement of registered trade marks .—(1) A registered  trade  mark is infringed by a person 22
who, not being a registered proprietor or a person<br>using by way of permitted use, uses in the course of<br>trade, a mark which is identical with, or deceptively<br>similar to, the trade mark in relation to goods or<br>services in respect of which the trade mark is<br>registered and in such manner as to render the use<br>of the mark likely to be taken as being used as a<br>trade mark.
(2) A registered trade mark is infringed by a<br>person who, not being a registered proprietor or a<br>person using by way of permitted use, uses in the<br>course of trade, a mark which because of—
(a) its identity with the registered trade<br>mark and the similarity of the goods or<br>services covered by such registered trade<br>mark; or
(b) its similarity to the registered trade mark<br>and the identity or similarity of the goods<br>or services covered by such registered<br>trade mark; or
(c) its identity with the registered trade mark<br>and the identity of the goods or services<br>covered by such registered trade mark,
is likely to cause confusion on the part of the<br>public, or which is likely to have an association with<br>the registered trade mark.
(3) In any case falling under clause (c) of sub­<br>section (2), the court shall presume that it is likely<br>to cause confusion on the part of the public.
(4) A registered trade mark is infringed by a<br>person who, not being a registered proprietor or a<br>person using by way of permitted use, uses in the<br>course of trade, a mark which—
(a) is identical with or similar to the<br>registered trade mark; and
23
(b) is used in relation to goods or services<br>which are not similar to those for which<br>the trade mark is registered; and
(c) the registered trade mark has a<br>reputation in India and the use of the<br>mark without due cause takes unfair<br>advantage of or is detrimental to, the<br>distinctive character or repute of the<br>registered trade mark.
(5) A registered trade mark is infringed by a person<br>if he uses such registered trade mark, as his trade<br>name or part of his trade name, or name of his<br>business concern or part of the name, of his<br>business concern dealing in goods or services in<br>respect of which the trade mark is registered.
(6) For the purposes of this section, a person uses a<br>registered mark, if, in particular, he—
(a) affixes it to goods or the packaging<br>thereof;
(b) offers or exposes goods for sale, puts<br>them on the market, or stocks them for<br>those purposes under the registered trade<br>mark, or offers or supplies services under<br>the registered trade mark;
(c) imports or exports goods under the<br>mark; or
(d) uses the registered trade mark on<br>business papers or in advertising.
(7) A registered trade mark is infringed by a person<br>who applies such registered trade mark to a<br>material intended to be used for labelling or<br>packaging goods, as a business paper, or for<br>advertising goods or services, provided such person,<br>when he applied the mark, knew or had reason to<br>believe that the application of the mark was not<br>duly authorised by the proprietor or a licensee.
24
(8) A registered trade mark is infringed by any<br>advertising of that trade mark if such advertising—
(a) takes unfair advantage of and is contrary<br>to honest practices in industrial or<br>commercial matters; or
(b) is detrimental to its distinctive character;<br>or
(c) is against the reputation of the trade<br>mark.
(9) Where the distinctive elements of a registered<br>trade mark consist of or include words, the trade<br>mark may be infringed by the spoken use of those<br>words as well as by their visual representation and<br>reference in this section to the use of a mark shall<br>be construed accordingly.”
Sub­section (1) of Section 28 of the said Act provides 30. that   subject   to   the   other   provisions   of   the   said   Act,   the registration   of   a   trade   mark   shall,   if   valid,   give   to   the registered proprietor of the trade mark the exclusive right to the use of the trade mark in relation to the goods or services in respect of which the trade mark is registered and to obtain relief in respect of  infringement  of the  trade mark  in the manner provided by the said Act.  Sub­section (2) of Section 28 of the said Act provides that the exclusive right to the use of a trade mark given under sub­section (1) of Section 28 of the   said   Act   shall   be   subject   to   any   conditions   and 25 limitations   to   which   the   registration   is   subject.     The provisions of sub­section (3) of Section 28 of the said Act would not be relevant for the purpose of the present case. Sub­section (1) of Section 29 of the said Act provides 31. that a registered trade mark is infringed by a person   who, not being a registered proprietor or a person using by way of permitted use, uses in the course of trade, a mark which is identical with, or deceptively similar to, the trade mark in relation to goods or services in respect of which the trade mark is registered and in such manner as to render the use of the mark likely to be taken as being used as a trade mark. Sub­section (2) of Section 29 of the said Act provides that a registered trade mark is infringed by a person who, not being a registered proprietor or a person using by way of permitted use, uses in the course of trade, a mark which because of its identity with the registered trade mark and the similarity of the goods or services covered by such registered trade mark; or its similarity to the registered trade mark and the identity or   similarity   of   the   goods   or   services   covered   by   such registered trade mark; or its identity with the registered trade 26 mark and the identity of the goods or services covered by such registered trade mark, is likely to cause confusion on the   part   of   the   public,   or   which   is   likely   to   have   an association with the registered trade mark. Sub­section (3) of Section 29 of the said Act is of vital importance.  It provides that in any case falling under clause (c) of sub­section (2) of Section 29 of the said Act, the court shall presume that it is likely to cause confusion on the part of the public.  32. A perusal of sub­section (2) of Section 29 of the said Act would reveal that a registered trade mark would be infringed by   a   person,   who   not   being   a   registered   proprietor   or   a person using by way of permitted use, uses in the course of trade,   a   mark   which   because   of   the   three   eventualities mentioned   in   clauses   (a),   (b)   and   (c),   is   likely   to   cause confusion on the part of the public, or which is likely to have an   association   with   the   registered   trade   mark.     The   first eventuality covered by clause (a) being its identity with the registered   trade   mark   and   the   similarity   of   the   goods   or services covered by such registered trade mark.  The second one covered by clause (b) being its similarity to the registered 27 trade  mark and  the  identity or similarity  of the  goods or services covered by such registered trade mark.   The third eventuality stipulated in clause (c) would be its identity with the registered trade mark and the identity of the goods or services covered by such registered trade mark.   33. It is, however, pertinent to note that by virtue of sub­ section (3) of Section 29 of the said Act, the legislative intent insofar   as   the   eventuality   contained   in   clause   (c)   is concerned, is clear.  Sub­section (3) of Section 29 of the said Act provides that in any case falling under clause (c) of sub­ section (2) of Section 29 of  the  said Act, the  Court shall presume that it is likely to cause confusion on the part of the public.   Sub­section (4) of Section 29 of the said Act provides 34. that a   registered trade mark is infringed by a person who, not being a registered proprietor or a person using by way of permitted use, uses in the course of trade, a mark which is identical with or similar to the registered trade mark; and is used in relation to goods or services which are not similar to those   for   which   the   trade   mark   is   registered;   and   the 28 registered trade mark has a reputation in India and the use of the mark without due cause takes unfair advantage of or is detrimental to, the distinctive character or repute of the registered trade mark.  Sub­section (5) of Section 29 of the said Act provides 35. that a registered trade mark is infringed by a person if he uses such registered trade mark, as his trade name or part of his trade name, or name of his business concern or part of the   name,   of   his   business   concern   dealing   in   goods   or services in respect of which the trade mark is registered. Sub­section (6) of Section 29 of the said Act provides 36. that   for   the   purposes   of   this   section,   a   person   uses   a registered mark, if, in particular, he affixes it to goods or the packaging thereof; offers or exposes goods for sale, puts them on the market, or stocks them for those purposes under the registered trade mark, or offers or supplies services under the registered trade mark; imports or exports goods under the mark; or uses the registered trade mark on business papers or in advertising.  29 Sub­section (7) of Section 29 of the said Act provides 37. that a registered trade mark is infringed by a person who applies such registered trade mark to a material intended to be   used   for   labelling   or   packaging   goods,   as   a   business paper, or for advertising goods or services, provided such person, when he applied the mark, knew or had reason to believe   that   the   application   of   the   mark   was   not   duly authorized by the proprietor or a licensee. Sub­section (8) of Section 29 of the said Act provides 38. that a registered trade mark is infringed by any advertising of that trade mark if such advertising takes unfair advantage of and   is   contrary   to   honest   practices   in   industrial   or commercial   matters;   or   is   detrimental   to   its   distinctive character; or is against the reputation of the trade mark. Sub­section (9) of Section 29 of the said Act provides 39. that where the distinctive elements of a registered trade mark consist of or include words, the trade mark may be infringed by the spoken use of those words as well as by their visual 30 representation and reference in this section to the use of a mark shall be construed accordingly. Section 30 of the said Act deals with the limits on effect 40. of registered trade mark.  Section 30 of the said Act, which would also be of vital importance in the present case, reads thus:
“30. Limits on effect of registered trade mark.—<br>(1) Nothing in Section 29 shall be construed as<br>preventing the use of a registered trade mark by any<br>person for the purposes of identifying goods or<br>services as those of the proprietor provided the use<br>—
(a) is in accordance with honest practices<br>in industrial or commercial matters, and
(b) is not such as to take unfair<br>advantage of or be detrimental to the<br>distinctive character or repute of the<br>trade mark.
(2) A registered trade mark is not infringed where—
(a) the use in relation to goods or services<br>indicates the kind, quality, quantity,<br>intended purpose, value, geographical<br>origin, the time of production of goods or<br>of rendering of services or other<br>characteristics of goods or services;
(b) a trade mark is registered subject to<br>any conditions or limitations, the use of<br>the trade mark in any manner in relation<br>to goods to be sold or otherwise traded in,<br>in any place, or in relation to goods to be
31
exported to any market or in relation to<br>services for use or available or acceptance<br>in any place or country outside India or<br>in any other circumstances, to which,<br>having regard to those conditions or<br>limitations, the registration does not<br>extend;
(c) the use by a person of a trade mark—
(i) in relation to goods connected in<br>the course of trade with the<br>proprietor or a registered user of the<br>trade mark if, as to those goods or a<br>bulk or which they form part, the<br>registered proprietor or the<br>registered user conforming to the<br>permitted use has applied the trade<br>mark and has not subsequently<br>removed or obliterated it, or has at<br>any time expressly or impliedly<br>consented to the use of the trade<br>mark; or
(ii) in relation to services to which<br>the proprietor of such mark or of a<br>registered user conforming to the<br>permitted use has applied the mark,<br>where the purpose and effect of the<br>use of the mark is to indicate, in<br>accordance with the fact, that those<br>services have been performed by the<br>proprietor or a registered user of the<br>mark;
(d) the use of a trade mark by a person in<br>relation to goods adapted to form part of,<br>or to be accessory to, other goods or<br>services in relation to which the trade<br>mark has been used without<br>infringement of the right given by<br>registration under this Act or might for
32
the time being be so used, if the use of<br>the trade mark is reasonably necessary in<br>order to indicate that the goods or<br>services are so adapted, and neither the<br>purpose nor the effect of the use of the<br>trade mark is to indicate, otherwise than<br>in accordance with the fact, a connection<br>in the course of trade between any person<br>and the goods or services, as the case<br>may be;
(e) the use of a registered trade mark,<br>being one of two or more trade marks<br>registered under this Act which are<br>identical or nearly resemble each other,<br>in exercise of the right to the use of that<br>trade mark given by registration under<br>this Act.
(3) Where the goods bearing a registered trade mark<br>are lawfully acquired by a person, the sale of the<br>goods in the market or otherwise dealing in those<br>goods by that person or by a person claiming under<br>or through him is not infringement of a trade by<br>reason only of*—
(a) the registered trade mark having been<br>assigned by the registered proprietor to<br>some other person, after the acquisition<br>of those goods; or
(b) the goods having been put on the<br>market under the registered trade mark<br>by the proprietor or with his consent.
(4) Sub­section (3) shall not apply where there exists<br>legitimate reasons for the proprietor to oppose<br>further dealings in the goods in particular, where<br>the condition of the goods, has been changed or<br>impaired after they have been put on the market.”
33 41. Section 31 of the said Act is also relevant in the present case, which reads thus: “ 31. Registration to be prima facie evidence of .—(1) In all legal proceedings relating to a validity trade   mark   registered   under   this   Act   (including applications   under   Section   57),   the   original registration of the trade mark and of all subsequent assignments and transmissions of the trade mark shall be  prima facie  evidence of the validity thereof. (2) In all legal proceedings, as aforesaid a registered trade mark shall not be held to be invalid on the ground   that   it   was   not   a   registrable   trade   mark under   Section   9   except   upon   evidence   of distinctiveness   and   that   such   evidence   was   not submitted to the Registrar before registration, if it is proved that the trade mark had been so used by the registered proprietor or his predecessor in title as to have become distinctive at the date of registration.” 42. It   could   thus   be   seen   that   in   all   legal   proceedings relating   to  trade   mark   registered   under   the   said   Act,   the original registration of the trade mark and of all subsequent assignments and transmissions of the trade mark shall be prima facie  evidence of the validity thereof.   43. The legislative scheme is clear that when the mark of the defendant is identical with the registered trade mark of the plaintiff and the goods or services covered are similar to 34 the ones covered by such registered trade mark, it may be necessary to prove that it is likely to cause confusion on the part of the public, or which is likely to have an association with the registered trade mark.   Similarly, when the trade mark of the plaintiff is similar to the registered trade mark of the defendant and the goods or services covered by such registered trade mark are identical or similar to the goods or services covered by such registered trade mark, it may again be necessary to establish that it is likely to cause confusion on the part of the public.  However, when the trade mark of the defendant is identical with the registered trade mark of the plaintiff and that the goods or services of the defendant are identical with the goods or services covered by registered trade mark, the Court shall presume that it is likely to cause confusion on the part of the public.   44. Having considered the legislative scheme as has been elaborately provided in the said Act, it will be apposite to refer   to   the   observations   of   this   Court,   while   considering Section   21   of   The   Trade   Marks   Act,   1940   in   the   case   of Kaviraj Pandit Durga Dutt Sharma  (supra):   35
28.The other ground of objection that the findings
are inconsistent really proceeds on an error in
appreciating the basic differences between the
causes of action and right to relief in suits for
passing off and for infringement of a registered
trade mark and in equating the essentials of a
passing off action with those in respect of an action
complaining of an infringement of a registered trade
mark. We have already pointed out that the suit by
the respondent complained both of an invasion of a
statutory right under Section 21 in respect of a
registered trade mark and also of a passing off by
the use of the same mark. The finding in favour of
the appellant to which the learned counsel drew our
attention was based upon dissimilarity of the
packing in which the goods of the two parties were
vended, the difference in the physical appearance of
the two packets by reason of the variation in the
colour and other features and their general get­up
together with the circumstance that the name and
address of the manufactory of the appellant was
prominently displayed on his packets and these
features were all set out for negativing the
respondent's claim that the appellant had passed off
his goods as those of the respondent. These matters
which are of the essence of the cause of action for
relief on the ground of passing off play but a limited
role in an action for infringement of a registered
trade mark by the registered proprietor who has a
statutory right to that mark and who has a
statutory remedy for the event of the use by another
of that mark or a colourable imitation thereof. While
an action for passing off is a Common Law remedy
being in substance an action for deceit, that is, a
passing off by a person of his own goods as those of
another, that is not the gist of an action for
infringement. The action for infringement is a
statutory remedy conferred on the registered
proprietor of a registered trade mark for the
vindication of the exclusive right to the use of the
36
trade mark in relation to those goods” (Vide Section
21 of the Act). The use by the defendant of the trade
mark of the plaintiff is not essential in an action for
passing off, but is the sine qua non in the case of an
action for infringement. No doubt, where the
evidence in respect of passing off consists merely of
the colourable use of a registered trade mark, the
essential features of both the actions might coincide
in the sense that what would be a colourable
imitation of a trade mark in a passing off action
would also be such in an action for infringement of
the same trade mark. But there the correspondence
between the two ceases. In an action for
infringement, the plaintiff must, no doubt, make out
that the use of the defendant's mark is likely to
deceive, but where the similarity between the
plaintiff's and the defendant's mark is so close
either visually, phonetically or otherwise and the
court reaches the conclusion that there is an
imitation, no further evidence is required to
establish that the plaintiff's rights are violated.
Expressed in another way, if the essential features
of the trade mark of the plaintiff have been adopted
by the defendant, the fact that the get­up, packing
and other writing or marks on the goods or on the
packets in which he offers his goods for sale show
marked differences, or indicate clearly a trade origin
different from that of the registered proprietor of the
mark would be immaterial; whereas in the case of
passing off, the defendant may escape liability if he
can show that the added matter is sufficient to
distinguish his goods from those of the plaintiff.”
It could thus be seen that this Court has pointed out 45. the distinction between the  causes  of  action  and  right to relief   in   suits   for   passing   off   and   for   infringement   of 37 registered trade mark.  It has been held that the essentials of a   passing   off   action   with   those   in   respect   of   an   action complaining of an infringement of a registered trade mark, cannot be equated.  It has been held that though  an action for passing off is a Common Law remedy being an action for deceit, that is, a passing off by a person of his own goods as those of another; the action for infringement is a statutory right conferred on the registered proprietor of a registered trade mark for the vindication of the exclusive rights to the use of the trade mark in relation to those goods. The use by
the defendant of the trade mark of the plaintiff is asine qua
nonin the case of an action for infringement. It has further
been held that if the essential features of the trade mark of the plaintiff have been adopted by the defendant, the fact that the get­up, packing and other writing or marks on the goods or on the packets in which he offers his goods for sale show marked differences, or indicate clearly a trade origin different from that of the registered proprietor of the mark, would be immaterial in a case of infringement of the trade mark, whereas in the case of a passing off, the defendant 38 may escape liability if he can show that the added matter is sufficient to distinguish his goods from those of the plaintiff. Again, while considering the provisions of Section 21 of 46. the 1940 Act, this Court in the case of  Ruston & Hornsby (supra), observed thus: Limited 4.  It   very   often   happens   that   although   the defendant   is   not   using   the   trade   mark   of   the plaintiff, the get up of the defendant's goods may be so   much   like   the   plaintiff's   that   a   clear   case   of passing off would be proved. It is on the contrary conceivable   that   although   the   defendant   may   be using   the   plaintiff's   mark   the   get   up   of   the defendant's goods may be so different from the get up of the plaintiff's goods and the prices also may by so different that there would be no probability of deception of the public. Nevertheless, in an action on the trade mark, that is to say, in an infringement action, an injunction would issue as soon as it is proved that the defendant is improperly using the plaintiff's mark. 5.  The action for infringement is a statutory right. It is dependent upon the validity of the registration and   subject   to   other   restrictions   laid   down   in Sections 30, 34 and 35 of the Act. On the other hand the gist of a passing off action is that  A  is not entitled to represent his goods as the goods of  B  but it   is   not   necessary   for  B  to   prove   that  A  did   this knowingly or with any intent to deceive. It is enough that the get­up of  B 's goods has become distinctive of them and that there is a probability of confusion between them and the goods of  A.  No case of actual deception nor any actual damage need be proved. At common   law   the   action   was   not   maintainable 39
unless there had been fraud on A's part. In equity,<br>however, Lord Cottenham, L.C.,<br>in Millington v. Fox [3 My & Cr 338] held that it was<br>immaterial whether the defendant had been<br>fraudulent or not in using the plaintiff's trade mark<br>and granted an injunction accordingly. The common<br>law courts, however, adhered to their view that<br>fraud was necessary until the Judicature Acts, by<br>fusing law and equity, gave the equitable rule the<br>victory over the common law rule.
6. The two actions, however, are closely similar in<br>some respects. As was observed by the Master of the<br>Rolls in Saville Perfumery Ltd. v. June Perfect<br>Ltd. [58 RPC 147 at 161] :
“The statute law relating to infringement<br>of trade marks is based on the same<br>fundamental idea as the law relating to<br>passing­off. But it differs from that law in<br>two particulars, namely (1) it is<br>concerned only with one method of<br>passing­off, namely, the use of a trade<br>mark, and (2) the statutory protection is<br>absolute in the sense that once a mark is<br>shown to offend, the user of it cannot<br>escape by showing that by something<br>outside the actual mark itself he has<br>distinguished his goods from those of the<br>registered proprietor. Accordingly, in<br>considering the question of infringement<br>the Courts have held, and it is now<br>expressly provided by the Trade Marks<br>Act, 1938, Section 4, that infringement<br>takes place not merely by exact imitation<br>but by the use of a mark so nearly<br>resembling the registered mark as to be<br>likely to deceive.””
40 It could thus be seen that this Court again reiterated 47. that the question to be asked   in an infringement action   is as to whether the defendant is using a mark which is same as, or which is a colourable imitation of the plaintiff’s registered trade mark.  It has further been held that though the get up of   the   defendant’s   goods   may   be   so   different   from   the plaintiff’s goods and the prices may also be so different that there   would   be   no   probability   of   deception   of   the   public, nevertheless   even   in   such   cases,   i.e.,   in   an   infringement action, an injunction would be issued as soon as it is proved that the defendant is improperly using the plaintiff’s mark.  It has been reiterated that no case of actual deception nor any actual damage needs to be proved in such cases. This Court has further held that though two actions are closely similar in some respects, in an action for infringement, where the defendant’s trade mark is identical with the plaintiff’s trade mark, the Court will not enquire whether the infringement is such as is likely to deceive or cause confusion. 41 In the present case, both the trial court and the High 48. Court have come to the conclusion that the trade mark of the respondents­defendants   is   identical   with   that   of   the appellant­plaintiff and further that the services rendered by the respondents­defendants are under the same class, i.e., Class 16 and Class 42, in respect of which the appellant­ plaintiff’s   trade   mark   “RENAISSANCE”  was   registered.    In such circumstances, the trial court had rightly held that the goods of the appellant­plaintiff would be covered by Section 29(2)(c) read with Section 29(3) of the said Act.  However, the High Court, while reversing the decree of 49. injunction   granted   by   the   trial   court,   has   held   that   the appellant­plaintiff had failed to establish that the trade mark has reputation in India and that the respondents­defendants’ use   thereof   was   honest   and   further   that   there   was   no confusion likely to be created in the minds of the consumers inasmuch as the class of consumers was totally different.  It appears that the High Court has relied only on clause (c) of sub­section (4) of Section 29 of the said Act to arrive at such a conclusion.   42 We find that the High Court has totally erred in taking 50. into consideration only clause (c) of sub­section (4) of Section 29 of  the   said  Act.    It  is  to  be  noted  that,  whereas,  the legislature has used the word ‘or’ after clauses (a) and (b) in sub­section (2) of Section 29 of the said Act, it has used the word   ‘and’   after   clauses   (a)   and   (b)   in   sub­section   (4)   of Section 29 of the said Act.   It could thus be seen that the legislative intent is very clear.   Insofar as sub­section (2) of Section 29 of the said Act is concerned, it is sufficient that any of the conditions as provided in clauses (a), (b) or (c) is satisfied.   It is further clear that in case of an eventuality covered 51. under clause (c) of sub­section (2) of Section 29 in view of the provisions of sub­section (3) of Section 29 of the said Act, the Court shall presume that it is likely to cause confusion on the part of the public.  The perusal of sub­section (4) of Section 29 of the said 52. Act would reveal that the same deals with an eventuality when the impugned trade mark is identical with or similar to 43 the registered trade mark and is used in relation to goods or services which are not similar to those for which the trade mark is registered. Only in such an eventuality, it will be necessary to establish that the registered trade mark has a reputation in India and the use of the mark without due cause   takes   unfair   advantage   of   or   is   detrimental   to,   the distinctive character or repute of the registered trade mark. The legislative intent is clear by employing the word “and” after clauses (a) and (b) in sub­section (4) of Section 29 of the said Act.  Unless all the three conditions are satisfied, it will not be open to the proprietor of the registered trade mark to sue for infringement when though the impugned trade mark is identical with the registered trade mark, but is used in relation to goods or services which are not similar to those for which the trade mark is registered.   To sum up, while sub­section (2) of Section 29 of the said Act deals with those situations where the trade mark is identical or similar and the goods  covered  by  such a trade  mark  are  identical or similar, sub­section (4) of Section 29 of the said Act deals with situations where though the trade mark is identical, but 44 the goods or services are not similar to those for which the trade mark is registered.   Undisputedly,   the   appellant­plaintiff’s   trade   mark 53. “RENAISSANCE”   is   registered   in   relation   to   goods   and services   in   Class   16   and   Class   42   and   the   mark   “SAI RENAISSANCE”, which is identical or similar to that of the appellant­plaintiff’s   trade   mark,   was   being   used   by   the respondents­defendants in relation to the goods and services similar to that of the appellant­plaintiff’s.  In these circumstances, we are of the considered view 54. that it was not open for the High Court to have entered into the discussion as to whether the appellant­plaintiff’s trade mark had a reputation in India and the use of the mark without   due   cause   takes   unfair   advantage   of   or   is detrimental   to,   the   distinctive   character   or   repute   of   the registered trade mark.  We find that the High Court has erred in   entering   into   the   discussion   as   to   whether   the respondents­defendants and the appellant­plaintiff cater to different classes of customers and as to whether there was 45 likely to be confusion in the minds of consumers with regard to the hotel of the respondents­defendants belonging to the same group as of the appellant­plaintiff’s.   As held by this Court in the case of  (supra), in Ruston & Hornsby Limited  an   action   for   infringement,   once   it   is   found   that   the defendant’s   trade   mark   was   identical   with   the   plaintiff’s registered trade mark, the Court could not have gone into an enquiry   whether   the   infringement   is   such   as   is   likely   to deceive or cause confusion.   In an infringement action, an injunction would be issued as soon as it is proved that the defendant is improperly using the trade mark of the plaintiff. 55. It is not in dispute that the appellant­plaintiff’s trade mark   “RENAISSANCE”   is   registered   under   Class   16   and Class 42, which deals with hotels and hotel related services and goods.  It is also not in dispute that the mark and the business name “SAI RENAISSANCE”, which was being used by the respondents­defendants, was also in relation to Class 16   and   Class   42.   As   such,   the   use   of   the   word “RENAISSANCE” by the respondents­defendants as a part of 46 their trade name or business concern, would squarely be hit by sub­section (5) of Section 29 of the said Act. 56. It is further to be noted that the words “RENAISSANCE” and “SAI RENAISSANCE” are phonetically as well as visually similar.  As already discussed hereinabove, sub­section (9) of Section 29 of the said Act provides that where the distinctive elements  of a  registered trade mark  consist of  or include words, the trade mark may be infringed by the spoken use of those words as well as by their visual representation.   As such,   the   use   of   the   word   “SAI   RENAISSANCE”   which   is phonetically and visually similar to “RENAISSANCE”, would also be an act of infringement in view of the provisions of sub­section (9) of Section 29 of the said Act. It is pertinent to note that, the High Court has relied on 57. Section   30(1)(b)   of   the   said   Act   in   paragraph   (18)   of   the impugned judgment.  It will be relevant to refer to paragraph (18), which reads thus: “18.  Section 30(1)(b) of the Act has also contextual application. This Section reads as follows:­ “ 30.     Limits   of   effect   of   registered trade mark.­   (1)  Nothing in section 29 47 shall be construed as preventing the use of a registered trade mark by any person for the purposes of identifying goods or services   as   those   of   the   proprietor provided the use­ (a)xxxxxxxxxxx (b)is   not   such   as   to   take   unfair advantage of or be detrimental to the distinctive character or repute of the trade mark.”” The glaring mistake that has been committed by the 58. High   Court   is   the   failure   to   notice   the   following   part   of Section 30(1) of the said Act: “(a)   is   in   accordance   with   honest   practices   in industrial or commercial matters, and” The perusal of Section 30(1) of the said Act would reveal 59. that for availing the benefit of Section 30 of the said Act, it is required   that   the   twin   conditions,   i.e.,   the   use   of   the impugned trade mark being in accordance with the honest practices in industrial or commercial matters, and that such a   use   is   not   such   as   to   take   unfair   advantage   of   or   be detrimental to the distinctive character or repute of the trade mark, are required to be fulfilled.  It is again to be noted that 48 in sub­section (1) of Section 30 of the said Act, after clause (a), the word used is ‘and’, like the one used in sub­section (4) of Section 29 of the said Act, in contradistinction to the word ‘or’ used in sub­section (2) of Section 29 of the said Act. The High Court has referred only to the condition stipulated in clause (b) of sub­section (1) of Section 30 of the said Act ignoring the fact that, to get the benefit of sub­section (1) of Section 30 of the said Act, both the conditions had to be fulfilled.   Unless   it   is   established   that   such   a   use   is   in accordance   with   the   honest   practices   in   industrial   or commercial matters, and is not to take unfair advantage or is not detrimental to the distinctive character or repute of the trade mark, one could not get benefit under Section 30(1) of the said Act. As such, the finding in this regard by the High Court is also erroneous.  We   find   that   the   High   Court  has   failed   to   take  into 60. consideration two important principles of interpretation.  The first one being of textual and contextual interpretation.   It will be apposite to refer to the guiding principles, succinctly summed up by Chinnappa Reddy, J., in the judgment of this 49 Court in the case of   Reserve Bank of India v. Peerless 10 : General Finance and Investment Co. Ltd. and Others
33.Interpretation must depend on the text and the
context. They are the bases of interpretation. One
may well say if the text is the texture, context is
what gives the colour. Neither can be ignored. Both
are important. That interpretation is best which
makes the textual interpretation match the
contextual. A statute is best interpreted when we
know why it was enacted. With this knowledge, the
statute must be read, first as a whole and then
section by section, clause by clause, phrase by
phrase and word by word. If a statute is looked at,
in the context of its enactment, with the glasses of
the statute­maker, provided by such context, its
scheme, the sections, clauses, phrases and words
may take colour and appear different than when the
statute is looked at without the glasses provided by
the context. With these glasses we must look at the
Act as a whole and discover what each section, each
clause, each phrase and each word is meant and
designed to say as to fit into the scheme of the
entire Act. No part of a statute and no word of a
statute can be construed in isolation. Statutes have
to be construed so that every word has a place and
everything is in its place. It is by looking at the
definition as a whole in the setting of the entire Act
and by reference to what preceded the enactment
and the reasonsfor it that the Court construed the
expression “Prize Chit” inSrinivasa[(1980) 4 SCC
507 : (1981) 1 SCR 801 : 51 Com Cas 464] and we
find no reason to depart from the Court's
construction.”
10 (1987) 1 SCC 424 50 It is thus trite law that while interpreting the provisions 61. of a statute, it is necessary that the textual interpretation should be matched with the contextual one.  The Act must be looked at as a whole and it must be discovered what each section, each clause, each phrase and each word is meant and designed to say as to fit into the scheme of the entire Act.   No part of a statute and no word of a statute can be construed in isolation.  Statutes have to be construed so that every word has a place and everything is in its place.   As already   discussed   hereinabove,   the   said   Act   has   been enacted   by   the   legislature   taking   into   consideration   the increased globalization of trade and industry, the need to encourage investment flows and transfer of technology, and the need for simplification and harmonization of trade mark management systems.   One of the purposes for which the said Act has been enacted is prohibiting the use of someone else’s trade mark as a part of the corporate name or the name of business concern.  If the entire scheme of the Act is construed as a whole, it provides for the rights conferred by registration   and   the   right   to   sue   for   infringement   of   the 51 registered   trade   mark   by   its   proprietor.     The   legislative scheme   as   enacted   under   the   said   statute   elaborately provides for the eventualities in which a proprietor of the registered trade mark can bring an action for infringement of the trade mark and the limits on effect of the registered trade mark.  By picking up a part of the provisions in sub­section (4) of Section 29 of the said Act and a part of the provision in sub­section (1) of Section 30 of the said Act and giving it a textual meaning without considering the context in which the said provisions have to be construed, in our view, would not be permissible.  We are at pains to say that the High Court fell in error in doing so.   Another   principle   that   the   High   Court   has   failed   to 62. notice is that a part of a section cannot be read in isolation. This Court, speaking through A.P. Sen, J., in the case of Balasinor   Nagrik   Cooperative   Bank   Ltd.   v.   Babubhai 11 Shankerlal Pandya and Others , observed thus:  
4.…..It is an elementary rule that construction of a
section is to be made of all parts together. It is not
permissible to omit any part of it. For, the principle
11 (1987) 1 SCC 606 52
that the statute must be read as a whole is equally
applicable to different parts of the same section…..”
This principle was reiterated by this Court in the case of 12 : Kalawatibai v. Soiryabai and Others6.  ….. It is well settled that a section has to be read in   its   entirety   as   one   composite   unit   without bifurcating it or ignoring any part of it…..” Ignoring this principle, the High Court has picked up 63. clause (c) of sub­section (4) of Section 29 of the said Act in isolation   without   even   noticing   the   other   provisions contained in the said sub­section (4) of Section 29 of the said Act.   Similarly, again while considering the import of sub­ section (1) of Section 30 of the said Act, the High Court has only picked up clause (b) of sub­section (1) of Section 30 of the said Act, ignoring the provisions contained in clause (a) of the said sub­section (1) of Section 30 of the said Act. That  leaves  us with the  reliance  placed  by the  High 64. Court on the judgment of this Court in the case of   Midas 12 (1991) 3 SCC 410 53 Hygiene Industries (P) Limited  (supra). The High Court has relied   on   the   following   observations   of   this   Court  in   the aforementioned case:
5.The law on the subject is well settled. In cases of
infringement either of trade mark or of copyright,
normally an injunction must follow. Mere delay in
bringing action is not sufficient to defeat grant of
injunction in such cases.The grant of injunction
also becomes necessary if it prima facie appears that
the adoption of the mark was itself dishonest.
[emphasis supplied by me]” The emphasis has been placed by the High Court 65. on   the   observations   of   this   Court  in   the   case   of   Midas Hygiene Industries (P) Limited  (supra) to the effect that the grant of injunction also becomes necessary if it   prima facie appears that the adoption of the mark was itself dishonest. The   High   Court  has   relied  upon  the  said   observations   to reverse the order of injunction on the ground that there is no dishonesty in the respondents­defendants’ adoption of the mark and therefore, they cannot be said to have infringed the trade   mark.     In   our   considered   view,   the   aforesaid observations are made out of context.  In the said case, the 54 suit   was   filed   for   passing   off   or   for   infringement   of   the copyright.   In the said case, the Single Judge of the High Court had granted injunction in favour of the plaintiff from manufacturing,   marketing,   distributing   or   selling insecticides, pesticides as well as  insect repellent under the name ‘LAXMAN REKHA’.   The Division Bench had vacated the   injunction   on   the   ground   that   there   was   delay   and laches.     This   Court   found   that   at   least   from   1991,   the plaintiff   was   using   the   mark   ‘LAXMAN   REKHA’   and   the plaintiff was having a copyright in the marks ‘KRAZY LINES’
and ‘LAXMAN REKHA’ with effect from 19thNovember 1991.
It   was   also   found   that   the   respondent   worked   with   the plaintiff prior to launching his business.   In the said case, this  Court  observed  that the   grant of   injunction  becomes
necessary if itprima facieappears that the adoption of the
mark   was   itself   dishonest.     However,   the   said   judgment cannot be used as a ratio for the proposition that, if the plaintiff fails to prove that the defendant’s use was dishonest, an injunction cannot be granted. On the contrary, the High Court has failed to take into consideration the observations 55 made in the very same paragraph to the effect that in cases of infringement, either of a trade mark or copyright, normally an injunction must follow. Insofar as the reliance placed by the learned counsel for 66. the respondents­defendants on the judgment of this Court in the   case   of   Khoday   Distilleries   Limited   (supra)   is concerned, the said case arose out of an application filed by st the applicants on 21  April 1986 with regard to rectification of the trade mark.   In the said case, the manufacture of the product was started by the company in May 1968.  The said company   filed   an   application   for   registration   of   its   mark before   the   competent   authority.     The   manufacturer   was informed that its application was accepted and it was allowed to proceed with the advertisement and the trade mark was subsequently   registered   inasmuch   as   there   was   only   one opposition,   and   as   such,   the   trade   mark   came   to   be registered.   The   applicants   had   not   filed   any   opposition application.  They came to know of the manufacturer’s mark th on or about 20  September 1974.  They filed an application st for rectification of the said trade mark on 21   April 1986. 56 The question of acquiescence was considered in the said case since   it   was   noticed   that   though   the   product   was   being manufactured since 1968  and  though the  applicants who sought rectification application came to know about the same th on   or   around   20   September   1974,   the   rectification application   came   to   be   filed   only   in   the   year   1986.   The present case arises out of an action for infringement of a trade mark.  As such, ratio in  Khoday Distilleries Limited (supra), would not be applicable to the present case.   It is further to be noted that this Court in paragraph (84) of the said judgment has specifically observed that the said Act had no application in the said case, which reads thus:
84.So far as the applicability of the 1999 Act is
concerned, having regard to the provisions of
Sections 20(2) and 26(2), we are of the opinion that
the 1999 Act will have no application.”
In   that   view   of   the   matter,   reliance   placed   by   the 67. respondents­defendants on the judgment of this Court in the case of  (supra) is misplaced. Khoday Distilleries Limited  57 Insofar as reliance placed on the judgment of this Court 68. in the case of  (supra) is concerned, in the Nandhini Deluxe      said case, the marks for consideration were “Nandhini” and “Nandini”.   It   will   be   relevant   to   refer   to   the   following observations of this Court in the said case:
30.Applying the aforesaid principles to the instant
case, when we find that not only visual appearance
of the two marks is different, they even relate to
different products. Further, the manner in which
they are traded by the appellant and the respondent
respectively, highlighted above, it is difficult to
imagine that an average man of ordinary
intelligence would associate the goods of the
appellant as that of the respondent.”
It could thus be seen that in the facts of the said case, 69. not   only   the   visual   appearance   of   the   two   marks   were different,   but   they   even   related   to   different   products.   As such, the said judgment would also be of no assistance to the case of the respondents­defendants in the present case. Insofar as the reliance placed on the judgment of this 70. Court in the case of  Neon Laboratories Limited  (supra) is concerned, the said case arose out of the proceedings for grant of temporary injunction under Order XXXIX Rules 1 58 and 2 of the Code of Civil Procedure, 1908.  The trial court had granted an injunction in favour of the plaintiff finding that the plaintiff had, with  prima facie  material, established that it was using their trade mark well before the attempted use   of   an   identical   or   closely   similar   trade   mark   by   the appellant­defendant.  The said injunction was affirmed by the Single Judge of the High Court.  Confirming the concurrent orders, this Court held that the plaintiff would be entitled to a temporary injunction in light of the “first in the market” test. As such, the said judgment would also not be applicable to the facts of the present case. 71. We are, therefore, of the considered view that the High Court fell in error on various counts.  The present case stood squarely covered by the provisions of Section 29(2)(c) read with   sub­section   (3)   of   Section   29   of   the   said   Act.     The present case also stood covered under sub­sections (5) and (9) of Section 29 of the said Act.  The High Court has erred in taking   into   consideration   clause   (c)   of   sub­section   (4)   of Section 29 of the said Act in isolation without noticing other parts of the said sub­section (4) of Section 29 of the said Act 59 and the import thereof. The High Court has failed to take into consideration that in order to avail the benefit of Section 30 of the said Act, apart from establishing that the use of the impugned   trade   mark   was   not   such   as   to   take   unfair advantage of or is detrimental to the distinctive character or repute of the trade mark, it is also necessary to establish that such a use is in accordance with the honest practices in industrial   or   commercial   matters.   As   such,   we   have   no hesitation to hold that the High Court was not justified in interfering with the well­reasoned order of the trial court.  Therefore, we are of the considered view that the High 72. Court fell in error by interfering with the well­reasoned order of the trial court and so, the present appeal deserves to be allowed.   73. In the result, the appeal is allowed and the impugned th judgment and order dated 12  April 2019 passed by the High Court of Karnataka at Bengaluru in Regular First Appeal No. 1462 of 2012 is quashed and set aside.  The judgement and st decree dated 21  June 2012 passed by the trial court in O.S. No. 3 of 2009 is maintained.  60 74. No order as to cost.  Pending application(s), if any, are disposed of in the above terms. ……....….......................J. [L. NAGESWARA RAO] ..…....….......................J.       [B.R. GAVAI]                                        ….…….........................J.   [B.V. NAGARATHNA] NEW DELHI; JANUARY 19, 2022. 61