Delhi High Court

Prior user rights and dishonest adoption of a surname justify trade mark rectification for non-use.

Rakesh Kumar Aggarwal v. Intellectual Property Appellate Board and Anr. [W.P.(C)-IPD 66/2021 & W.P.(C)-IPD 69/2021]

Delhi High CourtJUDGMENT: no citation2 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Petitioner, trading as Agarwal Enterprises, registered the trademark ‘THUKRAL’ in Class 21 for brooms in 2003, claiming use since 1995

Source reference: para 2.1

Respondent No. 2 filed Rectification Applications (ORA/30/2013/TM/DEL & ORA/31/2013/TM/DEL) seeking cancellation of the Petitioner's mark, asserting that their family had used ‘THUKRAL’ for identical goods since 1954

Source reference: para 11, 15

Between 2013 and 2016, the Petitioner repeatedly failed to file a Counter Statement despite multiple extensions and costs imposed by the IPAB

Source reference: para 3.5-3.8

Consequently, the Registrar (Respondent No. 1) passed the Impugned Order on 10.05.2016, directing the removal of the Petitioner’s mark from the Register

Source reference: para 1, 21

The Petitioner challenged this order via writ petitions, alleging a lack of opportunity and the fault of previous counsel

Source reference: para 2.14
02

Issues

Whether the Impugned Order was passed in violation of the principles of natural justice due to the Petitioner’s failure to file a Counter Statement

Source reference: para 5

Whether Respondent No. 2 established superior rights over the mark ‘THUKRAL’ based on prior user

Source reference: para 11

Whether the Petitioner’s adoption of the mark ‘THUKRAL’ was *bona fide* or amounted to fraud

Source reference: para 15
03

Law Applied

The Court applied Rule 10 of the IPAB (Procedure) Rules, 2003, which mandates filing a counter-statement within two months of service

Source reference: para 6

It relied on Section 34 of the Trade Marks Act, 1999, which stipulates that registration cannot interfere with the rights of a prior user

Source reference: para 13

The Court further referenced Sections 27, 28, and 47 of the Act regarding the limits of registration and removal for non-use

Source reference: para 13-14

Jurisprudentially, it cited *Yishudas Trading v. Vazier Sultan Tobacco Co. Ltd.* regarding the non-perpetual nature of trademark registration

Source reference: para 3.10

and *Indo-Pharma Pharmaceutical Works Pvt. Ltd. v. Farbenfabriken Bayer Aktiengesellschaft* concerning fraud in procuring registration

Source reference: para 3.13
04

Reasoning

The Court found that the Petitioner was granted ample opportunities over three years (2013–2016) to file a Counter Statement but failed to do so, rendering the plea of natural justice violation unsustainable

Source reference: para 8, 10

The Court noted that the Petitioner offered no explanation for adopting the surname ‘THUKRAL’ (his own name being Aggarwal), whereas Respondent No. 2 proved continuous use by their family since 1954

Source reference: para 3.12, 15

Applying Section 34, the Court held that prior user rights are superior to registration

Source reference: para 13

It further observed that the Petitioner failed to produce evidence of *bona fide* use post-registration, whereas Respondent No. 2’s evidence remained unrebutted due to the Petitioner’s procedural default

Source reference: para 14, 17

The Court concluded that the Registrar's finding of "dishonest adoption" and "fraud" was a reasonable inference from the facts

Source reference: para 15
05

Holding

The High Court dismissed the writ petitions, upholding the Impugned Order dated 10.05.2016

The Court held that registration is not absolute and is subject to the rights of a prior user under Section 34 of the Act

Source reference: para 13

It ruled that the Petitioner’s procedural negligence in failing to file a Counter Statement precluded him from challenging the Registrar’s findings on merits in a writ jurisdiction

Source reference: para 20

The removal of the mark ‘THUKRAL’ from the Register was affirmed on grounds of prior user by Respondent No. 2 and dishonest adoption by the Petitioner

Source reference: para 16, 21
Delhi High Court

Original Court PDF

Rakesh Kumar Aggarwal v. Intellectual Property Appellate Board and Anr. [W.P.(C)-IPD 66/2021 & W.P.(C)-IPD 69/2021]

Delhi High Court · no citation

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