V-GUARD INDUSTRIES LIMITED Vs. RAKESH MALHOTRA

JUDGEMENT

(1.) THIS appeal arises at the instance of the appellant-plaintiff from the order dated 01.06.2013 on I.A. No.1485 of 2013 in O.S. No.12 of 2013 of the 2nd Additional District Court, Ernakulam.

(2.) THE appellant is a public limited company and the registered owner of the trade mark "V-GUARD". The appellant is engaged in the manufacture and sale of voltage stabilizers, electrical and electronic apparatus and instruments, water purifiers, mixers, fans, pumps, etc. under the said registered trade mark. The appellant obtained registration for the said trade mark with respect to the goods falling within Class 9 of Schedule IV of the Trade Mark Rules and many other goods and services (inclusive of 39 items). The appellant claimed that it has acquired wide reputation and goodwill to the said trade mark. The mark 'V- GUARD' was first adopted and used by the predecessors of the appellant in the year, 1997 in relation to inverters and voltage stabilizers. Since then, the mark 'V-GUARD' was in extensive and continuous user, advertised and promoted across the country in relation to inverters and voltage stabilizers as well as a variety of electronic, electrical, chronological and home appliances. The appellant has acquired substantial goodwill and reputation. Its trade mark is a 'well known trade mark' as defined in Sec.2(zg) of the Trade Marks Act, 1999 (for short, "the Act"). While so, the appellant was incorporated in the year, 1996 and acquired absolute right over the trade mark 'V-GUARD' effective from 01.08.2005 when the then Chairman and Managing Director of the company being assigned his exclusive right over the mark 'V- GUARD' with all appurtenant goodwill in favour of the appellant for valuable consideration. Besides the common law right, the appellant's mark, 'V-GUARD' is also statutorily protected by virtue of the registration under the Act. The mark 'V-GUARD' is distinctive of the appellant's products alone and the consumers and traders are likely to identify and associate any mark depicted similarly/identically to that of 'V-GUARD' to that of the appellant alone in the market. The appellant commands a turn over of 993.62 crores and employs around 1900 personnel as part of its business activities (The appellant has given details of its turn over beginning from 1996-97 - sales turn over of Rs.60.03 crores and advertisement turn over of Rs.2.9 crores till 2011-12 as sales turn over of Rs.993.62 crores and advertisement turn over of Rs.38.15 crores).

(3.) ON the above allegations, the appellant filed O.S. No.12 of 2013 in the court of learned Additional District Judge, Ernakulam and filed I.A. No.1485 of 2013 for an order of temporary injunction to restrain the respondent from using the trade mark, 'LIVGUARD'. On 11.04.2013 the learned Additional District Judge passed an ex parte interim order of injunction in favour of the appellant.