ABHISHEK MILLS LIMITED Vs. ABHISHEK INDUSTRIES LIMITED

JUDGEMENT

(1.) The legality of the ex parte stay order granted by the Court of Incharge District Judge Sangrur on 17.6.2006 has been seriously questioned by the appellant in the present appeal.

(2.) The facts are that Abhishek Industries Limited Trident Complex Raikot Road Barnala (hereinafter to be referred to as the respondent) filed a civil suit under Trade Marks Act 1999 against the appellant M/s Abhishek Mills Limited Gat No. 148. Tamgaon Kolhapur-Hupari Raod Taulka Karveer District Kolhapur Maharasthra (hereinafter to be referred to as the appellant) with the allegations that the respondent Company was incorporated under the Companies Act, 1956 in 1990. It was running the business of manufacturing and marketing of inter alia terry towel yarn paper and chemicals. It has a roaring business. Not only sale of their goods within the country but they also export the same in more than 37 countries. It has a huge turn over which went on increasing since the year of its incorporation. It spent huge amount in publishing and promoting its products The respondent and its management have earned a number of awards because of its excellence.

(3.) It was alleged that the appellant Company is engaged in yarn manufacturing and construction. The respondent came to know about the existence of the appellant Company in the first week of June 2006 when the appellant submitted its Draft Red Herring Prospectus to the Securities and Exchange Board of India (in short SEBI). The appellant was carrying out its business activities under an identical trade name till the first week of June 2006. The respondent is aggrieved more by the proposed Initial Public Offer by which the appellant is intending to go to public and raise money from the public. There is a grave danger to the good-will and reputation of the respondent as the appellant is claiming to be operating in the same field of activity and manufacturing identical products using the identical trade and corporate name by using the word Abhishek. The appellant is inducing the trade and public to believe that it is connected or associated with the respondent. Therefore the conduct of the appellant tantamount to the passing off and was liable to be stayed forthwith by an injunction order by the Court.