National Sewing Thread Co. Ltd. Vs.
James Chadwick & Bros. Ltd. [1953] INSC 39 (7 May 1953)
MAHAJAN, MEHR CHAND BOSE, VIVIAN
JAGANNADHADAS, B.
CITATION: 1953 AIR 357 1953 SCR 1028
CITATOR INFO :
APL 1956 SC 202 (8) E 1965 SC1442 (6) R 1968
SC 384 (4,5) RF 1986 SC1272 (88,89,94,95) RF 1987 SC2323 (10) R 1989 SC2113
(31)
ACT:
Trade Marks Act, 1940, ss. 8, 76-Application
for registration of trade mark -Dismissal by Registrar -Appeal to High Court .
Judgment of Single Judge --Whether appealable to Division Bench Letters Patent
(Bombay) cl.15Government of India Act, 1915, s. 108-Constitution of India,
1950, s. 225-Power of Registrar to reject application if mark is likely to
deceive or cause confusion Decision in passing off action, whether conclusive.
HEADNOTE:
Section 76(l) of the Trade Marks Act, 1940,
provides that an appeal shall lie from any decision of the Registrar under the
Act or the rules made there under, to the High Court having jurisdiction, but
the Act did not make any provision with regard to the procedure to be followed
by the High Court in the appeal or as to whether the order of the High Court
was appealable: Held that the High Court had to exercise its appellate
jurisdiction under s. 76 of the Act in the same manner as it exercised its
other appellate jurisdiction, and when such jurisdiction was exercised by a
Single Judge, his judgment was appealable under el. 15 of the Letters Patent.
National Telephone Co. v. Postmaster General
([1913] A.C. 546),R. M. A. R. A. Adaikappa Chettiar v. Ra. chandrasekhara
Thevar (74 I.A. 264), Secretary of State v. Chellikani Rama Rao (I...L.R. 39
Mad. 617) referred to.
The power conferred by s. 108 of the
Government of India Act, 1915, on the High Courts, of making rules for the
exercise of their jurisdiction by Single Judges or by Division Courts could be
exercised not only in respect to such jurisdiction 1O29 as the High Courts
possessed when the Act of 1915 came into' force; but also in respects of
jurisdictions I conferred on the High Court by subsequent legislation, e.g., s,
76 of the Trade Marks Act.
Under the rules (if construction enunciated
in s. 8 of the General Clauses Act and s. 38 of the Interpretation Act, which
are of general application, the reference to s.108 of the Government of India
Act, 1915, in el. 15 of the Letters Patent should, after the enactment of the
Constitution of 1950, be read as reference to the corresponding provisions of
art. 225 of the Constitution.
The ambit of the power conferred on the High
Courts by a.108 of the Government of India Act, 1915, is not limited by
s.106(l) of the said Act or by el. 16 of the Letters Patent of the Calcutta
High Court.
Indian Electric Works v. Registrar of Trade
Marks (A.I.R. 1947 Cal. 49) overruled.
Secretary of State v. Mask & Co. (67 I.A.
222) and the Gurdwara Case (63 I.A. 180) distinguished.
The respondents, a company registered in
England, manufactured sewing thread with the device of an Eagle with outspread
wings known as the "Eagle Mark" as their trade mark, and since 1896
this thread was being sold in the Indian markets on an extensive scale. The
appellants, a company registered in India, began in 1940 to sell sewing thread
with the device of a bird resembling an eagle with wings fully spread out with
the words "Eagle Brand" as their mark. On the objection of the
respondents the appellants subsequently changed the name to "Vulture
Brand" without changing the mark in other respects. The respondents
instituted an action against the appellants for passing off, but that was
dismissed. The appellants subsequently applied for registration of their trade
mark but their application was disraissed by the Registrar on-the ground that
the appellants' mark so nearly resembled the respondents' mark as to be likely
to deceive the public and cause confusion.
This order was reversed by a Single Judge of
the High Court of Bombay but restored on appeal by a Division Bench:
Held (i) that the judgment of the Division
Bench upholding the order of the Registrar rejecting the application, on the
ground that the mark was likely to deceive and cause confusion, was right;
(ii) that the considerations relevant in a
passing off action are somewhat different from those which are relevant in an
application for registration of a trade mark under the Trade Marks Act, and the
earlier judgment of the High Court in the action for passing off was not
conclusive on the matter.
CIVIL APPELLATE JURISDICTION: Civil Appeal
No. 135 of 1952.
Appeal from the Judgment and Order dated the
19th March, 1951, of the High Court of Judicature at 1030 Bombay in Appeal No.
95 of 1950 arising from the Order dated the 28th August, 1950, of the said High
Court exercising its Ordinary Original Civil Jurisdiction in Civil Miscellaneous
No. 2 of 1950.
Bishan Narain (Sri Narain Andley with him)
for the appellants.
M. C. Setalvad, Attorney-General for India,
and C. K. Daphtary, Solicitor-General for India (J. B. Dadachanji, with them)
for the respondents.
Registrar of Trade Marks in person.
1953. May 7. The Judgment of the Court was
delivered by MAHAJAN J.-This is an appeal on a certificate under section
109(c), Civil Procedure Code, from the judgment of the High Court of Judicature
at Bombay reversing the judgment of Mr. Justice S. C. Shah in Civil
Miscellaneous No. 2 of 1950 and restoring the order of the Registrar of Trade
Marks refusing to register the appellants' trade mark.
The two questions that were canvassed before
us and that fall for our determination are (1) whether the judgment of Mr.
Justice Shah was subject to appeal under clause 15 of the Letters Patent of the
Bombay High Court and (2) whether Mr. Justice Shah was right in interfering
with the discretion exercised by the Registrar in refusing registration of the
appellants' mark.
The relevant facts shortly stated are these.
The appellants are a limited liability company incorporated under the Indian
Companies Act, 1913, having their registered office at Chidambaram, South Arcot
District, in the Province of Madras and carrying on the business of
manufacturing cotton sewing thread. The respondents are also a limited
liability company registered under the English Companies Act. They have their
registered office at Eagley Mills, Bolton, (England) where they manufacture
'sewing thread. One of the trademarks used by them on such thread consists of
the device of an Eagle with 1031 outspread wings known as "Eagle
Mark". This mark was first advertised in the Calcutta Exchange Gazette of
5th June, 1896. Since then sewing thread bearing this mark is being regularly
imported into and sold in the Indian markets on an extensive scale.
Round about the year 1940 the appellants
started selling cotton sewing thread under a mark consisting of the device of a
bird with wings fully spread out perched on a cylinder of cotton sewing thread,
with the words " Eagle Brand " and the -name of the appellant company
printed on the mark. The respondents objected to the mark, upon which the
appellants substituted the words " Vulture Brand " in the place of
the words " Eagle Brand". Thereafter in the year 1942 the appellants
applied to the Registrar of Trade Marks, Bombay, for registration of their
amended mark as a trade mark, in class 23, in respect of cotton sewing thread
claiming that the mark had been in use by them since the year 1939.
Though on the objection of the respondents
the appellants had named the Eagle in their mark a " Vulture " in
every other respect the mark remained unchanged. The respondents to redress
their grievance started a passing off action in the District Court of South
Arcot against the appellants.
That action failed on the ground that the
evidence offered on their behalf was meagre and they failed in proving that
there was any probability of purchasers exercising ordinary caution being
deceived in buying the defendants' goods under the impression that they were
the plaintiff's goods. The result was that the grievance of the respondents
remained unredressed.
As above stated, in 1942, the appellants made
an application to the Registrar of Trade Marks at Bombay for the registration
of their mark "Vulture Brand " under the Trade Marks Act, 1940. The
respondents gave notice of their opposition to that application under section
15(2), Rule 30, of the Trade Marks Act, 1940. By his order dated 2nd September,
1949, the Registrar of Trade Marks allowed the respondents' opposition and
rejected the application 1032 made by the appellants. He came to the conclusion
that the appellants' mark so nearly resembled the mark of the respondents as to
be likely to deceive or cause confusion.
He further held that to describe the mark of
the appellants as " Vulture Brand" when the device was that of an
eagle was misleading and liable to cause confusion. The appellants preferred an
appeal against the order of the Registrar to the High Court of Bombay as
permitted by the provisions of section 76 of the Trade Marks Act. Mr. Justice
Shah allowed the appeal, set aside the order of the Registrar and directed the
Registrar to register the mark of the appellants as a trade mark. From the
judgment of Mr. Justice Shah an appeal was preferred by the respondents under
clause 15 of the Letters Patent of the Bombay High Court. The appeal was
allowed and the order of the Registrar was restored with costs throughout.
Hence this appeal.
In our judgment both the questions canvassed
in this appeal admit of an easy answer in spite of a number of hurdles and
difficulties suggested during the arguments. It is not disputed that the
decision of Mr. Justice, Shah does constitute a judgment within the meaning of
clause 15 of the Letters Patent. That being so his judgment was subject to
appeal under that clause, the material part of which relevant to this enquiry
is:" And We do further ordain that an appeal shall lie to the said High
Court of Judicature at Bombay from the judgment of one Judge of the said High
Court or one Judge of any Division Court, pursuant to section 108 of the
Government of India Act." It was said that the provisions of this clause
could not be attracted to an appeal preferred to the High Court under section
76 of the Trade Marks Act and further that the clause would have no application
in a case, where the judgment could not be said to have been delivered pursuant
to section 108 of the Government of India Act, 1915. Both these objections in
our opinion are not well-founded.
Section 76 (1) provides:
1033 "Save as otherwise expressly
provided in the Act an appeal shall lie, within the period prescribed by the
Central Government, from any decision of the Registrar under this Act or the
rules made thereunder to the High Court having the jurisdiction." The Trade
Marks Act does not provide or lay down%' any procedure for the future conduct
or career of that appeal in the High Court, indeed section 77 of the Act
provides that the High Court can if it likes make rules in the matter.
Obviously after the appeal had reached the
High Court it has to be determined according to the rules of practice and
procedure of that Court and in accordance with the provisions of the charter
under which that Court is constituted and which confers on it power in respect
to the method and manner of exercising that jurisdiction. The rule is well
settled that when a statute directs that an appeal shall lie to a Court already
established, then that appeal must be regulated by the practice and procedure
of that Court. This rule was very succinctly stated by Viscount Haldane L.C. in
National Telephone Co., Ltd. v. Postmaster General in these terms:"When a
question is stated to be referred to an established Court without more, it, in
my opinion, imports that the ordinary incidents of the procedure of that Court
are to attach, and also that any general right of appeal from its decision
likewise attaches." The same view was expressed by their Lordships of the
Privy Council in R.M.A.R.A. Adaikappa Chettiar v. Ra. Chandrasekhara Thevar
(2), wherein it was said:"Where a legal right is in dispute and the
ordinary Courts of the country are seized of such dispute the Courts are
governed by the ordinary rules of procedure, applicable thereto and an appeal
lies if authorised by such rules, notwithstanding that the legal right claimed
arises under a special statute which does not, in terms confer a right of
appeal." (1) [19I3] A.C. 546. 134 (2) (1947) 74 I,A. 264, 1034 Again in
Secretary of State for India v. Chellikani Rama Rao (1), when dealing with the
case under the Madras Forest Act their Lordships observed as follows:-"It
was contended on behalf of the appellant that all further proceedings in Courts
in India or by way of appeal were incompetent, these being excluded by the terms
of the statute just quoted. In their Lordships' opinion this objection is not
well-founded. Their view is that when proceedings of this character reach the
District Court, that Court is appealed to as one of the ordinary Courts of the
country, with regard to whose procedure, orders, and decrees the ordinary rules
of the Civil Procedure Code apply." Though the facts of the cases laying
down the above rule were not exactly similar to the facts of the present case,
the principle enunciated therein is one of general application and has an
apposite application to the facts and circumstances of the present case.
Section 76 of the Trade Marks Act confers a right of appeal to the High Court
and says nothing more about it. That being so, the High Court being seized as
such of the appellate jurisdiction conferred by section 76 it has to exercise
that jurisdiction in the same manner as it exercises its other appellate
jurisdiction and when such jurisdiction is exercised by a single Judge, his
judgment becomes subject to appeal under clause 15 of the Letters Patent there
being nothing to the contrary in the Trade Marks Act.
The objection that Mr. Justice Shah's
judgment having been delivered on an appeal under section 76 of the Trade Marks
Act could not be said to have been delivered pursuant to section 108 of the
Government of India Act is also without force and seems to have been based on a
very narrow and limited construction of that section and on an erroneous view
of its true intent and purpose. Section 108 of the Government of India Act,
1915, provides :" Each High Court may by its own rules provide as it
thinks fit for the exercise, by one or more Judges, or by division courts
constituted by two or more Judges (1) (1916) I.L.R. 39 Mad. 617.
1035 of the High Court, of the original and
appellate jurisdiction vested in the Court." The section is an enabling
enactment and confers power on the High Courts of making rules for the exercise
of their jurisdiction by single Judges or by division courts. The power
conferred by the section is not circumscribed in any manner whatever and the
nature of the power is such that it had, to be conferred by the use of words of
the widest amplitude. There could be no particular purpose or object while
conferring the power in limiting it qua the jurisdiction already possessed by
the High Court, when in the other provisions of the Government of India Act it
was contemplated that the existing jurisdiction was subject to the legislative
power of the Governor-General and the jurisdiction conferred on the High Court
was liable to be enlarged, modified and curtailed by the Legislature from time
to time. It is thus difficult to accept the argument that the power vested in
the High Court under subsection (1) of section 108 was a limited one, and could
only be exercised in respect to such jurisdiction as the High Court possessed
on the date when the Act of 1915 came into force.
The words of the sub-section "vested in
the court" cannot be read as meaning "now vested in the court".
It is a wellknown rule of construction that when a power is conferred by a
statute that power may be exercised from time to time when occasion arises
unless a contrary intention appears. This rule has been given statutory
recognition in section 32 of the Interpretation Act. The purpose of the
reference to section 108 in clause 15 of the Letters Patent was to incorporate
that power in the charter of the Court itself, and not to make it moribund at
that stage and make it rigid and inflexible. We are therefore of the opinion
that section 108 of the Government of India Act, 1915, conferred power on the
High Court which that Court could exercise from time to time with reference to
its jurisdiction whether existing at the coming into force of the Government of
India Act, 1915, or whether conferred on it by any subsequent legislation.
1036 It was argued that simultaneously with
the repeal of section 108 of the Government of India Act, 1915, and of the
enactment of its provisions in section 223 of the Government of India Act of
1935 and later on :in article 225 of the Constitution of India, there had not
been any corresponding amendment of clause 15 of the Letters Patent and the reference
to section 108 in clause 15 of the Letters Patent could not therefore be taken
as relating to these provisions, and, that being so, the High Court had no
power to make rules in 1940 when the Trade Marks Act was enacted under the
repealed section and the decision of Mr. Justice Shah therefore could not be
said to have been given pursuant to section 108. This objection also in our
opinion is not well-founded as it overlooks the fact that the power that was
conferred on the High Court by section 108 still subsists, and it has not been
affected in any manner whatever either by the Government of India Act, 1935, or
by the new Constitution. On the other hand it has been kept alive and reaffirmed
with great vigour by these statutes.
The High Courts still enjoy the same
unfettered power as they enjoyed under section 108 of the Government of India.
Act, 1915, of making rules and providing
whether an appeal has to be heard by one Judge or more Judges or by Division
Courts consisting of two or more Judges of the High Court.
It is immaterial by what label or
nomenclature that power is described in the different statutes or in the
Letters Patent. The power is there and continues to be there and can be
exercised in the same manner as it could be exercised when it was originally
conferred. As a matter of history the power was not conferred for the first
time by section 108 of the Government of India Act, 1915. It had already been
conferred by section 13 of the Indian High Courts Act of 1861. We are further
of the opinion that the High Court was right in the' view that reference in
clause 15 to section 108 should be read as a reference to the corresponding
provisions of the 1935 Act and the Constitution. The canon of construction of
statutes enunciated in section 38 of the 1037 Interpretation Act and reiterated
with some modifications in section 8 of the General Clauses Act is one of
general application where statutes or Acts have to be construed and there is no
reasonable ground for holding that that rule of construction should not be
applied in construing the charters of the different High Courts. These charters
were granted under statutory powers and are subject to the legislative power of
the Indian Legislature. Assuming however, but not conceding, that strictly
speaking the provisions of the Interpretation Act and the General Clauses Act
do not for any reason apply, we see no justification for holding that the
principles of construction enunciated in those provisions have no application
for construing these charters. For the reasons given above we hold that the
High Court was perfectly justified in overruling the preliminary objection and
in holding that an appeal was competent from the judgment of Mr. Justice Shah
under clause 15 of the Letters Patent.
Reliance was Placed by the appellants in the
High Court and before us on the decision of the High Court of Judicature of
Calcutta in Indian Electric Works v. Registrar of Trade, Marks(1) wherein a
contrary view was expressed.
After a full consideration of the very
elaborate and exhaustive judgment delivered in that case by both the learned
Judges of the Bench that heard the appeal and with great respect we think that
that case was wrongly decided and the decision is based on too narrow and
restricted a construction of section 108 of the Government of India Act, 1915,
and that in that decision full effect has not been given to the true intent and
purpose of clause 44 of the Letters Patent.
Both the learned Judges there took the view
that the authority given by section 108(l) of the 1915 statute to make rules
for the exercise by one or more Judges of the Court's appellate jurisdiction
was limited to the jurisdiction then vested in the Court by section (1) A.I.R.
1947 Cal. 49.
1O38 106 (1) of the Act and by clause 16 of
the Letters Patent.
It was held that such rules thus could not
relate to jurisdiction conferred by an Act passed after the commencement of the
1915 statute nor to an appeal heard by the Court pursuant to such an Act, since
the jurisdiction to hear such appeal having been conferred by the particular
Act could not be said to have been conferred upon, or vested in, the Court by
section 106(1) and by clause 16 of the Letters Patent. This argument suffers
from a two-fold defect. In the first place it does not take into consideration
the other provisions of the Government of India Act, 1915, particularly the
provision contained in sections 65 and 72.
By section 65(1) of the Government of India
Act, 1915, the Governor-General in Legislative Council was given power to make
las for all persons, for all courts, and for all places and things, within
British India. By section 72 he was also given power for promulgating
ordinances in cases of emergency. By the Charter Act of 1915 therefore the High
Court possessed all the jurisdiction that it had at the commencement of the Act
and could also exercise all such jurisdiction that would be conferred upon it
from time to time by the Legislative power conferred by that Act.
Reference to the provisions of section 9 of
the Indian High Courts Act of 1861 which section 106 (1) of the Government of
India Act, 1915, replaced makes this proposition quite clear. In express terms
section 9 made the jurisdiction of the High Courts subject to the legislative
powers of the Governor-General in Legislative Council. Section 106 only
conferred on the High Court " jurisdiction -and power to make rules for
regulating the practice of the court, as were vested in them by Letters Patent,
and subject to the provisions of any such Letters Patent, all such
jurisdiction, powers and authority as were vested in those courts at the
commencement of the Act. " The words " subject to the legislative
powers of the Governor-General " used in section 9 of the Charter Act of
1861 were omitted from the section, because of the wide power conferred on the
Governor-General by section 65 of the Government of India Act, 1915. The 1039
jurisdiction conferred on the High Courts from the very inception was all the
time liable to and subject to alteration by appropriate legislation. It is
therefore not right to say that section 108 (1) of the Government of India Act,
1915, empowered the High Courts to make rules only concerning the jurisdiction
that those courts exercised when that Act was passed; on the other hand power
was also conferred on them to make rules in respect of all jurisdiction then
enjoyed or with which they may be vested hereafter.
Clause 16 of the Letters Patent on which
reliance was placed by the learned Judges of the Calcutta Court is in these
terms:" The High Court shall be a Court of appeal from the civil Courts of
Bengal and from all other Courts subject to its superintendence and shall
exercise appellate jurisdiction in such cases as are subject to appeal to the
said High Court by virtue of any laws or regulations now in force." This
clause is also subject to the legislative power of the appropriate Legislature
as provided in clause 44 of the Letters Patent. This clause is in these terms:
" The provisions of the Letters Patent
are subject to the legislative powers of the Governor-General in Legislative
Council." That being so the last words of the clause " now in force
" on which emphasis was placed in the Calcutta judgment lose all their
importance, and do not materially affect the point. The true intent and purpose
of clause 44 of the Letters Patent was to supplement the provisions of clause
16 and other clauses of the Letters Patent. By force of this clause appellate
jurisdiction conferred by fresh legislation on the High Courts stands included
within the appellate jurisdiction of the court conferred by the Letters Patent.
A reference to clause 15 of the Letters
Patent of 1861, which clause 16 replaced, fully supports this view. This clause
included a provision to the following effect :" or shall become subject to
appeal to the said High Court by virtue of such laws and regulations 1040
relating to Civil Procedure as shall be hereafter made, by the Governor in
Council," in addition to the words " laws or regulations now in
force". The words above cited wore omitted from clause 16 of the later
charter and only the words "laws or regulations now in force" were
retained, because these words were incorporated in the Letters Patent and were
made of general application as governing all the provisions thereof by a
separate clause. The Judges who gave the Calcutta decision on the other hand
inferred from this change that the appellate jurisdiction of the High Court as
specified in clause 16 was confined only to the jurisdiction to hear appeals
from the the civil Courts mentioned in that clause and appeals under Acts
passed and regulations in force up to the year 1865. In our opinion the learned
Judges were in error in thinking that the appellate jurisdiction possessed by
the High Court under the Letters Patent of 1865 was narrower than the
jurisdiction it possessed under clause 15 of the Letters Patent of 1861.
Whatever jurisdiction had been conferred on the High Court by clause 15 of the
Letters Patent of 1861 was incorporated in the Letters Patent of 1865 (as
amended) and in the same measure and to the same extent by the provisions of
clauses 16 and 44 of that charter.
We are further of the opinion that the
Calcutta decision is also erroneous when it expresses the view that the range
and ambit of the power conferred on the High Court by section 108 of the
Government of India Act of 1915 was limited by the provision of section 106 (1)
of the Act or by the provisions of clause 16 of the Letters Patent. There is no
justification for placing such a construction on the plain and unambiguous
words of that section. Section 108 is an enactment by itself and is
unrestricted in its scope, and covers a much wider field than is covered by
section 106 of the Government of India Act. The only association it has with
section 106 is that in sequence it follows that section. It confers a power on
the High Court to make rules in respect not only of the jurisdiction that it
1041 enjoyed in 1915 but it also conferred power on it to make rules in respect
of jurisdiction which may hereafter be conferred on it by the enactments
enacted by the Governor General in Legislative Council.
On the line of thought adopted in the
Calcutta decision the learned Judges were forced to the conclusion which seems
somewhat strange that the jurisdiction conferred by the Letters Patent on the
Calcutta High Court is much more limited and restricted than has been conferred
on some of the new High Courts in India by their Letters Patent.
Illustratively, Clause I I of the Letters
Patent of Patna High Court issued in 1916 provides as follows:" And We do
further ordain that, the High Court of Judicature at Patna shall be a Court of
Appeal from the Civil Courts of the Province of Bihar and Orissa and from all
other Courts subject to its superintendence, and shall exercise appellate
jurisdiction in such cases as were, immediately before the date of the
publication of these presents, subject to appeal to the High Court of
Judicature at Fort William in Bengal by virtue of any law then in force, or as
may after that date be declared subject to appeal to the High Court of
Judicature at Patna by any law made by competent legislative authority for
India The Letters Patent of the Labore High Court, the High Court of Rangoon
and the Letters Patent of the Nagpur High Court also contain identical clauses.
It is clear from these clauses that in respect of cases subject to appeal to
these High Courts the civil appellate jurisdiction is flexible and elastic. Mr.
Justice Das in the Calcutta decision under discussion took the view that
omission of the words underlined in clause 11 from clause 16 of the Letters
Patent of the Calcutta High Court made the civil appellate jurisdiction of that
court under clause 16 as rigidly fixed, and that it could be exercised only
over courts and only in respect of cases mentioned therein. When the attention
of the learned Judge was. drawn to the provisions of clause. 44 of the Letters
Patent he 1042 was constrained to say that inflexibility bad to a great extent
been modified by preserving the powers of Indian Legislative authority in
section 9 of the High Courts Act, by the amended clause 44 of the Letters
Patent and by section 223 of the. 1935 Act. The learned Judge however felt that
there was still a difference of a vital character between the Letters Patent of
the Calcutta High Court and of the newly constituted High Courts inasmuch as
cases subsequently declared by any Indian enactment to be subject to appeal to
the Calcutta High Court could not strictly speaking come within its appellate
jurisdiction under clause 16 although the High Court exercised appellate
jurisdiction over these. We have not been able to appreciate this distinction
and it seems to us it is based on some misapprehension as to the true
intendment of clause 44 of the Letters Patent. The purpose and intent of clause
44 of the Letters Patent was to declare that in addition to the jurisdiction
conferred by clause 16 it would also exercise the appellate jurisdiction which
from time to time would be conferred on it by subsequent enactments. It is
inconceivable that larger appellate jurisdiction and greater powers in the
matter of making rules would have been conferred upon the newly constituted
High Courts than upon the High Court of Calcutta. The words "pursuant to
section 108 of the Government of India Act 1915" occurring in clause 15 of
the Letters Patent do not in any way restrict the scope of the right of appeal
conferred by that clause to appeals that come to the High Court under its
appellate jurisdiction under clause 16 of the Letters Patent only. On the other
hand we think that these rules have application to all appellate jurisdiction
exercised by that court whether existing or conferred upon it by subsequent
legislation.
The learned Judges in the Calcutta case
negatived the applicability of the principle enunciated in 1913 Appeal Cases
546 and applied by the Privy Council in several cases to the matter before
them, on the following reasoning set out by Mr. Justice Das:-1043 "The
incidents and powers attached to the Registrar as a tribunal fall far short of
those which were attached, to the tribunal in the Gurdwara case (1) and to
which Sir George Rankin particularly and pointedly referred Having regard to
the plain language of clause 16, and in the absence therein of like words which
appeal in the concluding portions of the correspond clauses of the Letters
Patent of the other High Court to which I have already referred and which make
their appellate jurisdiction flexible and elastic it is impossible to hold that
section 76 of the Trade Marks Act has merely extended the appellate
jurisdiction of this Court under clause 16 by the addition of a new
subject-matter of appeal so as to attract the general principle enunciated in
1913 Appeal Cases 546 ......... The truth is that the Trade Marks Act has
created new rights, e.g., a right to get a trade mark registered and has given
certain new advantages consequent upon such registration. It has created new
Tribunals for its own purposes and it has conferred a new appellate
jurisdiction on this Court. It has authorized this Court to make rules
regulating the conduct and procedure of the proceedings under the Act before
it. This Court has framed separate set of rules accordingly. This very fact
makes it impossible to attract the ordinary rules of procedure regarding
appeals in this Court and indicates that an appeal under section 76 of the Act
involves the exercise of a new appellate jurisdiction regulated by new
rules".
This reasoning in our opinion is faulty on a
number of grounds. The first error lies in the assumption that the Gurdwara Act
did not create new rights and did not create new appellate jurisdiction in the
High Court which it did not possess before. The Gurdwara Act created peculiar
rights in religious bodies and negatived the civil rights of large bodies of
Mahants and other persons. Stick rights were unknown before in civil law. The
High Court as an established court of record was constituted a court of appeal
from the decisions of the Gurdwara Tribunal. The principle enunciated in 1913
Appeal Cases 546 was applied by (1) 63 I.A. 180.
1044 Sir George Rankin to appeals heard by
the High Court under its newly created appellate jurisdiction, and we speak
with great respect, in our opinion, very correctly. We have not been able to
appreciate the special peculiarities of the rights created by the Trade Marks
Act which place the appellate jurisdiction conferred on the High Court by
section 76 on a different level from the jurisdiction created by the special
provisions of the Gurdwara Act. The rights created by the Trade Marks Act are
civil rights for the protection of persons carrying on trade under marks which
have acquired reputation. The statute creates the Registrar a tribunal for
safeguarding these rights and for giving effect to the rights created by the
Act, and the High Court as such without more has been given appellate
jurisdiction over the decisions of this tribunal. It is not easy to understand
on what grounds it can be said that the High Court while exercising this
appellate jurisdiction has to exercise it in a manner different from its other
appellate jurisdiction. It seems to us that this is merely an addition of a new
subject matter of appeal to the appellate jurisdiction already exercised by the
High Court.
The second error lies in the assumption that
the appellate jurisdiction exercised by the High Court of Calcutta is much more
limited than that possessed by the other High Courts. The matter has been
discussed at length in an earlier part of this judgment.
We have also not been able to appreciate the
emphasis laid to negative the applicability of clause 15 of the Letters Patent
by reference to the provisions of section 77 of the Act. The provisions of that
section are merely enabling provisions and, as already pointed out, it is open
to the High Court to make use of them or not as it likes. There is nothing in
the provisions of that section which debars the High Court from hearing appeals
under section 76 of the Trade Marks Act according to the rules under which all
other appeals are heard, or from framing rules for the exercise of that
jurisdiction under section 108 of the Government of India Act, 1915, for
hearing those 1045 appeals by single judges or by division benches. Even if
section 77 had not been enacted it could not be said that the High Court would
then have no power to make rules for the hearing of appeals under section 76.
There are a number of legislative enactments which have conferred appellate
jurisdiction on the High Court without more and the High Court exercises
appellate jurisdiction conferred by these enactments by framing its own rules
under the powers it already possesses under its different charters and under
the various statutes which have conferred power on it.
It was suggested that the reasoning of the
High Court is supported by the rule laid down in Secretary of State v.
Mask and Co.(1). In our opinion that rule has
neither any relevancy in this case nor is it in any manner in conflict with the
rule laid down in 1913 Appeal Cases 546 or in the later Privy Council decisions
above referred to. There, by section 188 of the Sea Customs Act the
jurisdiction of the civil courts was excluded, and an order made by the
Collector on an appeal from an order of the Assistant Collector was made final.
A suit was filed to challenge the order of the Collector on the ground that the
finality declared by section 188 was no bar to such a suit in a civil court.
That contention was negatived on the ground that when a liability not existing
in common law is created by a statute which at the same time gives a special
and particular remedy for enforcing it, with respect to that class it has
always been held that the party must adopt the form of remedy given by the
statute. The Trade Marks Act has not created any special forum for the hearing
of an appeal as had been created by the Sea Customs Act. On the other hand, the
Trade Marks Act has conferred appellate jurisdiction on an established court of
law. Further, the Sea Customs Act had made the order of the Collector passed on
an appeal final. There is no such provision in the Trade Marks Act. It has only
declared that an appeal shall lie to the High Court from the order of the
Registrar and has said nothing more about it. Clearly, therefore, to this case
the rule (1) 67 I.A. 222.
1046 enunciated in 1913 Appeal Cases 546 had
application, and the rule stated in Mask's case (1) had no bearing on this
point.
As regards the merits of the case, we are in
entire agreement with the decision of the High Court and with the reasons given
in that decision. The relevant part of section 8 of the Trade Marks Act is in
these terms:
"No trade mark nor part of a trade mark
shall be registered which consists of, or contains, any scandalous design, or
any matter the use of which would by reason of its being likely to deceive or
to cause confusion or otherwise, be disentitled to protection in a court of
justice".
Under this section an application made to
register a trade mark which is likely to deceive or to cause confusion has to
be refused notwithstanding the fact that the mark might have no identity or
close resemblance with any other trade mark. The Registrar has to come to a
conclusion on this point independently of making any comparison of the mark
with any other registered trade mark. What the Registrar has to see is whether
looking at the circumstances of the case a particular trade mark is likely to
deceive or to cause confusion.
The principles of law applicable to such
cases are well settled. The burden of proving that the trade mark which a
person seeks to register is not likely to deceive or to cause confusion is upon
the applicant. It is for him to satisfy the Registrar that his trade mark does
not fall within the prohibition of section 8 and therefore it should be
registered. Moreover, in deciding whether a particular trade mark is likely to
deceive or cause confusion that duty is not discharged by arriving at the
result by merely comparing it with the trade mark which is already registered
and whose proprietor is offering opposition to the registration of the mark.
The real question to decide in such cases is to see as to how a purchaser, who
must be looked upon as an average man of ordinary intelligence, would react to
a (1) 67 I.A. 222.
1047 particular trade mark, what association
he would form by looking at the trade mark, and in what respect he would
connect the trademark with the goods which* he would be purchasing.
So far as the present case is concerned the
goods sold under the respondents' trade mark are well-known and are commonly
asked for as II Eagley " or " Eagle ", and the particular
feature of the trade mark of the respondents by which the goods are identified and
which is associated in the mind of the purchaser is the representation of an
Eagle appearing in the trade mark. If the trade mark conveys the idea of an
Eagle and if an unwary purchaser is likely to accept the goods of the
appellants as answering the requisition for Eagle goods, then undoubtedly the
appellants' trade mark is one which would be likely to deceive or cause
confusion. It is clear to us that the bird in the appellants' trade mark is
likely to be mistaken by an average man of ordinary intelligence as an Eagle
and if he asked for Egg`e goods and he got goods bearing this trade mark of the
appellants it is not likely that he would reject them by saying that this
cannot be an Eagle. Two years prior to the application for registration, the
respondents described this particular bird an Eagle and called their brand
Eagle Brand, The same bird was later on described by them a vulture and the
explanation offered was that they so described owing to an honest and bona fide
mistake. We have no hesitation in holding that the appellants' camouflaging an
Eagle into a vulture by calling it such is likely to cause confusion. Whatever
else may be said about the bird in the appellants' trade mark, it certainly
does not represent a vulture or look like a vulture of any form or shape. What
has been named by the plaintiffs as a vulture is really an eagle seated in a
different posture. That being so, the High Court was perfectly right in the
view that Mr. Justice Shah was in error in interfering with the discretion
possessed and exercised by the Registrar, and that the appellants had failed to
discharge the onus that rested heavily on them to prove that the trade mark
which they wanted the Registrar 1048 to register was not likely to deceive or
cause confusion.
The learned counsel for the appellants
contended that the question whether his clients' trade mark was likely to
deceive or cause confusion had been 'Concluded by the earlier judgment of the
Madras High Court in the passing off action and already referred to in an early
part of the judgment. It is quite clear that the onus in a passing off action
rests on the plaintiff to prove whether there is likelihood of the defendant's
goods being passed off as the goods of the plaintiff. It was not denied that
the general get up of the appellants' trade mark is different from the general
get up of the respondents' trade mark. That being so, it was held by the Madras
High Court in the passing off action that on the meager material placed on
record by the plaintiffs they had failed to prove that the defendants' goods
could be passed off as the goods of the plaintiffs.
The considerations relevant in a passing off
action are somewhat different than they are on an application made for
registration of a mark under the Trade Marks Act and that being so the decision
of the Madras High Court referred to above could not be considered as relevant
on the questions that the Registrar had to decide under the provisions of the
Act.
For the reasons given above we are of the
opinion that this appeal must fail and we accordingly dismiss it with costs.
Appeal dismissed.
Agent for the appellants: R. A. Govind.
Agent for the respondents: Rajinder Narain.
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