/2022 INSC 0063/ 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. 1. Leave granted. 2. This   appeal   challenges   the   judgment   and   order   dated 12 th  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 as the “trial court”), dated 21 st  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 vide judgment dated 31 st  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 No.1: Affirmative Additional   Issue No.2: does not arise for 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 RENAISSANCE   Hotels   Inc.   Marriotr 1   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 1 RFA No. 235 of 2008 dated 28 th  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 judgement   and   decree   dated   21 st   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. 17. Shri   Viswanathan   further   submitted   that   merely 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 Shah and Another 2 . 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 Limited v. Zamindara Engineering Co. 3 . 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 Pharmaceutical Laboratories 4 . 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 (P) Limited and Another v. Sudhir Bhatia and Others 5 . 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 and Others 6 ,   Nandhini Deluxe v. Karnataka Cooperative Milk   Producers   Federation   Limited 7 ,   Corn   Products Refining   Co.   v.   Shangrila   Food   Products   Limited 8   and Neon   Laboratories   Limited   v.   Medical   Technologies Limited and Others 9 . 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. 25. For   appreciation   of   the   rival   controversy,   it   will   be 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 to   the   provisions   of   Sections   22,   25   and   26,   the registration of a person in the register as proprietor of a trade mark in respect of any goods shall   give to that   person   the   exclusive   right   to   the   use   of   the trade   mark   in   relation   to   those   goods   and,   without prejudice   to   the   generality   of   the   foregoing provision, that right shall be deemed to be infringed by   any   person   who,   not   being   the   proprietor   of   the trade mark or a registered user thereof using by way of   the   permitted   use,   uses   a   mark   identical   with   it or   so   nearly   resembling  it   as  to   be  likely   to   deceive or   cause   confusion,   in   the   course   of   trade,   in relation   to   any   goods   in   respect   of   which   it   is registered, and in such manner as to render the use 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 having   the   right   either   as  a  proprietor  or as   registered   user   to   use   the   trade   mark or  to  goods with  which  such a  person  as aforesaid   is   connected   in   the   course   of trade.” 19 27. The   legislature   noticed   that   the   1940   Act   was   enacted 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 28. Thereafter,   in   view   of   the   developments   in   trading   and 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 29. The   Trade   Marks   Bill   of   1999   was   passed   by   both   the Houses   of   Parliament   and   the   assent   of   the   President   was received   on   30 th   December   1999.     It   came   into   force   on   15 th 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 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. (2)   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— ( a )   its   identity   with   the   registered   trade mark   and   the   similarity   of   the   goods   or services  covered by  such  registered trade mark; or ( b ) its similarity to the registered trade mark and the identity or similarity of the goods or   services   covered   by   such   registered trade mark; or ( c ) its identity with the registered trade 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. (3)   In   any   case   falling   under   clause   ( c )   of   sub­ section   (2),   the  court   shall   presume   that   it  is   likely to cause confusion on the part of the public. (4)   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— ( a )   is   identical   with   or   similar   to   the registered trade mark; and 23 ( b )   is   used   in   relation   to   goods   or   services which   are   not   similar   to   those   for   which the trade mark is registered; and ( c )   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. (5) 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. (6) For the purposes of this section, a person uses a registered mark, if, in particular, he— ( a )   affixes   it   to   goods   or   the   packaging thereof; ( b )   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; ( c )   imports   or   exports   goods   under   the mark; or ( d )   uses   the   registered   trade   mark   on business papers or in advertising. (7) 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 authorised by the proprietor or a licensee. 24 (8)   A   registered   trade   mark   is   infringed   by   any advertising of that trade mark if such advertising— ( a ) takes unfair advantage of and is contrary to   honest   practices   in   industrial   or commercial matters; or ( b ) is detrimental to its distinctive character; or ( c )   is   against   the   reputation   of   the   trade mark. (9)   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  and reference   in  this   section   to  the   use  of  a  mark  shall be construed accordingly.” 30. Sub­section   (1)   of   Section   28   of   the   said   Act   provides 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. 31. Sub­section   (1)   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  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.   34. Sub­section   (4)   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  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.  35. Sub­section   (5)   of   Section   29   of   the   said   Act   provides 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. 36. Sub­section   (6)   of   Section   29   of   the   said   Act   provides 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 37. Sub­section   (7)   of   Section   29   of   the   said   Act   provides 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. 38. Sub­section   (8)   of   Section   29   of   the   said   Act   provides 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. 39. 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 30 representation   and   reference   in   this   section   to   the   use   of   a mark shall be construed accordingly. 40. Section 30 of the said Act deals with the limits on effect 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 .— (1)   Nothing   in   Section   29   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 ) is in accordance with honest practices in industrial or commercial matters, and ( b )   is   not   such   as   to   take   unfair advantage   of   or   be   detrimental   to   the distinctive   character   or   repute   of   the trade mark. (2) A registered trade mark is not infringed where— ( a ) the use in relation to goods or services indicates   the   kind,   quality,   quantity, intended   purpose,   value,   geographical origin, the time of production of goods or of   rendering   of   services   or   other characteristics of goods or services; ( b )   a   trade   mark   is   registered   subject   to any   conditions   or   limitations,   the   use   of the trade mark in any manner in relation to goods to be sold or otherwise traded in, in any place, or in relation to goods to be 31 exported   to   any   market   or   in   relation   to services for use or available or acceptance in   any   place   or   country   outside   India   or in   any   other   circumstances,   to   which, having   regard   to   those   conditions   or limitations,   the   registration   does   not extend; ( c ) the use by a person of a trade mark— ( i )   in   relation   to   goods   connected   in the   course   of   trade   with   the proprietor or a registered user of the trade mark if, as to those goods or a bulk   or   which   they   form   part,   the registered   proprietor   or   the registered   user   conforming   to   the permitted use  has  applied  the  trade mark   and   has   not   subsequently removed   or   obliterated   it,   or   has   at any   time   expressly   or   impliedly consented   to   the   use   of   the   trade mark; or ( ii )   in   relation   to   services   to   which the   proprietor   of   such   mark   or   of   a registered   user   conforming   to   the permitted use has applied the mark, where   the   purpose   and   effect   of   the use   of   the   mark   is   to   indicate,   in accordance with the fact, that those services have been performed by the proprietor or a registered user of the mark; ( d ) the use of a trade mark by a person in relation to goods adapted to form part of, or   to   be   accessory   to,   other   goods   or services   in   relation   to   which   the   trade mark   has   been   used   without infringement   of   the   right   given   by registration   under   this   Act   or   might   for 32 the   time   being   be   so   used,   if   the   use   of the trade mark is reasonably necessary in order   to   indicate   that   the   goods   or services   are   so   adapted,   and   neither   the purpose   nor   the   effect   of   the   use   of   the trade mark is to indicate, otherwise than in accordance with the fact, a connection in the course of trade between any person and   the   goods   or   services,   as   the   case may be; ( e )   the   use   of   a   registered   trade   mark, being   one   of   two   or   more   trade   marks registered   under   this   Act   which   are identical   or   nearly   resemble   each   other, in  exercise  of  the  right  to  the   use  of  that trade   mark   given   by   registration   under this Act. (3) Where the goods bearing a registered trade mark are   lawfully   acquired   by   a   person,   the   sale   of   the goods   in   the   market   or   otherwise   dealing   in   those goods by that person or by a person claiming under or   through   him   is   not   infringement   of   a   trade   by reason only of * — ( a ) the registered trade mark having been assigned   by   the   registered   proprietor   to some   other   person,   after   the   acquisition of those goods; or ( b )   the   goods   having   been   put   on   the market   under   the   registered   trade   mark by the proprietor or with his consent. (4) Sub­section (3) shall not apply where there exists legitimate   reasons   for   the   proprietor   to   oppose further   dealings   in   the   goods   in   particular,   where the   condition   of   the   goods,   has   been   changed   or 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 validity .—(1)   In   all   legal   proceedings   relating   to   a 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.” 45. It   could   thus   be   seen   that   this   Court   has   pointed   out 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 a sine qua non   in   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. 46. Again, while considering the provisions of Section 21 of the   1940   Act,   this   Court   in   the   case   of   Ruston   &   Hornsby Limited  (supra), observed thus: “ 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, however,   Lord   Cottenham,   L.C., in   Millington   v.   Fox   [3 My & Cr 338] held that it was immaterial   whether   the   defendant   had   been fraudulent or not in using the plaintiff's trade mark and granted an injunction accordingly. The common law   courts,   however,   adhered   to   their   view   that fraud   was   necessary   until   the   Judicature   Acts,   by fusing   law   and   equity,   gave   the   equitable   rule   the victory over the common law rule. 6.   The   two   actions,   however,   are   closely   similar   in some respects. As was observed by the Master of the Rolls   in   Saville   Perfumery   Ltd.   v.   June   Perfect Ltd.   [58 RPC 147 at 161] : “The   statute   law   relating   to   infringement of   trade   marks   is   based   on   the   same fundamental   idea   as   the   law   relating   to passing­off. But it differs from that law in two   particulars,   namely   (1)   it   is concerned   only   with   one   method   of passing­off,   namely,   the   use   of   a   trade mark,   and   (2)   the   statutory   protection   is absolute in the sense that once a mark is shown   to   offend,   the   user   of   it   cannot escape   by   showing   that   by   something outside   the   actual   mark   itself   he   has distinguished his goods from those of the registered   proprietor.   Accordingly,   in considering   the   question   of   infringement the   Courts   have   held,   and   it   is   now expressly   provided   by   the   Trade   Marks Act,   1938,   Section   4,   that   infringement takes place not merely by exact imitation but   by   the   use   of   a   mark   so   nearly resembling   the   registered   mark   as   to   be likely to deceive.”” 40 47. It   could   thus   be   seen   that   this   Court   again   reiterated 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 48. In   the   present   case,   both   the   trial   court   and   the   High 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.  49. However,   the   High   Court,   while   reversing   the   decree   of 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 50. We find that the High Court has totally erred in taking 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.   51. It is further clear that in case of an eventuality covered 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.  52. The perusal of sub­section (4) of Section 29 of the said 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.   53. Undisputedly,   the   appellant­plaintiff’s   trade   mark “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.  54. In   these   circumstances,   we   are   of   the   considered   view 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   Ruston & Hornsby Limited   (supra), in 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. 57. It is pertinent to note that, the High Court has relied on 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.”” 58. The   glaring   mistake   that   has   been   committed   by   the 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” 59. The perusal of Section 30(1) of the said Act would reveal 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.  60. We   find   that   the   High   Court   has   failed   to   take   into 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 General Finance and Investment Co. Ltd. and Others 10 : “ 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”   in   Srinivasa   [(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 61. It is thus trite law that while interpreting the provisions 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.   62. Another   principle   that   the   High   Court   has   failed   to 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 Shankerlal Pandya and Others 11 , 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 Kalawatibai v. Soiryabai and Others 12 : “ 6.  ….. 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…..” 63. Ignoring   this   principle,   the   High   Court   has   picked   up 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. 64. That   leaves   us   with   the   reliance   placed   by   the   High 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]” 65. The   emphasis   has   been   placed   by   the   High   Court 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   19 th   November  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   it   prima   facie   appears   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. 66. Insofar as the reliance placed by the learned counsel for 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 the applicants on 21 st   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 on  or  about 20 th   September  1974.   They  filed an application for   rectification   of   the   said   trade   mark   on   21 st   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 on   or   around   20 th   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.” 67. In   that   view   of   the   matter,   reliance   placed   by   the respondents­defendants on the judgment of this Court in the case of  Khoday Distilleries Limited  (supra)  is misplaced. 57 68. Insofar as reliance placed on the judgment of this Court in the case of   Nandhini Deluxe   (supra)   is concerned,   in the 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.” 69. It could thus be seen that in the facts of the said case, 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. 70. Insofar   as   the   reliance   placed   on   the   judgment   of   this 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.  72. Therefore,   we   are   of   the   considered   view   that   the   High 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 judgment and order dated 12 th  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 decree dated 21 st  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