Topic: National Bell Co and Anr vs Metal Goods and Anr

National Bell Co. & Anr vs Metal Goods Mfg. Co. (P) Ltd. & Anr

Equivalent citations: 1971 AIR 898, 1971 SCR (1) 70 - Bench: Shelat, J.M, Vaidyialingam, C.A. - Citation: 1971 Air 898 1971 Scr (1) 70, 1970 Scc (1) 665 - Citator Info: Rf 1981 Sc1786 (139) - Date Of Judgment: 18/03/1970

ACT:

Trade and Merchandise Marks Act (43 of 1958), ss. 9(3), 11(a) and (e), 32(b) and (c) and 56--'Distinctive', meaning of--Numeral as trade mark--'Aggrieved person, and 'without sufficient cause' in    s. 56--Scope of--'Disentitled     to protection', meaning of--Abandonment of right in trade mark, when inferred--Rectification of register--Discretion     of Court.

HEADNOTE:

For a number of years prior to 1952 cycle bells manufactured by Lucas And other foreign concerns bearing the numbers '50' and other numerals were in the Indian market.    After 1952, the import of foreign bells was prohibited,     and though foreign made bells with the numerals '50' were being sold as late as 1958, the sales were from the stock remaining out of the earlier imports and were few and far between. In 1953, the respondent     company got registered two trade marks in respect of cycle bells being the numeral '50' and the figure 'Fifty'. The    appellant companies were manufacturers     and also dealers in cycle bells and were selling    their cycle bells with the numeral '50'     inscribed on    them. The respondent therefore,    filed suits in     1959,    against     the appellants, alleging infringement of its trade     marks.     In 1961, the appellants applied for stay of trial of the suits and filed applications in the High Court for rectification of the     register by cancelling the trade marks of     the respondent under s. 56 of the Trade and Merchandise Marks Act, 1958. A single Judge of the High Court,     refused to expunge the trade mark 'Fifty' but ordered the    cancellation of the trade mark '50'.     In appeals to the Division Bench of the High Court, the order cancelling the trade mark '50' was set aside.

In appeals to this Court, it was contended that : (1)     the trade marks in question were common and not distinctive at the date of their registration as required by s. 9(3),     and therefore, ought never to have been registered; (2) that the numeral     '50' is not distinctive; (3) that the use of     the trade mark was likely to deceive or cause confusion     and hence the registration should be cancelled under s. 32(b) and s. II (a); (4) that the respondent had imitated the     use of the     marks    by Lucas and other foreign concerns    that therefore they would be disentitled to protection under s. 11(e) and hence the registration should be cancelled under s. 32(h); and (5) that the trade marks were not, at     the commencement of the proceedings, distinctive     'and hence liable to be cancelled under s. 32(c).

HELD : (1) Under s. 32(b) and (c) the original    registration of the trade mark has, after the expiration of 7 years    from the date of registration to be taken to be valid in     all respects including in rectification applications under s. 56 unless    it is proved : (1) the trade mark was registered in contravention of the provisions of s. 11 or offends against the provisions of that section on     the date of     the commencement of the proceeding or (2) that the     trade    mark was not, at the commencement of the proceedings     distinctive of the goods of the registered proprietor. Section 11(a) prohibits the registration of trade mark which would be likely to deceive or cause confusion, and s. 11(e) prohibits the registration of trade marks if they were such that    they were otherwise     disentitled to protection in a court. Section

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56(2) confers a right on any person aggrieved by an entry made in the register without sufficient cause or by an entry wrongly remaining in the register, to apply for expunging or varying such an entry.    Since 'an aggrieved person' includes a person who has, before registration, used the trade mark, and a person against whom an infringement action is taken, and the words 'without sufficient cause' relate to the    time of original registration,. the appellant could apply     for cancellation on the ground that the trade mark in question was not distinctive within the meaning of s. 9(3). But in view of the language of s. 32, no contention could be raised    in the present case, that the trade mark '50'     and 'Fifty' were not distinctive under s. 9(3), that is, adapted to distinguish     the cycle bells of the respondent, at     the date of registration, as, seven years had elapsed since     the date of the Registration. [78 D-F; 79 B-H]

Paine & Co. v. Doniells & Sons" Breweries Ltd. (1893) R.P.C. 217, 232, referred to.

(2) It is not an inflexible rule that except in the case of textile goods. a mark consisting of a numeral is necessarily not distinctive and is not registerable. [80 E] Kerly on Trade Marks, 9th End. p. 284, and     Reuiter v. Hublens, (1954) Ch. 50, referred to.

(3) Section 32(b) relates to facts existing both at the time of and     after    registration. If the mark at the time of registration was likely to deceive or cause confusion or would otherwise be disentitled to- protection of a court, and therefore, was, under s. 11 (a) and (e) prohibited    from being registered, the     rule as to conclusiveness of     the validity of the registration in s. 32 cannot be invoked and that would also be so, if the trade mark at the date of commencement of rectification proceedings was such as to offend against the provisions of s. 11. [80F-H] The sales of foreign bells with numeral '50' after 1953 were 'so few that they could hardly be considered as evidence for showing a likelihood of confusion or deception.     In fact the purchasers used to call those bells, not by the numerals, but by the manufacturers' names. As regards bells said to have been manufactured by one of the    appellant companies since 1947 and bearing the numeral '50', no evidence was led to show either the extent of manufacture or sale between 1947-1953 or thereafter from which the High Court could be asked to draw     any inference     as to     the likelihood of deception or confusion.     As against the voluminous sales of the respondent     for the years 1949-1962, there was no corresponding    evidence on behalf of the     appellants indicating sales of their bells with number '50' from which any likelihood of confusion or deception could be deduced. Therefore, s. 11(a) was not attracted.[816-C, G-H; 82 D-F] (4) The true construction of s. 11(e) is that even assuming that the trade marks in question were not distinctive     and for that reason not registerable as not falling within s. 9, that fact, by     itself, would not mean that    they became disentitled to protection in a court. That is, although a mark cannot be registered because it is not distinctive as provided by s. 9, such a mark is not for that    reason    only one, the registration     of which is prohibited     by s.     11, because, the section    lays down positive objection     to registration, and not mere lack of qualification, by using the words disentitled to protection. Therefore, unless     the trade 'mark offends the provisions of s. II, that     is, offends     any of the matters in cls. (a) to (d) of s. 11, or is disentitled to protection in a court under s. 11(e),     the rule

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as to    conclusiveness    of the     validity of    registration embodied in s. 32 -applies.

In the present case, in fact, there was no evidence of any,- fraud having been committed by the respondent at the time of the registration. There was     neither averment by     the appellants nor evidence, that Lucas or any ,other foreign concern had obtained registration of trade marks of '50' or 'Fifty'. 'nose concerns merely used various numerals     for distinguishing one type of bell from another manufactured by them and there was no question of    any piracy by     the respondent. The trade mark had also    be,come     distinctive with respective to the respondent. [82 F-H; 84 D-F] Imperial Tobacco Co. Ltd. v. De Pasquali & Co. 35 R.P.C. 186, referred to.

(5) The principle underlying s. 32(c) is that property in a trade mark exists so long as it continues to be     distinctive of the goods of the registered proprietor in the eyes of the public or a section of the public. If the proprietor is not in a position to use the mark to distinguish his goods    from those of others or has abandoned it or the mark has become so common in the market that it has ceased to connect     him with his goods then there would be no justification     for retaining the    mark on the register. Under s. 32(c)     the marks have to be distinctive at the 'commencement of     the proceedings', that is the proceedings in     which     the conclusive character     of the' Registration arises. Therefore, it may be the date when a suit for    infringement is filed by the proprietor of the trade mark or the date on which the rectification proceedings ;ire filed as a result of the suit. Rights in a trade mark could be abandoned by the owner, but when    such abandonment is sought to be inferred from     the proprietors neglect to challenge infringement the character and extent of the trade of     the infringers and their position would have to be reckoned in considering .whether the registered proprietor was barred by such neglect [84 F-H; 85 A-C, D-E]

In the present case, the progressive increase of the sales of the     respondent's bells from 1949 together with     the evidence of witnesses of the respondent shows that the    said trade marks distinguished the goods of the respondent    from those of other manufacturers.     Also, whether    the crucial date is taken as 1959 or 1961, the date of suit or the    date of rectification proceedings, the evidence     on record indicates that     the trade marks were distinctive.     The respondent has all along been zealously trying to maintain its right, against all infringements. There were     no repeated breaches which went unchallenged by the respondent when known to the respondent.    Mere neglect in a few cases to proceed did not necessarily constitute    abandonment, because, it was in respect of infringements which were     not sufficient to affect the distinctiveness of the mark. There was no .evidence to show that the use by others of the    word 'Fifty'     or the numeral '50' was substantial and the    plea that there was common use of the trade marks     must fail. Therefore, it    is impossible    to sustain the contention founded on s. 32(c). [86 A-E]

Re. Farina, (1879) 27 W.R. 456 and Rowland v. Mitchell, (1897) 14 R.P.C. 37, applied.

(6) The power to rectify under s. 56 is discretionary     and when such .discretion was properly exercised, a court of appeal would refuse to interfere. But, in the present case, the single Judge did not appreciate the principles of    ss., 11 and 32, and hence, the Division Bench was justified in setting aside his order. [86 F]

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JUDGMENT:

CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 1952     and 1953 of 1966.

Appeals from the judgment and order dated February 25,    1965 of the Punjab High Court, Circuit Bench at Delhi in Letters Patent    Appeals     Nos. 38-D and 42-D, and 39-D and 43-D of 1963.

S. T. Desai and Naunit Lal, for the appellants (in both     the appeals).

C. B. Agarwala, K. P. Gupta and R. C. Chadha, for respondent No. 1 (in both the appeals).

The Judgment of the Court was delivered by

Shelat,     J. These two     appeals, under certificate,     are directed against the common judgment and order of the    High Court of Punjab, dated February 25, 1965, passed in    four Letters Patent appeals filed by the two     appellant-companies and the respondent company against the judgment and order of a learned Single Judge of the High Court.

The said appeals were the outcome of two applications filed in the High Court under s. 111 of the Trade and     Merchandise Marks Act; XLIII of 1958 (referred to hereinafter as     the Act) for rectification of the register in respect of     two registered Trade Marks, Nos. 161543 and 161544, registered on November 20, 1953 in respect of cycle bells    manufactured by the respondent company. Registered Trade Mark No. 161543 was the numeral '50' and Trade Mark No. 161544 was     the figure 'Fifty'.

The two appellant companies carry on business in Kapurthala in Punjab, one of them the National Bell Co. Ltd. claimed to be manufacturing bells with numerals '33', '50', '51'     and '40' inscribed on them since 1957, and the other M/s Gupta Industrial Corporation since 1947 with numerals, '20', '50' and '60' inscribed on cycle bells manufactured by it.     The two applications for rectification arose out of suits filed in the     District Court, Lucknow by the respondent-company against     the two appellant companies     on the ground of infringement of its said registered trade marks, the numeral '50' and the figure 'Fifty'. On April 24, 1961 the District Court stayed the said suits at the instance of the appellant companies giving them time for filing the said rectification applications in the High Court.

The grounds alleged in the applications were (1) that     the numeral     '50' and the word 'Fifty' were common to the trade at the time of the original registration and were therefore not distinctive of the bells manufactured by the respondent- company,

Sup. CI- 6

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(2)that     many other manufacturers in the market     were using the numeral '50' and the word 'Fifty' on or in relation to cycle bells, and therefore, the distinctiveness of the    said marks    in relation to the bells manufactured by     the respondent-company, if     any, had been lost, (3) that     the respondent-company did     not get the registration of these marks with any bona fide intention of using them in relation to their cycle bells and that in fact there had been no bona fide use of the said trade marks in relation to their goods before the date of the applications. They also alleged that the respondent-company had fraudulently declared at the time of registration that they    were the originators     or proprietors of the said two marks '50' and 'Fifty'.    Both sides led evidence, oral and documentary, the latter including several price-lists from the possession of some of the dealers in cycle spare parts.

The learned Single Judge, who in the first instance tried the applications, found on a consideration of the evidence that cycle bells with different numerals and in particular the numeral '50' were being sold in the market     before     the respondent-company put its cycle bells with the numeral '50' and the figure 'Fifty' inscribed on them in the market     and continued to be sold right upto 1952 when import of foreign manufactured cycle bells was prohibited, and that despite such prohibition those cycle bells were being sold in     the market    as late as 1958, presumably from old stocks still lingering in the market, though not from any new imported stock.     The learned Single Judge also found that there     was no evidence of the original     registration having    been fraudulently obtained by the respondent-company, that there was no averment by the appellant companies that Lucas or any other concern had obtained registration of any mark either of the     numeral '50'    or the     figure 'Fifty', and    that therefore, cl. (a) of S. 32 did not apply. He further found that cl. (b) of S. 32 also did not apply. He held, however, that the trade mark, namely, the numeral '50' was not at the commencement of the proceedings distinctive of the goods of the respondent company as (a) numerals are prima facie     not distinctive except in the case of     textile goods     as recognised by    Part HI of the Trade and Merchandise Marks Rules,    1959, and (b)     that the numeral '50' was being commonly used     by several dealers     and manufacturers subsequent to the registration thereof by the respondent- company, and that therefore, the registered trade mark,     the numeral     '50', was hit by cl. (c) of S. 32. So far as     the trade mark of the figure 'Fifty was concerned, he held    that there was no evidence that it was used by other parties either    prior to or after the registration thereof by     the respondent-company and in that view declined to rectify or expunge     the trade mark 'Fifty' as seven years    had already elapsed     by the time the rectification proceedings    were launched and could not, therefore, be     challenged on     the ground of absence of distinctiveness as laid down in s. 32. 75

The learned Single Judge, on the basis of his aforesaid conclusions, cancelled the trade mark- No. 161543, i.e., of the numeral '50'.

In the appeals filed against the said judgment the Division Bench of the High Court held (1) that though the use of     the numeral '50' in relation to cycle bells dated back at least 30 years as in the case of Lucas and certain other foreign concerns, the    imports of such goods stopped    from ;about 1952, though some bells were being sold till 1958 presumably from the remaining previous stock, (2) that the numeral '50' in connection    with those foreign made bells was never intended as a trade mark but was used only as an indication of the type or quality, and (3) that statements Exs.    R-2, R-3 and R-4 produced by the respondent-company showed    that sales of its bells with the trade marks '50'    and 'Fifty' inscribed on them had risen from the value of Rs. 19,644 in 1949-50     to Rs. 14.83 lacs in 1961-62.    The Division Bench agreed    with the Trial Judge that cl. (a) of s. 32 did     not apply as there was no question of the original    registration having    been fraudulently procured in 1953. It also held that the trade marks in question could not be cancelled merely    on the ground that if their registration had    been opposed     they would not have    been registered, and    that therefore, the question for determination was whether it was liable to cancellation in view of s. 32(c), which lays down that the section would not apply in cases where the trade mark in question was not distinctive at the commencement of the proceedings. According to the Division Bench, the    word "commencement of proceedings" in cl. (c) of s. 32 meant     the commencement of the    infringement suits filed by     the respondent-company as the proceedings for cancellation    were the off shoots arising from those suits, that therefore, the situation in respect of s. 32(c) had to be assessed in     the light of the state of affairs existing in 1959. According to the Division Bench, the earliest use of the-mark '50' by any concern other than Lucas and other foreign manufacturers was in     1953 by M/s Indian Union Manufacturers Ltd.     The respondent-company, however, had filed a suit against    that company     in 1954 which resulted in    a compromise dated February 5, 1955 whereunder the said company recognised     the exclusive right of the respondent-company to the use of     the word% 'Fifty', 'Thirty' and the numerals '50' and '30', while the respondent-company recognised the right of     the said company to the exclusive use of the words and numerals 'Thirty one', 'Forty one' and 'Fifty one' and '31', '41' and '51', that the respondent-company had also in 1956 similarly taken action against K. R. Berry & Co. of Jullundur for     use by that company of the mark 'Five 50'.     The suit, however, had to     be withdrawn    in 1958 on account of lack     of jurisdiction of the Banaras court where it was filed    that though no fresh suit was

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filed against    that company,    the respondent-company     had opposed     an application by that company for registration of the mark 'Five Fifty' before the Registrar and    that application was then pending in 1962, and lastly, that     the respondent-company had filed in 1959 the two suits against the appellant    companies out of which    these rectification proceedings arose. The Division Bench held that though there was some evidence of the use of the numeral '50' by certain     other concerns after 1953, no importance could be attached to such breaches as there, was hardly any evidence as to when the infringers started manufacturing and     the extent of their manufacture and sales, and that the correct principle applicable    in such cases     was that a     few unchallenged, scattered infringements by a number of traders did not render a registered trade mark common.     As regards the earlier use of the word 'Fifty' and the numeral '50' by Lucas and other foreign concerns, the Division     Bench held that they were not the registered trade marks of those companies and that those concerns had used those marks as merely    type marks. Though the idea    of using '50'     and 'Fifty' was not the original idea of the respondent-company when it obtained registration in 1953, the foreign concerns had ceased importing the goods and though sales of those bells continued until 1958, such sales were from the stock still remaining unsold. Such sales could not     he in     any appreciable bulk. Even if the idea of using, the two marks might have been conceived by the respondent-company from the marks used by Lucas and other foreign concerns, there was no question of any piracy or infringement of those marks as the respondent-company was     the first to     convert what    were originally type marks into registered trade marks. Lastly, it held that    the statements of sales produced by     the respondent-company demonstrated that its sales had    been steadily increasing and that some concerns, finding the     use by the     respondent-company of its marks '50'    and 'Fifty' highly successful, had sought in recent years to    take advantage of am popularity of the cycle bells of respondent- company by imitating its marks.     This fact, however,, could not mean that either in 1959 when the respondent-company filed the suits or in 1961 when rectification     proceedings commenced, the     marks    had ceased to    be .distinctive in relation to the goods of the respondent-company or were, therefore, liable to cancellation under s. 56 by reason of cl. (c) of s. 32. Accordingly, the Division Bench allowed the. respondent-company's appeals and set aside the order of the learned Single Judge cancelling the registration of     its trade mark No. 161543 in respect of the numeral '50'     and dismissed the appeals of the appellant companies. Mr. S. T. Desai for the appellant companies contended    that the two trade marks in question were liable to    cancellation on the grounds that (1) they were common and not distinctive at the

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date of their registration, and therefore, ought never to have been registered, (2) that in any event, the numeral '50' is prima facie not distinctive unless shown to be of such extensive use as to make it distinctive, (3) that there was clear evidence that the respondent-company had imitated the use of these marks by Lucas and other manufacturers, and that therefore, these marks     would    be disentitled     to protection in a court of law, and (4) that the     said marks were not, at the commencement of the     proceedings distinctive, that is, adapted to distinguish the goods of the respondent-company. Mr. Agarwala, on the other hand,, argued    that, (1) the two marks having been registered in 1953 and seven years since then having elapsed at     the commencement of these proceedings, the question whether they were distinctive at the time of registration was not open to dispute, (2) that that being so, there was no    question of any alleged piracy by the respondent-company of the marks of Lucas and other concerns, and therefore, the marks could not be said to be disentitled to protection by a court, (3) that the marks had not lost their distinctiveness at the date of these proceedings under s. 56, and (4) that     the Letter Patent    Bench was, therefore, justified in dismissing these proceedings by the appellant-companies.

A mark under s. 2(j) includes a word, letter or numeral or any combination there-of. A trade mark, as difined in S. 2(v) means in relation to Chapter X (i.e. for offences     and penalties provided in that chapter) a registered trade    mark or a mark used in relation to the goods for the purpose of indicating or so as to indicate a connection in the course of trade between the goods and some person having the right as proprietor to use the mark, and in relation to the other provisions of the Act a mark used or proposed to be used in relation to the goods for the purpose of indicating or so as to indicate a connection in the course of trade between     the goods and some person having the right, either as proprietor or as    registered user, to use the mark and     includes a certification trade mark registered    as such under     the provisions of Chapter VIII. Under s. 9, a trade mark is not registerable in Part A of the register unless it contains or consists of at least one ,of     the essential particulars mentioned therein. One of these particulars in "any other distinctive mark". Cl. (3) of S. 9 defines the expression "distinctive" in relation to the goods in respect of which a trade mark is proposed to be registered, as meaning "adapted to distinguish goods with which the proprietor of the trade mark is or may be connected in the course of     trade    from goods in the    case of which no such    connection subsists either generally or, where the trade mark is proposed to be registered subject to limitations, in relation to use within the "tent of the registration." In determining whether a trade mark is distinctive, regard is to be had whether it is inherently distinctive or is

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inherently capable of distinguishing and by reason of     its use or     any other circumstances it is in fact adapted to distinguish or is capable of distinguishing the goods.    S. 1 1 prohibits certain trade marks from being     registered. These are marks the use of which would be likely to deceive or cause confusion, or the use of which would be contrary to any law or which comprises or contains scandalous or obscene matters     or any matter likely to hurt the religious susceptibilities of any class or section of the citizens, or "(e) which would otherwise be disentitled to protection in a court".     On registration of a trade mark, the registered proprietor gets under s. 28 the exclusive right to the use of such trade marks in relation to the goods in respect of which the trade mark is registered and to obtain relief in respect     of any infringement of such trade mark. Under s. 31, registration is prima facie evidence of its validity. The object of the section is obviously to facilitate proof of title by a plaintiff suing for infringement of his trade mark.    He has only to produce the certificate of registra- tion of his trade mark and that would be    prima facie evidence of his title. Such registration is    prima facie evidence also    in rectification applications under s.     56, which means that the onus of proof is on the person making such application. Being prima facie evidence, the evidence afforded by the registration may be rebutted, but in view of s. 32 that can be done if seven years have not elapsed since the original registration. Even where such    rebuttal is possible, i.e., where seven years have not elapsed, and it is shown that the mark in question was not    registerable under s. 9 as no evidence of distinctiveness was submitted to the Registrar, the registration would not be invalid if it is    proved that the trade mark had been so used by     the registered proprietor or his predecessor-in-interest as to have become distinctive at the date of registration. Sec. 32, with which we are immediately concerned, reads as follows :

"Subject    to the provisions of section 35     and section 46, in all legal proceedings relating to a trade mark registered in Part A of     the register (including applications under section 56), the original registration of the trade mark shall, after the expiration of seven years from the date of such registration, be taken to be valid in all respects unless it is proved-

(a) that the original     registration     was obtained by fraud; or

(b) that     the trade mark     was registered in contravention of the provisions of section 11 or offends

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against the provisions of that section on     the date of commencement of the proceedings; or

(c) that     the trade mark was not, at     the commencement of the proceedings,     distinctive of the goods of the registered proprietor."

We are not concerned with cl. (a) as no such case was    even averred in the applications as pointed out both by the Trial Judge and the Division Bench.    As regards cl. (b), it    will be at once noticed that the clause relates to facts existing both at the time of and after registration. If a mark at the time of registration was such that it was likely to deceive     or cause confusion or its use would be contrary to any law or contained or consisted of scandalous or obscene matters or matter likely to hurt religious susceptibilities or which would otherwise be disentitled to protection of a court, and therefore, was under s. 1 1 prohibited from being registered, cl. (b) would apply, and the    rule as to conclusiveness of the validity of the registration cannot be invoked. That would also be so, if the trade mark at     the date of the rectification proceedings was such as to offend against     the provisions of s. 11. But, unlike cl. (b),     cl. (c) relates to facts which are post-registration facts, existing at the date of the commencement of the proceedings. If the     trade    mark at such date is    not distinctive in relation to the goods of the registered proprietor, the rule as to    conclusiveness enunciated in s. 32 again would not apply.    It would seem that the word 'distinctive' in cl. (c) is presumably used in the same sense in which it is defined in s.    9(3), as the definition of that     expression therein commences with the words "for the purposes of this Act"     and not the words     "for the purposes of    this section,"     the intention of the legislature, thus, being to give uniform meaning     to that expression all throughout the Act. S. 56 deals with the power to cancel or vary registration and to rectify     the register.    Sub-s. 2 thereof confers a right to any person "aggrieved" by an entry made in the register without sufficient cause or by an entry wrongly remaining in the register to apply to the tribunal for expunging or varying     such an entry.     The expression     "aggrieved person" has received liberal construction from the     courts     and includes a person who has, before registration, used     the trade mark in question as also a person against whom an infringement action is taken or threatened by the registered proprietor of    such a     trade    mark.    The words "without sufficient cause" in the section have clearly    relation to the time of the original registration.    Therefore, a person can apply for cancellation on the ground that the trade mark in question was not at the date of the commencement of     the proceedings distinctive in the sense of s. 9(3). The burden of proof, however, in such a case is, as aforesaid, on     the applicant applying under s. 5 6.

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The contention was that numerals, such as '50', are prima facie not considered distinctive and to be, registerable there must be evidence of extensive use. The contention was sought    to be    fortified by showing that contrary to     the practice in England, rules 139 and 140 of the Rules of    1959 permit numerals to be registered as trade marks only in     the case of textile goods.    But that is permitted on account of a long standing practice in that particular trade of using numerals with a view to distinguish goods of a particular manufacturer or a particular type or    quality. It will, however, be noticed that although in the 8th     edition of Kerly on Trade Marks, page 135, it was stated that numerals are considered     to be     prima    facie not distinctive     and registerable only upon proof of their extensive use, the 9th edition     of the same work does not reproduce that passage. On the contrary, at p. 284, the learned editor states    that numerals are capable of registration and that     such marks exist.     For this change the learned editor relies, on     the registered trade mark, "4711" for eau-de-Cologne, which     was the subject-matter of dispute in Reuter v. Mutblens(1).     In that case, however, no contention was raised as to whether the trade mark consisting of a numeral could be     distinctive or not     and the court, therefore, was not called upon to decide    such a     point.     But the parties appear to have proceeded on the assumption that the numeral "471 1 "     was validly registered as a trade mark for that particular brand of eau-de-Cologne by reason of its having gained distinctiveness by extensive use. It is, therefore, not an inflexible rule and that was also conceded by     Mr. Desai, that a mark consisting of a numeral    is necessarily     not distinctive and is not registerable, except only in the case of textile goods, in spite of proof of extensive use. S. 32 in clear terms provides that the original registration of a trade mark, after expiry of seven years from the    date of its     registration shall be taken to be valid in     all respects in all legal proceedings including those under s. 56, except in     the three categories    of cases mentioned therein. It follows, therefore, that no objection that     the trade mark in question was not distinctive and therefore was not registerable under s. 9 can be entertained if such an objection is raised after seven years have lapsed since     the date of its registration as in the present came, nor can an objection be entertained that no proof     of distinctiveness was adduced or insisted upon at the time of the original registration.    This is clear also from the fact that     the three exceptions set out in s. 32 against conclusiveness as to the validity of the registration relate to,     (1) fraud, (2) contravention of s. 11, and     (3)    absence     of distinctiveness at the commencement of the proceedings in question and    not at     the time of     registration.     No contention, therefore,

(1) [1954] Ch. 50.

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can be raised that the trade marks, '50' and 'Fifty',    were not distinctive, i.e., adapted to distinguish the cycle bells    of the     respondent-company at     the date of     the registration, and therefore,    were not registerable     as provided by s. 9 (cf. Paine & Co. v. Daniells & Sons' Breweries Ltd.(1).

But the argument was that the appellant companies were     en- titled    to show under cls. (b) and (c) in s. 32, (1)    that these marks were registered in contravention of S. 11, or that they offended against the provisions of that section on the date of the commencement of these proceedings, and     (2) that they were not    distinctive at     the date of     the commencement of these proceedings.

S.11, as already noticed,, does not, as s. 9 does, lay    down the requisites for registration, but lays down     prohibition against certain marks from being registered. Cls. (b),     (c) and (d) of s. 1 1 obviously do not apply in the present case but reliance was placed on cls. (a) and (e), i.e., that     the use of these trade marks would be likely to deceive or cause confusion and that they were such that they were otherwise disentitled to protection in a court.    The burden of proof being on the appellant companies, the question is : has that burden been satisfactorily discharged ? The evidence relied on by    them was that of dealers in     cycle    spare parts including bells, certain price-lists produced through them and the two representatives of the two appellant companies. That evidence,     no doubt, shows, (1) that for a number of years prior to 1952 bells manufactured by Lucas and certain other foreign concerns with various numerals such as '30', '50' and 61'    inscribed either on the belts or on their cartons     were in the market, (2) that even after 1952 bells with inscriptions thereon, such as "Berry 50", "National 50", manufactured by one of the appellant companies, "Five 50", "Padam 50", "Balco 50" etc. were sold in    the market, (3) that Gupta Industrial Corporation, one of the appellant companies, claimed to have started the manufacture of bells since 1947, calling them "Gupta 50" and the National    Bell Company     likewise began to produce bells, calling    them "National 50" since 1957. But both the learned Single Judge and the Division Bench clearly found, (1) that there was no evidence of any fraud having been     committed by     the respondent-company at the time of the registration; (2) that there was no averment by the appellant companies, much    less any evidence, that Lucas or any other foreign concerns     had obtained registration of trade, marks either of the numeral '50' or the word 'Fifty', that the    indication, on     the contrary, was that those concerns used the different nume- rals, '30', '61', '50' etc. for distinguishing one type of bell from the other manufactured by them; and (3) that about a year prior

(1) [1893] R.P.C. 217, 232.

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to the registration of the trade marks in question in    1953 foreign     bells     were    prohibited from being imported. Obviously, therefore, the evidence as to purchases and sales by the dealers examined by the appellant companies related to bells which had remained unsold from out of the stock earlier imported. As regards the bells called     "Gupta     50" said to have    been manufactured by one of the appellant companies since 1947, no evidence was led to show either the extent    of manufacture     or sale between 1947 and 1953 or thereafter from which the High Court could be asked to    draw any inference     as to     the likelihood of deception     or confusion. Though there was some evidence that foreign made bells Such as Lucas "30", "50" and "61" were being sold as late as 1958, such sales must have been few and far between as they could only be from the remaining stock out of     the earlier     imports. Such sales could hardly be considered as evidence showing a,likelihood of confusion or deception as contemplated by s. 1 1 (a). In fact, the evidence was    that purchasers used to call those bells not by their numerals but simply as Lucas' bells and those manufactured by     the respondent company, as "Asia bells", and in some cases "Asia 50". As against the voluminous sales by the     respondent- company     shown by the statements filed by it for the years 1949-50     to 1961-62, there was no    such corresponding evidence,- indicating     the sales of     other    bells    with numerals, such as "50" inscribed on them from which     any likelihood of    confusion or deception     could    be deduced. Regarding deception, there was indeed no evidence whatsoever in that regard.     There was no question of piracy also on the part of the respondent company as argued by counsel as there was nothing to show that Lucas or any other foreign concerns used this numeral except for distinguishing one type of bell from another manufactured by them. In our view, cl. (a) of s. 11, therefore, is clearly not attracted.

The next question is whether the trade mark "50" or "Fifty" is one which would otherwise be disentitled to protection in a court as laid down in cl. (e) of s. 1 1 so as to attract cl. (b) of s. 32. While construing cl. (e) of S. II, it is necessary to repeat that it deals with prohibition and     not with requisites of registration. Therefore, although a mark cannot    be registered,     for instance,    because     it is     not distinctive, as provided by S. 9, such a mark is not     for that reason only one the registration of which is prohibited by s.    1 1. The section lays down positive objection to registration and not to mere lack of qualification. This is clear from cl. (e) of s. 11, which uses the expression "disentitled to protection", and not the expression    "not entitled to protection". The former contemplates    some illegal or other disentitlement inherent in the mark itself. (see Kerly, 9th ed. 344).

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In Imperial Tobacco Co. Ltd. v. De Pasqualil &     Co.(1)     the appellant company was the proprietor of two trade marks con- sisting of "Regimental Cigarettes" and "Regimental Tobacco". The company brought an action for infringement of its trade marks and for passing off against the respondent who    sold cigarettes under the name of "Pasquali's the Regiment" in packets     and boxes decorated with regimental crests.     The respondent moved to have the trade marks expunged contending that the word "Regimental" was only a laudatory adjective in on use. It was proved that for many years it had been     the practice of regiments to have their crests stamped on their mess cigrettes which were known as "Regimental    Cigarettes". The appellant    company, on the other hand, contended    that under s. 41 of the Trade Marks Act, 1905 (equivalent to s. 32 of our Act) their trade mark could not be expunged     and that s. 1 1    (equivalent also to our     s. 11     ) read in conjunction with s. 41 was not relevant to the question whether     or not a trade mark was registerable.     The Trial Court held against the appellant company stating that if the appellant company's contention was correct, the combined effect    of ss.     1 1 and 41 would be to perpetuate as distinctive a    trade mark that was    incapable of being distinctive and that such a contention was erroneous.     On appeal,     the Court of Appeal reversed the judgment and    held that s. 11 was a qualification of s. 9, that ss. 1 1 and 41 must be construed together, that the more fact that a    mark did not comply with the requisites of s. 9 (i.e. not being distinctive and therefore not registerable) did not bring it within s. II, that the marks did not offend against s. 11 and that under s. 41 their registration was valid. At    page 203 of     the Report,Swinfen Eady, M.R. observed that s. 11 contained a prohibition as to what it shall not be lawful to register and it followed upon s. 9 which provided for     the essentials of    a trade mark.     S. 9 laid down what a registerable trade mark must contain and unless it contained one or the other requisites there set out, it was not     re- gisterable and it was only registerable trade    marks which were entitled to registration.     But even if a mark were to fall within, S. 9, that alone was not necessarily sufficient to entitle it     to registration because it might offend against     s. 11. S. 11, being a qualification of s. 9     and being a provision laying down a prohibition', it did     not contemplate any enquiry on the question whether the, trade mark complied with one or the other requisites enumerated in s. 9, e.g., whether it had the quality of being     distinctive or not. Dealing with s. 41, he observed that it formed a new departure    in dealing with trade    marks and differed widely from the earlier Acts. The present section expressly enacted that the original registration shall, after a lapse of seven years, be taken to 'be valid in all respects,    that is to say, whether the mark originally consisted of or (1) 35 R.P.C. 185.

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contained one    or the other essential proofs or not,    that cannot be enquired into after the lapse of seven years.     It had to be taken to be valid in all respects and what had to be taken to be valid in all respects was the registration of the trade mark unless it offended against the provisions of s. 1 1. That section was a prohibitive section as to a matter which was disentitled to protection in a court, that is, it was intended to exclude from registration what would, otherwise be included or covered under s. 9.    It did     not extend     to a    mark disentitled to    protection because originally not containing one of the essential    particulars. It applied to a different set of circumstances such as    that its use was likely to deceive or confuse etc.     The words "disentitled to protection", he further observed, were not equivalent to "not entitled to protection", which was     the expression used in the earlier Acts. In other words,    they did not mean    that a     trade    mark was not    entitled to protection because it ought not originally to have    been registered as a valid trade mark falling within s. 9. The construction of cl. (e) of s. 11 contended for on behalf of the appellant companies is, therefore, not correct.     The true construction of cl. (e) is that even assuming that     the trade marks in question were not distinctive and for    that reason    not registerable as not falling within s. 9,    that fact by itself would not mean that they became     disentitled to the protection in a court. That being the true import of s. 1 1 (e), the rule as to conclusiveness of the validity of registration embodied in s. 32 applies even to those cases where if full facts had been ascertained at the time of     the registration that registration would not have been allowed provided of course that it does not    offend    against     the provisions of    s.11, i.e., by there being a likelihood of deception or confusion or its bring contrary to any     law or containing obscene matter etc. or    which     would otherwise, i.e., in addition to the matters in cls.(a) to (d) in     s. 1 1 be disentitled to protection in a court. Conse quently, the appellant companies cannot    bring their case for cancellation of the trade marks in question under cl. (b) of s. 32.

There then remains the question whether cl. (c) of s. 32 applies, i.e.,     that the trade marks were    not at     the commencement of the proceedings distinctive of the goods of the respondent company. The distinctiveness of the trade mark in relation to the goods of a registered proprietor of such a trade mark may be lost in a variety of ways, e.g., by the goods not being capable of being distinguished as the goods of such a proprietor or by extensive piracy so    that the marks become publici juris. The principle underlying cl. (c) of s. 32 is that the property in a trade mark exists so long as it continues to be distinctive of the goods of the registered     proprietor in the eyes of the public or a section     of the public. If the proprietor is not in a position to use the mark to

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distinguish his goods from those of others or has abandoned it or the mark has become so common in the market that it has ceased to connect him with his goods, there would hardly be any justification in retaining it on the register.     The progressive increase in the sales of 'Asia Fifty' and 'Asia 50' bells from 1949-50 and    onwards     together with     the evidence of witnesses examined by the respondent company shows that the said trade marks distinguished the goods of the respondent company from those of other manufacturers in the field. Under s. 32 (c) the marks have to be distinctive at the commencement of the proceedings. Prima     facie,     the expression "commencement of the proceedings" would mean     the commencement of proceedings in which the question as to     the conclusive character of the registration, as laid down in S. 32, arises. Such a    question may arise in    a suit     for infringement of the trade mark in which the registered proprietor may     rely on s. 32 to prove his title to     the registered trade mark as also in rectification     proceedings filed as a result of such a suit or    otherwise, and     the period of seven years would have to be calculated according to the particular proceedings in which the conclusive nature of the     validity of registration is relied on. In the prevent case, whether the crucial date for the purpose of s. 32(c) is taken to be 1959 when the suits were filed or    1961 when the appellant companies took out     the. rectification proceedings it makes no difference as it is not possible from the evidence on record to say that the trade marks in question were    not or had ceased to be distinctive.     The indication, on the contrary, is that they were distinctive. That is to be found from the zeal with. which the respondent company     tried to maintain its right in them. The evidence shows that when the respondent company found in 1954    that M/s Indian Union Manufacturers Ltd.,     Calcutta had    been inscribing the word 'Fifty' on its bells, it at once filed an infringement action.     The action ended in a compromise by which the said company acknowledged the respondent company's rights in its trade marks of 'Fifty' and '50'.    Again,    when the attention    of the respondent company was drawn to an advertisement "Five 50", it addressed a notice to     the manufacturers of those- bells.     The case of the respondent company was that Gupta Industrial Corporation started using the word 'Fifty' on its bells in 1958 and not in 1948 as contended by Mr. Desai. In the absence of any evidence as to the     extent of manufacture and sale of those bells it would not be possible to say with any certainty that     the respondent company did not come to know about it till 1958, and therefore, presumed that Gupta Corporation had started using the word 'Fifty' on its bells in that year. According To the appellant National Bell Co., it went into production only in 1957 and in 1959 the respondent company commenced action    against     it. A similar notice of    infringement followed by a suit was also given to M/s Berry & Co.,     but the suit became infructuous on account

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of lack of the jurisdiction of the Court of Banaras where it was filed. This evidence negatives any abandonment of trade marks or letting infringements go unchallenged or misleading the other manufacturers that the respondent company would not interfere it they were to use the same marks. Rights in a mark can, of course, be abandoned by its owner but so long as he    remains the registered proprietor of the mark     and carried     on the business to which the mark is    attached, a plea of abandonment is difficult to sustain.     It would, however, be a different matter if it is shown    that there, were repeated, undisturbed infringements. The evider in the present case does not show that there were repeated breaches which went unchallenged though known    to the     proprietor. Mere neglect to proceed does    not necessarily constitute abandonment if it is in respect of infringements which     are not sufficient     to affect the distinctiveness of the    mark even if the proprietor is aware of them. (see Re. Farina(1) Where neglect    to challenge infringements is alleged,     the character and extent of the trade of    the infringers     and their position have to be reckoned in    considering whether the registered proprietor is barred by such neglect.    [see Rowland v. Mitchell(2) ]. The plea of common use must fail, for, to establish it the use by other     persons should be substantial. Though evidence was produced by the appellant companies to show that there were other bells in the market with 'Fifty' or '50' inscribed on them, no evidence was     led to show that the use of the word 'Fifty' or the numeral '50' was substantial. In these circumstances, it is impossible to sustain the contention founded on cl. (c) of S. 32. Under    s. 56, the power to rectify is     undoubtedly discretionary. Where    such discretion     has been properly exercised, a court of, appeal would refuse to interfere. In the present case, however,    the Trial Court did     not appreciate the principle embodied in ss. 32 and 1 1,    with the result that the    Division Bench     was justified     in interfering with the    discretion exercised by the Trial Court.

In our     view,    the contentions urged     on behalf of     the appellant companies cannot be sustained and consequently the two appeals fail and are dismissed with costs.     There    will be one hearing fee.

V.P.S.     Appeals dismissed.

(1) (1879) 27 W.R. 456.
(2) (1897) 14 R.P.C. 37.