{"id":5591,"date":"2025-07-01T10:44:45","date_gmt":"2025-07-01T10:44:45","guid":{"rendered":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/?p=5591"},"modified":"2025-07-01T10:44:56","modified_gmt":"2025-07-01T10:44:56","slug":"bad-faith-under-section-1110ii-of-trademarks-act-1999-requires-more-than-mere-knowledge-of-prior-mark","status":"publish","type":"post","link":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/bad-faith-under-section-1110ii-of-trademarks-act-1999-requires-more-than-mere-knowledge-of-prior-mark\/","title":{"rendered":"Bad Faith Under Section 11(10)(ii) of Trademarks Act 1999 Requires More Than Mere Knowledge of Prior Mark"},"content":{"rendered":"<h2><span class=\"ez-toc-section\" id=\"Introduction\"><\/span>Introduction<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the intricate tapestry of intellectual property law, few cases weave together tradition, commerce, and legal nuance as vividly as the dispute between the Khadi and Village Industries Commission (KVIC) and Girdhar Industries. This case, adjudicated by the High Court of Delhi, delves into the contentious realm of trademark rights, pitting a statutory body tasked with preserving the legacy of &#8220;Khadi&#8221; against a private entity wielding a registered composite mark. At its core, this legal battle questions the boundaries of trademark exclusivity, the validity of registrations, and the equitable principles governing interim relief.<\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #0c0c0c;color:#0c0c0c\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #0c0c0c;color:#0c0c0c\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/bad-faith-under-section-1110ii-of-trademarks-act-1999-requires-more-than-mere-knowledge-of-prior-mark\/#Introduction\" >Introduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/bad-faith-under-section-1110ii-of-trademarks-act-1999-requires-more-than-mere-knowledge-of-prior-mark\/#Detailed_Factual_Background\" >Detailed Factual Background<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/bad-faith-under-section-1110ii-of-trademarks-act-1999-requires-more-than-mere-knowledge-of-prior-mark\/#Detailed_Procedural_Background\" >Detailed Procedural Background<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/bad-faith-under-section-1110ii-of-trademarks-act-1999-requires-more-than-mere-knowledge-of-prior-mark\/#Issues_Involved_in_the_Case\" >Issues Involved in the Case<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/bad-faith-under-section-1110ii-of-trademarks-act-1999-requires-more-than-mere-knowledge-of-prior-mark\/#Detailed_Submission_of_Parties\" >Detailed Submission of Parties<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/bad-faith-under-section-1110ii-of-trademarks-act-1999-requires-more-than-mere-knowledge-of-prior-mark\/#Detailed_Discussion_on_Judgments_Cited_by_Parties\" >Detailed Discussion on Judgments Cited by Parties<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/bad-faith-under-section-1110ii-of-trademarks-act-1999-requires-more-than-mere-knowledge-of-prior-mark\/#Detailed_Reasoning_and_Analysis_of_Judge\" >Detailed Reasoning and Analysis of Judge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/bad-faith-under-section-1110ii-of-trademarks-act-1999-requires-more-than-mere-knowledge-of-prior-mark\/#Final_Decision\" >Final Decision<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/bad-faith-under-section-1110ii-of-trademarks-act-1999-requires-more-than-mere-knowledge-of-prior-mark\/#Law_Settled_in_This_Case\" >Law Settled in This Case<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.legalserviceindia.com\/Legal-Articles\/bad-faith-under-section-1110ii-of-trademarks-act-1999-requires-more-than-mere-knowledge-of-prior-mark\/#Case_Information\" >Case Information<\/a><\/li><\/ul><\/nav><\/div>\n\n<h2><span class=\"ez-toc-section\" id=\"Detailed_Factual_Background\"><\/span>Detailed Factual Background<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The plaintiff, Khadi and Village Industries Commission (KVIC), is a statutory entity established under the Khadi and Village Industries Commission Act, 1956, with its inception tracing back to 1957. KVIC\u2019s mandate is to promote and develop Khadi and village industries, particularly in rural India, as part of a broader socio-economic upliftment agenda. It adopted the trademark &#8220;KHADI&#8221; on September 25, 1956, integrating it into its corporate identity and using it across a wide range of goods and services.<\/p>\n<p>KVIC holds multiple trademark registrations for &#8220;KHADI&#8221; and associated device marks under the Trade Marks Act, 1999, spanning various classes of the NICE classification, with claimed usage dating back to 1956 for most categories. The plaintiff operates an extensive network of over 8,050 sales outlets, hosts websites like <a href=\"https:\/\/www.kviconline.gov.in\">www.kviconline.gov.in<\/a>, and manages a mobile application, &#8220;Khadi India,&#8221; reinforcing its claim that &#8220;KHADI&#8221; is synonymous with its identity and products.<\/p>\n<p>The defendants, Girdhar Industries (Defendant 1) and another entity (Defendant 2), operate under the registered trademark &#8220;GIRDHAR KHADI.&#8221; This mark was registered in Class 3 (covering soaps and detergents) effective from March 4, 2005, with claimed use since April 1, 2001, and in Classes 29 and 30 since July 18, 2007, with claimed use from April 1, 2004. Girdhar Industries markets products like soaps and detergents under &#8220;GIRDHAR KHADI,&#8221; achieving significant sales figures, including over \u20b932 crore in 2020-2021.<\/p>\n<p>KVIC alleges that the defendants\u2019 use of &#8220;KHADI&#8221; infringes its registered trademarks and constitutes passing off, arguing that the prominence of &#8220;KHADI&#8221; in the defendants\u2019 branding misleads consumers into associating their products with KVIC\u2019s heritage.<\/p>\n<p>The dispute escalated when KVIC discovered the defendants\u2019 Class 3 registration in December 2020 and filed a rectification petition to cancel it, followed by this suit in 2022. The defendants counter that their mark is a composite one, distinct from KVIC\u2019s &#8220;KHADI,&#8221; and that they have prior use and registration rights, bolstered by substantial market presence.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Detailed_Procedural_Background\"><\/span>Detailed Procedural Background<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The case, registered as <strong>CS(COMM) 130\/2022<\/strong>, was filed by KVIC in the High Court of Delhi, seeking permanent injunctions against Girdhar Industries for trademark infringement and passing off. Alongside the suit, KVIC moved <strong>IA 3114\/2022<\/strong> under Order XXXIX Rules 1 and 2 of the Code of Civil Procedure, 1908, requesting interim injunctive relief to restrain the defendants from using &#8220;GIRDHAR KHADI&#8221; and &#8220;BR KHADI&#8221; pending the suit\u2019s disposal.<\/p>\n<p>KVIC\u2019s legal journey included prior oppositions to the defendants\u2019 trademark applications in 2017, notably against &#8220;GIRDHAR KHADI&#8221; (Application No. 3409591) in Class 29 and &#8220;BR KHADI&#8221; in Class 3, with counter-statements filed by the defendants on December 26, 2017. These interactions informed the court\u2019s scrutiny of KVIC\u2019s delay and disclosure claims. Meanwhile, KVIC\u2019s rectification petition against the defendants\u2019 Class 3 registration, filed in December 2020, remains pending, adding a layer of complexity to the interim relief analysis.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Issues_Involved_in_the_Case\"><\/span>Issues Involved in the Case<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Whether KVIC established a prima facie case of trademark infringement under Section 29 of the Trade Marks Act, 1999, against the defendants\u2019 registered &#8220;GIRDHAR KHADI&#8221; mark.<\/li>\n<li>Whether the defendants\u2019 use of &#8220;KHADI&#8221; amounts to passing off by leveraging KVIC\u2019s goodwill.<\/li>\n<li>Whether the defendants\u2019 registration is invalid due to bad faith or lack of user evidence, thus overcoming the statutory presumption of validity under Section 31(1).<\/li>\n<li>Whether KVIC\u2019s delay and alleged suppression of facts disentitle it to equitable relief.<\/li>\n<li>Whether the balance of convenience and irreparable loss favor granting an interim injunction.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Detailed_Submission_of_Parties\"><\/span>Detailed Submission of Parties<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>KVIC argued that &#8220;KHADI&#8221; is a well-known mark indelibly linked to its identity, supported by extensive registrations and continuous use since 1956. She highlighted the defendants\u2019 invoices and packaging, which emphasize &#8220;KHADI&#8221; over &#8220;GIRDHAR,&#8221; suggesting an intent to capitalize on KVIC\u2019s reputation. Majumder cited prior judicial recognition of &#8220;KHADI&#8221; as a well-known mark in <em>Khadi &amp; Village Industries Commission v. Raman Gupta (2022 SCC OnLine Del 2264)<\/em> and invoked <em>N.R. Dongre v. Whirlpool Corporation ((1996) 5 SCC 714)<\/em> to assert that passing off can proceed against a registered mark. She contested the validity of the defendants\u2019 registration, alleging bad faith under Section 11(10)(ii) and lack of user proof, referencing <em>National Bell Co. v. Metal Goods Manufacturing Co. Pvt Ltd ((1970) 3 SCC 665)<\/em> to rebut the presumption of validity.<\/p>\n<p>The defendants emphasized their prior adoption of &#8220;GIRDHAR KHADI&#8221; in 2001 and registration in 2005, predating KVIC\u2019s active Class 3 registrations, which lapsed or were proposed-to-be-used. They argued that KVIC failed to prove prior use in soaps, pointing to the absence of pre-2001 evidence and the 2015 registration of KVIC\u2019s domain name. Bansal underscored the defendants\u2019 substantial market presence, with sales exceeding \u20b940 crore, and invoked Section 34 to protect their vested rights. He accused KVIC of suppression, noting its awareness of the defendants\u2019 registration since 2017, and cited <em>Midas Hygiene Industries (P) Ltd v. Sudhir Bhatia ((2004) 3 SCC 90)<\/em> to argue that delay alone does not negate relief but must be weighed with equities.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Detailed_Discussion_on_Judgments_Cited_by_Parties\"><\/span>Detailed Discussion on Judgments Cited by Parties<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Khadi &amp; Village Industries Commission v. Raman Gupta (2022 SCC OnLine Del 2264)<\/strong>: KVIC cited this Delhi High Court ruling to assert &#8220;KHADI&#8221;\u2019s status as a well-known mark.<\/li>\n<li><strong>N.R. Dongre v. Whirlpool Corporation ((1996) 5 SCC 714)<\/strong>: Passing off is actionable against a registered mark.<\/li>\n<li><strong>National Bell Co. v. Metal Goods Manufacturing Co. Pvt Ltd ((1970) 3 SCC 665)<\/strong>: Rebuttal of presumption of validity under Section 31(1).<\/li>\n<li><strong>Automatic Electric Ltd. v. R.K. Dhawan ((1999) 77 DLT 292)<\/strong>: &#8220;KHADI&#8221; is not generic if the defendant itself registered a composite mark.<\/li>\n<li><strong>Ahmed Oomerbhoy v. Gautam Tank (146 (2008) DLT 774)<\/strong>: &#8220;KHADI&#8221; is arbitrary for soaps.<\/li>\n<li><strong>Bloomberg Finance LP v. Prafull Saklecha (207 (2014) DLT 35)<\/strong>: Defendants\u2019 use harms the mark\u2019s reputation under Sections 29(4) and (5).<\/li>\n<li><strong>Midas Hygiene Industries (P) Ltd v. Sudhir Bhatia ((2004) 3 SCC 90)<\/strong>: Both sides relied on this for the impact of delay and equities.<\/li>\n<li><strong>Toyota Jidosha Kabushiki Kaisha v. Prius Auto Industries Ltd ((2018) 2 SCC 1)<\/strong>: High threshold for injuncting a registered mark.<\/li>\n<li><strong>Raman Kwatra v. KEI Industries Ltd<\/strong>: Used to argue lack of reputation under Section 29(4).<\/li>\n<li><strong>Vijay Kumar Ahuja v. Lalita Ahuja (2001 SCC OnLine Del 1215)<\/strong>: Misstatement of cause of action affects relief.<\/li>\n<li><strong>Corn Products Refining Co. v. Shangrila Food Products Ltd ((1960) 1 SCR 968)<\/strong>: Supported distinctiveness of composite marks.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Detailed_Reasoning_and_Analysis_of_Judge\"><\/span>Detailed Reasoning and Analysis of Judge<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Court first examined infringement under Section 28, noting that a registered mark cannot typically be restrained unless its registration is invalid, per Section 31(1)\u2019s presumption of validity. KVIC\u2019s challenge to &#8220;GIRDHAR KHADI&#8221;\u2019s validity rested on bad faith (Section 11(10)(ii)) and lack of user proof.<\/p>\n<p>The judge found KVIC\u2019s assertions insufficient: the assumption of Defendant 1\u2019s awareness of KVIC\u2019s mark in 2005 lacked evidence of dishonesty, and the defendants\u2019 affidavit of use from 2004 satisfied registration requirements prima facie. The pending rectification petition precluded a definitive invalidity finding, leaving Section 28\u2019s protection intact.<\/p>\n<p>On passing off, the judge found scant pre-2001 evidence for KVIC\u2019s use in soaps, whereas the defendants had established use since 2001. Suppression of facts, including KVIC\u2019s 2017 opposition not disclosed in the plaint, fatally weakened its claim. The court found this concealment undermined KVIC\u2019s request for equitable relief.<\/p>\n<p>Balance of convenience favored the defendants due to their longstanding use and substantial sales. Irreparable loss weighed in favor of preserving the status quo, with an order requiring defendants to maintain transparent sales records.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Final_Decision\"><\/span>Final Decision<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The court declined KVIC\u2019s prayer for an interim injunction against the use of &#8220;GIRDHAR KHADI&#8221; and &#8220;BR KHADI,&#8221; dismissing IA 3114\/2022.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Law_Settled_in_This_Case\"><\/span>Law Settled in This Case<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This judgment reaffirms that a registered trademark enjoys robust protection under Section 28, rebuttable only by strong evidence of invalidity. Bad faith under Section 11(10)(ii) requires proof of dishonesty, not just prior knowledge. Material suppression can defeat equitable relief, and delays matter when the defendant has a well-established presence.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Case_Information\"><\/span>Case Information<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Case Title:<\/strong> Khadi and Village Industries Commission Vs. Girdhar Industries and Anr.<\/li>\n<li><strong>Date of Order:<\/strong> December 28, 2023<\/li>\n<li><strong>Case No.:<\/strong> CS(COMM) 130\/2022<\/li>\n<li><strong>Court:<\/strong> High Court of Delhi at New Delhi<\/li>\n<li><strong>Judge:<\/strong> Hon\u2019ble Mr. Justice C. Hari Shankar<\/li>\n<\/ul>\n<p><b>Disclaimer: <\/b>The information shared here is intended to serve the public interest by offering insights and perspectives. However, readers are advised to exercise their own discretion when interpreting and applying this information. The content herein is subjective and may contain errors in perception, interpretation, and presentation.<\/p>\n<p><b>Written By: Advocate Ajay Amitabh Suman<\/b>, IP Adjutor &#8211; Patent and Trademark Attorney<br \/>\nEmail: ajayamitabhsuman@gmail.com, Ph no: 9990389539<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction In the intricate tapestry of intellectual property law, few cases weave together tradition, commerce, and legal nuance as vividly as the dispute between the Khadi and Village Industries Commission (KVIC) and Girdhar Industries. This case, adjudicated by the High Court of Delhi, delves into the contentious realm of trademark rights, pitting a statutory body<\/p>\n","protected":false},"author":56,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"two_page_speed":[],"_jetpack_memberships_contains_paid_content":false,"_joinchat":[],"footnotes":""},"categories":[21],"tags":[],"class_list":{"0":"post-5591","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-intellectual-property"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/wp-json\/wp\/v2\/posts\/5591","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/wp-json\/wp\/v2\/users\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/wp-json\/wp\/v2\/comments?post=5591"}],"version-history":[{"count":0,"href":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/wp-json\/wp\/v2\/posts\/5591\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/wp-json\/wp\/v2\/media?parent=5591"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/wp-json\/wp\/v2\/categories?post=5591"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.legalserviceindia.com\/Legal-Articles\/wp-json\/wp\/v2\/tags?post=5591"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}