The case of KRB Enterprises & Ors. Vs KRBL Limited revolves around a
trademark dispute adjudicated by the High Court of Delhi. This appeal, filed
under Section 13(1A) of the Commercial Courts Act, 2015, challenges an
ad-interim injunction order issued by the District Judge, restraining the
appellants from using the trademark 'KRB', which was alleged to be deceptively
similar to the respondent's registered trademark 'KRBL'. The dispute centers on
allegations of trademark infringement and passing off, with the respondent
claiming prior use and registration of its mark, while the appellants argued
honest adoption and acquiescence by the respondent.
Factual Background: The appellants, comprising KRB Enterprises (a partnership
firm), KRB Rice Mills Private Limited, and Rajesh Kumar Jindal (proprietor of
Jindal Traders), are engaged in manufacturing, trading, and marketing goods such
as rice, coffee, and sugar, falling under Class 30 of the Trade Marks Act, 1999.
The respondent, KRBL Limited, is a well-established company involved in the
production, processing, and marketing of food products like rice, quinoa, and
chia seeds. Incorporated in 1993 as Khushi Ram Bihari Lal Ltd., it adopted the
name KRBL Ltd. in 2000 and has since used the trademark 'KRBL' along with a
device of paddy forming a diamond shape, registered under Class 35 (advertising,
distribution, marketing, wholesale, and retail services related to rice) and
previously under Class 30 (goods like rice). The respondent also holds a
copyright registration for the artistic work of its trademark.
The respondent alleged that the appellants� use of the mark 'KRB' infringed its
registered trademark 'KRBL' and constituted passing off by creating confusion
among consumers. The respondent claimed continuous use of its mark since 2000,
supported by substantial sales figures and advertising efforts, establishing
significant goodwill.
It discovered the appellants� use of 'KRB' in 2016 through trademark
applications and opposed them, but found no market use until May 2022, prompting
the filing of a suit in July 2022. The appellants countered that they adopted 'KRB'
in 2009, derived from the initials of family members, and had been using it
openly without objection. They further claimed that the respondent acquiesced to
their use, as evidenced by commercial transactions since 2014, and argued that
the respondent�s withdrawal of its Class 30 registration indicated abandonment.
Procedural Background: The respondent initiated a suit, CS(COMM) No. 430/2022,
before the District Judge (Commercial Courts), South District, Saket Courts,
Delhi, seeking an injunction against the appellants for trademark infringement
and passing off. On February 21, 2024, the District Judge granted an ad-interim
injunction under Order XXXIX Rules 1 and 2 of the Code of Civil Procedure, 1908,
restraining the appellants from using the 'KRB' mark. Aggrieved, the appellants
filed an appeal (FAO(COMM) 69/2024) before the High Court of Delhi, challenging
the injunction on grounds including lack of jurisdiction, non-use of the
respondent�s mark on goods, absence of deceptive similarity, acquiescence, and
abandonment.
Legal Issue: The primary legal issue in this case is whether the appellants� use
of the trademark 'KRB' infringes the respondent�s registered trademark 'KRBL'
under Class 35 and constitutes passing off, warranting an ad-interim injunction?
Subsidiary issues include whether the respondent�s registration in Class 35
extends protection to goods in Class 30, whether the respondent acquiesced to
the appellants� use of the mark, whether the respondent abandoned its mark by
withdrawing its Class 30 registration, and whether the District Judge had
territorial jurisdiction to entertain the suit?
Discussion on Judgments: The parties relied on several judicial precedents to
support their arguments, each cited in specific contexts to address trademark
law principles, acquiescence, abandonment, and jurisdiction.
The appellants cited Edward v. Dennis, (1885) 30 Ch D 454, to argue that
trademark protection requires actual use on goods, asserting that the
respondent�s non-use of 'KRBL' on its products (which were sold under brands
like 'India Gate') precluded infringement claims.
Similarly, In re Ducker�s Trade Mark, [1929] 1 Ch 113, was referenced to
emphasize that trademark rights depend on use, reinforcing their claim of the
respondent�s non-use.
The appellants also relied on Thermax Trade Mark, (1985) RPC 403, and George Key
Ld�s TM, (1953) 71 RPC, to support the requirement of actual use for trademark
protection.
Have a Break Trade Mark, 1993 RPC Volume 10, was cited to argue that the
respondent�s mark, registered in Class 35 (services), does not extend to Class
30 (goods).
Sumant Prasad Jain v. Sheojanam Prasad, (1973) 1 SCC 56, was invoked to
underline the necessity of use for trademark rights.
On jurisdiction, the appellants cited Dhodha House v. S.K Maingi, (2006) 9 SCC
41, Jay Engineering Works Ltd. v. Ramesh Aggarwal, 2006 SCC OnLine Del 1356,
Indian Performing Rights Society Limited v. Sanjay Dalia, (2015) 10 SCC 161, and
Shree Nath Heritage Liquor Pvt. Ltd. v. Octga Green Power & Sugar Co. Ltd., 2017
SCC OnLine Del 9137, arguing that the suit was filed in the wrong territorial
jurisdiction.
For acquiescence, they relied on Power Control Appliances v. Sumeet Machines,
(1994) 2 SCC 448, and M/s KRBL Limited v. Lal Mahal Ltd. & Anr., 2015 SCC OnLine
Del 13793, asserting that the respondent�s delay and prior business dealings
constituted acquiescence.
On the anti-dissection principle, the appellants cited Stiefel Laboratories v.
Ajanta Pharma Ltd., 211 (2014) DLT 296, Parle Products v. J.P & Co., AIR 1972 SC
1359, and Griffith v. Vick Chemicals, AIR 1956 Cal 654, arguing that the marks
must be compared as a whole, not dissected into parts.
The respondent countered with Laxmikant V. Patel v. Chetanbhai Shah & Anr.,
(2002) 3 SCC 65, Jaquar Company Pvt Ltd. v. Villeroy Boch Ag & Anr., 2023 SCC
OnLine Del 2734, Montari Overseas Ltd. v. Montari Industries Ltd., 1996 16 PTC
142, and Montari Industries Ltd. v. Montari Overseas Ltd., (1995) 15 PTC 399, to
argue that a trade name can function as a trademark if it serves as a source
identifier, supporting their claim of continuous use of 'KRBL'.
For deceptive similarity and dishonest adoption, they cited Midas Hygiene
Industries (P) Ltd. & Anr. v. Sudhir Bhatia & Ors., (2004) 3 SCC 90, Sterling
Agro Industries Limited v. AST Trading Company & Ors., 2024 SCC OnLine Del 1145,
T.V Venugopal v. Ushodaya Enterprises Limited & Anr., (2011) 4 SCC 85, M/s Ansul
Industries v. M/s Shiva Tobacco Company, ILR (2007) I Delhi 409, and Rolex SA v.
Alex Jewellery Pvt Ltd. & Ors., 2009 SCC OnLine Del 753, asserting that the
appellants� mark 'KRB' was likely to cause confusion.
On abandonment, the respondent relied on McCarthy on Trademarks, Chapter 17, and
Hardie Trading Ltd. & Anr. v. Addisons Paint and Chemicals Ltd., (2003) 11 SCC
92, arguing that abandonment requires an intent to permanently relinquish
rights, which was absent given their immediate reapplication for Class 30
registration.
For diligence in protecting their mark, they cited N.R Dongre & Ors. v.
Whirlpool Corporation & Anr., (1996) 16 PTC 476.
On acquiescence, they referenced Make My Trip (India) Private Limited v. Make My
Travel (India) Private Limited, (2019) 80 PTC 491, arguing that low-level
business transactions did not imply management knowledge or consent. Finally, on
the extension of Class 35 protection to Class 30, they cited FDC Limited v.
Docsuggest Healthcare Services Pvt Ltd. & Ors., 2017 (69) PTC 218 (Del),
emphasizing the allied nature of goods and services.
Reasoning and Analysis of the Judge:The Division Bench cited Wander Ltd. v.
Antox India P. Ltd., 1990 Supp SCC 727, and Ramakant Ambalal Choksi v. Harish
Ambalal Choksi & Ors., 2024 SCC OnLine SC 3538, which hold that an appellate
court should not interfere with a trial court�s discretionary order unless it is
arbitrary, capricious, or perverse. The court emphasized that perversity arises
from a complete misreading of evidence or reliance on conjectures, not merely a
different interpretation of facts.
On the substantive issues, the court rejected the appellants� claim that the
respondent�s mark 'KRBL', registered in Class 35, did not extend to Class 30
goods. Citing Section 2(2)(c) of the Trade Marks Act, 1999, and Google Llc v.
DRS Logistics (P) Limited & Ors., 2023 SCC OnLine Del 4809, the court held that
the use of a mark encompasses not only physical application but also any
relation to goods or services, such as advertising or marketing. The
respondent�s extensive documentation, including invoices and sales figures from
2000 to 2021, demonstrated continuous use of 'KRBL' as a source identifier,
satisfying the definition of a trademark under Section 2(1)(zb). The court found
that the appellants� mark 'KRB' was deceptively similar to 'KRBL', as the
dominant parts of the marks were nearly identical, likely causing consumer
confusion, especially given the identical goods (rice) involved.
Addressing acquiescence, the court relied on Power Control Appliances v. Sumeet
Machines, (1994) 2 SCC 448, and Make My Trip (India) Pvt. Ltd., (2019) 80 PTC
491, holding that acquiescence requires positive acts of encouragement, not mere
silence or low-level transactions.
The respondent�s lack of knowledge about the appellants� use until 2022, despite
earlier trademark oppositions in 2016, negated acquiescence. The court also
dismissed the abandonment argument, noting that the respondent�s withdrawal of
its Class 30 registration in 2017, followed by an immediate reapplication, was
due to erroneous legal advice and did not indicate an intent to abandon, as
required by McCarthy on Trademarks and Hardie Trading Ltd., (2003) 11 SCC 92.
On jurisdiction, the court found that the respondent�s pleadings regarding the
availability of infringing products online supported the South District�s
jurisdiction under Section 134 of the Trade Marks Act, deeming the issue a
matter for trial. The court concluded that the respondent established a prima
facie case of infringement and passing off, with the balance of convenience and
risk of irreparable injury favoring the injunction.
Final Decision:The High Court dismissed the appeal, upholding the District
Judge�s ad-interim injunction against the appellants.
Law Settled in This Case: This case reinforces several key principles of
trademark law in India. First, it clarifies that a trade name can function as a
trademark if it serves as a source identifier, even if not physically affixed to
goods, as per Sections 2(1)(m), 2(1)(zb), and 2(2)(c) of the Trade Marks Act,
1999.
Second, it establishes that trademark protection under Class 35 (services) can
extend to Class 30 (goods) if the goods and services are allied, focusing on the
likelihood of confusion rather than strict class boundaries. Third, it
reiterates that acquiescence requires positive acts of encouragement, not mere
silence or low-level transactions, and that abandonment necessitates a clear
intent to relinquish rights. Finally, the case underscores the limited scope of
appellate interference in discretionary injunction orders, requiring a
demonstration of perversity or arbitrariness.
KRB Enterprises Vs KRBL Limited : May 26, 2025 : FAO(COMM) 69/2024
:2025:DHC:4364-DB :High Court of Delhi:Hon'ble Judge: Justice Navin Chawla and
Justice Shalinder Kaur
Disclaimer: 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.
Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark
Attorney], High Court of Delhi
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