2004 (1) TMI 708 - SC - Indian Laws

Summary

Issues involved:
The issues involved in this case are infringement of copyright, passing off, grant of interim injunction, delay and laches in filing the suit, and dishonest adoption of a trademark.

Infringement of Copyright and Passing Off:
The Appellants filed a suit for passing off and infringement of copyright. The learned Single Judge granted an interim injunction preventing the Respondents from manufacturing, marketing, or selling insecticides, pesticides, or insect repellents under the name LAXMAN REKHA, as well as using a packing design similar to that of the Appellants' copyright. The Division Bench vacated the injunction citing delay and laches in filing the suit. However, the Supreme Court held that delay alone is not sufficient to defeat the grant of injunction in cases of infringement. The Court noted that the Respondents had worked with the Appellants and had adopted a mark similar to the Appellants' with dishonest intentions to pass off their goods.

Grant of Interim Injunction:
The law states that in cases of trademark or copyright infringement, an injunction is usually granted. The Court emphasized that if it appears prima facie that the adoption of the mark was dishonest, an injunction becomes necessary. In this case, the Appellants had been using the mark LAXMAN REKHA since 1991, and the Respondents' adoption of a similar mark with a nearly identical packing design indicated dishonest intentions. The Supreme Court held that the interim injunction should have been granted and continued, disagreeing with the Division Bench's decision to vacate it based on delay and laches.

Conclusion:
The Supreme Court set aside the impugned order of the Division Bench and restored the trial court's decision to grant the interim injunction. The Court clarified that all observations made during the proceedings were prima facie and should not influence the trial of the suit. The Appeal was disposed of accordingly with no order as to costs.