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Issues involved:
The judgment deals with the issue of whether a suit alleging passing off of goods can be stayed pending rectification/cancellation proceedings of a registered trade mark u/s 124 of the Trade Marks Act, 1999. Summary: The Appellants challenged an order alleging passing off of goods by the Respondent. The Respondent's trade mark 'Non-Dust' was registered during the suit, and the Appellants objected by filing a rectification/cancellation application pending with the Intellectual Property Appellate Board. The Appellants sought a stay of the suit under Section 124 of the Act. The Court noted that in suits where an application for rectification of a registered trade mark is pending, the Court must stay the suit concerning infringement. Previous cases under the Trade and Merchandise Marks Act, 1958 supported this interpretation. The Court rejected the argument that a suit should not be stayed pending rectification/cancellation proceedings, emphasizing the importance of staying proceedings when a trade mark's validity is in question. The judgment clarified that the passing off action could continue while the infringement claim was stayed pending the Board's decision. In conclusion, the Court held that under Section 124 of the Trade Marks Act, the High Court must stay proceedings in a suit when rectification/cancellation of a registered trade mark is pending. The judgment stayed further proceedings regarding the alleged infringement of the trade mark 'Non-Dust' until the Intellectual Property Appellate Board's decision, allowing the passing off action to proceed.
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