1998 (8) TMI 627 - HC - Companies Law

Summary

Issues Involved:
1. Perpetual injunction against disparaging advertisements.
2. Temporary injunction application.
3. Alleged disparaging representations by the defendants.
4. Arguments for vacating the interim order.
5. Contentions regarding the nature of advertisements.
6. Legal principles on trade disparagement.
7. Analysis of the advertisements in question.
8. Defendant's affidavit-in-opposition.
9. Defendant's reliance on previous judgments.
10. Court's view on the legality of the advertisements.

Summary:

1. Perpetual Injunction Against Disparaging Advertisements:
The plaintiff sought a perpetual injunction to restrain the defendants from publishing advertisements that disparage the plaintiff's product, Robin Liquid Blue.

2. Temporary Injunction Application:
The plaintiff also applied for a temporary injunction of similar nature. An ex parte order was granted on 1st February 1996, restraining the defendants from publishing the disparaging advertisements.

3. Alleged Disparaging Representations by the Defendants:
The defendant No. 1 allegedly made disparaging representations about Robin Liquid Blue through advertisements published by defendant No. 2, the advertising agent.

4. Arguments for Vacating the Interim Order:
On 19th February 1996, the defendant No. 1 requested to vacate the interim order, arguing that the plaintiff was not entitled to such an injunction based on the facts and law. The court retained the order, stating that the defendants' advertisements disparaged the plaintiff's product.

5. Contentions Regarding the Nature of Advertisements:
The defendants contended that their advertisements did not specifically target the plaintiff's product but the entire class of blue whiteners. They argued that the statements in the advertisements were true and based on scientific research, asserting their product's superiority.

6. Legal Principles on Trade Disparagement:
The court outlined the legal principles:
- A tradesman can claim his goods are the best or better than competitors, even if untrue.
- He can compare his goods' advantages over others.
- He cannot claim competitors' goods are bad, as it constitutes defamation.
- If defamation occurs, an action for damages and an injunction is permissible.

7. Analysis of the Advertisements in Question:
The court found that the advertisements specifically targeted the plaintiff's product by showing its container and price, implying it was uneconomical and technologically inferior. The advertisements suggested that the plaintiff's product left blue patches on clothes, effectively defaming it.

8. Defendant's Affidavit-in-Opposition:
The defendant No. 1 denied targeting the plaintiff's product, claiming the advertisements referred to the general class of blue whiteners. They argued that the bottle shown did not resemble the plaintiff's product and that their statements were factual and scientifically based.

9. Defendant's Reliance on Previous Judgments:
The defendant No. 1 cited judgments from the Monopolies and Restrictive Trade Practices Commission, which required proof of falsity for claims of disparagement. However, the court noted that such proof is not necessary in a civil suit for damages.

10. Court's View on the Legality of the Advertisements:
The court concluded that the advertisements defamed the plaintiff's product by implying it was inferior and harmful. The court confirmed the interim order, restraining the defendants from publishing the disparaging advertisements until the suit's disposal.