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1977 (8) TMI 176 - HC - Indian Laws

Issues Involved:
1. Whether the names "Cibatul" and "Simatul" are deceptively similar.
2. Whether the plaintiff-company has a legal right to prevent the defendant-company from using the name "Simatul".

Detailed Analysis:

Issue 1: Deceptive Similarity of Names
The court examined whether the names "Cibatul" and "Simatul" were so similar that they could cause confusion among the public and consumers. The plaintiff-company argued that "Simatul" was deceptively similar to "Cibatul" and likely to mislead people into believing that the companies were connected. The trial court accepted oral evidence from several dealers who testified that customers were indeed confused by the similarity.

The court emphasized that it must reach its own conclusion on the matter, considering the hypothetical average person with imperfect recollection. The visual and phonetic similarities between the names were significant:
- Both names consist of seven letters.
- Both names share the common component "Atul."
- Phonetically, "Ci" and "Si" are pronounced identically.
- An average person with imperfect recollection would likely confuse the two names.

The court found the differences pointed out by the defendant to be minor and insufficient to prevent confusion. The court concluded that the names were deceptively similar and likely to cause confusion among consumers and the public.

Issue 2: Legal Right to Prevent Use of Name
The court then considered whether the plaintiff-company had the legal right to prevent the defendant-company from using the name "Simatul." The court reviewed several precedents, including cases from English courts and the Bombay High Court, which established that a company could seek an injunction to prevent another company from using a name that was deceptively similar and likely to cause confusion.

The court noted that the plaintiff-company had acquired considerable reputation and goodwill in the chemical manufacturing industry. The defendant-company's use of a similar name was seen as an attempt to capitalize on this goodwill. The court found that the defendant-company's choice of name was not accidental but deliberate and intended to create confusion.

The court issued a perpetual injunction restraining the defendant-company from using the name "Simatul" or any similar name in the manufacture or sale of chemicals and dyes. The court granted the defendant-company six months to change its name to comply with the injunction, ensuring that the business could continue operating during this period.

Conclusion:
The court upheld the trial court's findings that the names "Cibatul" and "Simatul" were deceptively similar and likely to cause confusion. The plaintiff-company was entitled to an injunction preventing the defendant-company from using the name "Simatul" in connection with the manufacture or sale of chemicals and dyes. The appeal was dismissed with costs, and the court refused to grant a certificate of fitness for appeal to the Supreme Court.

 

 

 

 

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