The defendants were trustees of a trust by the name of Chinar Trust, the trust itself and an Indian Company registered under the Companies Act. The plaintiffs claimed that they had an established business in the sale and distribution of washing machines. The said registrations were allowed to lapse in 1977 and no effort was made to have them restored on the register of trade marks. On the above facts the Justice Lahoti held that Plaintiff can bank upon trans-border reputation for the purpose of maintaining a passing off action. The concept of passing off is based on good business etiquette and commercial necessity.
Unfair competition has to be avoided.
Nobody shall be permitted to acquire for the benefit of oneself by using false means or misleading devices the benefit of reputation and goodwill earned by someone else. The concept needs a thorough and in depth examination. In a passing off action, however the Plaintiff's right is independent of such a statutory right to a trade mark and is against the conduct of the defendant which leads to or is intended or calculated to lead to deception. The mark was not registered in India for threads but was registered for clothing which are allied or cognate goods. The plaintiff itself did not manufacture or market the goods on which the trade mark was used but enjoyed royalties by giving licences to other persons.