Bombay High Court High Court

The Scotch Whisky Association vs Khoday India Limited on 7 October, 2009

Bombay High Court
The Scotch Whisky Association vs Khoday India Limited on 7 October, 2009
Bench: S.J. Vazifdar
                                            1


pps




                                                                          
                   IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                    ORDINARY ORIGINAL CIVIL JURISDICTION




                                                  
                              CHAMBER SUMMONS NO.1783 OF 2008
                                             IN
                                   SUIT NO.1729 OF 1987.




                                                 
      The Scotch Whisky Association                        ..Plaintiffs.

                  Vs.




                                     
      Khoday India Limited
                         ig                                ..Defendants.


      Dr.Virendra Tulzapurkar with Mr.Amit Jamsandekar
                       
      i/b.Sr.Counsel Little & Co. for the Plaintiffs.

      Mr.F.DeVitre, Sr.Counsel a/w. Mr.Zubin Behram
      Kamdin, Mr.Sagar Divekar i/b. Wadia Gandhy for the
        


      Applicant in Chamber Summons/Defendants.
     



                                            CORAM: S.J. VAZIFDAR, J.

th
DATED: 7 OCTOBER, 2009

JUDGMENT.

1. This is the defendant s chamber summons

seeking an order rejecting the plaint and dismissing

the suit as covered and concluded by the judgment of

the Supreme Court dated 27.5.2008 reported in (2008)

10 SCC 723 in an appeal filed by the defendant

against the plaintiff from the order and judgment of

the Division Bench of the Madras High Court and for

::: Downloaded on – 09/06/2013 15:09:49 :::
2

a declaration that the above suit does not survive

in view of the said judgment.

2. This is an action for passing off. The

plaintiff filed the suit inter alia for the

following reliefs:

a) that it be declared that by using in

respect of whisky not distilled and
matured in Scotland the impugned label

(being Exhibit M) and the impugned
carton (being Exhibit O) containing the

word SCOT and/or the crest of a lion
rampant and the description Distilled
from the Finest Malt and Blended with

the Choicest Whiskies by Scotch Experts

under Government Supervision or the
word SCOT or the device of the lion
rampant or the said description in

respect of the defendant s whisky
manufactured in India, the defendant is
passing off its whisky as Scotch
Whisky ;

b) that the defendant by itself, its
servants and agents be restrained by a
perpetual order and injunction of this
Hon ble Court from advertising or
offering for sale or selling or
distributing in any country whisky which
is not Scotch Whisky under the word

::: Downloaded on – 09/06/2013 15:09:49 :::
3

SCOT or the device of the lion rampant

or the said description or with the
label (being Exhibit M) or the carton

(being Exhibit O) containing the word
SCOT or the device of a lion rampant
and/or the description Distilled from

the Finest Malt and Blended with the
Choicest Whiskies by Scotch Experts
under Government Supervision , or any

other label or carton containing any

description material or any other thing
in respect of whisky which is not Scotch

Whisky by using the impugned label
(being Exhibit M) and/or the carton
(being Exhibit O) containing the

impugned material, so as to pass of or
enable to pass off its whisky as Scotch

Whisky ;

C) that the defendant by itself, its

servants and agents be restrained from
exporting its said whisky to Japan or
Abu Dhabi under the mark PETER SCOT

or the device of a lion rampant or the
said description or using the impugned
label or carton being Exhibits M and
O hereto containing the word SCOT
or the device of a lion rampant or the
description Distilled from the Finest
Malt and Blended with the Choicest
Whiskies by Scotch Experts under

::: Downloaded on – 09/06/2013 15:09:49 :::
4

Government Supervision or any other

description or device or words
suggesting Scottish origin in respect

of the defendant s Whisky or from
placing in the hands of traders or
middlemen in Japan or Abu Dhabi labels

or cartons containing the aforesaid
material so as to enable the traders
and/or middlemen in Japan or Abu Dhabi

to pass off the Defendant s whisky as

Scotch Whisky;

3. Mr. DeVitre submitted that the cause of

action in this suit does not survive in view of the

judgment of the Supreme Court. He submitted that

the cause of action, if any is barred by the

principles analogous to res judicata as the cause of

action in the suit and in the original proceedings

from which the matter reached the Supreme Court is

the same. According to him the issues of

acquiescence and waiver raised by the defendant and

the issue whether the defendants marks, devices and

labels are deceptively similar to the plaintiffs

marks or are likely to cause confusion have been

decided by the Supreme Court in the said judgment.

Thus, he submits the suit is liable to be dismissed

::: Downloaded on – 09/06/2013 15:09:49 :::
5

on the ground of issue estoppel. The decision of

the Registrar in rectification proceedings is

binding between the parties in all proceedings

including the present suit. It is not permissible

for the parties to lead additional evidence in this

suit in view of the judgment of the Supreme Court

which was delivered in the proceeding for

rectification ig commenced before the Registrar of

Trade Marks. In the circumstances, Mr. DeVitre

submitted that the suit is liable to be rejected

under Order VII Rule 11 read with Section 151 of the

Code of Civil Procedure.

4. Considering the nature of the Chamber

Summons it is not necessary to deal with the

disputes between the parties on merits. The

question that arises is whether the suit is liable,

in effect, to be dismissed in view of the said

judgment of the Supreme Court. It is therefore

necessary to refer to the facts only in so far as

they are relevant for this purpose.

5.(A) Plaintiff No.1 is incorporated with the

object inter-alia of protecting and promoting the

::: Downloaded on – 09/06/2013 15:09:49 :::
6

interests of the scotch whisky trade in the United

Kingdom and abroad which it does inter-alia by

prosecuting and defending legal proceedings in any

territory in the world. Plaintiff No.2, John Walker

& Sons Ltd., is a company incorporated in the United

Kingdom carrying on business as distillers, blenders

and dealers of scotch whisky. Plaintiff No.3 is a

company incorporated
ig under the laws of the

Netherland. Plaintiff Nos.2 and 3 are members of

plaintiff No.1. The scotch whisky brands of

plaintiff No.2 stand transferred to plaintiff No.3.

(B) According to the plaintiff, whisky

distilled and matured in Scotland is known

throughout the world as Scotch Whisky. The

description Scotch Whisky means whisky which is

distilled and matured in Scotland and nowhere else.

Any whisky sold under any description, name and

label, device, mark, ticket, get up or emblem which

is evocative of Scotland is likely to be taken as

Scotch Whisky by members of the trade and public.

Accordingly, whisky which is not Scotch Whisky if

dealt with by bearing such name or description is

bound to mislead the public and members of the trade

::: Downloaded on – 09/06/2013 15:09:49 :::
7

all over the world including India. The members of

plaintiff No.1 use words and devices evocative of

Scotland. A number of members of plaintiff no.1 use

brand names including the word SCOT , SCOTT ,

SCOTS such as Captain Scott, Golden Scot, Royal

Scot, Northern Scot, Grand Scot, Scot Royal and

Queen of Scots. Thus, the use of any such device or

description of brand names by any one in respect of

whisky so as to suggest that such whisky emanates

from Scotland, when in fact it does not, would

mislead and is likely to mislead people in general,

and in any event would put them in a state of

confusion.

(C) The details of sales of Scotch Whisky by

the members of plaintiff no.1 and the advertisements

issued by them are referred to, to indicate that

they have acquired an enormous and enviable

reputation and goodwill all over the world including

India. The plaintiffs have also furnished details

of action taken by them, including legal

proceedings, all over the world to prevent attempts

by various traders to pass off their products as

Scotch Whisky.

::: Downloaded on – 09/06/2013 15:09:49 :::
8

(D) The plaint then refers to the device of the

Lion Rampant stating the same to be particularly

evocative of Scotland as the Lion Rampant in red as

well as the yellow background indicates the Royal

Standard of Scotland.



     6.        The defendant has adopted the mark                                PETER




                                     
     SCOT    and    uses
                     ig    it    on    its       labels.          Further,           the

defendant has also adopted the crest of lion rampant

which is a copy of the Scottish Royal Standard. The

crest is in red and on a yellow background, the same

colours as in the standard. The label also bears

the words Distilled from Finest Malt and Blended

With the Choicest Whiskies by Scotch Experts under

Government Supervision .

7. It is averred in the plaint that the

defendant is exporting its product under the brand

name PETER SCOT to Japan where it is sometimes

sold in retail stores among Scotch Whiskies and that

by using the word SCOT , the crest of the Lion

Rampant and the descriptive words, the defendant has

committed the tort by passing off in India, which is

completed in India upon export of the said goods for

::: Downloaded on – 09/06/2013 15:09:49 :::
9

sale in Japan. The law in Japan being a question of

fact is also set out. Similar averments are made in

respect of exports to Abu Dhabi.

8. The suit, therefore was filed inter alia on

the ground that the trade and good will of the

members of the first plaintiff including plaintiff

nos.2 and 3 are being affected by the use of the

impugned label and the impugned carton containing

the impugned mark, device and description as the

same suggest that the defendant s whisky is scotch

whisky.

9. It is important to note that the plaint

proceeds on the basis that the three factors viz.

the word mark, the crest, and the descriptive words

each independently and together are evocative of

Scotland and are therefore causing damage to the

trade and goodwill of the members of plaintiff No.1

and that the defendant is deliberately misleading

the traders and members of the public into believing

that its whisky is Scotch Whisky.

10. The plaint thereafter refers to the search

reports and information received from their trade

::: Downloaded on – 09/06/2013 15:09:49 :::
10

mark agents. The first plaintiff admitted receipt

of notice of the advertisements of the said mark

PETER SCOT in the trade mark journal on 20.9.1974.

It is stated that regrettably no objection was

lodged by the first plaintiff through inadvertance

but that the plaintiff vigorously opposed the other

deceptive trade marks which were applied for

registration of
ig Indian distilleries including the

defendant. The action taken by the plaintiff in

respect of the defendants proposed mark HOGMANY

and OLD ANGUS is referred to.

11. According to Mr. DeVitre the entire cause

of action pleaded in the plaint has been dealt with

and decided in the rectification proceedings which

ultimately resulted in the said judgment of the

Supreme Court. It is necessary therefore to refer

to the judgment of the Supreme Court in considerable

detail. This is for the obvious reason that the

judgment is relied upon not merely as a precedent

but essentially in support of the defendant s

Chamber Summons to have the plaint rejected and the

suit dismissed under Order VII Rule 11 read with

Section 151 of the CPC on the ground that the cause

::: Downloaded on – 09/06/2013 15:09:49 :::
11

of action in the suit does not survive.

12. Before considering the judgment of the

Supreme Court it is necessary to deal with certain

preliminary issues raised by Counsel.

13. Mr. DeVitre submitted that although the

judgment of the Supreme Court is subsequent to the

filing of this
ig suit, the application for the

dismissal thereof is maintainable under Order VII

Rule 11 read with Section 151 of the C.P.C. In

other words according to him an application of this

nature may be based on events subsequent to the

filing of the suit.

14. If indeed the judgment operates as an issue

estoppel or res judicata the fact that it was

delivered after the suit was filed would not bar the

court from granting the reliefs sought in the

Chamber Summons. Subsequent facts even in this

regard can and indeed must be considered by the

Court. This is well established by a series of

judgments. It is sufficient to refer to the

judgment of the Supreme Court in Shipping

Corporation of India v. Machado Brothers (2004)

::: Downloaded on – 09/06/2013 15:09:49 :::
12

11 SCC 168. The Supreme Court held that by the

subsequent event if the original proceedings has

become infructuous it would be the duty of the Court

to take such action as is necessary in the interest

of justice which includes disposing off infructuous

litigations. It is further held that for this

purpose it would be open to the parties to make an

application under Section 151 of the CPC.

15. Mr. DeVitre further submitted that the

finding in a previous proceeding is conclusive in

subsequent proceedings. He relied upon the judgment

of a learned Single Judge of this Court in Rama

Maruti v. Mallappa Krishna [AIR 1942 Bom. 309]. In

this case the plaintiff filed the suit to recover

certain properties on the strength of the adoption

made by a widow to her husband Krishna who was the

owner. After her death the plaintiff s natural

mother acting as his guardian leased the land to

defendant no.3 for ten years after the adoption.

Defendant no.3 in collusion with defendant nos.1 and

2 made over possession to them alleging that he was

a tenant of defendant no.1. The plaintiff therefore

filed the suit to recover the land. Defendant no.1

::: Downloaded on – 09/06/2013 15:09:49 :::
13

admitted that the lands belonged to the adoptive

father but disputed the plaintiffs adoption by him.

The plaintiff relied upon the decision in previous

execution proceedings which were also taken out

against defendant no.1 in which it was held that the

plaintiff had been adopted as contended. It was

held that the principal of res judicata would apply

even though ig the subject matter of the two

proceedings may be different provided the issue is

the same. It was therefore held that the defendants

contention that the plaintiff was not validly

adopted was barred by res judicata.

16. The judgment supports the submission that

for a plea of res judicata it is not necessary that

the subject matter of the two proceedings is the

same. The decision in the execution proceeding was

not merely a finding of fact in support of the

issue, but was a decision upon the issues itself.

It is sufficient if the issue is the same. The

question therefore before me is whether the issues

raised in the present suit were decided by the

Supreme Court in the said judgment.

::: Downloaded on – 09/06/2013 15:09:50 :::
14

17. Mr. DeVitre submitted that even if the

causes of action are different, if the issue is the

same the finding in a previous proceeding will

constitute an issue estoppel in subsequent

proceedings. He submitted therefore that although

the causes of action in the proceeding before the

Registrar of Trade Marks which ultimately reached

the Supreme Court may be different from the causes

of action in the present suit, the finding regarding

acquiescence and waiver as well as whether the

defendants use of the three factors are deceptive or

likely to cause confusion in those proceedings bar

the present suit on the principle of issue estoppel.

He submitted that the evidence and the case in the

present matter is identical to the evidence,

pleadings and the case in its entirety in the

rectification proceedings.

18. The submission on the point of laws is well

founded and finds support in the judgment of a

Division Bench of this Court in Chiranjilal vs. L.I.

Corporation [AIR 1959 Bom 396]. It was held:

(7) But the real and substantial point

::: Downloaded on – 09/06/2013 15:09:50 :::
15

that has been urged by Mr. Laud is that the

cause of action in Suit No.438 of 1934 and
in the present suit are different and

therefore S.11 of the Civil Procedure Code
has no application. Now, what S. 11
requires is not that the causes of action in

the two suits must be identical, but that
the matter directly and substantially in
issued in the subsequent suit should also be

directly and substantially in issue in the
former suit
ig It will be noticed that under
S.11, not only the suit itself may be barred

but also an issue, and therefore what we
have to consider is whether a particular
issue which the plaintiffs seek to be tried

in the suit was directly and substantially
the same in the earlier suit, and in this

connect what is said is that in the present
suit the plaintiffs are seeking a relief on

the basis of a customary right enjoyed by
the Hindu community and it is pointed out
that in the earlier suit the claim was made
on the basis of a dedication made by

Putlibai and therefore it is said that the
metters in issue in the two suits were
different and the decision in the earlier
suit cannot operate as res judicata. When
one analyses the matter a little more
closely it becomes clear that the rights
that the plaintiffs were claiming on behalf
of the Hindu Community in Suit No.438 of

::: Downloaded on – 09/06/2013 15:09:50 :::
16

1984 were the same as are now being claimed

in the present suit. It is true that there
was a contention in the earlier suit that

there was a public charitable trust. There
had to be such a contention because the suit
was under S.92. It is also true that

reliance was placed upon a dedication by
Putlibai. But what is significant is that
the plaintiffs in the suit did not rely upon

any written trust. What they relied upon

was a long and continuous user of certain
rights by members of the Hindu Community and

what was in issue in that suit was whether
the members of the Hindu community had used
as a matter of right the property in suit

for the purpose of religious ceremonies.
Now, that is the exact issue which arises in

the present suit. What is in the present
suit is whether the Hindu community had

performed these religious ceremonies for a
long and continuous period so that they have
become entitled to these rights as customary
rights. In our opinion, what we have to

look at is not the legal for which is given
to the right claimed by the plaintiffs, but
what is the real and substantial right
claimed. Whether a dedication in law can be
inferred from a long and continuous user by
the Hindu community or a customary right can
be inferred; the real matter in issue was
the user by the members of the Hindu

::: Downloaded on – 09/06/2013 15:09:50 :::
17

community. That is what the plaintiffs

contended and that is what the defendants
disputed, and the result was a compromise.

In the present suit the plaintiffs are
putting forward the same contention and the
defendants are contesting the plaintiff s

claim. Therefore, in our opinion, there is
no substance in the contention that the
matters in issue in the two suits are not

the same.

     Mr.    DeVitre
                        
                        submitted      that       although          it     was       not
                       

necessary for the Supreme Court to decide the issues

that arise in this suit, the Supreme Court did deal

with and answer the same. I do not agree. I have

come to the conclusion that the judgment of the

Supreme Court did not decide the issues which arise

in the suit for reasons I will indicate later while

analysing the judgment.

19. Mr. DeVitre submitted that these principles

would apply although the reliefs claimed in the two

proceedings may be different so long as the issue

was the same. The submission finds support from the

judgment of the Supreme Court in case of Pandit

Ishwardas vs. State of M.P. (1979) 4 SCC 163. In

para 7 the Supreme Court held as under:

::: Downloaded on – 09/06/2013 15:09:50 :::
18

7. The plaintiff in both the suits was the

same. The contesting defendant was also the
same, namely the State of Madhya Pradesh. In

the present suit Melaram and the Chief
Conservator of Forests were also im-pleaded
as parties whereas in the other suit some

other person was a party. We do not see that
it makes any difference. In order to sustain
the plea of res judicata it is not necessary

that all the parties to the two litigations

must be common. All that is necessary is
that the issue should be between the same

parties or between parties under whom they
or any of them claim. The issue in the
present suit and the issue in the Dewas suit

were between the same parties namely the
appellant and the State of Madhya Pradesh.

The submission that the subject-matters of
the two suits were different because the

present suit was for a declaration and the
other suit was for damages is equally
without substance since the issue between
the parties was identical in both the suits.

The question at issue in both the suits was
whether the agreement between Melaram and
the Government and the surety bond executed
by the plaintiff were not enforceable
because of the failure to comply with
Article 299 of the Constitution. The ground
on which the agreement and the surety bond
were sustained in the Dewas suit was that

::: Downloaded on – 09/06/2013 15:09:50 :::
19

the Raj Pramukh had ratified the same. The

fact that the ratification by the Raj
Pramukh was not expressly mentioned in the

present suit does not make any difference to
the plea of res judicata. Once the questions
at issue in the two suits are found to be

the same, the fact that the material which
led to the decision in the earlier suit was
not again placed before the Court in the

second suit cannot make the slightest

sustained

difference. The plea of res judicata may be
without anything more, if the

questions at issue and the parties are the
same, subject of course to the other
conditions prescribed by Section 11 Civil

Procedure Code. The submission of the
learned counsel that the decision of the

Dewas Court and the High Court in the other
suit were non est because they upheld an

illegal contract has only to be noticed to
be rejected.

20. Dr. Tulzapurkar submitted that the 1958 and

the 1999 Act specifically preserved and recognized

the right to pursue the common law remedy of passing

off. He submitted therefore that any decision in a

rectification proceeding which is adopted under the

Act cannot affect the right to pursue a passing off

action. To hold otherwise according to him would

::: Downloaded on – 09/06/2013 15:09:50 :::
20

negate the right under Section 27(2).

21. There is no dispute that the Act preserves

the common law remedy of passing off. It does not

follow however that the rule of issue estoppel or

res judicata do not apply to a passing off action

qua a decision in a rectification proceeding. I

find nothing in the language of the Act or the

C.P.C. in

general and in sections 27 and 11

thereof respectively in particular which excludes

the operation of the principles in a passing off

action qua other actions. If the issue of passing

off is decided the judgment would operate as an

issue estoppel or as res judicata in subsequent

proceedings. Whether the issue of passing off is

decided or not is a different matter altogether.

That necessarily must be examined when an action is

sought to be defended on the principles of res

judicata and issue estoppel.

22. In Indo-Pharma Pharmaceutical Works Pvt.

Ltd. vs. Pharmaceuticals Company of India [1977 BLR

73], a learned Single Judge of this Court applied

the principle of issue estopped in proceedings under

::: Downloaded on – 09/06/2013 15:09:50 :::
21

the said Act. It is important to note that the

learned Judge followed the judgment of the High

Court of Mysore in K.R. Chinnakrishna Shetty vs.

Ambalal & Company [AIR 1973 Mysore 74]. The learned

Judge applied the principles in a case under the Act

in a passing off action. After referring to the

commentaries and judgments on issue estoppel and res

judicata andig principles analogous thereto, the

learned judge observed as under:

The third decision is of the High Court of
Mysore viz. K. R. Chinnakrishna Setty v.
Ambal & Co. [(1973) A.I.R. Mys. 74]. This

was also a trade mark action in which it was

held that the decision given in the earlier
proceedings between the same parties with
regard to registration of the trade mark

operated as res judicata in a proceeding
under s. 105. The plaintiffs in the appeal
before the Mysore High Court were Sri Ambal

& Co., Madras, a registered firm carrying on
business in manufacture and sale of snuff.

The suit was instituted by the plaintiffs
against the defendants under s. 105 of the
said Act for an injunction restraining the
defendants from using, exhibiting or
advertising by themselves or through their
servants or agents or others the offending

::: Downloaded on – 09/06/2013 15:09:50 :::
22

trade mark Sri Andal Snuff or Sri Andal

Officers Snuff or any other colourable
imitation of the plaintiffs registered

trade mark Sri Andal Snuff: and from
trading under the name and style of Sri
Andal & Co. or any other name and style

which was a colourable imitation of the
plaintiffs trading style Sri Ambal & Co.
Earlier defendants No.1 had filed an

application before the Registrar of Trade

Andal

Marks for registration of their mark
and the Assistant Registrar
Sri
had

allowed the said application holding that
the mark Sri Andal was not deceptively
similar to the plaintiffs trade mark Sri

Ambal and therefore s. 12(l) of the said
Act was not contravened. The objections of

the plaintiffs in the notice of opposition
to the application had been over-ruled by

the Assistant Registrar. Aggrieved by the
said order of the Assistant Registrar, the
plaintiffs had filed the appeal, which was
allowed by a single Judge and the decision

of the single Judge confirmed in the Letters
Patent Appeal by a division Bench and
subsequently by the Supreme Court. In the
suit counsel for the defendants tried to
urge the contentions which are indicated in
para 6 of the report. The Court held that
the decision in the matter of the trade mark
application and the plaintiffs opposition

::: Downloaded on – 09/06/2013 15:09:50 :::
23

would govern the rights of the parties in

the suit also observing that if a mark
cannot be registered on the ground that it

contravenes s. 12(l), then it follows that
the user of the said mark will have to be
restrained also in the suit filed under s.

105 (see para. 9 of the report). According
to the Mysore High Court, the decision given
in the earlier proceedings must operate as

res judicata at the subsequent stage when a

suit is filed and it sought support for the
view in decision of the Supreme Court in Raj

Lakshmi Dasi vs. Banamali Sen [(1953)
A.I.R.S.C.33]. Thus the principle was
applied although the earlier decision was

not one in a suit and, therefore, the same
could not be brought within the four corners

of s.11 of the Code of Civil Procedure.

23. Dr. Tulzapurkar submitted that the courts

are reluctant to apply the principle of issue

estoppel in passing off cases on the basis of a

decision rendered in proceeding under the Act such

as for rectification. Dr. Tulzapurkar relied upon

the commentary in Narayana Trade Marks and Passing

Off, 3rd Edition page 712 para 1489 and the judgment

of a learned Single Judge of the Delhi High Court in

the case of Hindustan Pencils Pvt. Ltd. vs.

::: Downloaded on – 09/06/2013 15:09:50 :::
24

Premchand Gupta, [1985 PTC 33] to contend that there

are difficulties in the application of the doctrine

of res judicata on various grounds including that

issues which have to be determined at one time may

cease to operate at another time.

24. That there may be difficulties in applying

the principles of res judicata and issue estoppe1 in

a passing off action does not preclude the operation

of the principles. It is one thing to say that

there may be difficulties in a given case in the

application of these principles to a passing off

action and it is another thing to say that the

principles do not apply to passing off actions.

Neither the commentary nor the judgment suggests

that the principles of resjudicate and passing off

do not apply to passing off actions. They merely

express difficulties in the application of these

principles.

25. Dr. Tulzapurkar then relied upon the

judgment of the Supreme Court in National Sewing

Thread Co. v. James Chadwick & Bros [(1953) SCR

1028]. The respondent in that case started the

::: Downloaded on – 09/06/2013 15:09:50 :::
25

passing off action in the District Court which

failed on the ground that the evidence offered on

their behalf was meager and they failed in proving

that there was any probability of purchasers

exercising ordinary caution being deceived in buying

the defendants goods under the impression that they

were the plaintiffs goods. The appellants made an

application to the Registrar of Trade Marks for the

registration of their mark in respect whereof the

passing off action had been filed. The respondents

opposed the same. The Registrar came to the

conclusion that the appellant s mark was likely to

deceive and cause confusion. The appellants

preferred an appeal against the order of this Court

which allowed the appeal. In the respondent s

Letters Patent Appeal the Division Bench of this

Court set aside the judgment and restored the order

of the Registrar. The Supreme Court dismissed the

appeal holding that the appellants had failed to

discharge the onus that rested heavily on them to

prove that the trade mark which they wanted the

Registrar to register was not likely to deceive or

cause confusion. In paragraph 24 the Supreme Court

::: Downloaded on – 09/06/2013 15:09:50 :::
26

held as under:

24. The learned counsel for the appellants

contended that the question whether his
clients trade mark was likely to deceive or
cause confusion had been concluded by the
earlier judgment of the Madras High Court in
the passing off action and already referred

to in an early part of the judgment. It is
quite clear that the onus in a passing off
action rests on a plaintiff to prove whether
there is likelihood of the defendant s goods
being passed off as the goods of the
plaintiffs. It was not denied that the

general get up of the appellants trade mark
is different from the general get up of the
respondents trade mark. That being so, it

was held by the Madras High Court in the
passing off action that on the meagre
material placed on record by the plaintiffs

they had failed to prove that the
defendants goods could be passed off as the
goods of the plaintiffs. The considerations
relevant in a passing off action are
somewhat different than they are on an
application made for registration of a mark

under the Trade Marks Act and that being so
the decision of the Madras High Court
referred to above could not be considered as

relevant on the questions that the Registrar
had to decide under the provisions of the
Act.

26. The Supreme Court did not apply the

principles in the facts of that case. However, the

judgment does not hold that the principles of res

judicata and issue estoppel are inapplicable to

passing off actions. Nor do I read the judgment as

having impliedly overruled the judgment of this

Court in Indo Pharmaceutical Works Pvt. Ltd.

27. Dr. Tulzapurkar submitted that passing off

::: Downloaded on – 09/06/2013 15:09:50 :::
27

is a continuous cause of action. The judgment in a

previous proceeding therefore would not operate as

res-judicata in subsequent proceedings. Nor would

the principle of issue estoppel be applicable

thereto.

28. I am unable to accept these propositions

stated so broadly. That would depend upon the facts

and circumstances of the case.

ig If for instance,the

facts in the subsequent proceeding are the same or

no more than the facts in the proceeding in which

the judgment has been delivered and the issue of

passing off has been considered therein, I see no

reason why the principles of res judicata and issue

estoppel cannot apply merely because the decision is

in respect of a cause of action which is of a

continuing nature. The mere fact that the cause of

action is a continuous one would not be

determinative of the question. This would depend on

the facts of each case. Thus, Dr. Tulzapurkar s

reliance upon the judgment of the Supreme Court in

Bengal Waterproofing Ltd. vs. Bombay Waterproofing

Mfg. Co. [1997(1) SCC 99] in support of his

submission that passing off furnishes a continuous

::: Downloaded on – 09/06/2013 15:09:50 :::
28

cause of action is of no assistance in this regard.

29. This brings me to the said judgment of the

Supreme Court in Khoday Distilleries Ltd. vs. Scotch

Whisky Association & Ors. [(2008) 10 SCC 723 = 2008

(37) PTC 413] on the basis of which this Chamber

Summons has been taken out.

30. I will refer to the facts leading to the

filing of the appeal before the Supreme Court from

the judgment itself, for Mr. DeVitre submitted that

the Supreme Court had itself noticed certain facts

and that the decision ultimately must be seen in the

light thereof.

(A) Plaintiff no.1 and the defendant in this

suit were the respondent and the appellant

respectively before the Supreme Court. I will

however refer to the parties as they are arrayed in

this suit. The defendant filed an application for

registration of its mark PETER SCOT before the

Registrar of Trade Marks, who was the third

respondent in the appeal before the Supreme Court.

The application was accepted and the defendant was

allowed to proceed with the advertisement subject to

the condition that the mark would be treated as

::: Downloaded on – 09/06/2013 15:09:50 :::
29

associated with another mark. No opposition was

filed by the plaintiff in the proceeding initiated

by the defendant for registration of the trade mark.

The defendant s trade mark was registered. The

plaintiffs came to know of the same on 20.9.1974.

The plaintiffs however filed application for

rectification on 21.4.1986. The Supreme Court noted

the fact that the present suit had been filed for

passing off and that the same was pending. The

defendant showed cause to the application for

rectification.

(B) The following issues framed by the third

respondent were noted by the Supreme Court:

Several issues were framed by the 3rd
respondent in the said proceedings which were

as under:

(1) Whether the applicants are persons
aggrieved under Section 56?

(2) Whether the application for rectification

is not maintainable due to any misjoinder
of the applicants?

(3) Whether the impugned mark was not
distinctive of the goods of the registered
proprietors at the commencement of the
rectification proceedings?

(4) Whether the impugned registration
contravenes Section 11 at the commencement
of rectification proceedings? And

(5) Whether the mark is liable to be rectified
and if so, in what manner?

::: Downloaded on – 09/06/2013 15:09:50 :::
30

It is pertinent to note that the Supreme

Court in paragraph 20 of the Judgement noted that in

support of their application the plaintiffs had

raised before the third respondent the following

grounds:

(1) The mark is not distinctive.

(2) It was not capable of distinguishing

itself as the goods of the appellant.

(3) The use of the mark is likely to deceive
or confuse.

(4) Non-user of the mark.

The plaintiffs succeeded only on the third ground.

(C) The learned Judges noted that they were

primarily concerned with issue no.4 above, which was

dealt with by the third respondent in detail. The

third respondent held that the mark had been used

deceptively for a long time and although there was

an unexplained and inexcusable delay on the part of

the plaintiff in filing the rectification

application, the defendant had failed to establish

its plea of acquiescence/delay and the plea of

deceptive element in the impugned mark had not been

displaced or rebutted by evidence of the defendant.

::: Downloaded on – 09/06/2013 15:09:50 :::
31

(D) Mr. DeVitre placed strong reliance upon

paragraph 10 of the judgment which quotes the

finding of the third respondent regarding the

plaintiff s plea that the impugned registration is

contrary to Section 11 of the Trade & Merchandise

Marks Act, 1958. He relied upon the same for the

reason that the quotation refers to two factors,

namely the

presence of the word SCOT in the

defendants mark PETER SCOT and the presence of the

slogan/descriptive words namely Distilled from the

Finest Malt and Blended with the Choicest Whiskies

by the Scotch Experts under Government Supervision .

In fact these two factors as well as the third

factor, namely the box or carton used by the

defendant containing the emblem of the Rampant Lion

is referred to more than once in the judgment. It is

sufficient in this regard to refer to paragraph 18

of the judgment which reads as under:

18. It is not in dispute that the
appellant manufactures whisky under the
brand name Peter Scot . The box of the
carton contains the emblem of Rampant
Lion . It is a malt whisky. On one side
of the box it is stated PRIDE OF

::: Downloaded on – 09/06/2013 15:09:50 :::
32

INDIA and on the other Khoday

Distilleries Private Limited . Apart
from the said information on the right

hand side of the label it is stated
Distilled from the Finest Malt and
Blended with the Choicest Whiskies by

Scotch Experts under Government
Supervision .

(E). The application for rectification was

allowed.

The defendant s appeal under Section 109

of the Act was dismissed by the learned Single

Judge. The Supreme Court has quoted the observation

of the learned Single Judge rejecting the

defendant s contention based on the plaintiff s

acquiescence, the absence of any evidence having

being led by the defendant and its not having cross-

examined the plaintiff s witness who had filed the

affidavit in support of the application for

rectification and the finding that the trade mark

had been adopted to take advantage of the goodwill

developed by the members of the plaintiff. The

Supreme Court also noted the observation of the

learned Judge criticising the affidavits filed on

behalf of the plaintiff but holding that the same

did not help the defendant to avoid rectification.

::: Downloaded on – 09/06/2013 15:09:50 :::
33

(F) The judgment then refers to certain

observations of the Division Bench of the Madras

High Court dismissing the defendant s appeal against

the order and judgment of the learned Single Judge.

Mr.DeVitre placed reliance on the quotation from the

judgment of the Madras High Court in paragraph 13 of

the judgment. Paragraph 13 of the judgment of the

Supreme Court reads as under:

Feeling aggrieved, an intra-court appeal

was preferred thereagainst by the
appellant. A Division Bench of the High
Court, as noticed hereinbefore, dismissed
the said appeal. The Division Bench noticed
at some length the submissions made by the
parties to inter alia hold:

We have carefully considered the abovesaid
submissions made by the counsel on either

side. In our considered view, the use of
the device Lion Rampant and the abovesaid
description especially the description
Distilled from the Finest Malt and Blended
with the Choicest Whiskies by Scotch

Experts under Government Supervision is
definitely intended to lead the consumers
to believe that the whisky manufactured by
the appellant is Scotch whisky. Though
specific averments as abovesaid have been
made in the affidavit on Ian Barclay, the
same have not been rebutted by the

appellant by adducing rebuttal evidence.
The appellant has also not chosen to cross-
examine Ian Barclay on the averments
contained in the affidavit. Therefore, we
are of the considered view that both the
third respondent and the learned Single
Judge have considered all the relevant
materials available on record and have
exercised their discretion properly and as
such we do not find any reason to interfere
with the judgment of the learned Single
Judge.

(G). The judgment then proceeds to record the

::: Downloaded on – 09/06/2013 15:09:50 :::
34

submissions on behalf of the learned Counsel

appearing before the Supreme Court. As Mr. DeVitre

placed considerable reliance upon the submissions of

the counsel both on behalf of the appellant and the

respondent in support of his contention that the

issues raised in the suit were raised before the

Supreme Court and decided by the Supreme Court, it

is necessary to set the same out.

14. Mr R.F. Nariman, learned Senior

Counsel appearing on behalf of the
appellant, submitted:

1. Respondent 3 as also the High Court
committed a serious error insofar as they
failed to take into consideration that in
view of the statement made in the affidavit

affirmed by Ian Barclay that the
respondents were aware of infringement of

the mark as far back in 1974 but as no
action was taken in relation thereto till
1986, the application for rectification was
barred under the principles of waiver and
acquiescence.

2. Long delay of 14 years caused in
filing the said application for
rectification should have been held to be
fatal having regard to the fact that the
same caused immense prejudice to the
appellant as in the meantime, the sale of

the appellant had gone many folds.

3. Acquiescence on the part of the
respondents would amount to waiver, if not
abandonment, of their right as any order
passed for rectification of the mark being
unconscionable and inequitable, the same
should not have been allowed.

4. The word Peter Scot allegedly being
evolved of Scotland cannot be held to be a
subject-matter of passing off as:

::: Downloaded on – 09/06/2013 15:09:50 :::
35

(a) Purchasers of the same are discerning;

(b) They are aware of the brand which they
would be purchasing;

(c) Rich and wealthy people would only
ordinarily purchase goods like Scotch
whisky and they being literate cannot
possibly be pulled by the word Scot

knowing that they are purchasing Scotch
whisky, particularly in view of the
fact that on the label as also on the
box, it has categorically been
mentioned that the product is a PRIDE
OF INDIA and is manufactured at

Bangalore in India.

5. The Division Bench committed a serious
error insofar as it failed to take into
consideration the aforementioned arguments
of the appellant, although categorically

noticed by it, so far as if the label is to
be looked at in its entirety, the emblem of
Rampant Lion with the words Distilled from
the Finest Malt and Blended with the
Choicest Whiskies by Scotch Experts under
Government Supervision must be read with

the word PRIDE OF INDIA and the names of
the appellant and the fact that it was

manufactured at Bangalore.

6. The Division Bench of the High Court
committed a serious error insofar as it
failed to take into consideration that

having regard to the provisions contained
in Section 26 of the Geographical
Indications of Goods (Regulation and
Protection) Act, 1999 (for short the 1999
Act ), the rights of trade marks which had
been acquired through use in good faith
were protected and thereby committed a

serious error in not allowing the appellant
to raise the said contention, on the
premise that the same was being raised for
the first time before it.

15. Mr Ashok H. Desai, learned Senior
Counsel appearing on behalf of Respondents
1 and 2, on the other hand submitted:

(i) The findings of fact arrived at by
Respondent 3 and as affirmed by the learned

::: Downloaded on – 09/06/2013 15:09:50 :::
36

Single Judge and the Division Bench of the

High Court should not be interfered with as
they cannot be characterised as extraneous
or perverse being based on no evidence.

(ii) An application for rectification is
the only remedy in respect of a registered
trade mark which is likely to deceive or
cause confusion for the purpose of
maintaining the purity of register of trade

marks wherefor the extended concept of
passing-off action should be recognised.

(iii) The basic distinction between the
trade mark infringement and passing-off

action is that whereas the former flows
from a statutory right, the latter is
action in tort being in the realm of unfair

competition.

(iv) Courts in India and abroad having
consistently protected Scotch whisky, any

mark carrying words such as Scot, Glen and
Highland should not be allowed to continue.
The appellant by using its product as Peter
Scot, which is an Indian whisky, intended
to be seen as a manufacturer of Scotch
whisky, as would be evident from the

affidavit of Mr Peter J. Warren.

(v) If there is a fraud at inception in
adoption of the name, the court should
discourage such fraud in sternest way. It
is not correct to contend that the delay,
if any, on the part of the respondents

would amount to acquiescence or waiver as
the purpose of filing an application for
rectification is to maintain the purity of
register and public interest.

(vi) There is significant evidence in the
present case as regards confusion

concerning whisky bearing the name of Peter
Scot which having not been controverted or
rebutted would clearly go to show that any
ordinary consumer would tend to believe
that Peter Scot is a Scotch and not an
Indian whisky.

(vii) The label used by the appellant
clearly suggests that it is a Scotch whisky
and not of Indian origin.

(viii) The provisions of the 1999 Act are
not applicable to the facts and
circumstances of the present case.

::: Downloaded on – 09/06/2013 15:09:50 :::
37

31. At the outset of the consideration of the

question as to whether the issues in this suit have

been so decided in the judgment of the Supreme

Court, as to result in the dismissal of the suit, it

is necessary to consider what the Supreme Court in

fact held. That the judgment noted the various

submissions advanced on behalf of the parties is not

relevant.

What is relevant is what was in fact

decided.

32. I do not find anything in the judgment that

leads to the conclusion that the case of passing off

in the present suit was in fact decided against the

plaintiff.

It is important to note that after

referring to the submissions of the learned Counsel

the Supreme Court in paragraph 17 observed that

although a large number of issues had been raised by

the learned Counsel the principal issues which arose

for their consideration were only two. Paragraph 17

of the judgment reads thus:

17. Although a large number of issues have
been raised by the learned counsel for the
parties, we are of the opinion that the
principal issues which arise for our

::: Downloaded on – 09/06/2013 15:09:50 :::
38

consideration are:

(i) Whether the delay on the part of
Respondents 1 and 2 in filing the
application for rectification would amount

to acquiescence and/or waiver?

(ii) Whether Respondent 3 as also the
learned Single Judge and the Division Bench

of the High Court have failed to apply the
correct tests and, thus, misdirected
themselves in law?

After setting out the fact of the case, the

observations of respondent no.3, the learned Single

Judge and the Division Bench of Madras High Court

and the submissions of Counsel, the Supreme Court in

paragraph 21 crystalised the question for its

decision as under:

21. The principal question which arises for

consideration is as to whether the term
Scot would itself be a sufficient ground
to opine that the mark Peter Scot is

deceptive or confusing. Indisputably the
onus of proof would be upon the respondents.

The question arises is as to whether they
have discharged the same or not. (emphasis

applied)

In this paragraph the Supreme Court

confined the consideration whether the term SCOT

would itself be a sufficient ground to opine that

the defendant s mark PETER SCOT is deceptive or

::: Downloaded on – 09/06/2013 15:09:50 :::
39

confusing. In other words, in this paragraph the

Supreme Court did not frame the question as to

whether the other two factors or the three factors

together viz. the mark PETER SCOT , the device of

the Rampant Lion and the descriptive words

constitute passing off / are likely to deceive or

confuse.

33. Mr.

DeVitre however submitted that the

Supreme Court while narrating the facts having noted

all three factors must be presumed to have

considered whether the combination thereof is likely

to deceive or confuse.

34. I do not agree. Firstly, the judgment must

be read for what it states and not what may

logically follow from it. In fact, as noted above

after setting out the submissions of Counsel, the

Supreme Court expressedly observed that it was of

the opinion that the principal issues for their

consideration were only two and specified the same.

In paragraph 59 the Supreme Court framed the

question again as follows:

59. Another principal question which
arises for consideration is as to whether

::: Downloaded on – 09/06/2013 15:09:50 :::
40

the use of the term Scot would itself be

a sufficient ground to form an opinion that
the mark Peter Scot is deceptive or
confusing. Indisputably, the onus of proof
therefor would be on the respondents.

Whether they have discharged the said onus
is the question?

Thus, once again the Supreme Court did not state

that it would decide the question of the three

factors taken together being deceptive or confusing.

35.
Mr. DeVitre however submitted that I ought

to presume that the Supreme Court intended to and

infact did hold that the three factors viz. the mark

PETER SCOT , the label with the device of the

Rampant Lion and the legend taken independently or

together would be deceptive or confusing. He said

this was clear from a combined reading of paragraph

63, 77, 80 (part) and 82. As strong reliance was

placed on these paragraphs, I will set them out in

their entirety.

63. The law in this regard has been
specifically stated in Kerly s Law of Trade
Marks and Trade Names, 13th Edn., p.

600 in the following terms:

(3) If the goods are expensive or
important to the purchasers and not of a
kind usually selected without deliberation,
and the customers generally educated
persons, these are all matters to be
considered.

::: Downloaded on – 09/06/2013 15:09:50 :::
41

77. Where the class of buyers, as noticed
hereinbefore, is quite educated and rich,
the test to be applied is different from

the one where the product would be
purchased by the villagers, illiterate and
poor. Ordinarily, again they, like tobacco,
would purchase alcoholic beverages by their
brand name. When, however, the product is
to be purchased both by villagers and town

people, the test of a prudent man would
necessarily be applied. It may be true that
the tests which are to be applied in a
country like India may be different from
the tests either in a country of England,

the United States of America or Australia.

80. Referring to Kerly on Trade Marks,
which we have referred to hereinbefore, the
learned Judge said: [Bollinger (No. 2)
case848, All ER p. 566 E-F]

And it has been said that regard should not
be had to unusually stupid people, fools
or idiots . Moreover, if the goods are
expensive and not of a kind usually
selected without deliberation and the

customers generally educated persons these
are all matters to be considered . (That is
also a quotation from the same book.)

Various other judicial statements are
collected in the judgment of the Assistant-

Registrar in George Angus & Co. s
Application, Re49, RPC at pp. 31-32, to
which I was referred.

&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&

82. But then we are concerned with the
class of buyer who is supposed to know the
value of money, the quality and content of

Scotch whisky. They are supposed to be
aware of the difference of the process of
manufacture, the place of manufacture and
its origin. Respondent 3, the learned
Single Judge as also the Division Bench of
the High Court, therefore, failed to notice
the distinction, which is real and
otherwise borne out from the precedents
operating in the field. (See Kerly s Law of
Trade Marks and Trade Names, 13th Edn., p.

600.)

::: Downloaded on – 09/06/2013 15:09:50 :::
42

36. I do not see how these observations support

such a wide proposition. I do not read the

commentary from Kerly s Law of Trade Marks and Trade

Names cited in paragraph 63 as suggesting that there

can be no passing off in respect of goods that are

expensive or important to the purchasers. There is

no absolute proposition to this effect. They are,

as noted in
ig the commentary, matters to be

considered. These matters however are not decisive.

37. Nor does the observation of the Supreme

Court in paragraph 77 support such a wide

proposition. The tests to be applied have been held

to be different. I do not however read the judgment

as having held as an absolute proposition that

passing off can never occur in respect of products,

including Scotch Whisky, purchased by people who are

educated and rich. These again are but factors,

important factors to be taken into consideration

alongwith all other facts. To hold otherwise would

lead to the absurd result that people at large are

entitled to infringe and pass off marks used in

relation to goods which are used in respect of

products purchased by the educated and well to do.

::: Downloaded on – 09/06/2013 15:09:50 :::
43

38. The observations in paragraphs 80 and 82

were relied upon by Mr. DeVitre to suggest that the

Supreme Court has held that there can never be a

case of passing off in respect of Scotch Whisky

irrespective of the manner in which the marks,

labels and devices are used.

39.

The error in this submission arises from

selecting portions of the judgment and reading them

out of context. The observations must be read in

the context in which they are made. The Supreme

Court in terms stated that the question that fell

for their consideration was whether the use of the

term SCOT would itself be sufficient ground to

form the opinion that the mark PETER SCOT is

deceptive or confusing. Nowhere in this judgment

has the Supreme Court even considered whether the

combination of the three factors is deceptive or

confusing. On the other hand this is one of the

main questions in the suit.

40. In the circumstances Mr. DeVitre s

submission that the judgment of the Supreme Court

::: Downloaded on – 09/06/2013 15:09:50 :::
44

decides the issues raised in the present suit on the

question of passing off is rejected.

41. The defendant has raised the issue of

acquiescence in the present suit in respect of the

plaintiffs case of passing off. Mr. DeVitre

submitted that the Supreme Court also considered the

issues of acquiescence qua passing off alleged by

the plaintiff.

42. The submission is not well founded. I have

already held that the Supreme Court did not consider

the question regarding the combined effect of the

three factors on the question of passing off. If

that be so the finding of the Supreme Court of

delay, acquiescence and waiver must also be confined

to the application for rectification on the basis of

the use of the word mark PETER SCOT in so far as

it includes the word SCOT . This is in fact clear

from the observations of the Supreme Court I

referred to while dealing with the previous issue.

43. The Supreme Court has undoubtedly held that

it would not be correct to contend that under no

circumstances can the principles of delay or

::: Downloaded on – 09/06/2013 15:09:50 :::
45

acquiescence or waiver be held to apply to

rectification proceedings. For instance in

paragraph 32 the Supreme Court has held that the

power of the Registrar under Section 56 of the Act

is wide, it enables the tribunal to make such order

as it may think fit and that when the discretionary

jurisdiction has been conferred on a statutory

authority, the same although would be required to be

considered on objective criteria but as a legal

principal it cannot be said that the delay leading

to acquiescence or waiver or abandonment will have

no role to play. What is important to note however

is that the Supreme Court considered the question of

delay qua the rectification application which was

the original proceeding itself. Even on the

question of delay per se the Supreme Court observed

that whereas action had been taken by the plaintiff

against various others all over the world including

in India, who had used the word SCOT , no action

had been taken against the defendant for the same.

In paragraph 36 it was noted that if the plaintiff

had opposed the registration of the defendant s mark

earlier, then the defendant would have known where

::: Downloaded on – 09/06/2013 15:09:50 :::
46

it stood, and would have withdrawn its application

and started manufacturing whisky of the same quality

with a different brand name. Thus the principles of

acquiescence, waiver and abandonment were considered

in the context of the rectification application and

not in the context of this passing off action. I am

conscious of the fact that in paragraph 43 the

Supreme Court has observed that the rule of waiver

of right is expressly provided for in case of

passing off. What is important however is that the

question of acquiescence or waiver or abandonment

was not decided qua passing off actions per se. The

Supreme Court applied the principles of acquiescence

waiver and abandonment in respect of the application

for rectification which was based inter alia upon

the defendants mark being deceptive or causing

confusion. The conclusion of the Supreme Court in

paragraph 57:

We, therefore in the peculiar facts and
circumstances of this case, are of the
opinion that the action of the respondents
is barred under the principles of
acquiescence and/or waiver

is in the context of the rectification application.

44. The judgment of the Supreme Court may apply

::: Downloaded on – 09/06/2013 15:09:50 :::
47

to this passing off action as a precedent. That

however is an entirely different thing from saying

that it operates as res judicata or as issue

estoppel. There is a fundamental difference of a

very vital nature between a judgment operating as

res judicata or as an issue estoppel in respect of

another proceeding and the judgment operating as a

precedent. In the former case the cause of action

itself would not survive or be extinguished by

virtue of the judgment. In the latter case the

cause of action survives but the issue of law

decided by the Court operates as a precedent against

the party.

45. The consequences of the two situations are

also different and of a vital nature. Where the

judgment operates as a precedent, the avenues of

appeal are always open on the merits of the case as

well as on the law applicable thereto. This is so

even if it is a judgment of the Supreme Court, for

while the judgment would be binding on the lower

courts as well as on a bench of equal strength of

the Supreme Court, theoretically it is always

possible for a larger bench of the Supreme Court to

::: Downloaded on – 09/06/2013 15:09:51 :::
48

take a different view. However, where a judgment

operates as res judicata or issue estoppel this

avenue would not be open on the merits of the case

and the issues therein.

46. The submissions that the issue of

acquiescence decided by the Supreme Court operates

as res judicata or issue estoppel in this suit is

therefore rejected.

47. In the circumstances the Chamber Summons is

dismissed.

::: Downloaded on – 09/06/2013 15:09:51 :::