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Private Ltd,did bear the name of Kipre and Co
Argument
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Private Ltd.immediately below the mark "Monarch" and that the respondent company's name was printed below it as sole distributors
Argument
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Mr
Argument
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Shah,however,contended that by an agreement Ex
Argument
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F.made between the respondent company and Kipre and Co
Argument
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Private Ltd.in 1951
Argument
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it was clearly provided that the mark "Monarch" belonged to the respondent company,that Kipre and Co
Argument
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Private Ltd.were only to manufacture the food products as ordered by the respondent company and that the food products so manufactured were to be bottled and packed by them for its use and benefit and that,therefore,in spite of Kipre and Co.'s name appearing on the labels,the respondent company was the true proprietor of the mark "Monarch" and that,therefore,it was entitled to apply for its registration as proprietor thereof
Argument
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Now,once again turning to the provisions of s.18 sub-section (I),it is clear that only a person claiming to be the proprietor of a trade mark used by him or proposed to be used by him could make an application to the Registrar for the registration thereof
Statute
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According to this provision,not only a person should claim to be the proprietor of a trade mark but he should prove that he had used it as such proprietor on his goods
Ratio of the decision
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Then turning to the label as it stood at the date of the application,two names appeared on the label,one of Kipre and Co.and the other of the respondent company
Ratio of the decision
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If these two names had stood by themselves without any further description of either of them,it could be said that both Kipre and Co.and the respondent company were jointly the owners of the mark as well as the owners of the goods to which the label was affixed
Ratio of the decision
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But,that is not the case
Ratio of the decision
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The respondent company is described as the sole distributors on the label
Ratio of the decision
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The reasonable inference that could be drawn from this description surely is that the goods were the property of Kipre and Co.and so also the mark
Ratio of the decision
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If the respondent company was really the proprietor of the mark and also the owner of the goods one would expect some such words as "Manufactured by Kipre and Co.for Brandon and Co.,Private Ltd
Ratio of the decision
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In the absence of any such words,a person buying any of these goods on reading the label would naturally believe that what he was buying was the property of Kipre and Co.which was selling its goods under the mark "Monarch
Ratio of the decision
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It is true,as contended by Mr
Ratio of the decision
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Shah,that even distributors and sellers may have marks of their own,but then,there are ways and ways of indicating on the label itself that the mark embodied therein is the mark belonging to such distributor or seller
Ratio of the decision
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Obviously,therefore,on the label as it stood,it could not be said that the respondent company was the proprietor of the mark "Monarch" nor could it be said that the mark was used by the respondent company as proprietor thereof
Ratio of the decision
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Applying the principle of deemed equivalence we may clarify that if the SSI unit wrongly affixes a trade mark of another person,be it registered or not,or if it uses the trade mark of an ineligible person then such default would not be eliminated by the above principle of deemed equivalence embodied in S.28 of the Trade Marks Act,1999 as that principle is based on a deeming fiction which fiction is confined only to the provisions of the Trade Marks Act
Statute
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Before concluding we may refer to the Judgment of this Court in the case of Commissioner of Central Excise,Mumbai v
Precedent
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Bigen Industries Ltd.2006 (197
Precedent
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ELT
Precedent
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305 2006 Indlaw SC 546.In that matter a show cause notice was issued calling upon the assessee to show cause why the exemption be not denied to the assessee
Precedent
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In para '19' of the show cause notice the authority accepted the existence of a deed of assignment
Precedent
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However,the show cause notice denied the exemption on the ground that Notification No.140/83-CE did not make any distinction between a brand name owned by a person in India or abroad
Precedent
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In the present case,the facts are entirely different
Ratio of the decision
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In the present case,there is no deed or assignment from M/s
Ratio of the decision
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Ltd.to the M/s
Ratio of the decision
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Meghraj Biscuits Industries Ltd.(appellants herein).As stated above,there is no proof of acquisition on payment or consideration by the appellants to M/s Kay Aar Biscuits (P) Ltd
Ratio of the decision
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In the present case,there is no evidence of assignment or licence from M/s
Ratio of the decision
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ltd.to the appellants
Ratio of the decision
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In the present case,we are concerned with the retrospective effect of the certificate issued by the Registrar of Trade Marks on 30.6.2000 with effect from 30.9.91
Ratio of the decision
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In the circumstances,the judgment of this Court in the case of Bigen Industries 2006 Indlaw SC 546 (Supra) has no application
Ratio of the decision
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For the aforestated reasons,we do not find any merit in these civil appeals
Ratio of the decision
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Before concluding we may point out that we do not wish to express any opinion on the subsequent events which have taken place in this case
Ratio of the decision
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Our judgment is confined only to the period in question under the impugned show cause notices
Ratio of the decision
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Accordingly,the civil appeals stand dismissed with no order as to costs
Ruling by Present Court
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Appeals dismissed
Ruling by Present Court
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These two appeals involve identical questions and, therefore, are disposed of by this common judgment after noticing the factual position, so far as they are relevant
Facts
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The appellants question correctness of the judgment rendered by a Division Bench of the Madras High Court which held that the withdrawal of benefits extended to the appellants as subsidy was in order
Facts
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The appellants questioned legality or the G.O.Ms No. 989 dated 1.9.1988 directing discontinuance of purchase tax exemption in case of mills which exceeded the ceiling of Rs
Facts
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300 lakes during the period of five years, and Government letter dated 28.12.1988 which made the aforesaid G.O
Facts
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Ms. No. 989 of 1.9.1988 operative retrospectively from 1.4.1988
Facts
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Initially the writ petitions were filed before the High Court, but after constitution of the Tamil Nadu Taxation Special Tribunal (hereinafter referred to as the 'Tribunal') the writ petitions were transferred to the Tribunal which held that on application of the principles of promissory estoppel and legitimate expectation, the withdrawal of benefit was not sustainable in law
Facts
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The State questioned correctness of the judgment before the High Court which, as noted above, held the G.O.Ms, and the Govt
Facts
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letter to be valid, reversing the conclusions arrived at by the Tribunal
Facts
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The judgment forms subject matter of challenge in these appeals
Facts
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In support of the appeals the primary stands raised by the appellants are
Facts
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The doctrines of promissory estoppel and legitimate expectation were applicable to the facts of the case
Argument
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There was no material to show existence of any overriding public interest to rule out application of the aforesaid doctrine there was no scope for retrospective withdrawal
Argument
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In any event, before withdrawal of the benefits, no opportunity of hearing was granted
Argument
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The High Court erroneously came to hold that the State Government had not filed any counter
Facts
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The materials which were produced before the High Court and on the basis of which it is decided that the decision of the Government is in order were not even pleaded in the pleadings and during arguments
Facts
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The appellants were taken by surprise by production of materials which were not even disclosed to the appellants
Facts
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The contents of the files which were produced before the High Court and on which reliance was placed to hold against the appellants are not known to the appellants
Facts
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In other words, there was clear violation of the principles of natural justice
Facts
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The Government's letter dated 28.12.1988 refers to some decision, but in the absence of any authentication as required under Article 166 of the Constitution of India, 1950 (in short the 'Constitution') the same is ineffective
Facts
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In any event, the retrospective withdrawal of the benefit on the basis of an executive decision is impermissible
Facts
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In response, learned counsel for the respondent-State submitted that the appellants have failed to adduce any evidence or material to show that were in any way induced by any governmental action to set up industries
Argument
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In fact, the Government of Tamil Nadu vide G.O.Ms
Argument
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No
Argument
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1294 dated 24.10.1975 granted exemption from purchase tax on sugarcane in favour of sugar mills established in "co-operative and public sectors" in the form of annual subsidy equivalent to purchase tax on sugarcane
Argument
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There was no scope for any mis-understanding that it applied to any private sector participation in the sphere of sugar manufacturing
Argument
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The commercial productions were started in case of appellants in C.A. No
Argument
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8606/2002 i.e. Ponni Sugars (Erode) Ltd. v. Govt
Argument
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of Tamil Nadu & Ors., on 27.1.1984 and in C.A
Argument
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8605/2002 i.e. Bannari Amman Sugars Ltd v. Commercial Tax Officer
Argument
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Ors
Argument
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on 22.1.1986
Argument
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The appellants only made representation to Government subsequently claiming exemption at par with the cooperative and public sector mills
Argument
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As there was no inducement or assurance, the question of any promissory estoppel did not arise
Facts
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So far as legitimate expectation aspect is concerned, it is too well known that the benefit extended can be withdrawn and with this knowledge if the units are set up, the principle of legitimate expectation does not apply
Facts
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The High Court recorded the following findings on the factual aspects
Facts
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The respondents have established their units prior to the Government orders granting the subsidy and they have no vested right to claim exemption
Facts
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No inducement was made in the Government orders to establish the units
Facts
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The respondents have not acted on the basis of the Government Orders for establishing the units
Facts
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The grant of subsidy is a concession and the Government has got good reasons for modifying the scheme in public interest
Facts
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No prejudice is caused to the respondents since the scheme was interested to make the units viable and the modified scheme provides for safeguards to that extent
Facts
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The Order granting subsidy can be withdrawn in public interest
Facts
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The Government has exercised their right to modify the scheme in the interest of public revenue
Facts
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The stand taken by the present appellants before the Tribunal and the High Court was rejected
Facts
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With reference to the files produced, certain factual conclusions were arrived at, the correctness of those form the core challenge in these appeals
Facts
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Estoppel is a rule of equity which has gained new dismensions in recent years
Facts
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A new class of estoppel has come to be recognized by the courts in this country as well as in England
Facts
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The doctrine of 'promissory estoppel' has assumed importance in recent years though it was dimly noticed in some of the earlier cases
Facts
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The leading case on the subject is Central London Property Trust Ltd. v. High Trees House Ltd., [1947] 1 K.B. 130
Precedent
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The rule laid down in High Trees case (supra), again came up for consideration before the King's Bench in Combe v. Bombe, [1951] 2 K.B. 215
Precedent
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Therein the court ruled that the principle stated in High Trees's case (supra), is that, where one party has, by his words or conduct, made to the other a promise or assurance which was intended to affect the legal relations between them and to be acted on accordingly, then, once the other party has taken him at his word and acted on it, the party who gave the promise or assurance cannot afterwards be allowed to revert to the previous legal relationship as if no such promise or assurance had been made by him, but he must accept their legal relations subject to the qualification which he himself has so introduced, even though it is not supported in point of law by any consideration, but only by his word
Precedent
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But that principle does not create any cause of action, which did not exist before; so that, where a promise is made which is not supported by any consideration, the promise cannot bring an action on the basis of that promise
Precedent
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The principle enunciated in the High Trees case (supra), was also recognized by the House of Lords in Tool Metal Manufacturing Co. Ltd
Precedent
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v. Tungsten Electric Co. Ltd., [1955
Precedent
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All E.R. 657
Precedent
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1955] 1 W.L.R. 761
Precedent
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That principle was adopted by this Court in Union of India v. Indo-Afghan Agencies Ltd., AIR (1968
Precedent
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SC 718 1967 Indlaw SC 411 and Turner Morrison and Co. Ltd. v. Hungerford Investment Trust Ltd., [1972] 1 SCC 857 1972 Indlaw SC 190
Precedent
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Doctrine of "Promissory Estoppel" has been envolved by the courts, on the principles of equity, to avoid injustice
Precedent
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Promissory Estoppel" is defined in Black's Law Distionary as "an estoppel which arises when there is a promise which promissor should reasonable expect to induce action or forbearance of a definite and substantial character on the part of promisee, and which does include such action or forbearance, and such promise is binding if injustice can be avoided only by enforcement of promise
Precedent
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So far as this Court is concerned, it invoked the doctrine in Indo Afghan Agencies's case 1967 Indlaw SC 411 (supra) in which is was, inter alia, laid down that even though the case would not fall within the terms of Section 115 of the Indian Evidence Act, 1872 (in short the 'Evidence Act') which enacts the rule of estoppel, it would still be open to a party who had acted on a representation made by the Government to claim that the Government should be bound to carry out the promise made by it even though the promise was not recorded in the form of a formal contract as required by Article 299 of the Constitution
Precedent
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