Trade Marks Act, 1999
124. Stay of proceedings where the validity of
registration of the trade mark is questioned, etc .-
(1) Where in any suit for infringement of a
trade mark –
(a) the defendant
pleads that registration of the plaintiff’s trade mark is invalid, or
(b) the defendant
raises a defense under clause (e) of sub-section (2) of section 30 and the
plaintiff pleads the invalidity of registration of the defendant’s trade mark.
The court trying the
suit (hereinafter referred to as the court) shall,-
(i) if any proceedings
for rectification of the register in relation to the plaintiffs or defendant’s
trade mark are pending before the Registrar or the Appellate Board, stay the
suit pending the final disposal of such proceedings.
(ii) If no such
proceedings are pending and the court is relation to the plaintiffs or
defendant’s trade mark is prima facie tenable, raise an issue regarding the
same and adjourn the case for a period of three months from the date of the
farming of the issue in order to enable the party concerned to apply to the
Appellate Board for rectification of the register.
(2) If the party concerned proves to the court
that he has made any such application as is referred to in clause (b) (ii) of
sub-section (1) within the time specified therein or within such extended time
as the court may for sufficient cause allow, the trial of the suit shall stand
stayed until the final disposal of the rectification proceedings.
(3) If no such application as aforesaid has
been made within the time specified or within such extended time as the court
may allow, the issue as to the validity of the registration of the trade mark
concerned shall be deemed to have been abandoned and the court shall proceed
with the suit in regard to the other issues in the case.
(4) The final order made in any rectification
proceedings referred to in sub-section (1) or sub-section (2) shall be binding
upon the parties and the court shall dispose of the suit conformably to such
order in so far as it relates to the issue as to the validity of the
registration of the trade mark.
(5) The stay of a suit for the infringement of
a trade mark under this section shall not preclude the court from making nay
interlocutory order (including any order granting an injunction directing
account to be kept, appointing a receiver or attaching any property), during
the period of the stay of the suit.