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Issues: (i) Whether the mark sought to be registered was so nearly resembling the existing registered mark as to be likely to deceive or cause confusion under the Trade Marks Act, 1940. (ii) Whether the respondent's prior use of the mark and the appellant's inaction amounted to acquiescence or other special circumstances under the Trade Marks Act, 1940.
Issue (i): Whether the mark sought to be registered was so nearly resembling the existing registered mark as to be likely to deceive or cause confusion under the Trade Marks Act, 1940.
Analysis: The governing test is whether the marks, taken as a whole, are likely to mislead an unwary purchaser of average intelligence and imperfect recollection, having regard to the nature of the goods, the class of purchasers, and all surrounding circumstances. In judging deceptive resemblance, the marks must be compared by their overall structural and phonetic similarity and not by dissecting them into separate components or by relying only on etymological differences. For medicinal goods sold largely to the public at large, the resemblance in sound and structure may be decisive even if the composite words have different literal meanings.
Conclusion: The mark was likely to deceive or cause confusion, and the finding against registration was affirmed on this issue.
Issue (ii): Whether the respondent's prior use of the mark and the appellant's inaction amounted to acquiescence or other special circumstances under the Trade Marks Act, 1940.
Analysis: A trader who knowingly stands by while another, acting in good faith, builds up goodwill under a mark may lose the right to complain. On the facts, the respondent had used the mark for years, advertised it openly, and the appellant and its agents were aware of the use but raised no timely objection until much later. Those circumstances amounted to acquiescence and fell within the special circumstances contemplated by the statute.
Conclusion: Acquiescence was established, and the limitation on registration was justified on this issue.
Final Conclusion: The appeal succeeded and the High Court's decision was set aside, with the Registrar's order restored.
Ratio Decidendi: In assessing deceptive resemblance under trade mark law, the mark must be compared as a whole from the standpoint of an average purchaser with imperfect recollection, and prolonged knowing inaction by the proprietor may amount to acquiescence constituting special circumstances.