Supreme Court refuses to let Kent RO sell fans under KENT trademark

The Supreme Court on Friday refused to interfere with a Delhi High Court order restraining Kent RO Systems Limited from manufacturing or selling fans under the trademark “KENT” [Kent RO Systems v Kent Cables].

A Bench of Justices JB Pardiwala and Vinod Chandran found no error in the High Court's interim order in favour of Kent Cables.

“We are of the view that no error, not to speak of any error of law, could be said to have been committed by the High Court in passing the impugned interim order,” the Supreme Court said.

The Court, however, directed that the cross-suits filed by Kent RO and Kent Cables before the High Court be taken up for hearing at the earliest.

“In the peculiar facts of this case, it will be in the interest of justice if the main matter is taken up for hearing at the earliest,” the Court ordered.

In March, a High Court Bench of Justices Navin Chawla and Madhu Jain had upheld an interim order preventing Kent RO from manufacturing or selling fans under the KENT mark.

Kent Cables claimed that it adopted the KENT mark in 1984 for insulated wires, cables and electrical components and obtained trademark registration in 1986. It said it subsequently expanded into electrical appliances and had been selling fans under the KENT mark since around 2009.

Kent RO, meanwhile, claimed that it adopted KENT in 1988 for oil meters before expanding its business to water purifiers, air purifiers and several home appliances. It relied on the substantial goodwill it had acquired in the KENT brand.

The High Court had found that Kent Cables produced material showing use of the mark for fans since at least 2009, including invoices, government approvals, certifications and advertisements.

It had also held that fans constituted a natural extension of Kent Cables' existing electrical wires and cables business.

The High Court further took note of the fact that Kent RO had opposed Kent Cables' trademark application for fans in 2007 and issued a cease-and-desist notice in 2011, but waited until 2022 to institute its suit.

It consequently concluded, at the prima facie stage, that Kent Cables was the prior user of the KENT mark for fans.

This ruling was challenged by Kent RO before the Supreme Court.

During today's hearing, the top court repeatedly questioned Kent RO over its attempt to enter the fan business when Kent Cables was already selling fans under the KENT mark.

“If he is in business for the past two decades and you are now trying to get into it, you have been rightly injuncted,” the Court orally remarked.

Senior Advocate Mukul Rohatgi, appearing for Kent RO, argued that the company was the proprietor of a well-known mark and had registrations covering various products.

He challenged the High Court's finding that Kent RO did not have a trademark registration for fans. Rohatgi also contended that trademark law did not require the company to obtain separate registrations for every product it sold.

However, the Supreme Court was not persuaded to interfere with the interim injunction.

Senior Advocate Jayant Mehta appeared for the Kent Cables.