Thursday, August 6, 2020

CA’s plea seeking to direct ICMAI to use acronym ICOAI instead of ICAI dismissed

CA’s plea seeking to direct ICMAI to use acronym ICOAI instead of ICAI dismissed

IN THE HIGH COURT OF JUDICATURE AT MADRAS

The Relevant Text of the Order as follows :

12. Nevertheless, in view of the fact that detailed submissions were made by the Appellant and by the third Respondent with regard to the alleged infringement of the statutory rights of the third Respondent, we propose to deal briefly with the said contention. The contention that the statutory rights of the third Respondent are being violated by the first Respondent is founded on two planks.

The first being that Sections 15-A and 24-A of the CA Act prohibit a person from using a name or common seal which is identical with or so nearly resembles that of the CA Institute as to deceive or be likely to deceive the public. It is evident from the language of Section 24-A of the CA Act that the protection is extended to the name and nomenclature. The name of the first Respondent as per the CA Act is the Institute of Chartered Accountants of India.

Thus, from the perspective of alleged violation of the CA Act, the name of the third Respondent, as per the CA Act, and that of the first Respondent, i.e. the Institute of Cost Accountants of India, are not identical. In any event, Section 28 of the CA Act enables prosecution only on a complaint made by the Council of the CA Institute or the Central Government for the violation of provisions such as Section 24A. In these circumstances, no case is made out for the exercise of discretionary jurisdiction by this Court on account of the use of the acronym ICAI. Such question would have to be decided in appropriate legal proceedings initiated by the third Respondent.

CA’s plea seeking to direct ICMAI to use acronym ICOAI instead of ICAI dismissed

13.The second plank on which the Appellant’s case rests is that the third Respondent obtained a trade mark registration for the acronym ICAI and that consequently, the third Respondent is entitled to restrain the use of the acronym ICAI by the first Respondent. The Trade Marks Act enables the registered proprietor of a trade mark to sue for infringement. Even with regard to an unregistered trade mark, it recognizes the right of the proprietor to initiate an action for passing off under common law. Needless to say, an action for infringement or passing off should be initiated by the registered proprietor or proprietor, respectively, of the trade mark. In other words, the Appellant herein would not have the locus standi to initiate either an action for infringement or passing off.

Once again, we find no infirmity in the conclusion in the impugned order on this issue. One more issue was raised by the parties, namely, the correspondence with the Ministry of Corporate Affairs with regard to the use of the acronym ICAI. By letter dated 17.06.2020, the Ministry of Corporate Affairs had advised the first Respondent that it is not desirable for the first Respondent to use the acronym ICAI. However, by subsequent letter dated 26.06.2020, the earlier letter was modified and paragraph 7, which dealt with the non-desirability of using the acronym ICAI, was withdrawn by the Ministry of Corporate Affairs.

By relying upon these documents, the party-in-person had contended that the Ministry of Corporate Affairs is of the view that the first Respondent should desist from using the acronym ICAI, and that a direction should be issued to that effect. This correspondence was exchanged after the writ petition was filed and in light of the conclusions that we have set out above, we do not propose to issue any such direction.

14. In the result, the impugned order is affirmed and the appeal fails. No costs.

Read Order

Tags: JudgementHigh Court , CA, ICAI

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