India: Ajanta Manufacturing Allowed To Go Ahead With Public Issue

Last Updated: 6 November 2008

In relation to floating an Initial Public Offer, the case between Ajanta Manufacturing Ltd. & Ors v. Ajanta India Ltd. 2008 (38) PTC 83 (Del.) dealt with the declaration of an injunction order and viability of using a trademark in respect of certain products. The present suit is an appeal to a matter between brothers associated with the 1971 established M/s. Ajanta Transistor Clock Manufacturing Company. Established as a partnership firm, by Mr. Odhavjibhai Patel the firm was jointly owned by him, his brothers and their children. This firm got the mark AJANTA registered and has been using the same to sell its products in India and abroad.

M/s. Ajanta Manufacturing Ltd., was established in 1992 as under the name of M/s. Ajanta Electronics Incorporated and later on incorporated itself into a private limited company in November, 1994. On its incorporation as a company, the name of the company was changed to M/s. Ajanta Electronics Pvt. Ltd. Due to disinterest of some family members in the family business, the constitution of the partnership firm and the shareholders of the incorporated company kept dwindling from time to time.

A Deed of Assignment had been executed between some of the Appellant parties and M/s. Ajanta India Ltd. By virtue of this assignment Ajanta Manufacturing had transferred, sold and assigned the trade mark Ajanta registered under various classes except in respect of clocks and
time pieces, for a consideration of Rs. 34, 00,000. It was in 2004 that M/s. Ajanta Electronics Pvt. Ltd. had been renamed as M/s Ajanta Manufacturing Ltd. The Court noted that records for 203-04 revealed them to have a huge manufacturing plant in Kutch. Further, it was found that during 2005-06 they commenced manufacturing CFLs as also began installation of a vitrified tiles plant, while in 2007-08 they started manufacturing E-bikes. These products although were being sold under the trade name OREVA, a mention of the same being a product from Ajanta
Manufacturing Ltd was made. This had lead Ajanta India to file a civil suit, to which an ex-parte injunction order restraining Ajanta Manufacturing from using the trade mark / trade name AJANTA except to the extent of use for clocks and time pieces had been ordered.

Ajanta Manufacturing averred that a bare reading of the Agreement clarified that they had retained the right to use the mark AJANTA as their corporate name. He further submitted that since this Agreement had been suppressed by the Ajanta India at the ex-parte stage, the injunction deserved to be vacated on that ground alone. On the other hand, Ajanta India asserted that vide the Assignment Deed Ajanta Manufacturing could manufacture only two products under the mark AJANTA. The deed was said to have been violated by expanding production to other items. They also submitted that despite the injunction order being
unequivocal, that Ajanta Manufacturing had not only gone ahead with its public issue but
had further not disclosed the injunction granted by this Court in their red herring prospectus. Relying on Section 2 (m) of The Trade Marks Act, 1999 and the definition of 'word mark' therein, they contended that the same included a corporate name. With respect to S. 29(5) it was submitted that use of a registered trade mark as part of the trade name or business name constituted infringement. Rebutting to the arguments, counsel for Ajanta Manufacturing stated that they were entitled to manufacture a number of products, including CFLs, tiles and E-bikes. Further he also asserted that the red herring prospectus referred to by the opposing party was a draft and that they were willing to refer to the injunction order in their red herring prospectus.

The Court stated that the Assignment Deed had to be read harmoniously in conjunction with the Agreement. It was stated that on doing so, it became apparent that both the family factions were entitled to use the mark AJANTA as their corporate name. This was not disputed by the Counsel for Ajanta India, however he did vouch that Ajanta Manufacturing could not manufacture more than two products namely wall clocks and time pieces.

The court disagreeing with this submission stated that they were entitled to manufacture more products, however, the same could not be sold as AJANTA and stated that in view of Ajanta Manufacturing' undertaking that they would not use the mark AJANTA in any of its new products, the Court opined that the grievance no longer survived.

The Court also opined that the aspect of being a concurrent user and acquiescence could constitute a legitimate defence to Section 29 (5) of the Trade Marks Act, 1999, but elaborated no more on the same. Ajanta Manufacturing was allowed to go ahead with its public offer on the following conditions:

  1. The injunction order be dated 8th October be disclosed in the Red Herring Prospectus.
  2. All products manufactured by it except walls clocks and time pieces do not contain the mark Ajanta. Only where a statute casts an obligation/duty to disclose the name of a manufacturing company, shall Ajanta Manufacturing mention its name on the packaging, while ensuring that the trademark OREVA be displayed prominently and contradistinction to the Corporate name so that the public at large knows that it trades under OREVA
  3. Ajanta Manufacturing also to provide a disclaimer in all its literature and advertisements in connection with its IPO stating that they are not connected to M/s Ajanta India Ltd. owners of trade mark AJANTA for all goods and services except clocks and time pieces.

© Lex Orbis 2008

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions