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Sunday, October 14, 2012

Section 52 opposition: amendment to Notice of Opposition considered and allowed - ss 58, 44 and 60 considered – Applicant’s claim to ownership not displaced – Trade Mark not deceptively similar to Opponent’s trade mark - reputation of Opponent’s trade mark not shown – opposition not established. Costs awarded against the Opponent. = The Applicant has “[s]ince around March 2007...been a rice importer and trader in Australia”. He says that he “created” the Trade Mark in around February 2008 and that in around May that year he “began using [it] in partnership with Liberty Impex [Pty Ltd]”, a company that he and a Mr Mohammed Moten had incorporated on 20 May 2008, “in connection with rice and the supply of rice in Australia”. He says he had a verbal agreement with Mr Moten at the time to license the company to use the Trade Mark and that, “It was always understood by [the company and Mr Moten] that I was the sole owner of the Trade Mark and that neither [the company nor Mr Moten] had any rights in [it] other than those under licence from me”. - Section 60 of the Act is reproduced below: Trade mark similar to trade mark that has acquired a reputation in Australia 60. The registration of a trade mark in respect of particular goods or services may be opposed on the ground that: (a) another trade mark had, before the priority date for the registration of the first-mentioned trade mark in respect of those goods or services, acquired a reputation in Australia; and (b) because of the reputation of that other trade mark, the use of the first-mentioned trade mark would be likely to deceive or cause confusion.



DECISION OF A DELEGATE OF THE REGISTRAR OF TRADE MARKS WITH REASONS

Re: Opposition by Taj Food Sales Pty Ltd to registration of trade mark application 1313229 (30, 35) - GRAND TIGER Label - in the name of Gerson Rangel

DELEGATE:Michael Kirov
REPRESENTATION:Opponent: Carmen Champion of Counsel, instructed by Matthews Folbigg Lawyers
Applicant: Matthew Hall, Legal Practitioner, of Swaab Attorneys, assisted by Kelly Marshall
DECISION:2012 ATMO 84
Section 52 opposition: amendment to Notice of Opposition considered and allowed - ss 5844 and 60 considered – Applicant’s claim to ownership not displaced – Trade Mark not deceptively similar to Opponent’s trade mark - reputation of Opponent’s trade mark not shown – opposition not established. Costs awarded against the Opponent.

Background
  1. This is an opposition brought by Taj Food Sales Pty Ltd (“the Opponent”) pursuant to s 52 of the Trade Marks Act 1995 (“the Act”) to registration of the trade mark subject of the application detailed below in the name of Gerson Rangel (“the Applicant”) for the goods it covers in Class 30:
Application Number: 1313229
Priority Date: 18 August 2009 (“the Priority Date”)
Goods: Class 30: Rice
Services: Class 35: Distribution of goods (not being transport services) (agent, wholesale, representative services, by any means)

Trade Mark: 2012_8400.jpg (“the Trade Mark”)
  1. The Applicant has “[s]ince around March 2007...been a rice importer and trader in Australia”. He says that he “created” the Trade Mark in around February 2008 and that in around May that year he “began using [it] in partnership with Liberty Impex [Pty Ltd]”, a company that he and a Mr Mohammed Moten had incorporated on 20 May 2008, “in connection with rice and the supply of rice in Australia”. He says he had a verbal agreement with Mr Moten at the time to license the company to use the Trade Mark and that, “It was always understood by [the company and Mr Moten] that I was the sole owner of the Trade Mark and that neither [the company nor Mr Moten] had any rights in [it] other than those under licence from me”.
  2. The Applicant resigned as a Director of the company, sold his shareholding to Mr Moten and “terminated the licence to [the company] to use the Trade Mark” in August 2009, some six days after filing application 1313229. He says that the company has not used the Trade Mark since then but that he himself has continued to use it on rice products and in connection with the supply of rice through another company he incorporated on 16 September 2009, granting the new company a licence for this purpose.
  3. The Opponent was incorporated on 20 February 1990 and claims it “is presently one of the largest importers into Australia of premium grade basmati rice” from India and Pakistan, which it sells “to the food service, wholesale, retail and supermarket trade”. Its “number one seller” is WHITE TIGER branded basmati rice from Pakistan, which it apparently commenced importing to Australia (through, as I understand it, a predecessor in business) “in 1988-89”. Its application to register the trade mark 2012_8401.jpgfor “Rice” on 28 December 1990 was accepted without objection in June 1992, but was allowed to lapse 12 months later following non-payment of the required registration fee. The Opponent subsequently registered the trade mark detailed below, which it relies on to found its s 44 ground of opposition:
Registration Number: 721917
Priority Date: 18 November 1996
Goods: Class 30: Rice
Trade Mark: 2012_8402.jpg (“the Opponent’s Mark”)
  1. The Opponent has filed (or attempted to file) the three Notices of Oppositions described below, all of which are somewhat problematic from the Opponent’s point of view:
    • The first is dated 30 November 2009 (“the first Notice”) and was filed prematurely with IP Australia on or about that day. In this regard IP Australia’s decision to accept application 1313229 for possible registration was made on 18 September 2009 but this was not advertised in the Australian Official Journal of Trade Marks for possible opposition until 17 December 2009. IP Australia wrote to the Opponent’s attorneys on 11 December 2009 returning the first Notice and advising it was deemed not to have been filed;
    • The second is dated 13 January 2010 (“the second Notice”) and was filed on 15 January 2010. Apart from its date the second Notice is otherwise identical to the first Notice, each nominating grounds corresponding to ss 4142(b), 434458A5960 and 62(b) of the Act. Relevantly to what follows, neither Notice included a ground corresponding to s 58 of the Act;
    • The third (“the third Notice”), which is unsigned, bears the identical date as the first Notice, namely 30 November 2009, this being an obvious error on the face of it[1]. That said, it is headed “AMENDEDNOTICE OF OPPOSITION” and differs from the earlier two Notices in that one additional ground has been added, namely that “The Applicant is not the owner of the Trade Mark: s 58”. The third Notice constituted an attachment to a declaration[2] made on 20 June 2012 by Stephen Patrick Jenkins of the Opponent’s attorneys (“the Jenkins Declaration”) which aims to explain why the earlier Notice(s) had not included a s 58 ground. The declaration was emailed to IP Australia (and copied to the Applicant’s attorneys) at around 5.50 pm on 20 June, this being the eve of the hearing scheduled for 10.00 am the next morning. I mention that this was some four hours after the Applicant’s attorneys had emailed the Opponent’s attorneys and me brief “supplementary” written submissions (discussed further below) which specifically highlighted that no s 58 ground was included in the second Notice. As also discussed below, the parties’ representatives made submissions at the hearing itself as to whether or not the Opponent’s request to amend its Notice of Opposition to include the s 58 ground should be allowed.
  2. The parties served Evidence in Support and Evidence in Answer as follows:
Evidence in Support
▪ Statutory Declaration by Gautam Varma made 14 July 2010, with Exhibits
GV1 to GV18
Evidence in Answer
▪ Statutory Declaration by David Matthew Hall[3] made on 13 April 2011, with Annexures A to F
▪ Statutory Declaration by Gerson Rangel made 16 May 2011, with Annexures A to G
  1. Despite obtaining a three month extension to serve Evidence in Reply, the Opponent eventually elected not to do so.
  2. I heard the matter as delegate of the Registrar of Trade Marks on 21 June 2012 in Sydney. Carmen Champion of Counsel, instructed by Matthews Folbigg Lawyers, appeared for the Opponent. Ms Champion’s oral submissions were supplemented by written submissions dated 14 June 2012, which were emailed to me on 15 June and, I understand, copied to the Applicant’s attorneys by regular mail. These written submissions confirmed for the first time that the Opponent was only objecting to the Class 30 specification of application 1313229 and that the grounds it was seeking to press at the hearing were those corresponding to ss 44(1)58 and 60 of the Act.
  3. Matthew Hall of Swaab Attorneys, assisted by Kelly Marshall of the same firm, appeared for the Applicant[4]. His oral submissions were supplemented by written submissions dated 19 June 2012 which were emailed to the Opponent’s attorneys and to me that day and which address the ss 44(1)58 and 60 grounds as outlined in Ms Champion’s written submissions of 14 June. In these written submissions Mr Hall does not mention the fact that no s 58 ground is nominated in the second Notice.
  4. Mr Hall presumably became aware of the deficiency in the second Notice shortly afterwards because he emailed the Opponent’s attorneys and me brief “supplementary” submissions at around 2.00 pm on 20 June stating, inter alia, that:
At no time until receipt of [Ms Champion’s 14 June 2012] submissions from the Opponent has the Opponent made any claim that the Applicant is not the owner of the Trade Mark.
It is now simply too late for the Opponent to make a claim of lack of ownership, pursuant to s 58.
The claims for lack of ownership are not able to be considered by the Hearing Officer and must be rejected.
  1. As mentioned, following receipt of Mr Hall’s supplementary submissions the Opponent’s attorneys prepared the third Notice in apparent haste and emailed it attached to the Jenkins Declaration at around 5.50 pm on the eve of the hearing to Mr Hall and to me. Mr Jenkins describes himself as “Agent for the Opponent” and begins his declaration by incorrectly referring to the (first) Notice dated “30 November 2009”. He continues:
2. The [first Notice] did not include specifically as a ground Section 58 of the [Act]. Upon receiving the Applicant’s Supplementary Submissions dated 20 June 2012 I immediately checked the [first Notice], against the firm’s pro forma Notice of Opposition. It became immediately apparent that Section 58 was not specifically included in the redraft of the Notice of Opposition as filed. This oversight was wholly on my part when preparing the [first Notice] and in light of this oversight I seek leave to file an Amended Notice of Opposition.
3. The failure to include this ground has not effected (sic) the evidence as filed by the Opponent or the Applicant in the opposition proceedings and the Applicant has suffered no prejudice as a result of the clerical oversight. In all the circumstances, and with a view to the Registrar dealing with all the relevant grounds of opposition, it is fair and reasonable for the Opponent to be permitted to rely upon [the third Notice].
4. Attached and marked “A” is [the third Notice]. The Opponent will seek leave to rely upon [the third Notice] at the Hearing [tomorrow morning].
5. This Declaration together with the attached [third Notice] have (sic) been served upon the solicitor for the Applicant.
  1. Mr Hall responded some 40 minutes later by email sent to the Opponent’s attorneys and me, stating:
Receipt of the correspondence and statutory (sic) declaration is acknowledged. Any application for an extension of time within which to file an amended notice of opposition that will be made at the hearing tomorrow will be opposed.

Preliminary Discussion re Inclusion of the s 58 Ground
  1. At the hearing itself (and before moving to the substance of the opposition) Ms Champion and Mr Hall firstly made their submissions on whether the Opponent should be allowed to rely on the third Notice and press its s 58 ground.
  2. Ms Champion said the request was based on s 66(a) of the Act. Section 66 provides:
The Registrar may, at the request[5] of the person who has filed an application (other than an application for the registration of a trade mark), a notice or other document for the purposes of this Act or at the request of the person's agent, amend the application, notice or document:
(a) to correct a clerical error or an obvious mistake; or
(b) if the Registrar is of the opinion that it is fair and reasonable in all the circumstances of the case to do so.
  1. Referring to Kiwi Munchies Pty Ltd v Kraft Foods Holdings Inc (2005) 66 IPR 620 (“Kiwi Munchies”) and Parkside Towbars Pty Ltd v Tow-Safe Pty Ltd (2011) 91 IPR 416 (“Parkside Towbars”), Ms Champion noted that Mr Jenkins essentially claims in his declaration that there was an “oversight” on his part in copying and pasting the various available opposition grounds from his firm’s “pro forma Notice of Opposition” to the first Notice. Although not specifically addressed by Ms Champion, it goes without saying that this oversight was obviously not picked up when the second Notice was (one imagines) cloned from the first. Ms Champion submitted Mr Jenkins was correct in his assessment that, “The failure to include [the s 58] ground has not effected (sic) the evidence as filed by the Opponent or the Applicant in the opposition proceedings and the Applicant has suffered no prejudice as a result of the clerical oversight”. In this regard she pointed out that Mr Hall had already addressed the s 58 ground in his (original) written submissions of 19 June 2012 (in answer to her submissions of 14 June which canvassed the ground in question) suggesting he, too, was then unaware that the ground was not actually included in the second Notice.
  2. It is convenient here to note that there is nothing in the Opponent’s evidence relevant to the issue of ownership of the Trade Mark, nor indeed did Ms Champion submit otherwise. She nevertheless argued that there were “clear signs” in the Applicant’s declaration that, as she put it, “there was another party with common law rights in the Trade Mark” and she referred in particular to the statement in the Applicant’s declaration that, “In around May 2008, I began using the Trade Mark in partnership with Liberty Impex [Pty Limited] in connection with rice and the supply of rice in Australia”.
  3. Mr Hall, for his part, doubted Mr Jenkins’ claim that the s 58 ground was omitted inadvertently and he pointed to the fact that there was nothing in the Opponent’s Evidence in Support which suggested it intended to pursue this ground. Moreover, the Opponent had only sought formally to add s 58 after Mr Hall himself had pointed out its absence from the second Notice. Contrary to Mr Jenkins’ claim, Mr Hall submitted that widening the grounds of opposition some two and a half years after the second Notice was filed was unfair to the Applicant. He noted that when preparing his Evidence in Answer the Applicant had not specifically addressed the issue of ownership, being concerned only with answering the Notice of Opposition and Evidence in Support which had been served on him. Notwithstanding this, Mr Hall noted Ms Champion was now foreshadowing that the Opponent’s entire case with respect to s 58 was predicated upon adverse inferences regarding ownership of the Trade Mark being drawn from the Applicant’s evidence. (I again mention in this context that after being served with the Applicant’s Evidence in Answer and after having six months to consider it the Opponent elected not to serve any Evidence in Reply.) Thus, he submitted, inclusion of the s 58 ground at this late stage clearly risked prejudicing the Applicant.
  4. In the Parkside Towbars decision referred to by Ms Champion the Registrar’s delegate allowed amendment to a Notice of Opposition pursuant to s 66 to include a s 44 ground nominating a trade mark registration owned by the opponent. This was in circumstances where the opponent had previously sent the applicant a letter of demand referring to the trade mark in question (so the applicant might reasonably have anticipated the s 44 ground), where the opponent’s evidence referred to the registration in question and where, in any event, the applicant had been given the opportunity to put on further evidence addressing the s 44 issue if it so wished. Mr Hall submitted the facts in the present opposition were in no way analogous to those in Parkside Towbars and that an adjournment might be necessary to allow the Applicant to serve further evidence if the s 58 ground were to be included.
  5. I mention that while the delegate in Parkside Towbars accepted that there had most likely been “a clerical error or obvious mistake” by the opponent and thus that s 66(a) might reasonably be invoked, he also considered it “fair and reasonable in all the circumstances of the case to do so” in terms of s 66(b) of the Act, reasoning that:
[7] The relevant principles in exercising the discretion under s 66(b) include the inconvenience to the relevant parties and the desirability of operating the trade mark system efficiently and without unreasonable delay.[6]It is in the public interest and the interest of the involved parties to address pertinent grounds at the opposition stage. Those interests can be balanced with the relative inconvenience to the parties and ensuring that the applicant has had the opportunity to address the additional ground. In this matter, the opponent did not need to serve further evidence to support the new ground and the applicant was given an opportunity to provide further evidence to address s 44. In the end, the hearing of the substantive matters under s 52 of the Act was not delayed as a result of the opponent’s requested amendment.
[8] To refuse this amendment to the notice of opposition would likely result in an appeal de novo to the Federal Court where the s 44 ground may be argued by the opponent. Such an approach on behalf of the registrar would not be conducting a hearing “... with as little formality and technicality, and with as much expedition, as the requirements of the Act and these regulations and a proper consideration of the matters before the Registrar, allow”.[7] Considering the above factors, I am satisfied that it is appropriate in the circumstances to allow the opponent to amend its notice of opposition as requested under s 66(b) of the Act.
  1. In Kiwi Munchies, with both parties initially relying on written submissions only, a delegate of the Registrar had dismissed an opposition, including dismissal of a ground based on s 59 of the Act addressed in the opponent’s solicitor’s submissions, noting the s 59 ground had neither been included in the Notice nor was it indicated or supported in the opponent’s evidence. The opponent sought a review of the decision under the Administrative Decisions (Judicial Review) Act 1977 (Cth) (“the AD(JR) matter”) on the grounds of denial of natural justice, this being settled when the applicant consented to the opponent’s making a formal application to IP Australia under s 66 of the Act to have the s 59 ground included and, potentially, considered. Both parties made written submissions on the s 66 application and, following IP Australia’s provisional refusal to include the ground, the opponent sought a hearing on the issue. In his decision following this hearing the Registrar’s delegate concluded at [24] to [29] (with footnotes omitted):
[24] Ms Paras [the opponent’s solicitor] has argued that s 66(b) is applicable but has not at any stage explained why the s 59 ground was not specified in the notice of opposition as filed. There is no reason to conclude that this was accidental, and hence arguably within the scope of s 66(a), because there is nothing in the evidence relied on by Kiwi [the opponent] up until the time of the AD(JR) matter to show that it had pursued the topic at all. Therefore, I can only conclude that the decision not to originally nominate the ground was deliberate. Ms Paras noted that the opponent became aware of the implications of the lack of the relevant ground only after considering the evidence in answer and the submissions made by Kraft [the applicant] when Ms Dunn [the original Registrar’s delegate] made her decision. However, since Kiwi filed no evidence in reply, I must presume that this consideration took place after Ms Dunn issued her decision, and not before it.
[25] I will not repeat Ms Paras’s submissions about the broad discretion under s 66(b). I agree with her entirely. Again, I accept her point that there is no evidence that the trade mark applicant will be disadvantaged by the delay in the way these matters have been raised by Kiwi. However, I think I would be wrong to ignore the probability that delay in registration will disadvantage an applicant more than an opponent. That is a circumstance that affects the balance of convenience as between the parties.
[26] As to this, Ms Paras asserted that “Kraft will have ample time to respond to the [o]pponent’s evidence in relation to the amendments” and that there would be no prejudice to Kraft. I do not agree. Kraft should not be put to the trouble of further considering Kiwi’s evidence on such a tangential issue. Ms Paras apprehends that a serious issue may evolve from the unsupported assertions made [in the opponent’s attorney’s written submissions]. Though Kraft is the cause of the uncertainty, this does not entitle Kiwi to now raise these side-issues “just in case”, thereby obliging Kraft, in turn, to respond.
[27] Also with that issue in focus, Ms Paras asserts that Kraft, having taken a “passive” attitude and not expended funds on appearing at a hearing, would not see any time and effort thrown away. However, Kraft’s written submissions to Ms Dunn suggest that it has taken this line because it sees little merit in the opposition. I would not want to establish a system that leaves any party making this appraisal made vulnerable to late amendments of a notice of opposition where these amendments are not clearly justified.
[28] Ms Paras made submissions about the desirability of having all the issues traversed. This, she argued, was in the public interest and she referred to a number of TMO decisions where the importance of the pubic interest was stressed. However, I think that very often the public interest in having an accurate register, while doubtless still a factor, can be subordinated to the interests of those with a private commercial interest in the matter. I note that French J, in Registrar of Trade Marks v Woolworths Ltd, came to a similar conclusion regarding the balance between “the identification and protection of commercial products” versus “the protection of consumers”. Likewise, in McCormick & Co Inc v McCormick Kenny J, in considering the proper application of s 44(3), noted that “the likelihood of confusion is a relevant but not determinative factor”. In my experience, on the other hand, claims about a public interest are usually made most loudly by those who have not been diligent in protecting their own interests in prosecuting a matter.
[29] It appears that there is nothing more behind the present amendment request than a belated desire to pursue a side-issue started by an unsupported assertion, itself of insignificant weight, in Kraft’s evidence. The issue is not what Ungoed-Thomas J, in Re Bali Trade Mark, referred to as “substantial”. Given the lateness with which the issue was raised, and because of my assessment of the lack of merit in the aspects that Ms Paras has identified, I refuse to allow a ground under s 59 to be brought into issue at this, the penultimate stage of proceedings.
  1. While there are on the face of it several parallels between the facts in Kiwi Munchies and the present opposition, in the matter before me the Opponent’s application is, as mentioned, made under s 66(a) rather than s 66(b). In this regard I have no evidence before me indicating Mr Jenkins was being anything other than truthful in stating that omission of a s 58 ground from the first (and second) Notice was wholly due to an “oversight” on his part. On the other hand I am by no means satisfied the Opponent specifically intended to argue s 58 when it prepared the first two Notices. Rather, I think it likely the Opponent’s attorneys merely wanted to include all possible grounds with a view to later selecting which specific grounds to press should the matter proceed. Indeed, I think it unlikely the Opponent decided it might argue the s 58 ground until Ms Champion was briefed to appear shortly before the hearing and certainly not before it had seen the Applicant’s Evidence in Answer. Moreover, I believe there is merit in Mr Hall’s submission that, at the very least, the Applicant should be permitted to serve and file further evidence if the Opponent were otherwise to be allowed to argue a ground based entirely on adverse inferences being drawn from evidence prepared by the Applicant in ignorance that the ground was even in issue.
  2. With both parties’ representatives’ consent, I thus proposed at the hearing that I reserve my decision on inclusion of the s 58 ground and, to avoid possibly unnecessary further delay and expense, I proceed to hear the parties’ substantive submissions on this and the other two grounds (based on s 44 and s 60) the Opponent wished to press. Having heard those submissions, I have concluded that it would not prejudice the Applicant, indeed would arguably be in its interest, to allow the amendment under s 66(a) sought by the Opponent. This is because, as discussed below, on the evidence before me the Opponent has not satisfied me that its s 58 ground is established in any event. For essentially the same reasons put by the Registrar’s delegate in connection with s 66(b) of the Act in the passages from Parkside Towbars quoted in paragraph 19 above, then, I do allow the Opponent to amend its Notice of Opposition to include a ground based on s 58.
Grounds of Opposition, Onus and Standard of Proof
  1. As indicated above, the Opponent pressed grounds based on ss 44, 58 and 60 of the Act, although only in relation to the goods (“Rice”) covered by application 1313229. I treat the remaining grounds listed in the Notice(s) as abandoned.
  2. To succeed, the Opponent bears the onus of establishing at least one of the three grounds pressed at the hearing. I confirm I am proceeding on the basis that the relevant standard of proof required of the Opponent is the ordinary civil standard based on the balance of probabilities [8].
  3. As indicated by Kitto J in Southern Cross Refrigerating Co v Toowoomba Foundry Pty Ltd (1954) 91 CLR 592 (“Southern Cross”) at 595, the relevant date at which the rights of the parties are to be determined is the Priority Date.
Discussion
  1. It is convenient to discuss the Opponent’s grounds in the order they were dealt with by Ms Champion, commencing with the s 58 ground.
Section58
  1. As mentioned, the ground based on s 58 is indicated in the third Notice as follows:
The Applicant is not the owner of the Trade Mark: s 58
  1. Section 58 itself is reproduced below:
Applicant not owner of trade mark
58. The registration of a trade mark may be opposed on the ground that the applicant is not the owner of the trade mark.
Note: For applicant see section 6.
  1. In her submissions on the s 58 ground Ms Champion also relied on s 27(1) of the Act:
Application—how made
27.(1) A person may apply for the registration of a trade mark in respect of goods and/or services if:
(a) the person claims to be the owner of the trade mark; and
(b) one of the following applies:
(i) the person is using or intends to use the trade mark in relation to the goods and/or services;
(ii) the person has authorised or intends to authorise another person to use the trade mark in relation to the goods and/or services;
(iii) the person intends to assign the trade mark to a body corporate that is about to be constituted with a view to the use by the body corporate of the trade mark in relation to the goods and/or services.
Note: For use see section 7.
  1. The word “owner”[9] is not defined in the Act, although there are numerous decisions where courts have considered its meaning at common law. It is well established that in the absence of fraud the owner of a trade mark in Australia for particular goods or services is taken to be the first person[10] to use it in the course of trade in Australia in relation to those goods or services[11] (or in relation to goods or services considered to be “the same kind of thing”).[12]
  2. As Ms Champion noted, more often than not in cases of disputed ownership it is an opponent claiming it first used the trade mark in suit (or a substantially identical trade mark) for the same, or essentially the same, goods or services. In the present opposition, however, the Opponent does not claim that it has ever used the Trade Mark (or a substantially identical trade mark) for any goods or services. Rather, the Opponent’s claim is that either the Applicant’s former business associate Mr Moten, or the company Liberty Impex Pty Ltd which the Applicant and Mr Moten incorporated in May 2008 (hereafter “the Company”), must according to the Applicant’s evidence have had some shared proprietorial interest in the Trade Mark. Accordingly, Ms Champion submits, the Applicant could not lawfully claim to have been the owner of the Trade Mark in his own right as at the Priority Date, (as specified in s 27(1)(a) of the Act), and the Opponent’s s 58 ground must be upheld.
  3. There is no evidence before me from Mr Moten or on behalf of the Company per se. Nor, as discussed, has the Opponent served any evidence relevant to first use or ownership of the Trade Mark or, indeed, otherwise contradicting any aspect of the Applicant’s Evidence in Answer. Ms Champion nevertheless invited me to draw a number of adverse inferences from statements made by the Applicant himself concerning the circumstances in which the Trade Mark was first used.
  4. In particular, Ms Champion submitted that, taken collectively, the following statements by the Applicant in his declaration establish on the balance of probabilities that the first (and only) user of the Trade Mark before the Applicant applied to register it was either the “partnership” of Mr Moten and the Applicant, or the Company, rather than the Applicant personally:
    1. “Between around March 2007 to May 2008, I was a rice importer and trader in association with Mohammed Moten and Liberty Enterprise Co.”[13]
    2. “In around February 2008, I created the [Trade Mark].”
    3. “On 20 May 2008, Mohammed Moten and I incorporated [the Company].”
    4. “In around May 2008 I began using the Trade Mark in partnership with [the Company] in connection with rice and the supply of rice in Australia.”
    5. “While I was associated with [the Company], I licensed [the Company] to use the Trade Mark in connection with the sale and supply of rice in Australia. That licence was not in writing. It was a verbal agreement between Mr Moten and me, made in around May 2008. It was always understood by [the Company] and Mohammed Moten that I was the sole owner of the Trade Mark and that neither Moten nor [the Company] had any rights in the Trade Mark other than those under the licence from me.”
    6. “On 18 August 2009 I lodged [the application to register the Trade Mark].”
  5. As to the Applicant’s claim to have created the Trade Mark in around February 2008, Ms Champion noted this was three months before the Company was incorporated and at a time when the Applicant says he was “a rice importer and trader in association with Mohammed Moten and [our business] Liberty Enterprise Co”. Thus, reasoned Ms Champion, “[t]here is a clear implication that the [Trade Mark] was created for the purposes of that partnership and may therefore have become partnership property.”
  6. Moreover, she said, it was significant the Applicant had provided “no documentary evidence of [having created the Trade Mark].” As she put it:
The factual matrix surrounding the creation of the [Trade Mark] is within the knowledge of the Applicant. His failure to put the relevant facts before the delegate leaves the statements made by him to be judged on the principle of Blatch v Archer [1774] EngR 2(1774) 98 ER 969 (applied in Vetter v Lake Macquarie Council [2001] HCA 12(2001) 202 CLR 439 at [36]) where Lord Mansfield said that “all evidence is to be weighed according to the proof which it was in the power of one side to have produced”. The only inference that can be drawn from the Applicant’s failure is that to have put the relevant facts before the delegate would not have assisted him. That inference is strengthened by the failure of the opponent to adduce relevant evidence from Mr Moten: Jones v Dunkel [1959] HCA 8(1959) 101 CLR 298[1959] ALR 367; BC5900240.
  1. Ms Champion also considered it significant that, “Again there is no documentary evidence supporting the existence of the alleged partnership” (between the Applicant and the Company). She submitted that:
Considering the significant legal consequences flowing from conducting a partnership business one would expect that the Applicant would, at the minimum, have produced tax returns for the partnership. The alleged use by the partnership raises the issue as to whether such use resulted in the opposed mark becoming partnership property.
  1. I pause at this point to indicate I reject Ms Champion’s above submissions. The Applicant has nothing to prove in these proceedings and the onus of establishing its s 58 ground rests squarely with the Opponent throughout. Even had the second Notice or the Evidence in Support contained the slightest suggestion that the Applicant’s claim to ownership of the Trade Mark was challenged, which they do not, the onus would still remain upon the Opponent to establish on the balance of probabilities that a party other than the Applicant had a better claim to ownership based on first use. That is to say, in the case of s 58 there is no “shift in onus” from an opponent to an applicant in circumstances where, like here, an opponent merely alludes to a possibility that a party other than the applicant might have a better claim to ownership.
  2. The Full Federal Court (Keane CJ, Stone and Jagot JJ) explored this issue in Food Channel Network Pty Ltd v Television Food Network GP [2010] FCAFC 58(2010) 86 IPR 437 (“Food Channel”), where it was considering whether the trial judge “had erred in proceeding on the footing that [the trade mark applicant] was obliged to satisfy an evidentiary onus to negative the grounds of opposition under ss 58 and 59 of the Act”[14]. The court firstly considered the opponent’s argument that the “presumption of registrability” implied by s 33 of the Act only applied at examination and did not “carry through” to opposition proceedings, saying at [26] to [28]:
[26] This argument conflates the presumption of registrability which arises by virtue of s 33 of the Act at the acceptance stage by the registrar and the incidence of the onus of proof in opposition proceedings. Each of ss 58 and 59 of the Act creates a ground of opposition in terms apt to engage the usual rule as to onus of proof that “the party who asserts must prove”: see Unity Insurance Brokers Pty Ltd v Rocco Pezzano Pty Ltd[1998] HCA 38(1998) 192 CLR 603 ; 154 ALR 361 at [99].
[27] In Joseph Constantine Steamship Line Ltd v Imperial Smelting Corp Ltd [1942] AC 154 at 174 ; [1941] 2 All ER 165 at 197, Viscount Maugham LC said:
In general the rule which applies is “Ei qui affirmat non ei qui reget incumbit probatio” (Proof lies upon him who asserts not on him who denies). It is an ancient rule founded on considerations of good sense and should not be departed from without strong reasons.
[28] Even if it be accepted that the presumption in favour of registration created by s 33 of the Act applies only in relation to the first examination by the registrar and does not “carry through” to opposition proceedings, the non-application of the presumption does not assist in resolving the incidence of the burden of proof in those proceedings. When one looks at the statutory language which frames the grounds on which opposition to registration may be advanced one does not see “strong reasons” to depart from the general rule referred to by Viscount Maugham. Rather, one sees confirmation that the general rule does apply. In particular, s 55 of the Act expressly contemplates that registration may be refused at the opposition stage only “to the extent (if any) to which” a relevant ground of opposition “has been established”.
  1. While noting that there was some authority for there being a shift in onus in certain circumstances in the case of s 59, the Full Court was clear that such was not the case for s 58, stating at [37] to [39]:
[37] We turn to consider [the opponent’s] alternative argument in relation to the shifting onus of proof in relation to the grounds of opposition in ss 58 and 59 of the Act. The judge below recognised that there are no cases concerning s 58 in which the onus has been held to shift, in any way, to the applicants: Her Honour said (at [34]):
[34] The principle that the evidentiary onus in relation to ownership shifts in the circumstances submitted by the applicant has previously been promulgated in the context of opposition to a trade mark on the basis of s 59 (Health World Ltd v Shin-Sun Australia Pty Ltd (2008) 75 IPR 478 ; [2008] FCA 100 at [163]) but not, so far as I am aware, s 58.
[38] The concerns specific to opposition under s 59 of the Act do not readily translate to s 58 of the Act. In Health World, a case concerned with opposition under s 59 of the Act, Jacobson J said at [2008] FCA 100;(2008) 75 IPR 478 at [161]–[163]:
[161] The subjective nature of the intention, the presumption of intention flowing from the application for registration and the onus on an opponent usually make it difficult for an opposition, or an application for rectification, to succeed on this ground: see Shanahan at [2.120], [11.110]; A Dufty and J Lahore, Lahore, Patents Trade Marks and Related Rights, LexisNexis Butterworths, Sydney, 2006 at [55,580].
[162] However, there is authority for the proposition that where an applicant for registration has been put on notice that its intention to use the mark was in issue, and has not responded to the opponent’s evidence, a finding of lack of intention may be made: Philip Morris Products SA v Sean Ngu [2002] ATMO 96Tommy Hilfiger Licensing Inc v Tan (2002) 60 IPR 137; Shanahan at [11.110].
[163] The principle which underlies these authorities seems to me to be that the evidentiary onus shifts to the applicant for registration where an opponent makes a prima facie case of lack of intention to use the mark.
[39] The difficulties of showing intention to use do not attend an attempt by an opponent to establish ownership through prior user; the opponent either has a case or it does not. Thus, there is no evident reason why a shift in the onus could arise in proceedings involving a ground of objection under s 58 of the Act.
  1. In Food Channel the opponent had based its s 58 ground of opposition on statements in the applicant’s evidence by a Mr Lawrence, managing director of the company “Network” (which was the applicant for the trade mark) and controller of another company, “Channel”, which may also have been an early user of the trade mark in suit. As the Full Court put it, the opponent argued:
that the evidence as to ownership of the mark at the time of registration was so confused that no finding could reasonably be made as to who was the real owner with the consequence that Network had failed to discharge the evidentiary onus which had shifted to it.
  1. The Full Court was however very critical of the trial judge for having accepted the opponent’s argument regarding a shift of onus on the s 58 issue, stating at [48]:
[48] If the evidence was not sufficiently clear to enable a finding of fact to be made about ownership of the mark at the time of registration then [the opponent] had to fail on that issue: it bore the onus of proof. The primary judge reached the opposite conclusion. Her Honour reached that conclusion, in part at least, because of the unnecessary distraction of [the opponent’s] argument about shifting onus. There are a number of other reasons why we consider that her Honour erred in reaching that conclusion.
  1. In particular, the Full Court noted that:
    • s 27(1)(a) merely requires that an applicant “claims to be the owner of the mark” and the trial judge had (as has Ms Champion in the present opposition) “interpreted the requirement in s 27(1)(a) as being equivalent to proven, rather than claimed, ‘ownership’” (at [49]);
    • “The first user is the person entitled to claim to be the owner and if the applicant is shown not to be the first user, the ground of opposition will be established.” (at [55]);
    • “Each of Mr Lawrence, Network, and Channel could have satisfied the basic requirement in s 27(1)(a) in the sense that, from the admittedly imprecise affidavit of Mr Lawrence, it could be inferred that each could “claim” to be owner of the mark.” (at [54]);
    • “The courts should be cautious to allow the legal fiction of the corporate veil to defeat registration in a case where one of a group of companies, all controlled by the same directing mind and will, used the mark prior to the other.” (at [61]);
    • “In any event, a finding that there was considerable confusion over who owned the mark means that this ground of opposition must fail given the onus on [the opponent] to establish any ground of opposition.” (at [66]); and
    • “In conclusion in relation to the ground of opposition under s 58 of the Act, we consider that on the very limited evidence before the court as to the way in which the mark was used before the date of registration, it well may be said that both Network and Channel used the mark, but it cannot be said that Network rather than Channel was the first party to use the mark as a trade mark in relation to goods in class 16 or at all. And it cannot be said that Channel was not the first party use the mark in such a way. In this state of confusion, the incidence of the onus of proof means that the lack of clear evidence as to prior use is a fatal deficit in the opponent’s case, not in the applicant’s.” (at [71]).
  2. That said, in the matter before me I do not consider inferences adverse to the Applicant’s claim to be owner of the Trade Mark can properly be drawn from the evidence before me in any event. As Mr Hall emphasised, the uncontradicted evidence of the Applicant is, as indicated in paragraph 33 above, that after he had created it he “licensed [the Company] to use the Trade Mark in connection with the sale and supply of rice in Australia” and that, “It was always understood by [the Company] and Mohammed Moten that I was the sole owner of the Trade Mark and that neither Moten nor [the Company] had any rights in the Trade Mark other than those under the licence from me.” If the Opponent considered this statement was untrue then it was incumbent upon the Opponent to produce evidence, such as evidence from Mr Moten, demonstrating this.
  3. Ms Champion’s further submission, that “the correct approach to the resolution of [the ownership] issue is to consider the issue of use in the same manner as it would be dealt with in a non-use application”, is likewise misconceived on the face of it. Unlike the case with ss 27(1) or 58, s 100 of the Act explicitly places the onus on the owner of a registered trade mark to rebut non-use allegations made pursuant to s 92 of the Act. Contrary to Ms Champion’s submission, accordingly, there is no obligation on the Applicant in this opposition to produce evidence “that would support a finding that he exercised either the quality control or financial control required by section 8 of the Act or the control contemplated by Aickin J in Pioneer Kabushiki Kaisha v Registrar of Trade Marks [1977] HCA 56(1977) 137 CLR 670 at [68]”.
  4. I would only add that in my view it is plainly wrong in the circumstances of this case for the Opponent to argue, as was done at the hearing, that the onus it bears to establish its s 58 ground could be discharged by reliance upon any relevant “rule” to be found in Blatch v Archer [1774] EngR 2(1774) 98 ER 969 or Jones v Dunkel [1959] HCA 8(1959) 101 CLR 298[1959] ALR 367. Indeed, if one considered the testimony of Mr Moten with respect to first use of the Trade Mark was relevant to the current opposition one might just as easily question the “unexplained failure” of the Opponent, rather than of the Applicant, to present such evidence. As discussed by the Full Federal Court (Jacobson, Yates and Katzmann JJ) recently in Paul’s Retail Pty Ltd v Sporte Leisure Pty Ltd [2012] FCAFC 51(2012) 95 IPR 151 at [86]and [88]:
[86] The principle in Blatch v Archer is that “all the evidence is to be weighed according to the proof which it was in the power of one side to have produced, and in the power of the other to have contradicted”. The relevant aspect of the rule in Jones v Dunkel ... is that the unexplained failure of a party to call a witness may in appropriate circumstances lead to an inference that the witness would not have assisted the party’s case.
...
[88] ... As the Full Court observed in Sagacious Legal Pty Ltd v Wesfarmers General Insurance Ltd [2011] FCAFC 53 at [78]–[79], “the rule in Jones v Dunkel is one of the most invoked but least understood rules in litigation”. The rule merely reflects commonsense. The inference is not mandatory and, “generally speaking, these inferences only become material where the balance of the evidentiary record is equivocal”.
  1. As discussed, there was never any evidential onus on the Applicant in the present opposition to justify his claim to be owner of the Trade Mark. Even if there were, the Applicant has done so by his clear and uncontradicted statements concerning his creation and licensing of the Trade Mark. In the absence of evidence to the contrary there is no reason not to take the Applicant’s evidence at face value or otherwise to draw any of the adverse inferences suggested by Ms Champion. I agree with the following assessment by Mr Hall in his written submissions:
The Opponent has not discharged its evidential burden [of establishing a party other than the Applicant first used the Trade Mark], but now asks the Registrar to draw adverse inferences because the Applicant has not filed particular evidence of first use, even though the Opponent has not discharged its evidentiary burden. In those circumstances, it is not appropriate for any adverse inferences to be drawn, and to do so incorrectly applies the required onus of proof, and effectively requires the Applicant to disprove the Opponent’s case, even when no compelling evidence to support that case is led, in order to avoid adverse inferences being made.
  1. The Opponent has accordingly not established its s 58 ground of opposition.
Section 44
  1. The ground based on s 44 is indicated in the Notice(s) as follows:
The Trade Mark is substantially identical or deceptively similar to a trade mark which is registered, being trade mark No 721917, in respect of similar goods or closely related services. The [Priority Date] is not earlier than the priority date of the other trade mark: Section 44(1), Regulation 4.15A(1)
  1. Only s 44(1) of the Act is relevant in this case and this is reproduced below:
Identical etc. trade marks
44.(1) Subject to subsections (3) and (4), an application for the registration of a trade mark (applicant's trade mark) in respect of goods (applicant's goods) must be rejected if:
(a) the applicant's trade mark is substantially identical with, or deceptively similar to:
(i) a trade mark registered by another person in respect of similar goods or closely related services; or
(ii) a trade mark whose registration in respect of similar goods or closely related services is being sought by another person; and
(b) the priority date for the registration of the applicant's trade mark in respect of the applicant's goods is not earlier than the priority date for the registration of the other trade mark in respect of the similar goods or closely related services.
Note 1: For deceptively similar see section 10.
Note 2: For similar goods see subsection 14(1).
Note 3: For priority date see section 12.
  1. Details of (the Opponent’s) registration 721917 were set out in paragraph 4. Its priority date pre-dates that of the Trade Mark by some 13 years and it covers the identical goods. In her written submissions Ms Champion “conceded that [the Opponent’s Mark] and [the Trade Mark] are not substantially identical”. Accordingly, the sole question for determination is whether the parties’ trade marks are “deceptively similar”. In this regard s 10 of the Act says that “a trade mark is taken to be deceptively similar to another trade mark if it so nearly resembles that other trade mark that it is likely to deceive or cause confusion”.
  2. Ms Champion began by setting out some general principles distilled from several well known authorities[15] concerning assessment of deceptive similarity generally (with which Mr Hall did not take issue). These included the fact that the parties’ marks should not be compared side by side, but rather are to be considered according to the impression that persons of ordinary intelligence would have based on recollection of the Opponent’s Mark (with due allowance for imperfect recollection) and the impression such persons would get from the Trade Mark. Ms Champion recognized that the marks must be considered as wholes, that “similarities of sound may be important” and that “any verbalization of a mark must be regarded, so that aural as well as visual impressions may be important”.
  3. Bearing these factors in mind, Ms Champion’s submissions were that:
The [Opponent’s] Mark consists of two common English words “White” and “Tiger” used in combination. The impression created by the words “White Tiger” is re-enforced by the depiction of a tiger below the word combination. It is that depiction that is likely to act as a means of re-enforcing the consumer’s recollection of the “Tiger” component rather than the actual word combination “White[16] Tiger”.
The [Trade Mark] consists of two distinguishing features: the word combination “Grand Tiger” and a depiction of a tiger.
Both marks convey essentially the same idea, that is of a tiger. Relevantly, the presence in both marks of a common idea is more likely to be recalled than the precise details of the [Opponent’s Mark]: Jafferjee v Scarlett [1937] HCA 36(1937) 57 CLR 115 at 121-122; Johnson & Johnson v Kalnin [1993] FCA 210(1992-93) 26 IPR 435 at 439.
In light of the matters raised above, when the consumer with his/her recollection of the [Opponent’s Mark] comes upon the rice bearing the [Trade Mark], his/her attention is likely to be drawn and focussed on the two elements which convey the same idea as the [Opponent’s Mark], that is the word “Tiger” and the depiction of a tiger.
  1. Ms Champion reasoned that the position was similar to that in Polo Textile Industries Pty Ltd v Domestic Textile Corporation Pty Ltd [1993] FCA 203(1993) 42 FCR 22726 IPR 246 (“Polo Textile”) where, in finding the mark POLO CLUB deceptively similar to POLO solus, “Burchett J concluded that it was of importance that the distinctive impact of the word ‘Polo’ was likely to affect the mind while the presence or absence of the blander word ‘Club’ may escape notice.”
  2. Ms Champion also referred generally to De Cordova v Vick Chemical Co (1951) 68 RPC 103, where I note Lord Radcliffe said at 106 with respect to “imperfect recollection”:
...in most cases the eye is not an accurate recorder of visual detail and marks are remembered rather by general impression or by some significant detail than by any photographic recollection of the whole.
  1. Finally, Ms Champion submitted that “confusion would also be facilitated by the fact that rice is a product usually displayed on the supermarket shelf, and is not a product that is purchased after careful inspection.” The common (she said) practice of traders who sold their goods in supermarkets “adopting a word as a base trade mark and using it to construct other trade marks by adding additional elements to it...allows for ‘contextual confusion’ to occur”, particularly here where “both marks incorporate the same dominant or essential feature”. In the alternative, as it were, she submitted that:
Where the rice is ordered over the counter, imperfect recollection may result in a consumer asking for the Opponent’s White Tiger rice simply by reference to “the Tiger rice” which may lead the salesperson to inadvertently reach for the Grand Tiger rice rather than the White Tiger rice.
  1. On behalf of the Applicant Mr Hall firstly submitted that:
The test as to whether one trade mark so resembles another trade mark so as to be likely to deceive is ultimately a two stage test. First, do the marks look alike or sound alike? Second, if they do, is the resemblance likely to deceive? It is not sufficient that the two marks convey the same idea. Cf Cooper Engineering Pty Limited v Sigmund Pumps Limited [1952] HCA 15(1952) 86 CLR 536 at 539.
  1. Applying these principles in this case was, he said, “a straightforward exercise”:
The only elements that are common to each of the marks is the use of an image of a tiger, and the word “TIGER”. The images of the tiger in each mark is (sic) very different, with the Opponent’s mark showing a walking tiger in profile with the tail in a resting position, and the Trade Mark showing a walking tiger from the front, with the tail in an extended position. Despite these significant differences, the Opponent asserts that the marks are deceptively similar, and seems to be seeking a monopoly right in any images of a tiger when used in connection with rice.
  1. Mr Hall highlighted the Applicant’s unchallenged evidence that “use of a tiger image is synonymous with goods and services originating from the sub-continent”, that the tiger image in the Trade Mark was that of a Bengal tiger, “a native to much of eastern and southern Asia including India and Pakistan” and that the particular rice of interest to him was Basmati rice, “a variety of long grain rice grown in India and Pakistan”.
  2. Mr Hall further noted the Applicant’s unchallenged evidence that, “As a result of this strong connection between Basmati rice and Bengal tigers, there are a number of rice brands from India and Pakistan that make use of an image of a tiger, including a Bengal tiger”. Mr Hall referred in this context to his own declaration, which annexes the results of searches he conducted in March 2011 for registered marks in Class 30 which incorporate the word “tiger” or the image of a tiger, noting that at the time there were 16 such registrations “eleven of which did not belong to the Opponent or Applicant”. I mention that my own check of the register indicates that as at the Priority Date there were thirteen such registrations in total, all in separate ownership, with six of these (including the Opponent’s registration 721917) covering rice per se:
2376442012_8403.jpg
352111TIGER’S MILK
7219172012_8404.jpg
8507492012_8405.jpg
1273673Bengal Tiger
12978262012_8406.jpg
  1. Moreover, as at the Priority Date there were a number of further third party registrations for marks featuring the word “tiger” and/or the image of a tiger which cover Class 30 goods similar to rice or made from rice. It is perhaps also germane to point out in terms of the current state of the register that since the Priority Date the Applicant himself has registered the mark shown below for “Rice” in Class 30:
2012_8407.jpg
  1. Nor, pointed out Mr Hall, was coexistence of marks of this kind merely confined to the register. In this regard he again referred to his own declaration, (albeit made some 19 months after the Priority Date), which includes in its Annexure F “true copies of images of packaging for rice, available on the Australian market, that incorporate an image of a tiger or the word tiger”. In addition to packaging bearing the parties’ marks, also shown in Annexure F is packaging bearing the trade marks FLYING TIGER & Tiger Device, BENGAL TIGER & Tiger Device and INDIAN TIGER & Tiger Device. Additionally, the declaration made in July 2010 by Mr Varma, a Director of the Opponent, refers to what Mr Varma describes as “inferior quality Pakistani rice” then on the market bearing the trade mark TIGER KING.
  2. Mr Hall’s conclusion was that “the word ‘tiger’ or an image of a tiger is not something that particularly distinguishes rice goods (sourced from that part of the world where Bengal tigers are found) and is not what any consumer is likely to recall or focus on”. He did not agree that the words “grand” or “white” were bland in the context of the parties’ marks as wholes and indeed pointed out that a “white tiger” was a known, albeit rare, species of tiger in its own right[17] and conjured up a quite different image from what might be described as a “standard” tiger. That difference was, he submitted, reinforced by the quite different representations of tigers appearing in the parties’ marks.
  3. He submitted that the Polo Textile decision relied upon by Ms Champion “can clearly be distinguished” because in that case “the comparison was between the mark POLO (registered in simple typescript, with no other elements) and the mark POLO CLUB”, whereas here complex composite marks were involved and here the evidence indicated the common idea of a tiger was not distinctive of the parties’ goods of interest in its own right. In this regard Mr Hall referred to the High Court’s decision in Cooper Engineering Co Pty Ltd v Sigmund Pumps Ltd,[18] noting that to the extent that the Trade Mark did convey a similar idea to that of the Opponent’s Mark in the context of “rice”, this would not of itself dictate a finding of deceptive similarity in any event. In that case the court found the trade mark “Rainmaster” was not deceptively similar to the registered mark “Rain King”, (where both marks were used or proposed for use in connection with water sprinklers), stating that any similarity in the idea conveyed was something that might be taken into account when the marks being compared otherwise “really looked alike or sounded alike”. In the present case, Mr Hall submitted, the parties’ marks as wholes are readily distinguishable both visually and aurally.
  4. While he disputed Ms Champion’s submission that the parties’ marks “incorporate the same dominant or essential feature”, Mr Hall emphasised that there was in any event no evidence before me of “brand extension” on the part of the Opponent of the kind suggested by Ms Champion and that Ms Champion’s submissions with respect to the likelihood of “contextual confusion” were accordingly without basis. More significant, he reasoned, was that there was no evidence of any actual confusion “despite the Trade Mark being in the market for a significant period of time”. In this regard he pointed to the evidence of the Trade Mark having been in use since May 2008, having enjoyed modest (although not insubstantial) sales in Australia according to the figures provided by the Applicant. Mr Hall noted that the absence of evidence of confusion was all the more significant in this case given the parties’ rice was sold in the very same outlets, as acknowledged by Mr Varma, who states in his declaration that, “In 2009 we were informed that the [Applicant] had commenced marketing the sale of Basmati rice in 5KG bags to the same specialty outlets at which we stock and sell White Tiger Brand”.
  5. For my part, were this a case where the word “tiger” common to the parties’ trade marks was an invented word, or it appeared from the evidence that the “idea” of a tiger was rare or unusual in connection with rice or was uniquely associated with the Opponent, then I might have found Ms Champion’s submissions regarding deceptive similarity more compelling. However such is not the case on the evidence before me. As Ms Champion herself noted, quoting the High Court in Shell Co of Australia Ltd v Esso Standard Oil (Aust) Ltd [1963] HCA 66(1963) 109 CLR 407 at 410, deceptive similarity must be considered against the “background of the usages of the particular trade”. Here the state of the Register and the evidence before me that the third party trade marks TIGER KING, FLYING TIGER & Tiger Device, BENGAL TIGER & Tiger Device and INDIAN TIGER & Tiger Device have been in use for rice alongside both the Opponent’s Mark and the Trade Mark clearly suggest on the face of it that no one trader is in a position to assert a monopoly in rice marks containing a reference to a tiger.
  6. I am compelled to conclude that reference to a tiger is effectively common to the trade in relation to rice in Class 30 because it alludes to rice grown in that part of the world where tigers are found. In this regard the following words of Burchett J from Conde Nast Publications Pty Ltd v Taylor [1998] FCA 864(1998) 41 IPR 505 (at 511-512), where his Honour was assessing the deceptive similarity of the (word) trade marks VOGUE and EUROVOGUE in relation to clothing, appear apt:
At the same time, it should be borne in mind that ‘VOGUE’ is neither a made-up word nor a word wholly without any direct application, in the ordinary use of language, to the goods in question. A trader is not entitled to monopolise such a word, denying its use entirely to other traders. Deceptive or confusing use is barred by the applicant’s registration, but the Court should be careful not to shut out inappropriately other traders from the fair use of the language in ways that will not in reality deceive or confuse.
  1. To put it another way, where an element shared by trade marks under comparison is also common to the trade generally its presence in both marks must be discounted somewhat in assessing deceptive similarity. Given the relatively low inherent distinctiveness of the reference to a tiger in relation to rice, the various differences between the parties’ marks when considered as wholes highlighted by Mr Hall are accordingly likely to assume greater significance amongst the relevant public.
  2. To the extent that Ms Champion’s submissions were based on a consumer’s “imperfect recollection” of the Opponent’s Mark it is I think useful to bear in mind that on appeal to the House of Lords Lord Greene MR said in Aristoc Ltd v Rysta Ltd (1945) 62 RPC 65 at 105:
The doctrine of imperfect recollection must not be carried too far. In considering its application not only must the class of person likely to be affected be considered, but no more than ordinary possibilities of bad elocution, careless hearing or defective memory ought to be assumed.
  1. As mentioned, there is evidence before me that at least six different trade marks which feature the word “tiger” and/or a Tiger Device (including the Trade Mark and the Opponent’s Mark) have been in use for rice in recent times. While not of itself fatal to the Opponent’s case, it does strike me as significant in this case that there is no evidence from the Opponent indicating that there have been any instances of deception or confusion between any of the marks in question. Nor, indeed, is the apparent absence of deception or confusion necessarily surprising. I agree with Mr Hall that consumers are likely to refer to the parties’ rice principally by the words which feature so prominently in their respective marks, that is as “White Tiger” rice and “Grand Tiger” rice respectively. These word combinations neither look alike nor sound alike when considered as wholes despite the common element they share. Moreover, as is often noted, “the first syllable of a word [or, as here, the first word itself] is, as a rule, far the most important for the purpose of distinction”.[19]
  2. In the case of the already coexisting registrations discussed in paragraphs 59 and 60 above the Registrar has already determined in each case that there was insufficient likelihood of deception or confusion as to deny acceptance for registration. In this case, I do not believe that the Trade Mark is any more similar to the Opponent’s Mark than are these other currently registered trade marks covering rice and featuring the word “tiger” and/or a Tiger Device. A consistent approach would accordingly be to allow the Trade Mark also to coexist on the Register and in the market place. As Hearing Officer Williams observed in Re Unilever plc’s application to register the trade mark PHOENIX [2001] ATMO 39:
It is the responsibility of an administrator to take reasonable steps to understand, consider and assess the pattern of his/her own agency in dealing with past matters, where these are directly relevant. It is only if the decision-maker is satisfied that a current matter can be distinguished from past decisions, for whatever reason, that an established pattern can be varied in good conscience.
  1. When all the foregoing matters are weighed up and I attempt to assess the marks’ likely effect or impression in the minds of relevant consumers, I find I am not satisfied deception or confusion amongst a significant number of such consumers was likely as at the Priority Date. I do not on balance believe there was a real tangible danger of a number of such persons being left in doubt or caused to wonder whether the rice dealt with under the parties’ respective trade marks came from the same source.
  2. The s 44 opposition ground is accordingly not established.
Section 60
  1. The ground based on s 60 is indicated in the Notice as follows:
Another trade mark had, before the priority date for the registration of the Trade Mark, acquired a reputation in Australia and because of the reputation of that other trade mark, the use of the Trade Mark would be likely to deceive or cause confusion: Section 60.
  1. Section 60 of the Act is reproduced below:
Trade mark similar to trade mark that has acquired a reputation in Australia
60. The registration of a trade mark in respect of particular goods or services may be opposed on the ground that:
(a) another trade mark had, before the priority date for the registration of the first-mentioned trade mark in respect of those goods or services, acquired a reputation in Australia; and
(b) because of the reputation of that other trade mark, the use of the first-mentioned trade mark would be likely to deceive or cause confusion.
Note: For priority date see section 12.
  1. Ms Champion submitted that the Varma declaration established, “The Opponent had acquired a significant reputation in the mark ‘White Tiger’ in Australia” with “The manner of use [as] depicted in Exhibits GV11 and 12”, namely:
2012_8408.jpg 2012_8409.jpg
(hereafter collectively “the s 60 Marks”)
  1. As regards assessment of reputation, Ms Champion referred, inter alia, to the often quoted words of Hearing Officer Thompson in Hugo Boss AG v Jackson International Trading Company Kurt D Bruhl GmbH & Co KG (1999) 47 IPR 423 at 436:
As regards a trade mark, its reputation derives both from the quantum of sales under that mark and also the esteem, or image, projected by that trade mark. The quantum of sales, advertising and promotion contributes to the ``recognition'’ component of the trade mark's reputation. The credit, image and values projected by a trade mark attaches to the ``esteem'’ component of the reputation as do the public events and other trader's marks with which owner of the trade marks in question chooses to associate the trade marks via sponsorships, cross-promotions, ``contra deals'’ and so forth.
  1. Ms Champion also referred to the judgment of Kenny J in McCormick & Co Inc v McCormick [2000] FCA 1335(2002) 51 IPR 102, where I note her Honour said at [86]:
[86] In practice, it is commonplace to infer reputation from a high volume of sales, together with substantial advertising expenditures and other promotions, without any direct evidence of consumer appreciation of the mark, as opposed to the product: see, eg, Isuzu-General Motors Australia Ltd v Jackeroo World Pty Ltd (1999) 47 IPR 198; Marks & Spencer Plc v Effem Foods Pty Ltd (2000) AIPC 91-560; Photo Disc Inc v Gibson (1998) 42 IPR 473; and RS Components Ltd v Holophane Corp (1999) 46 IPR 451. This court has followed this approach as well, acknowledging that public awareness of and regard for a mark tends to correlate with appreciation of the products with which that mark is associated, as evidenced by sales volume, among other things. Thus, in Toddler Kindy Gymbaroo Pty Ltd v Gymboree Pty Ltd [2000] FCA 618(2001) 51 IPR 1, Moore J accepted at [94] that the applicant had established a reputation for the purposes of s 60 solely on the basis of use and promotion of the relevant mark. Another example of this approach is Nettlefold Advertising Pty Ltd v Nettlefold Signs Pty Ltd (1997) 38 IPR 495 (Nettlefold), in which Heerey J relied upon the public visibility of the applicant's marks over approximately two decades as well as a $100,000 promotional campaign in finding that a reputation for the purposes of s 28 of the 1955 Act existed.
  1. That said, in the present matter there is no evidence before me of consumer appreciation of the s 60 Marks, nor of any “esteem” component that might attach to them. Nor is it possible to say from the Opponent’s evidence what the quantity or value of sales of rice bearing the s 60 Marks may have been before the Priority Date. Those sales figures and supporting invoices which the Opponent’s Managing Director Mr Varma does provide all post-date the filing of the Trade Mark.
  2. Mr Varma’s evidence is similarly vague regarding advertising and promotion of rice bearing the s 60 Marks in Australia. After stating that the Opponent markets rice under the brand names Taj Special, Taj Classic, Taj Premium and Taj King in addition to rice bearing the s 60 Marks, Mr Varma then simply goes on to briefly indicate how the Opponent “markets and advertises the brands” generally. He only provides a single specific (and very modest) figure for expenditure “since 1984” in relation to “the Taj brand” and “the Taj related brands of the business” collectively. Advertising and promotion of rice bearing the s 60 Marks is only again mentioned incidentally in the context of the Opponent’s plans:
to significantly increase the monies allocated to the advertising, promotion & marketing budget for the Taj Brand products including White Tiger, for the 2011 financial year. The Opponent has budgeted to spend in excess of $100,000.00. The increased expenditure will include television advertising through specialist ethnic media such as Vision India & advertising on Channel 9 TV Connect package for Small Businesses.
  1. In summary, I have little hesitation in accepting the unflattering assessment of Mr Varma’s evidence made by Mr Hall in his submissions and his conclusion that “Nothing in this evidence demonstrates any reputation as at the Priority Date.” I am simply unable to say whether the s 60 Marks enjoyed the kind of reputation contemplated by s 60 as at the relevant date (or at all). Nor am I able to speculate on the issue. As was noted by the Registrar’s delegate in Sara Lee Corporation v Bali Blue Pty Ltd[20]:
The reputation in Australia cannot be assumed — it must still be established as a question of fact — per Lockhart J in ConAgra Inc v McCain Foods (Aust) Pty Ltd [1992] FCA 159(1992) 33 FCR 302 ; 106 ALR 46523 IPR 193.
  1. The Opponent has accordingly not established its ground of opposition under s 60.
Decision
  1. Section 55(1) of the Act provides:
Unless the proceedings are discontinued or dismissed, the Registrar
must, at the end, decide:
(a) to refuse to register the trade mark; or
(b) to register the trade mark (with or without conditions or limitations) in respect of the goods and/or services then
specified in the application;

having regard to the extent (if any) to which any ground on which the
application was opposed has been established.
Note: For limitations see section 6.
  1. I have found the Opponent has not established any of the grounds it raised pursuant to ss 44, 58 or 60 of the Act. The trade mark application may accordingly proceed to registration one month from the date of this decision. If the Registrar has been served with a notice of appeal before that time, I direct that registration shall not occur until the appeal has been decided or discontinued.
Costs
  1. Both parties requested an award of costs in their favour. As the successful party, the Applicant is entitled to its costs and I accordingly award costs against the Opponent as per Schedule 8 of the Trade Marks Regulations 1995.
Michael Kirov
Hearing Officer
Trade Marks Hearings
27 September 2012

[1] The third Notice also incorrectly indicates the Applicant’s address for service.
[2] Being a declaration made “under the Trade Marks Act 1995 and Regulation 21.6 of the Trade Marks Regulations”.
[3] I mention that the deponent David Matthew Hall is apparently known less formally as Matthew Hall and is the Applicant’s legal representative in these proceedings.
[4] The Applicant himself, although arriving late, was also present for most of the proceedings.
[5] I mention that, with the stated objective of reducing formality in procedure under the Act, s 66 was amended as from 27 March 2007 by Item 78 of Part 2 of Schedule 1 to the Trade Marks Amendment Act 2006to remove the requirement that a request under the section be in writing.
[6] Citing Margaret Kerr, Kent Sasse, Henry Arthur Sasse and Toddler Kindy Gymbaroo Pty Ltd v Invecon Australia Pty Ltd (2008) 80 IPR 600 ; [2008] ATMO 102 (24 December 2008) at [11].
[7] Citing regulation 21.15(7) of the Trade Mark Regulations 1995.
[8] Following Gyles J in Pfizer Products Inc v Karam [2006] FCA 1663(2006) 70 IPR 599 at [6] to [26]. See also Chocolaterie Guylian N.V. v Registrar of Trade Marks [2009] FCA 891(2009) 82 IPR 13per Sundberg J at [22] to [27], Sports Warehouse Inc v Fry Consulting Pty Ltd [2010] FCA 664(2010) 87 IPR 300 per Kenny J at [30] to [40], NV Sumatra Tobacco Trading Company v British American Tobacco Services Limited [2011] FCA 1051 (9 September 2011) per Greenwood J at [16] to [32], Allergan Inc v Di Giacomo [2011] FCA 1540(2011) 94 IPR 541 per Stone J at [11] to [12], Nexans S.A. v. Nex 1 Technologies Co. Ltd [2012] FCA 180 (2 March 2011) per Murphy J at [9], Tricarico v Dunn Bay Holdings Pty Ltd [2012] FCA 271 (23 March 2012) per McKerracher J at [9] to [10] and Fry Consulting Pty Ltd v Sports Warehouse Inc (2012) 94 IPR 551 per Dodds-Streeton J at [13].
[9] Prior to commencement of the Act on 1 January 1996 the words “proprietor” and “proprietorship” were used in legislation and relevant case law rather than the currently used words “owner” and “ownership”, but with no difference in meaning. In this decision I use the corresponding words interchangeably as the context demands.
[10] Which s 6 of the Act indicates “includes a body of persons, whether incorporated or not”.
[11] Seven Up Co v OT Ltd [1947] HCA 59(1947) 75 CLR 203.
[12] Re Hicks’ Trade Mark [1897] VicLawRp 118(1897) 22 VLR 636.
[13] I understand “Liberty Enterprise Co” was the trading name used by the Applicant and Mr Moten before Liberty Impex Pty Ltd was incorporated.
[14] Food Channel at [11].
[15] Including, principally, Australian Woollen Mills Ltd v F.S. Walton & Co [1937] HCA 51(1937) 58 CLR 641 (at 658), Shell Co of Australia Ltd v Esso Standard Oil (Aust) Ltd [1963] HCA 66(1963) 109 CLR 407 at 410, Berlei v Hestia Industries Ltd [1973] HCA 43(1973) 129 CLR 353 at 362, SAP (Australia) Pty Ltd v Sapient (Australia) Pty Ltd [1999] FCA 1821(1999) 169 ALR 1Anheuser Busch Inc v Budejovicky Budvar [2002] FCA 390(2002) 56 IPR 182 at 216, Torpedoes Sportswear Pty Ltd v Thorpedo Enterprises Pty Ltd [2003] FCA 901(2003) 132 FCR 326 and Crazy Ron’s Communications Pty Ltd v Mobileworld Communications Pty Ltd [2004] FCAFC 196(2004) 209 ALR 1.
[16]I mention that I have substituted the word “White” here for the word “Grand” which actually appears, presumably in error, in Ms Champion’s written submissions.
[17] According to Wikipedia®, a white tiger is a “sub-species” of Bengal tiger.
[18] [1952] HCA 15(1952) 86 CLR 536 (at 539)
[19] London Lubricants (1920) Ltd’s Application (1925) 42 RPC 264, per Sargant LJ at 279.
[20] (2003) 59 IPR 619 (at 624)

the defence evidence adduced in the case did not satisfactorily establish the plea of alibi put forward by A-4 and A-12 have also been indicated. The aforesaid aspects of the case, therefore, would not need any further dilation and it is the reasons for the conviction of the accused appellants under Section 302 and the other provisions of the IPC will be required to be noticed by us. 30. The High Court has concluded that the evidence of PW-1, PW-2, PW-3 and PW-4 have supported the prosecution case to a certain extent and the said fact could not have been ignored only because PW-2, PW-3 and PW-4 were declared hostile. Even if the aforesaid reasoning of the High Court is to be accepted what would logically follow therefrom is that the evidence of PW-1, PW-2, PW-3 and PW-4, at best, shows the presence of the convicted accused and the deceased at the place of occurrence on the day of the incident. In so far as the evidence of PW-5 and PW-7 is concerned, the High Court was of the view that the failure to mention the names of any of the convicted accused in Ex. P-2 can be explained by the fact that PW-5 and PW-7 must have been in a state of shock and, furthermore, Ex. P-2 was a report to the Magistrate, not of the incident as such, but a 31Page 32 report of what had happened to the prisoners who were brought by PW-5 and PW-7 from the jail for production in the court. The errors on the part of PW-5 and PW-7 in identifying some of the accused in Court have been understood by the High Court to be on account of the long lapse of time between the incident and date of their examination in Court (5 years). The absence of any Test Identification Parade, according to the High Court, did not materially affect the prosecution case, as PW-5 and PW-7 had stated in their evidence that the accused used to frequently come to police station in connection with other cases in which they were involved. 31. We find it difficult to agree with the view taken by the High Court on the above aspects of the case. Not mentioning the name of any of the accused in the report submitted to the court i.e. Ex. P-2, particularly, when according to PW-5 and PW-7, the accused persons were known to them is a vital lacuna which cannot be explained by confining the scope of the said report as has been done by the High Court. At the same time, the narration of the names of several of the accused in the examination of PW-5 and PW-7 in court, in our view, would cease to be a mere discrepancy with reference to the earlier 32Page 33 version of the witnesses as mentioned in Ex. P-2. The same would amount to an improvement or an exaggeration on the part of the prime witnesses of the prosecution thereby casting a serious doubt on their reliability. PW-5 and PW-7 are supposed to be members of a disciplined force. The lacuna in Ex. P-2 (absence of any names) cannot be reasonably understood to be on account of any shock suffered by the witnesses due to the incident. The failure on the part of PW-5 and PW-7 to use the fire arms issued to them despite an assault committed by as many as 23 persons resulting to the death of three, as the prosecution has alleged, is both mysterious and inexplicable. So is the registration of the FIR under Section 302 IPC at 3.15 p.m. when the deceased persons were still alive. The efficacy of the dying declaration (Ex. P-4) when the maker thereof had slipped into a coma even before completing the statement would have a serious effect on the capacity of D-1 to make such a statement. The certification made by PW-21 with regard to the condition of the deceased is definitely not the last word. Though ordinarily and in the normal course such an opinion should be accepted and acted upon by the court, in cases, where the circumstances so demand such 33Page 34 opinions must be carefully balanced with all other surrounding facts and circumstances. All the above, in our view, demonstrates the fragile nature of the conclusions reached by the High Court in the present case. 32. For the above reasons, we hold that conviction of the accused appellants recorded by the High Court under the different provisions of the IPC and the sentences imposed cannot be sustained. We accordingly allow this appeal, set aside the judgment and order dated 4.9.2008 & 19.09.2008 passed by the High Court of Madras and confirm the order of acquittal dated 16.04.1998 passed by the learned trial court. The accused appellants, if in custody, be released forthwith unless required in any other case.


Page 1
REPORTABLE
IN THE SUPREME COURT OF INDIA
CRIMINAL APPELLATE JURISDICTION
   CRIMINAL   APPEAL   NO.   53   OF   2009
1 Murugesan (A-5)
S/o  Muthu
2 Paramasivam (A-2)
S/o Muthu
3     Lakshmanaperumal (A-3)
S/o  Muthu
4     Solaiappan (A-4)
S/o Muniyandi
5     Thirumani (A-1)
S/o  Solaiappan
6     Muthumuniyandi (A-7)
S/o Yamaraj
7     Kanthasamy (A-8)
S/o  Muthukkaruppan
8     Lingam (A-9)
  S/o Kannan
9 Govindan (A-10)
1Page 2
S/o  Perumal
10  Narayanan (A-12)
  S/o Shanmugam
11    Murugan (A-13)
  S/o  Kannan
12    Ganesan (A-14)
  S/o Muthu
13    Shanmugam (A-15)
  S/o  Solai Narayanan
14    Ramalingam (A-16)
  S/o Muthu
15    Velmurugan (A-17)
  S/o  Soliappan
16    M.Marimuthu (A-18)
  S/o Mookia
17    M.Marimuthu (A-19)
        S/o Karuppasami ....Appellants
Versus
State through Inspector of Police      .…Respondent
  J  U  D  G   M  E  N  T
   RANJAN   GOGOI,   J.
2Page 3
This appeal, under Section 379 of the Code of Criminal Procedure,
1973 is against the order of the High Court of Madras reversing the
acquittal of the appellants and convicting and sentencing each one of
them under   different Sections of the Indian Penal Code (hereinafter
shall be referred to as ‘IPC’).  All the accused persons have been
convicted under Section 120 B of the IPC and sentenced to undergo
rigorous imprisonment for a period of seven years each.   The
accused appellants have also been found guilty under Section 302 of
IPC for their individual acts or constructively under Section 34/149
IPC for commission of the said offence.  They have been accordingly
sentenced to undergo rigorous imprisonment for life. Some of the
appellants have also been found guilty of the offences under Section
148 and Section 332 read with Section 149 IPC for which sentence of
rigorous imprisonment of three years have been imposed.  Aggrieved
the present appeal has been filed.
2. For the sake of clarity reference to the accused is hereinafter
being made in the chronological order arranged in the proceedings of
3Page 4
the trial and the three deceased, i.e., Veeraperumal, Karumpuli and
Madaswamy are being referred to as D-1, D-2 and D-3 respectively.
The case of the prosecution, in short, is that there was a land  dispute
between  Karumpuli (D-2) and his family and A-1, Thirumani, and his
party.  There were civil litigations between the parties over the said
property.   According to the prosecution, on account of the aforesaid
dispute, the younger brother of the accused No.15 was murdered and
in the said case D-1, D-2 and D-3 were arrayed as accused. At the
relevant point of time, the three deceased persons were on bail.
There was another case pending against D-1 and D-2 in respect of an
incident of a bomb attack on the rival party.  In connection with the
said case, the aforesaid two deceased who were arrested were
brought to the court of the Judicial Magistrate, Vilathikulam on the
day of the occurrence, i.e. 22.09.1991 for execution of the bail bonds
etc. so as to enable them to be released on bail. Thiru Bagavati (PW-
1), Alagar (PW-2), Periyasami (PW-3) and Kalimuthu (PW-4) along
with D-3 had come to meet D-1 and D-2 in the court complex.  On
the same day, A-14, A-15, and A-16 who were also under arrest in
another case were brought by the police to the court complex for
4Page 5
purpose of further remand.  The other accused persons had come
to see  A-14,  A-15, and A-16.  Both the groups, including the
deceased and the accused who were brought from jail, were engaged
in their respective conversations.    According to the prosecution, at a
point of time between 2.00 p.m. and 3.00 p.m., A-14, A-15 and A-16
asked the other members of the accused party who had come to
meet them to finish off D-1 and D-2.  On being so instigated,
according to the prosecution, the other members of the accused party
inflicted fatal injuries on D-1, D-2 and D-3.  It  is  the further case of
the prosecution that D-1, on being inflicted injuries by the accused
persons, ran towards the Police Station, situated near the court
complex and made a statement (Ex. P-1) based on which the FIR (Ex.
22) was registered by PW-27.    Thereafter, the FIR was sent to the
Court of Judicial Magistrate, Vilathikulam which was received at about
5.00. p.m. on the same day.  
The injured D-1 was shifted to the Government Hospital and on
an intimation being sent by PW-20 Dr. Rajaram  (Raj Mohan),
Assistant Civil Surgeon attached to Government Hospital, the learned
Judicial Magistrate (PW-6)  came to the hospital to record the dying
5Page 6
declaration of the injured, Veeraperumal.  According to the
prosecution, while his statement was being recorded, D-1, slipped
into a coma and, thereafter, died at about 4.07 p.m.  The dying
declaration (Exh P-4) was recorded in the presence of Paulsama,
Medical Officer (PW-21) who had certified that the injured (D-1) was
in a fit condition to make the statement.   It is the further case of the
prosecution that the other injured namely, Karumpulli and Madasamy
were also brought to the hospital but had died on the way.
It is further alleged by the prosecution that D-1 and D-2 were
brought to the court complex from the jail premises by Police
Constables Sankaranarayanan (PW-5) and Shanmugaraj (PW-7).
Both the aforesaid police constables, according to the prosecution,
were eye-witnesses to the occurrence and they had submitted a
report to the Judicial Magistrate, Vilathikulam (Ex. P-2) in this regard.
The prosecution has further alleged that in the course of the attack by
A-1 Thirumani, A-5 had also sustained injuries for which A-5 had filed
a complaint and he was medically examined.    The prosecution also
claims that at the instance of A-7, five aruvals were recovered.
6Page 7
3. On the completion of the investigation, charge sheet was
submitted against all the accused under different Sections of the IPC.
The offences alleged being triable by the Court of Sessions, the case
was committed for trial to the Court of the learned Sessions Judge,
Tuticorin.   The learned trial court framed charges against the present
appellants (17 in number) and six others under Sections 120 B, 147,
148, 332 and 302 read with Section 34/109/149 of the IPC.    The
accused having pleaded not guilty were tried. In the trial held, 30
witnesses were examined by the prosecution who had also exhibited a
large number of documents besides as many as 20 material objects.
Three witnesses were examined on behalf of the defence and as
many as 10 documents were also exhibited.  The learned trial Judge
by the judgment and order dated 16.04.1988 held that the charges
levelled against the accused persons have not been proved beyond all
reasonable doubt.  Accordingly, all the 23 accused were acquitted.
On an appeal being filed by the State, the High Court by the
impugned judgment and order dated 04-09-2008/19-09-2008 had set
aside the acquittal of   A-1  to A-19 and convicted them under
different Sections of the IPC.  The acquittal ordered by the learned
7Page 8
trial court in respect of A-20, A-21, A-22, and A-23 was, however,
maintained by the High Court.   Of the 19 accused who have been
convicted by the High Court, A-6 and A-11 have died in the mean
time.   Consequently, it is the 17 accused persons against whom the
order of conviction continues to be effective who have instituted the
present appeal.
4. A reading of the judgment dated 16.04.1998 passed by the
learned trial court indicates that the learned court did not consider it
prudent to act on the evidence of PW-1 inasmuch as it was found that
there are certain innovations in the evidence tendered by the said
witness who is also closely related to at least two of the deceased
persons. PW-2, PW-3 and PW-4 not having supported the prosecution
case and having been declared hostile, the learned trial court thought
it proper not to place any reliance whatsoever on the testimony of the
said witnesses.   The evidence of PW-5 and PW-7, the Police
constables who had escorted D-1 and D-2 to the court complex from
the prison, was elaborately considered by the learned trial court
before coming to the conclusion that the evidence of the two
aforesaid witnesses did not inspire the confidence of the court.   The
8Page 9
detailed reasons which had persuaded the trial court to take the
above view will be noticed in the discussions that will follow.  
5. Coming to Ex. P-1, (complaint lodged by D-1 in the police station
immediately after the incident) and the formal FIR lodged on that
basis (Ex. P-22) the learned trial court was of the opinion that the
said documents do not accurately reflect the situation as claimed to
have taken place in view of the fact that FIR under Section 302 IPC
was registered at 3.15 pm when the victims of the alleged assault
were still alive.   
6. In so far as Ex. P-2, i.e., the report lodged by PWs-5 and 7
before the Judicial Magistrate is concerned, the learned trial court was
of the view that the  involvement of any of the accused have not been
mentioned in the said report which renders the same open to grave
suspicion and doubt, besides affecting the oral testimony of PW-5 and
PW-7 tendered in court  later i.e. after five years wherein the names
of the alleged attackers, i.e., the accused have been mentioned with
complete certainty and precise accuracy. The dying declaration (Ex.
P-4) of D-1 was also considered unsafe to be relied upon in view of
9Page 10
the fact that the names of only three of the  accused have been
recorded in the dying declaration in contrast to the names of 11
accused that finds mention in Ex. P-1 and that charge sheet was
eventually filed against 23 accused persons.
7. The learned trial court also considered the evidence of DW-1,
DW-2, and DW-3 to hold that the said evidence proved and
established the presence of A-4 in the office of the Sub-Registrar and
A-12 in ITI, Thoothukudi rather than at the place of the occurrence at
the time of the incident.  The learned trial court, on the said finding,
held the prosecution case to be false to the extent disproved by the
defence evidence. It is on the aforesaid broad basis that the learned
trial court thought it fit to come to the conclusion that in the present
case the involvement of any of the accused has not been proved
beyond reasonable doubt.   Consequently, the learned court thought
it proper to acquit all the accused persons from all such charges that
had been levelled against them by the prosecution.
8. Specifically in so far as the charge of criminal conspiracy under
Section 120 B IPC is concerned, the learned trial court took into
10Page 11
account the evidence of  A-15, A-16 and A-17,  all of whom denied
what the prosecution had alleged, namely, that on the day previous
to the incident i.e. 21.09.1991, there was a meeting in the village
where all the accused persons (except  A-14, A-15 and A-16) had
planned and conspired to murder D-1 and D-2 on the next day when
they were to be brought to Court.    In this regard, the learned trial
court also took into account the statement made by the learned Public
Prosecutor virtually admitting that, on the evidence adduced, no case
of criminal conspiracy have been made out against any of the
accused. In so far as  A-20 to A-23 are concerned the learned trial
court specifically came to the conclusion that no evidence whatsoever
had been adduced by the prosecution to show the presence of any of
the aforesaid accused persons at the time and place of occurrence.
9. The very elaborate judgment of the learned trial court has been
considered in an equally elaborate and exhaustive discourse by the
High Court in the appeal filed by the State of Tamil Nadu. In so far as
the charge under Section 120B is concerned, the High Court was of
the view that the materials on record had established that all the
11Page 12
accused persons (except A-14, A-15 and A-16) had come to the court
complex armed with dangerous weapons which was indiscriminately
used on the victims merely at the call of A-14 to A-16.   The said
evidence, according to the High Court, conclusively proved the
commission of the offence under Section 120 B of the IPC. The High
Court was of the view that such a conclusion is the inevitable result of
the process of inference by which proof of commission of the offence
of criminal conspiracy was required to be reached in the present case.
10. In so far as the other offences are concerned, the High Court,
after noticing the evidence adduced by the prosecution witnesses and
the several documents brought on record, took the view that PW-2,
PW-3 and PW-4, though were declared hostile, had supported the
prosecution, at least to the extent that the three deceased persons
and all the convicted accused were present in the court complex on
the date and at the time when the occurrence is alleged to have
taken place.  Reliance to the aforesaid extent on the evidence
tendered by the hostile witnesses, according to the High Court, is
permissible in law and therefore the aforesaid part of the evidence
could not be discarded in toto. The High Court, for the reasons set out
12Page 13
in the impugned judgment, came to the conclusion that the evidence
tendered by PW-5 and PW-7 is trustworthy and reliable.  While the
detailed reasons in this regard will be noticed in the subsequent
paragraphs of this order along with the reasons set out by the learned
trial court for taking the opposite view, once the aforesaid conclusion
i.e. that PW-5 and PW-7 are reliable and trustworthy was reached by
the High Court, the prosecution case had assumed an entirely
different complexion. Proceeding further, the High Court also
considered the evidentiary worth of the documents exhibited by the
prosecution as Ex.P-1, Ex.P-2 and Ex.P-4 and held the said
documents to be aiding the prosecution case.  The doubts expressed
by the learned trial court with regard to the said documents were
answered by the High Court to be of no consequence for reasons that
we will shortly notice and consider.
11. Coming to the defence evidence, the   High Court was of the
view that the evidence tendered by DW-1, DW-2, DW-3 did not
conclusively prove the plea of alibi advanced on behalf of  A-4 and A-
12,  inasmuch as such evidence did not  establish the presence of the
aforesaid two accused at the places claimed by them.  However, in so
13Page 14
far as A-20 to A-23 are concerned the High Court agreed with the
findings of the learned trial court. Accordingly, while maintaining the
acquittal of the aforesaid accused persons, i.e. A-20 to A-23, the High
Court was of the view that the acquittal of all the other accused
should be reversed and they are liable to be convicted for  different
offences, details of which have already been noticed.   Thereafter,
upon hearing each of the accused persons, the sentences in question,
as already noted, were awarded.
12. We have heard Shri V. Kanagaraj, learned senior counsel for the
appellants and Shri Guru Krishna Kumar, AAG for the State.  We have
given our anxious consideration to the submissions made on behalf of
the rival parties and we have carefully considered the oral and
documentary evidence adduced by the parties in the course of the
trial.
13. Before proceeding any further it will be useful to recall the broad
principles of law governing the power of the High Court under Section
378 Cr.PC, while hearing an appeal against an order of acquittal
passed by a trial Judge.
14Page 15
14. An early but exhaustive consideration of the law in this regard is
to be found in the decision of Sheo Swarup v. King Emperor
1
wherein it was held that the power of the High Court extends to a
review of the entire evidence on the basis of which the order of
acquittal had been passed by the trial court and thereafter to reach
the necessary conclusion as to whether order of acquittal is required
to be maintained or not. In the opinion of the Privy Council no
limitation on the exercise of power of the High Court in this regard
has been imposed by the Code though certain principles are required
to be kept in mind by the High Court while exercising jurisdiction in an
appeal against an order of acquittal. The following two passages from
the report in Sheo Swarup (supra) adequately sum up the
situation:
“There is in their opinion no foundation for the view, apparently
supported by the judgments of some Courts in India, that the High
Court has no power or jurisdiction to reverse an order of acquittal on
a matter of fact, except in cases in which the lower Court has
"obstinately blundered," or has "through incompetence, stupidity or
perversity" reached such "distorted conclusions as to produce a
positive miscarriage of justice," or has in some other way so
conducted itself as to produce a glaring miscarriage of justice, or has
been tricked by the defence so as to produce a similar result.
1
  AIR 1934 PC 227 (2)
15Page 16
Sections 417, 418 and 423 of the Code give to the High Court full
power to review at large the evidence upon which the order of
acquittal was founded, and to reach the conclusion that upon that
evidence the order of acquittal should be reversed. No limitation
should, 'be placed, upon that power, unless, it be found expressly
stated in the Code. But in exercising the power conferred by the Code
and before reaching its conclusions upon fact, the High Court should
and will always give proper weight and consideration to such matters
as (1) the views of the trial Judge as to the credibility of the
witnesses; (2) the presumption of innocence in favour of the accused,
a presumption certainly not weakened by the fact that he has been
acquitted at his trial; (3) the right of the accused to the benefit of any
doubt; and (4) the slowness of an appellate Court in disturbing a
finding of fact arrived at by a Judge who had the advantage of seeing
the witnesses. To state this however is only to say that the High Court
in its conduct of the appeal should and will act in accordance with
rules and principles well known and recognized in the administration
of justice.
    (page 229 of the report)”
15. The principles of law laid down by the Privy Council in Sheo
Swarup (supra) has been consistently followed by this Court in a
series of subsequent pronouncements of which reference may be
illustratively made to the following:
Tulsiram Kanu v. State
2
, Balbir Singh v. State of Punjab
3
, M.G.
Agarwal v. State of Maharashtra
4
, Khedu Mohton v. State of Bihar
5
,
2
 AIR 1954 SC 1
3
 AIR 1957 SC 216
4
 AIR 1963 SC 200
5
 (1970) 2 SCC 450
16Page 17
Sambasivan v. State of Kerala
6
, Bhagwan Singh v. State of M.P.
7
and
State of Goa v. Sanjay Thakran
8
.
16. A concise statement of the law on the issue that had emerged
after over half a century of evolution since Sheo Swarup (supra) is
to be found in para 42 of the report in Chandrappa & Ors. v. State
of Karnataka
9
. The same may, therefore, be usefully noticed below:
“42. From the above decisions, in our considered view, the following
general principles regarding powers of the appellate court while
dealing with an appeal against an order of acquittal emerge:
(1) An appellate court has full power to review, re-appreciate and
reconsider the evidence upon which the order of acquittal is founded.
(2) The Code of Criminal Procedure, 1973 puts no limitation,
restriction or condition on exercise of such power and an appellate
court on the evidence before it may reach its own conclusion, both on
questions of fact and of law.
(3) Various expressions, such as, "substantial and compelling
reasons", "good and sufficient grounds", "very strong circumstances",
"distorted conclusions", "glaring mistakes", etc. are not intended to
curtail extensive powers of an appellate court in an appeal against
acquittal. Such phraseologies are more in the nature of "flourishes of
language" to emphasise the reluctance of an appellate court to
interfere with acquittal than to curtail the power of the court to review
the evidence and to come to its own conclusion.
(4) An appellate court, however, must bear in mind that in case of
acquittal, there is double presumption in favour of the accused.
Firstly, the presumption of innocence is available to him under the
fundamental principle of criminal jurisprudence that every person
6
 (1998) 5 SCC 412
7
 (2002) 4  SCC 85
8
 (2007) 3 SCC 755
9
  2007 (4) SCC 415
17Page 18
shall be presumed to be innocent unless he is proved guilty by a
competent court of law. Secondly, the accused having secured his
acquittal, the presumption of his innocence is further reinforced,
reaffirmed and strengthened by the trial court.
(5)  If     two     reasonable     conclusions     are     possible     on     the     basis     of     the
   evidence     on     record,     the     appellate     court     should     not     disturb     the     finding
   of   acquittal   recorded   by   the   trial   court.”
(emphasis is ours)
17. Another significant aspect of the law in this regard which has to
be noticed is that an appeal to this Court against an order of the High
Court affirming or reversing the order of conviction recorded by the
trial court  is contingent on grant of leave by this Court under Article
136 of the Constitution. However, if an order of acquittal passed by
the trial court is to be altered by the High Court to an order of
conviction and the accused is to be sentenced to death or to undergo
life imprisonment or imprisonment for more than 10 years, leave to
appeal to this Court has been dispensed with and Section 379 of the
Code of Criminal Procedure, 1973, provides a statutory right of appeal
to the accused in such a case. The aforesaid distinction, therefore,
has to be kept in mind and due  notice must be had of the legislative
intent to confer a special status to an appeal before this court against
an order of the High Court altering the acquittal made by the trial
18Page 19
court. The issue had been dealt with by this Court in State of
Rajasthan v. Abdul Mannan
10
in the following terms, though in a
different context :
“12. As is evident from the above recorded findings, the judgment of
conviction was converted to a judgment of acquittal by the High
Court. Thus, the first and foremost question that we need to consider
is, in what circumstances this Court should interfere with the
judgment of acquittal. Against an order of acquittal, an appeal by the
State is maintainable to this Court only with the leave of the Court.
On the contrary, if the judgment of acquittal passed by the trial court
is set aside by the High Court, and the accused is sentenced to death,
or life imprisonment or imprisonment for more than 10 years, then
the right of appeal of the accused is treated as an absolute right
subject to the provisions of Articles 134(1)(a) and 134(1)(b) of the
Constitution of India and Section 379 of the Code of Criminal
Procedure, 1973. In light of this, it is obvious that an appeal against
acquittal is considered on slightly different parameters compared to
an ordinary appeal preferred to this Court.”
18. Having dealt with the principles of law that ought to be kept in
mind while considering an appeal against an order of acquittal passed
by the trial court, we may now proceed to examine the reasons
recorded by the trial court for acquitting the accused in the present
case and those that prevailed with the High Court in reversing the
said conclusion and in convicting and sentencing the accused
appellants.
10
   2011 (8) SCC 65
19Page 20
19. Insofar as the charge of criminal conspiracy under Section 120B
IPC is concerned, there is no doubt and dispute that to prove the said
charge the prosecution had examined PWs 15,16 and 17 who did not
support the prosecution case in any manner at all. In fact, each of the
aforesaid three witnesses categorically denied that they had made
any statement before the Investigating Officer with regard to any
agreement amongst the accused on 21.09.1991 to commit the
murder of D-1 and D-2 on the next day when they were to be
brought to the court. In fact it was noted by the learned trial court
that the public prosecutor has virtually conceded that the evidence on
record did not establish the charge of criminal conspiracy against any
of the accused. The learned trial Judge, therefore, acquitted all the
accused of the said charge. The view taken by the learned trial Judge
was definitely a possible view. As against the same, the High Court
came to the conclusion that, notwithstanding the evidence of PWs
15,16 and 17, the charge of criminal conspiracy has been established
as the prosecution had succeeded in proving  that   the accused
persons  (except  A-14, A-15 and A-16) had come to the place of
occurrence armed with dangerous weapons and at the mere call of
20Page 21
the said accused, they had  attacked D-1, D-2 and D-3 with the
weapons that they had brought. In this regard, the High Court relied
on the fact that it is an established proposition of law that direct
evidence of criminal conspiracy would rarely be forthcoming and a
conclusion in this regard has to be, largely, inferential.
20. On a careful consideration of this aspect of the case, we find
ourselves unable to agree with the conclusion of the High Court.
Firstly, if the conclusion recorded by the learned trial court was a
possible conclusion, the High Court ought not to have ventured
further in the matter. Secondly, the aforesaid exercise, in our
considered view, did not also occasion a correct conclusion inasmuch
as the presence of the accused at the spot armed with weapons and
responding to the call of A-14, A-15 and A-16 to attack the deceased,
even if assumed, in the absence of any further evidence, cannot
establish a prior arrangement/agreement or a meeting of minds
amongst the accused to commit the offence of murder so as to
sustain a charge of criminal conspiracy under Section 120B IPC.
21Page 22
21. Before going into the main issue in the case, namely, the
culpability of any or all the accused under Section 302 IPC either on
the basis of constructive liability under Section 34/149 IPC or on the
basis of the individual acts of the accused, an incidental aspect of the
case with regard to the plea of alibi set up by A-4 and A-12 can be
conveniently dealt with at this stage. The plea of alibi set up on behalf
of the aforesaid two accused on the basis of the evidence of DWs - 1,
2 and 3 was accepted by the learned trial court by holding that the
defence evidence tendered in the case had established that at the
time of the occurrence A-12 was in the ITI, Tuticorin whereas A-4 was
in the office of the Sub-Registrar, Tuticorin. Reading the evidence of
DWs - 1, 2 and 3 and the documents exhibited in this regard (Ex. D-
4, D-5, D-8, D-9, D-10) it is possible to take a view that aforesaid two
accused were not present at the place of occurrence at the relevant
time.  The High Court answered the aforesaid issue by stating that as
it was admitted by DW-1 in cross-examination that a student could
leave the college after being marked present in the attendance
register and as the sale deed (Ex.D-5) claimed to have been executed
by A-4 in Tuticorin at the time of the incident did not specify the time
22Page 23
of execution, the plea of alibi set up by A-4 and A-12 was not
satisfactorily proved.
The exercise undertaken by the High Court, once again, overlooks the
basic principle of law that this Court has repeatedly emphasized in the
matter of exercise of jurisdiction while hearing an appeal against an
order of acquittal passed by the trial court. We are, therefore, unable
to accord our approval to the manner in which the High Court had
dealt with this aspect of the case.
22. This would now require us to consider the main issue in the case,
namely, the liability of the accused appellants under the provisions of
IPC other than those dealt with in the discussions that have preceded.
The trial court considered it prudent to view the testimony of PW-1
with great care and circumspection as    the said witness is the
younger brother of one of the deceased.  The learned trial court also
took into account the fact that PW-1, though examined as an eye
witness, could not specifically say as to which accused had assaulted
which particular deceased and the weapon(s) used. That apart, the
learned trial court took into account the fact that PW-1 had sought to
23Page 24
implicate the acquitted A-20 to A-23 who, admittedly, were not
present at the place of occurrence as stated by the investigating
officer of the case examined as PW-30.
The learned trial court while considering the evidence of PW-2, PW-3,
and PW-4, took into account the fact that all the said witnesses are
closely related to the deceased and that they were declared hostile by
the prosecution.  Specifically, it was noticed by the learned trial court
that PW-2 had stated that immediately after incident had occurred he
had run away from the place and had mingled with the crowd.   PW-2
had further stated that he had not seen who had hacked whom.  PW-
3, it was noticed by the learned trial, had stated that he had returned
to the place of the incident after taking lunch and, therefore, he did
not see the occurrence.  On the other hand, PW-4 had stated that the
assault was committed by a group of men and had not named any
particular accused.  In such circumstances the learned trial court
came to the conclusion that  the conviction of any of the accused
under Section 302 IPC either for their individual acts or on the
principle of constructive liability under Section 34/149 IPC would not
be warranted on the basis of the evidence of PWs 1 to 4.  
24Page 25
23. The learned trial court, thereafter, proceeded to examine the
evidence of PW-5 and PW-7, the police constables who had escorted
D-1 and D-2 to the court complex.  On such consideration, the
learned trial court came to the finding that the evidence of PW-5
regarding pelting of stones on him and PW-7 by some of the accused
was unacceptable as no resultant injuries are recorded in the wound
certificates (Ex. P-15 and P-16). In this regard, the learned trial court
also noticed that the injuries mentioned in the aforesaid wound
certificates were caused by aruval and knife and ,further, that neither
PW-5 nor PW-7 had informed the doctor about any injuries being
caused by pelting of stones.   The apparently false involvement of A-
20 to A-23 in the incident made by PWs - 5 and 7; the wrong
identification of several of the accused made in court by PW-5 and
PW-7; the absence of any test identification parade are the other
circumstances that was taken note of by the learned trial court to
arrive at the conclusion that the evidence of PW-5 and PW-7 is not
reliable.   The injuries on PW-5 claimed to have been caused by an
aruval was also found by the learned trial court not to be free from
25Page 26
doubt or ambiguity.  This is because, according to PW-5, he had tried
to prevent the blow dealt with the aruval by A-17, which fell on the
‘rifle but’  carried by him and had also injured him on the left hand.
The rifle carried by PW-5, however, was not exhibited in the trial.
Moreover, according to the prosecution, D-1 was examined at about
3.25 p.m and PW-5 and PW-7 were examined between 4.05 and 4.15
p.m.   PW-5 in his deposition had, however, stated that he along with
PW-7 was treated around 5.45 – 6.00 p.m. and at that time D-1 was
also in the hospital undergoing treatment.  All these facts were duly
taken note of along with the oral and documentary evidence adduced
by the prosecution to show that D-1 had died at 4.07 PM.
24.   Apart from the above inconsistencies which were considered by
the learned trial court to be grave and severe, the fact that the FIR
registered at 3.15 p.m. was so registered, inter alia, under Section
302 IPC though, admittedly, the deceased persons were alive at that
time was also taken note of by the learned trial court as being a
significant aspect of the case which required an explanation from the
prosecution which was not forthcoming.   The discrepancies between
Ex. P-1 wherein 11 accused were named and Ex. P-2 where none of
26Page 27
the accused were named and the contents of Ex. P-4 where only
three accused were named were duly taken note of by the learned
trial court apart from the fact that in Ex. P-2 it had been stated that
4-5 persons from outside had come and committed the assault.    The
prosecution had alleged that A-5 had received cut injuries on his
forehand and 4 of his fingers had been severed due to an aruval blow
aimed by A-1 on D-1 which fell on A-5.   The fact that the FIR filed
with regard to injuries caused to A-5 by A-1 had ended in a closure
report had also been considered by the leaned trial court.  The nonexamination of any disinterested witnesses though several such
persons had witnessed the incident is an additional circumstance that
was relied upon by the learned trial court to come to the conclusion
that the accused appellants should be exonerated of the charges
levelled against them.
25. In the above facts can it be said that the view taken by the trial
court is not a possible view?  If the answer is in the affirmative, the
jurisdiction of the High Court to interfere with the acquittal of the
accused appellants, on the principles of law referred to earlier, ought
27Page 28
not to have been exercised.   In other words, the reversal the
acquittal could have been made by the High Court only if the
conclusions recorded by the learned trial court did not reflect a
possible view.   It must be emphasized that the inhibition to interfere
must be perceived only in a situation where the view taken by the
trial court is not a possible view.  The use of the expression “possible
view” is conscious and not without good reasons.  The said expression
is in contradistinction to expressions such as “erroneous view”  or
“wrong view”  which, at first blush, may seem to convey a similar
meaning though a fine and subtle difference would be clearly
discernible.  
26. The expressions “erroneous”, “wrong” and “possible” are defined
in the Oxford English dictionary in the following terms:
“erroneous : wrong;incorrect.
  wrong    :  1. not correct or true, mistaken
2. unjust,dishonest or immoral
  possible   : 1. capable of existing, happening, or
    being achieved.
2. that may exist or happen, but that is
    not certain or probable.”
 
28Page 29
27. It will be necessary for us to emphasize that a possible view
denotes an opinion which can exist or be formed irrespective of the
correctness or otherwise of such an opinion.  A view taken by a court
lower in the hierarchical structure may be termed as erroneous or
wrong by a superior court upon a mere disagreement.  But such a
conclusion of the higher court would not take the view rendered by
the subordinate court outside the arena of a possible view.   The
correctness or otherwise of any conclusion reached by a court has to
be tested on the basis of what the superior judicial authority
perceives to be the correct conclusion.   A possible view, on the other
hand, denotes a conclusion which can reasonably be arrived at
regardless of the fact where it is agreed upon or not by the higher
court.  The fundamental distinction between the two situations have
to be kept in mind.  So long as the view taken by the trial court can
be reasonably formed, regardless of whether the High Court agrees
with the same or not, the view taken by the trial court cannot be
interdicted and that of the High Court supplanted over and above the
view of the trial court.
29Page 30
28. A consideration on the basis on which the learned trial court had
founded its order of acquittal in the present case clearly reflects a
possible view.  There may, however, be disagreement on the
correctness of the same.  But that is not the test. So long as the view
taken is not impossible to be arrived at and reasons therefor,
relatable to the evidence and materials on record, are disclosed any
further scrutiny in exercise of the power under Section 378 Cr.P.C.
was not called for.  
29. However, as the High Court had embarked upon an in-depth
consideration of the entire evidence on record and had arrived at
conclusions contrary to those of the trial court, the discussions now
will have to centre around the basis disclosed by the order of the High
Court for reversing the acquittal of the accused appellants.  The
grounds that had prevailed upon the High Court to hold that the
commission of the offence of criminal conspiracy under Section 120 B
IPC have been proved by the prosecution in the present case have
already been noticed.  Our reasons for disagreeing with the said view
of the High Court have also been indicated hereinabove.   Similarly,
the reasons for our disagreement with the conclusion of the High
30Page 31
Court that the defence evidence adduced in the case did not
satisfactorily establish the plea of alibi put forward by A-4 and A-12
have also been indicated.  The aforesaid aspects of the case,
therefore, would not need any further dilation and it is the reasons for
the conviction of the accused appellants under Section 302 and the
other provisions of the IPC will be required to be noticed by us.  
30. The High Court has concluded that the evidence of PW-1, PW-2,
PW-3 and PW-4 have supported the prosecution case to a certain
extent and the said fact could not have been ignored only because
PW-2, PW-3 and PW-4 were declared hostile.  Even if the aforesaid
reasoning of the High Court is to be accepted what would logically
follow therefrom is that the evidence of PW-1, PW-2, PW-3 and PW-4,
at best, shows the presence of the convicted accused and the
deceased at the place of occurrence on the day of the incident.  In so
far as the evidence of PW-5 and PW-7 is concerned, the High Court
was of the view that the failure to mention the names of any of the
convicted accused in Ex. P-2 can be explained by the fact that PW-5
and PW-7 must have been in a state of shock and, furthermore, Ex.
P-2 was a report to the Magistrate, not of the incident as such,   but a
31Page 32
report of what had happened to the prisoners who were brought by
PW-5 and PW-7 from the jail for production in the court.    The errors
on the part of PW-5 and PW-7 in identifying some of the accused in
Court have been understood by the High Court to be on account of
the long lapse of time between the incident and date of their
examination in Court (5 years).  The absence of any Test
Identification Parade, according to the High Court, did not materially
affect the prosecution case, as PW-5 and PW-7 had stated in their
evidence that the accused used to frequently come to police station in
connection with other cases in which they were involved.  
31.  We find it difficult to agree with the view taken by the High Court
on the above aspects of the case.   Not mentioning the name of any
of the accused in the report submitted to the court i.e.  Ex. P-2,
particularly, when according to PW-5 and PW-7, the accused  persons
were known to them is a vital lacuna which cannot be explained by
confining the scope of the said report as has been done by the High
Court.  At the same time, the narration of the names of several of the
accused in the examination of PW-5 and PW-7 in court, in our view,
would cease to be a mere discrepancy with reference to the earlier
32Page 33
version of the witnesses as mentioned in Ex. P-2.  The same would
amount to an improvement or an exaggeration on the part of the
prime witnesses of the prosecution thereby casting a serious doubt on
their reliability.  PW-5 and PW-7 are supposed to be members of a
disciplined force.  The lacuna in Ex. P-2 (absence of any names)
cannot be reasonably understood to be on account of any shock
suffered by the witnesses due to the incident.  The failure on the part
of PW-5 and PW-7 to use the fire arms issued to them despite an
assault committed by as many as 23 persons resulting to the death of
three, as the prosecution has alleged, is both mysterious and
inexplicable.  So is the registration of the FIR under Section 302 IPC
at 3.15 p.m. when the deceased persons were still alive.  The efficacy
of the dying declaration (Ex. P-4) when  the maker thereof had
slipped into a coma even before completing the statement would have
a serious effect on the capacity of D-1 to make such a statement. The
certification made by PW-21 with regard to the condition of the
deceased is definitely not the last word.  Though ordinarily and in the
normal course such an opinion should be accepted and acted upon by
the court, in cases, where the circumstances so demand such
33Page 34
opinions must be carefully balanced with all other surrounding facts
and circumstances.  All the above, in our view, demonstrates the
fragile nature of the conclusions reached by the High Court in the
present case.
32. For the above reasons, we hold that conviction of the accused
appellants recorded by the High Court under the different provisions
of the IPC and the sentences imposed cannot be sustained.  We
accordingly allow this appeal, set aside the judgment and order dated
4.9.2008 & 19.09.2008 passed by the High Court of Madras and
confirm the order of acquittal dated 16.04.1998 passed by the
learned trial court.  The accused appellants, if in custody, be released
forthwith unless required in any other case.
...…………………………J.
[P. SATHASIVAM]
.........……………………J.
[RANJAN GOGOI]
New Delhi,
October 12, 2012.    
34