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HomeGrasim Industries Limited vs Saboo Tor Private Limited on 6 April, 2026

Grasim Industries Limited vs Saboo Tor Private Limited on 6 April, 2026

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Bombay High Court

Grasim Industries Limited vs Saboo Tor Private Limited on 6 April, 2026

Author: Bharati Dangre

Bench: Bharati Dangre

2026:BHC-OS:8587

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                                                   Salgaonkar

MANDIRA MILIND
SALGAONKAR
                 Digitally signed by MANDIRA
                 MILIND SALGAONKAR
                 Date: 2026.04.08 16:07:26 +0530
                                                            IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                                                 ORDINARY ORIGINAL CIVIL JURISDICTION
                                                                          IN ITS COMMERCIAL DIVISION
                                                                INTERIM APPLICATION (L) NO.2849 OF 2026
                                                                                  IN
                                                                COMMERCIAL APPEAL (L) NO.39319 OF 2025
                                                   Grasim Industries Limited & Anr. .. Applicants/Appellants
                                                                        Versus
                                                   Saboo Tor Private Limited & Ors.        .. Respondents

                                                                              ...
                                                   Mr.Darius Khambata, Senior Advocate with Mr.Hiren Kamod,
                                                   Mr. Vinod Bhagat, Mr. Anees Patel, Ms. Nishtha Gupta, Ms.
                                                   Prachi Shah and Ms.Rashi Thakur i/b Mr. Vinod A. Bhagat for
                                                   the Applicants/Appellants.
                                                   Mr.Ravi Kadam, Senior Advocate and Mr.Ashish Kamat,
                                                   Senior Advocate with Mr. Thomas George, Mr. Rohan Kadam,
                                                   Mr. Navankur Pathak, Ms.Neeti Nihal, Ms. Tanvi Sinh,
                                                   Ms.Bargavi Baradhwaj, Mr.Ishaan paranjape, Mr.Ravi Varma
                                                   and Mr.Asheesh Gupta i/b Saikrishna & Associates for the
                                                   Respondent Nos.1, 4, 5 and 6.

                                                                             CORAM: BHARATI DANGRE &
                                                                                    MANJUSHA DESHPANDE, JJ.
                                                                             DATE : 06th APRIL, 2026
                                                                          ...
                                                   ORDER (PER BHARATI DANGRE, J.)

1. The present Commercial Appeal filed under Section 13 of

the Commercial Courts Act, 2015 read with Order XLIII Rule

SPONSORED

1(r) of the Code of Civil Procedure, 1908 (For short, ‘CPC‘)

raise a challenge to the impugned order dated 16/10/2025

passed by the learned Single Judge (Sharmila U. Deshmukh,

J.), on Interim Application No.3888 of 2022, seeking

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injunction in the suit filed for infringement of trade mark and

passing off under the Trade Marks Act, 1999.

By the said order, the learned Single Judge, testing the

case of the Appellant (Plaintiff) on the parameters applicable

to grant of injunction in trade mark matter viz. prima facie

case, likelihood of confusion, relative merits of the parties

claim, balance of convenience and risk of irreparable harm

and public interest, concluded that absence of any one, is

sufficient to decline the interim relief.

On the detailed discussion about the factors being

weighed in favour of the Plaintiff, the learned Judge concluded

that considering that the Defendant was carrying on his

business using his registered trade mark since 2008, grant of

injunction would result in irreparable loss and by directing the

Defendant No.1 to maintain accounts of the sales of its

products till disposal of the suit, the Interim Application came

to be dismissed.

2. We have heard learned senior counsel Mr.Khambata for

the Appellant in support of the grounds raised in the Appeal

calling for an interference in the impugned order, as it is

alleged that the learned Judge has failed in appreciating the

case that the Appellants validly hold registered trade mark as

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early as in 1988 and the Respondents alleged use is much

subsequent for an identical and/or deceptively similar trade

mark and a case for infringement was made out.

The Respondent/Orig.Defendant is represented by

learned senior counsel Mr.Kadam, who would support the

impugned order by submitting that the learned Judge has

rightly appreciated the claim of the Plaintiff and has refused

the same by testing their case on the parameters for grant of

injunction in a trade mark case.

3. The Appellants have taken out an Interim Application

under Order XLI Rule 27(1) of CPC, for allowing the additional

documents to be taken on record in form of additional

evidence, which could not be produced before the trial court

despite exercise of due diligence and that the evidence is

relevant to the facts of the case, but could not be found earlier

despite exercise of due diligence as the Appellants were

unaware about the whereabouts of such documents.

Praying that since the documents annexed to the Interim

Application bear material relevance to the Appellants’ case, it

is requested to take the documents on record as additional

evidence, as it will meet the ends of justice for which the

Respondents can be adequately compensated.

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         The    Application     received     strong       opposition         from

Mr.Kadam, as according to him, if the Plaintiff was unable to

establish its prima facie case sufficient enough to grant

interim relief, there is no question of this material being

permitted to be admitted in evidence, despite establishing the

necessary parameters of consideration of additional evidence

under Order XLI Rule 27 of CPC and Mr.Kadam insisted that

the said Application shall be heard and pronounced upon prior

to the hearing of the Appeal.

4. For appreciating the contentions even as regards the

Application filed for bringing additional evidence on record, we

must refer to the factual background in which the present

Appeal is filed and only thereupon, we will be able to

appreciate whether the additional evidence deserve to be

permitted and this is what prompt us to refer to background

facts.

Plaintiff No.1-Grasim Industries Ltd., hereinafter

referred to as ‘Grasim’ and Ultra Tech Cement, hereinafter

referred to as ‘Ultra Tech’ filed a Commercial I.P. Suit for

infringement and trade mark passing off and the marked

involved is ‘BIRLA’.

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Plaintiff No.1 -Grasim pleaded that it is the flagship

company of global conglomerate ‘Aditya Birla Group’ and it

commenced its business in the year 1947 in textiles and

diversified the same under BIRLA and BIRLA formative trade

marks. According to the Plaintiffs, in the wake of the internal

business arrangement, only the Birla family group of

companies, owned and/or managed by the Birla family, are

entitled to adoption of the well-known trade mark BIRLA,

either stand alone or in conjunction with other one. As Grasim

diversified into business of manufacturing, marketing, selling

and/or exporting buildings and construction materials,

cement, white wall care putty, texture wall finish, paints,

chemicals for preserving food stuff, disinfectants, agricultural

scientific research, agriculture, horticulture and forestry

products etc., it was authorised to use BIRLA and BIRLA

formative trade marks. Stating that Plaintiff No.2 and its

subsidiaries are the seventh biggest cement manufacturer in

the world and one of the largest manufacturer of grey cement,

ready mix concrete and white cement in India, it has 20

integrated plants around the world of which 22 of its grinding

units are in India.

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5. Defendant No.1, hereinafter referred to as ‘ Saboo Tor’ is

alleged to be a private limited company with Defendant No.2

being a partnership firm and Defendant No.3, being a person

responsible for conduct of business of Defendant No.2.

Pleading that Defendant Nos.1, 2 and 3 engaged in the business

of manufacturing, marketing and selling of M.S. Bar(TMT),

M.S.Round, TOR Steel, Metals and their alloys, metal building

material etc. is also involved in manufacturing, selling and/or

marketing of electric vehicles, E-Rickshaw, Electric Scooters,

Electric Scooty and Electric motorcycles. Defendant No.6- the

Director of Defendant No.1 is alleged to be aware of the

business activities and involved in the conduct of its business.

They were arrayed as co-Defendants in the Suit, as the

Plaintiffs claim some alleged rights over the trade mark

‘BIRLA’ and involved in some business relationship with one

another.

6. According to Mr.Khambata representing Grasim, its

pleaded case is very specific, being that it is a flagship

company of global conglomerate Aditya Birla Group, which is

managed by the famous Birla family of India and being engaged

initially in textile business, the business was diversified under

the BIRLA and BIRLA formative trade-marks. In para 3 of the

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plaint, Grasim specifically pleaded about commencement of its

business as textile manufacturer and subsequently expanding

its business by use of mark ‘BIRLA’. In para 8, according to

Mr.Khambata, the plaint gave the relationship between the

Plaintiffs and the Aditya Birla Group, by specifically pleading

thus :-

“8. The Plaintiff No.1 was originally incorporated in 1947 as ‘The
Gwalior Rayon Silk Mfg. (Wvg.) Company Ltd.’, a textile
manufacturer, which trading name was changed to that of the
Plaintiff No.l’s present trading name i.e. ‘Grasim Industries Ltd.’ in
1986. The Plaintiff No.1 craves leave to refer to and rely upon a
copy of the Fresh Certificate of Incorporation dated 22 July 1986
issued by the Registrar of Companies, when produced. Today, the
Plaintiff No.1 has evolved into a leading and diversified player with
leadership presence across numerous sectors of industry. The
Plaintiff No.1 endeavours to create sustainable value for 24,000+
employees, 262,000+ shareholders, society and customers.”

9. The Plaintiffs state that the Aditya Birla Group comprises of,
apart from the Plaintiff No.1, Plaintiff No.2 and other prominent
manufacturing and/or service providing companies such as Aditya
Birla Fashion & Retail Limited, Aditya Birla Science & Technology
Company Private Limited, Aditya Birla Grasun Chemicals Ltd.
etc.——”

The plaint also pleaded that several companies of the

Aditya Birla Group, including Plaintiff Nos.1 and 2, are listed

on the Bombay Stock Exchange and National Stock Exchange.

7. In Paragraph 15, the Plaintiffs connection with BIRLA

trade mark and its use is highlighted and Mr.Khambata has

emphasized on this particular pleading, which according to

him, the learned Single Judge has failed to consider.

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Staking its claim, the Plaintiff No.1 pleaded that its

trademark registrations are valid and subsisting and the mark

‘BIRLA’ is the leading, most prominent and essential feature of

its trade marks and its earliest registrations date back to the

year 1988. In addition, the pleading of the Plaintiffs is very

specific as below :-

“The Plaintiffs have been openly, continuously and extensively
using the Plaintiffs BIRLA trade marks including the “ADITYA
BIRLA GROUP” wordmark extensively in respect of their
goods/services. Copies of the respective trade mark registration
certificates/status reports are hereto annexed as EXHIBIT “B-1” to
“B-112″ respectively.”

In connection with the trademark “BIRLA WHITE”, the

plaintiffs pleaded thus :-

“18. The Plaintiff No.1 state that the abovementioned trademark
registrations under Nos.524399 and 524400 applied for /
registered prior to 1999 were applied / registered by the Plaintiff
No.1’s predecessor being the Indian Rayon and Industries Ltd. in
right, title and interest. In or about April 1988, the Plaintiff No.1’s
predecessor, Indian Rayon and Industries Limited adopted and
commenced using the trademark “BIRLA WHITE” upon and in
relation to its white cement. The said Indian Rayon Industries
Limited subsequently applied for and secured registrations of the
trademarks containing the mark “BIRLA WHITE” under Nos
524399 and 524400, both in class 19 under the Trade and
Merchandise Act, 1958
. Since its adoption, the Plaintiff No. 1’s
predecessor has been openly, widely continuously and extensively
using the trademark “BIRLA WHITE” upon and in relation to its
white cement. Thereafter, on or about the 23rd January 1999, the
grey and white cement business of the said Indian Rayon and
Industries Limited demerged and transferred to the Plaintiff No.1
vide and order of the Hon’ble High Court of Madhya Pradesh in
Company Petition No 39 of 1988 connected with Company petition
No 33 of 1998, allowing the Scheme of Arrangement in the nature of
Demerger between Indian Rayon and Industries Limited and the
Plaintiff No 1. By Virtue of the Scheme of Arrangement, all the
intellectual property of the said Indian Rayon and Industries
Limited in respect of the transferred business, including the
trademark “BIRLA WHITE” came to be transferred to the Plaintiff
No.1 along with the goodwill thereof. The Plaintiffs crave leave to

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refer to and rely upon the aforesaid Scheme of Arrangement and
the order dated 23rd February 1999 respect thereof, when
produced. Accordingly, the Plaintiff No.1 made the necessary
application on Form TM-23 dated 4th March 2005 before the
Registrar of Trade Marks to bring itself on record as the subsequent
proprietor of the aforesaid trade marks under Nos 524399 and
524400, both in Class 19. Subsequently, the Registrar of
Trademarks vide his order dated 13th April, 2018 was pleased to
allow the aforesaid application on Form TM-23 dated 4th March
2005 and order thereon dated 13th April 2018 when produced. The
expression ‘Plaintiff No.1’ used hereinafter shall, unless it is
repugnant to the context, be deemed to include their respective
predecessor/s in right, title and/or business interest.”

8. Alongwith the plaint, the Plaintiffs furnished list of their

trademark registrations ‘BIRLA’ with respect to its date and

user claim in clause 19 as well as in regards to the chemicals

used in the industries in Class 1 and in relation to

paints/colours in Class No.37.

The list include 112 registered trade marks, with ‘BIRLA

WHITE’ being listed at Sr.Nos.1 to 14. The registration of trade

mark ‘BIRLA WHITE’ dated 14/02/1990 is based on user claim

since 1988, the registration being granted on 14/02/1990 in

class 19. Thus, according to Mr.Khambata, the Plaintiffs

pleaded their case by submitting that registration of their

mark is prior to 1990 and the same was based on prior user

since 2007.

9. In the light of the specific pleadings in the plaint, the

Plaintiffs took out an Interim Application for grant of interim

reliefs by specifically averting as below :-

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“For the sake of brevity, the Applicants repeat all that is stated in
the Plaint as if the same forms a part and parcel of this application
and crave leave to refer to and rely upon all that is stated in the
Plaint without reproducing the same herewith to avoid repetition”.

10. The Application for grant of injunction contain an

assertion that trade-marks ‘BIRLA’ which is the leading,

essential and prominent feature of the Plaintiffs goods, have

acquired reputation, goodwill and instant recognition among

consumers and they have large distribution network

penetrating PAN India and the customers associate Plaintiffs

‘BIRLA’ trademarks and the word ‘BIRLA’ with the Applicants

and none else. The Application, in particular, pleaded as

below :-

“8.3 In view of the aforesaid, the Applicants have acquired
statutory as well as common law rights in the well-known trade
mark ‘BIRLA’ and are entitled to use the well-known trade mark
BIRLA in respect of all their respective goods and services to the
exclusion of other disentitled manufacturers and/or traders.”

The cause of action for the Suit as well as grant of injunction is

set out by alleging mala fide adoption and/or use of impugned

trade-mark by the Defendants by use of the words viz. ‘BIRLA’,

‘BIRLA TMT’, ‘BIRLA E-BIKE, the impugned trading name i.e.

‘BIRLA STEEL’ and the impugned device marks i.e. BIRLA E-


BIKE




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as well                                 as the impugned domain

names i.e. ‘www.brilamsteel.com’ and ‘www.birlaebike.com’,

which are identical with and/or similar or deceptively similar

to the Plaintiffs BIRLA trademark,for acts of passing off,

damages and other consequential reliefs.

Interim Application No.3888 of 2022 sought restraint by

an interim order and temporary injunction, pending the

hearing and final disposal of the Suit, so as to restrain the

Defendants by themselves and all persons acting for and on

their behalf from infringing all or any of the Plaintiffs BIRLA

trade marks and the impugned domain names as well as

trading name, which is identical with and/or deceptively

similar to the Plaintiffs’ mark.

11. Respondent Nos.1, 4, 5 and 6 opposed the Application by

filing affidavit-in-reply and Defendant No.1 pleaded that it was

incorporated in the name ‘Sirmour Alloys Private Limited’ in

the year 1991, but in the year 1999, it changed its name to

‘Saboo Tor Private Limited’. It also pleaded that the company

has been carrying on business of manufacturing, processing,

importing, exporting and dealing in all kinds of ferrous, non-

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ferrous metals alloys and their products, and since 2004, and

it commenced manufacturing and supplying of iron and steel

products under the registered trademarks ‘BIRLA’ and/or

under the brand name ‘BIRLA TMT’. It pleaded that Defendant

No.1’s product ‘TMT Bar’ sold as ‘Birla TMT Steel Bar’ is one of

the top 10 TMT Bars in India and in manufactured in Himachal

Pradesh and marketed across various States in India and in

the course of its use for past 18 years, it has emerged to be one

of the most sought-after by the builders and engineers, it being

of superior quality, involving industry leading automation set-

up and being advanced and high strength variant of steel

meeting international quality standards.

According to Defendant No.1, under the brand name

‘BIRLA TMT’, various products are covered, including Birla

Thermo Mechanically Trusted (TMT) Steel Bar, Mild Steel

(M.S.) Square Bars used in cranes gantry, bullock carts axles,

truck trailers and tippers; Mild Steel (M.S.) Flat Bars used by

Grafting manufacturers, Railways, Bus Body, Ship Building

etc. According to the Defendant No.1, from the nature and use

of the products which are in the market for last 15 years, those

involved in commerce and trade, take informed decision and

there is no scope for any confusion or deception.

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12. Mr.Kadam, representing the Defendants, would rely

upon the defence set out in the affidavit in clause 6.2, when it

pleaded thus :-

“6.2 I say that Defendant No.l’s prior adoption and use of the
marks ‘BIRLA’ and ‘BIRLA TMT’ is highly fanciful, and inherently
distinctive coined composite word mark, which when taken as a
whole, is inherently distinctive of Defendant No.1’s products alone.
It is further stated that the relevant class of consumers of
Defendant No.1’s products only associate with the brand name
‘BIRLA TMT’ to that of Defendant No.1 owing to the long,
continuous, consistent and uninterrupted usage of the trademark
by Defendant No, 1 qua its products such as TMT Bar, MS Square,
MS Flat, MS Round and Angle and Channel etc.”

In addition, in para 6.6, the Defendants adopted a stand that

by filing the present action, the Plaintiffs were wrongfully

trying to claim a monopoly over the word ‘BIRLA’, which is in

fact a dictionary word and means, ‘scarce, rare, uncommon’

and reliance is placed upon the dictionary meaning of the term

‘birla’.

According to Mr.Kadam, Defendant No.1 was desirous of

indicating the rare character of its goods, being a superior

strength and, therefore, the word ‘BIRLA’ was adopted and

used.

According to him, Defendant No.1 is the proprietor of

the registered trademark in Class 6, whereas the Plaintiffs do

not enjoy any registration and, therefore, the Plaintiffs claim

to the word ‘BIRLA’ cannot and does not come in the

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Defendants’ way or prejudice exercise of its rights as a

registered proprietor of the Defendants’ trademarks.

13. In short, Defendant No.1 set up its case by attempting to

demonstrate that the word was coined on account of an

assigned meaning attached to it indicating ‘rare’ and the

Defendant was always vigilant in protecting its intellectual

property rights.

In paragraph 13.2 of the reply, Defendant No.1 enlisted

its marks under Class 6 for Iron and Steel products and claim

to be the registered proprietor of those marks, which include

the trademark ‘BIRLA’, ‘BIRLA TMT’ being registered in 2008

with its user claim of 2004, the registration granted in Class 6-

M.S.Bar(TMT), M.S.Round, TOR Steel, M.S.Angle,

M.S.Channel, M.S.Square. The Defendant has also secured

trademark registration in Class 10, 11, 18 with the trademark

‘BIRLA’. In addition, it also filed several trademark

applications for the mark ‘BIRLA’ across various classes,

which are pending for registration and this include goods in

Class 8, 20, 21, 17, 5, 9, 12, by describing the user as ‘proposed

to be used’ and which has received objections from the

Plaintiffs.

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14. According to Mr.Kadam, the defence of the Respondents,

which was also evidently made clear in the reply affidavit was

of they being the prior user in Class 6, in contrast to the

Plaintiffs, neither having registered or not conducting any

business in respect of those goods in which Defendant No.1 is

carrying its business. Therefore, according to Mr.Kadam, the

case of Defendant No.1 was and is about selling of its product

under brand name ‘BIRLA TMT’ atleast since the year 2004

with the trademark registration having secured since the year

2008 and, therefore, Defendant No.1 is not only the owner but

also the prior user of ‘BIRLA’ and ‘BIRLA TMT’ under Class 6.

Harping upon the well settled position in law, according to

Mr.Kadam, the prior use of the goods will override the

subsequent user, even though the subsequent user has a

registered trademark and in this case, the Plaintiffs have

never used its mark as against goods in Class 6 and have never

applied for registration.

15. In short, the submission of the contesting Defendant is of

harmonious existence. In addition, Mr.Kadam relying upon

the reply filed by Defendant No.1, has also urged that in fact

the word ‘BIRLA’ is a subject matter of several registered

trademarks and the search on the official website of

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Trademark Registry, has lead to several entities across

classes, who have registered or have applied for registration

trademarks containing the word ‘Birla’, and therefore,

according to Mr.Kadam, there is no reason why the Plaintiffs

shall claim exclusivity to the use of the word ‘Birla’.

Paragraph 15.2 of the reply affidavit enlisted atleast 29 such

entities in various classes which have made the use of the

word ‘BIRLA’ in conduct of their activity.

16. While defending the claim in the Suit as well as the

Appeal before us, Mr.Kadam specifically urged that the Interim

Application and the Suit suffer from gross delay and latches as

Defendant No.1 has been honestly, continuously, openly,

widely, exclusively and with bona fide intent using the

trademark ‘BIRLA’ and ‘BIRLA TMT’ since the year 2004 and

when it applied for registration in the year 2008 and 2009, it

was published in the Trademark Journal on September

29/09/2014 and 31/10/2015 respectively and if the Plaintiffs

were vigilant as claimed by them, they should have known and

objected to it, but they did not choose to do so, clearly

indicating acquiescence in the use and adoption of the mark

by the Defendant No.1. According to Mr.Kadam, the very fact

that for last over 15 years, both the Applicants and Defendant

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No.1’s goods have been sold openly, extensively and through

common trade channels clearly indicate that the trade has

accepted their harmonious co-existence with a clear

understanding that there is no scope for any deception and

confusion and that is the reason, there were no complaints

ever made by the Plaintiffs and even at present, there is no

cause of action to complain or institute the present

proceedings.

17. In light of the aforesaid pleaded case of the Plaintiffs and

the Defendants, Mr.Khambata has urged that the relief in

favour of the Plaintiffs is denied for the reason that though the

Plaintiffs had dedicated substantial portion of the plaint to

plead about the Birla Group’s reputation, goodwill and

association of the Plaintiffs with the Birla group, they have

failed to substantiate the pleading by way of documentary

material and in this regard, the trial Judge, after noticing the

pleading that Plaintiff No.1 is a flagship company of Aditya

Birla Group incorporated in the year 1947 and on account of

the internal arrangement between Birla Group of Companies,

Plaintiffs got exclusive right to use ‘BIRLA’ trademark,

observed thus :-

“41. ….There is not a single document on record to prima facie
demonstrate : (a) the prior use and registration of the “BIRLA”

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marks by the BIRLA group of companies in respect of its products;

(b) the registrations of “BIRLA” mark and its Formative marks
secured by Birla group of companies in respect of its diverse
products which marks have become distinctive of the BIRLA group

(c) the Plaintiffs being part of the Birla group and thus acquires
right to use the “BIRLA” trade mark and formative trade marks by
internal arrangement or the right being devolved upon the
Plaintiffs through the Birla group of companies”.

Accepting that the pleading in the plaint refer to the

history of origin and user of ‘BIRLA’ trademark, its reputation

and goodwill, it is held by the learned Judge that the prior

registration of domain name by Birla Group of Companies

cannot assist Plaintiffs sans any material to demonstrate

connection between the Plaintiffs and Birla Group of

Companies and it is held conclusively that, “there is no

averment in the plaint to justify this connection between the

domain name and Ultratech Cement Ltd.. The pleading per se

cannot confer any cannot confer any benefits associated with

the Birla trade marks upon the Plaintiffs.”

18. According to Mr.Khambata, the learned Single Judge

failed to consider that the Plaintiff No.1 is a registered

proprietor of 112 marks and what is held by the learned Judge

in paragraph 42 was never his case as it was pleaded that

Plaintiff No.1 was in textile business, but later on shifted the

business. According to him, the whole basis of rejection of the

interim relief in favour of the Plaintiffs is their failure to

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establish any connection with Birla Group of Companies and

the reference to the registration mark ‘BIRLA WHITE’, has

reflected that the registration is in the name of Indian Rayon

and Industries Ltd., but since the scheme of the arrangement

was not placed on record, the Single Judge failed to accept the

contention about user of the trademark ‘BIRLA WHITE’ by

Indian Rayon and Industries Ltd.

Another reason, according to Mr.Khambata, when the

learned Single Judge refused the relief is that there is no

single registration with the word ‘BIRLA’ i.e. the name.

19. It is in this background, the Appellants have taken out an

Interim Application No.2849 of 2026, bringing on record the

additional evidence at the stage of Appeal by invoking Order

XLI Rule 27, seeking permission to file the additional

documents appended at Exh.A-E collectively, for the purpose of

effective adjudication of the Appeal arising out of the

impugned order.

We have perused the Interim Application which seeks to

bring on record the following documents;

(a) The scheme of arrangement between :-

Indian Rayon and Industries Ltd.

Grasim Industries Ltd.

and
Their respective shareholders and creditors providing for the
transfer of transferred business of the transferor company to the
transferee company

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(b) Copy of the Petition filed before the High Court of Madhya
Pradesh in form of Company Petition No.1 of 2001 for sanction of
amalgamation under Section 394 of the Companies Act, 1956 for
amalgamation of Dharni Cements Ltd., transferor company with
Grasim Industries Ltd. i.e. transferee company alongwith the order
passed by the Madhya Pradesh High Court on 09/03/2001.

(c) Application for registration filed by Plaintiff No.1-Grasim
Industries securing registration in Class 9 on 14/02/1990 for
trademark ‘BIRLA WHITE’ with its user dated 30/04/1988 and the
certificate granted on 14/08/1996 alongwith the Directors Report
of Indian Rayon Industries Ltd., which has a reference to its
business in Cement Division, Insulator Division apart from Cotton
and Synthetic Division, with specific reference to the new project of
White Cement, Grey Cement Expansion, Ceramics etc., the report
being of 10/08/1987 accompanied with the balance sheets.

20. The Interim Application has specifically pleaded thus :-

“4. With regard to the contents of clauses (c) mentioned in
para 2 above, the Appellants submit that while instituting the
present suit, certain documents could not be placed on the Court’s
records before the Ld. Single Judge as they were not found by the
Appellants despite exercise of due diligence and/or were not within
the knowledge of the Appellants. The Appellants submit that
pursuant to the order being passed, they have undertaken a
detailed exercise of tracing such old records from their archives,
warehouses including looking into archives of the newspaper
agencies, taking inspections and have been able to collate such
evidence which is materially relevant to the present proceedings.
The Appellants are desirous that such evidence collected by them
be placed and brought on record before this Hon’ble Court as
additional evidence of the Appellants and therefore most humbly
seeks permission of this Hon’ble Court, under Order XLI Rule 27 of
the Code of Civil Procedure
, 1908 to be permitted to produce the
documents before this Hon’ble Court at the appellate stage .

5. The Appellants submit that such evidence is relevant to the
facts of the present case and the same could not be found earlier
despite exercise of due diligence on the part of the Appellants, who
were unaware of the whereabouts of such documents. The
Appellants submit that the aforementioned documents have a
bearing and are materially relevant to the Appellants’ case and this
Hon’ble Court in exercise of its inherent powers can take such
documents on record as additional evidence in the present
proceedings. Such documents are also necessary to meet with the
ends of justice for which the Respondents can be adequately
compensated.”

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In paragraph 26, the Application also proceed to state

that the additional evidence could not be produced before the

trial court despite exercise of due diligence, but the documents

are utmost necessary so as to enable the Appellants to

effectively plead its cane before the Court.

21. Mr.Kadam has vehemently opposed the Application by

submitting that such an application shall only be entertained

by the Appellate Court, when the contingencies set out in the

said provision are made out, but not otherwise.

He would place reliance upon the decision of the Full

Bench of this Court in the case of Uto Nederland B.V. & Anr. Vs.

Tilaknagar Industries Ltd.1 where the principle in Wander Ltd.

(supra) has been reiterated when the issue came to be

determined as to whether the order passed on an application

for temporary injunction is prima facie adjudication and not an

exercise of discretion and secondly, as regards the scope of

appeal from an order of the trial Court on an application of

injunction. Mr.Kadam has also focused his attention on the

conduct of the Plaintiffs, as he has invited our attention to the

joint statement of truth filed by the General Manager of

Plaintiff No.1, the suit being filed as Commercial I.P. Suit,

warranting a joint statement of truth under the first scheme
1 2025 SCC OnLine Bom 6140

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Order VI Rule 15A, where a following statement is made in

support of the plaint.

“We say that, all the documents in our power, possession, control or
custody pertaining to the facts and circumstances of the
proceedings initiated by us, have been disclosed and/or copies
thereof annexed with the Plaint, and we do not have any other
documents in our power, possession, control or custody.”

In light of this statement, Mr.Kadam has urged that the

Plaintiffs are not entitled for permission to produce the

documents. He would place reliance upon the decision of Privy

Council in the case of Parsotim Thakur & Ors. Vs. Lal Mohar

Thakur & Ors. revolving around Order XLI Rule 27 and in

specific, he would point out to the relevant observation where

it is held that the provision of Section 107 , Civil Procedure

Code, as elucidated by O. 41 R. 27 are clearly not intended to

allow a litigant who has been unsuccessful in the lower Court

to patch up the weak parts of his case and fill up omissions in

the Court of Appeal. Reliance is also placed upon the decision

of the Apex Court in Arjan Singh alias Puran Vs. Kartar Singh

& Ors.2, where the Three Judge Bench of the Apex Court has

held that where additional evidence is allowed to be adduced

contrary to the principles governing reception of such

evidence, it would amount to improper exercise of discretion

and additional evidence so brought on record shall be ignored.


2    1951 Supreme Court Cases 178




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As held by the Apex Court, Mr.Kadam would rely upon the

proposition that the discretion to receive and admit additional

evidence is not an arbitrary one, but is a judicial one

circumscribed by the limitations specified in Order 41 Rule 27

of CPC. According to him, under Order 41 Rule 27 it is the

Appellate Court, which must require the evidence to enable it

to pronounce the judgment and this is the true test, to be

applied by the Appellate Court, is to determine, whether it is

able to pronounce the judgment on the material before it

without taking into consideration the additional evidence

sought to be adduced.

22. At this stage, in order to consider whether the

Application seeking production of additional evidence deserve

consideration, we deem it appropriate to reproduce Order 41

Rule 27 of CPC, which reads thus :-

“27. Production of additional evidence in Appellate Court.–(1) The
parties to an appeal shall not be entitled to produce additional
evidence, whether oral or documentary, in the Appellate Court. But
if —

(a) the Court from whose decree the appeal is preferred has refused
to admit evidence which ought to have been admitted, or

(aa) the party seeking to produce additional evidence, establishes
that notwithstanding the exercise of due diligence, such evidence
was not within his knowledge or could not, after the exercise of due
diligence, be produced by him at the time when the decree appealed
against was passed, or

(b) the Appellate Court requires any document to be produced or
any witness to be examined to enable it to pronounce judgment, or

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for any other substantial cause, the Appellate Court may allow such
evidence or document to be produced, or witness to be examined.

(2) Wherever additional evidence is allowed to be produced by an
Appellate Court, the Court shall record the reason for its
admission.”

23. Interim Application No.2849 of 2026 filed by the

Applicants(Plaintiffs) pleaded that, while instituting the Suit

the relevant documents in form of scheme of arrangement

between the Plaintiff No.1 and Indian Rayon & Industries Ltd.

alongwith the Printout Status Report relating to the

trademark registration ‘BIRLA WHITE’ as well as the copies of

the annual reports of the Appellants’ predecessor and

brochure issued by Birla Management Corporation Ltd., which

the Plaintiffs wanted to be placed on record could not be

brought on record as they were not with the Plaintiffs and

despite exercise of due diligence not within their knowledge.

After the impugned order was passed, the Applicants

undertook detail search from their archives, warehouses

including archives of the newspaper agencies, taking

inspections and was able to collate such evidence which is

materially relevant and that is why the permission is sought to

place the evidence on record.

24. For deciding the Application, the question for

consideration before us is, whether despite exercise of due

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diligence, the documents could not be produced and whether

they have any bearing or relevance to the Appellants’ case.

According to Mr.Kadam, filing of the Application is

nothing but an attempt to fill in the lacuna, which was clearly

plucked by the learned Single Judge, when she refused to

grant injunction in favour of the Plaintiffs.

25. The scope of Order XLI Rule 27 also fell for consideration

in Colgate Palmolive Company & Anr. (supra), when the

question that arose for determination was, whether the

appellants may be permitted to tender additional evidence as

sought for. By relying upon the decision in the case of Mahavir

Singh Vs. Naresh Chandra3, the said provision was held to be

in form of exception to the general rule and the said provision

read with Section 107(d), which permitted additional evidence

to be taken, was held to be only permitted when the conditions

and limitations set out in the said rule are found to exist. It is

held that the Court is not bound by the circumstances

mentioned under the rule to permit additional evidence and

the parties are not entitled, as of right, to the admission of

such evidence and the matter is definitely in the discretion of

the Court, which is expected to be exercised judiciously and

sparingly. The Privy Council in Kessowji Issur Vs. Great
3 (2001) 1 SCC 309

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Indian Peninsula Rly.Co., highlighted the principle flowing

from the said provision in the following words :-

“In the third circumstance, the appellate Court may require any
document to be produced or any witness to be examined to enable it
to pronounce the judgment, or for any other substantial cause. The
expression “to enable it to pronounce judgment” has been the
subject of several decisions including Syed Abdul Khader v. Rami
Reddy
wherein it was held that when the appellate Court finds itself
unable to pronounce judgment owing to a lacuna or defect in the
evidence as it stands, it may admit additional evidence.
The ability
to pronounce a judgment is to be understood as the ability to
pronounce a judgment satisfactory to the mind of the Court
delivering it. It is only a lacuna in the evidence that will empower
the Court to admit additional evidence ( See : Municipal Corpn of
Greater Bombay v. Lala Pancham
). But a mere difficulty in coming
to a decision is not sufficient for admission of evidence under this
Rule. The words “or for any other substantial cause” must be read
with the word “requires”, which is set out at the commencement of
the provision, so that it is only where, for any other substantial
cause, the Appellate Court requires additional evidence, that this
rule would apply…”

In paragraph 11, by applying the principle of limited

interference in exercise of the power of review, the Court

observed thus :-

“11. …..Whether the learned motion Judge was right or not in
passing the impugned order shall have to be seen in the light of the
material placed before the learned motion Judge by the parties.
With the limited jurisdiction that the appeal Court has in the matter
arising out of an application for temporary injunction, ordinarily
the appeal Court shall confine the consideration of the matter to
the pleadings and material that were under consideration before
the motion Judge. You cannot find fault with the discretionary
order of the learned Judge by relying upon the material placed in
appeal which was not under consideration at the time of
consideration of application for temporary injunction and interfere
with the discretionary order. The appeal Court. in an appeal from
discretionary order does not generally travel beyond the record of
the lower Court.”

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26. In K. Venkataramiah Vs. A. Seetharama Reddy & Ors. 4, a

reference is made to Section 107, which empowered the

Appellate Court “to take additional evidence or to require such

evidence to be taken”, “subject to such conditions and

limitations as may be prescribed” and Rule 27 of Order 41

prescribe the conditions and limitations.

The conditions for exercise of this power were

formulated by the Apex Court as below :-

“The rule first lays down that the parties to an appeal shall not be
entitled to produce additional evidence, whether oral or
documentary, in the appellate court. It then proceeds to lay down
two classes of cases where the appellate court may allow additional
evidence to be produced. One class is where the Court appealed
from has refused to admit evidence which ought to have been
admitted. The other class is where the appellate court requires such
additional evidence for itself- either to enable it to pronounce
judgment or for any other substantial cause. The second class of the
rule requires that when additional evidence is allowed to be
produced by an appellate court, the Court shall record the reason
for its admission.

When the contention was raised that the High Court, which

allowed the production of evidence for its own requirement,

had failed to apply their mind and did not record any reasons

for admission of additional evidence, the importance of the

provision for recording of reasons for admission of additional

evidence was noted though the contention that omission to

record reasons vitiated the admission of the evidence. The

4 1963 SCC OnLine SC 216

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object of the provision was highlighted by Their Lordships in

the following words :-

“Clearly, the object of the provision is to keep a clear record of what
weighed with the appellate court in allowing the additional evidence
to be produced-whether this was done on the ground (i) that the
court appealed from had refused to admit evidence which ought to
have been admitted, or (ii) it allowed it because it required it to
enable it to pronounce judgment in the appeal or (iii) it allowed this
for any other substantial cause. Where a further appeal lies from
the decision of the appellate court such recording of the reasons is
necessary and useful also to the Court of further appeal for deciding
whether the discretion under the rule has been judicially exercised
by the court below. The omission to record the reason must
therefore be treated as a serious defect. Even so, we are unable to
persuade ourselves that this provision is mandatory………….It may
be mentioned that as early as 1885 when considering a similar
provision in the corresponding section of the Code of 1882 viz.
Section 586, the High Court of Calcutta held that this provision for
recording reasons is merely directory and not imperative Gopal
Singh v. Jhakri Rai
. We are aware of no case in which the
correctness of this view has been doubted. It is worth noticing that
when the 1908 Code was framed and Order 41 Rule 27 took the
place of the old Section 568, the legislature was content to leave the
provision as it was and did not think it necessary to say anything to
make the requirement of recording reasons imperative. It is true
that the word “shall” is used in Rule 27 (2); but that by itself does
not make it mandatory. We are therefore of opinion that the
omission of the High Court to record reasons for allowing additional
evidence does not vitiate such admission.”

27. In light of the observations of the High Court, it was

concluded that it was not possible to say that the High Court

made order for admission of additional evidence without

applying its mind and rather when the Appellate Court has the

power to allow additional evidence not only if it requires such

evidence “to enable it to pronounce judgment”, but also for

“any other substantial cause”. In no uncertain words, the

Apex Court expressed its verdict in the following words :-

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“16…..There may well be cases where even though the court finds
that it is able to pronounce judgment on the state of the record as it
is, and so, it cannot strictly say that it requires additional evidence
“be enable it to pronounce judgment”, it still considers that in the
interest of justice something which remains obscure should be filled
up so that it can pronounce its judgment in a more satisfactory
manner. Such a case will be one for allowing additional evidence
“for any other substantial cause” under Rule 27(1)(b) of the Code.

Reliance was placed upon the observations in Parsotim Thakur

(supra), where the Privy Council proceeded to point out, “it

may well be that the defect may be pointed out by a party, or

that a party may move the Court to supply the defect, but the

requirement must be the requirement of the Court upon its

appreciation of the evidence as it stands.”

28. We must examine the Application before us seeking

production of additional evidence on record in the background

facts placed before us, as it is worthy to note that the

Application seeking additional evidence when filed, the Court

shall take up the same at the time of hearing of Appeal on

merits, so as to find out whether the documents and/or the

evidence sought to be adduced has any relevance or bearing to

the issued involved. If the Court arrives at the conclusion that

the Application deserve to be allowed, to test the validity of

these documents, it is permissible for the Appellate Court to

remand the matter to the trial Court for its consideration. In

light of the aforesaid situation emerging from the law before

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us, when we examined the impugned order in the light of the

rival contentions placed before us, based on the pleadings, in

the suit as well as the pleadings in the Interim Application,

with a specific statement being made that all the statements in

the plaint are to be considered as pleadings in the Interim

Application, we had carefully perused the pleadings and,

thereafter, analysed the reasoning of the learned Judge in the

impugned order.

29. Grasim claims to be a flagship company of Aditya Birla

Group and has pleaded that well-known famous Birla family

owns and administers the said Group and other Groups of Birla

family. Pleading that Birla family had engaged in a variety of

business activities with their respective ‘BIRLA’ and ‘BIRLA’

formative trade-marks, the Plaintiffs pleaded their case by

referring to the business conducted.

The plaint has categorically provide the details of

Plaintiff No.1, which was incorporated as “The Gwalior Rayon

Silk Mfg. (Wvg.) Company Ltd.”, a textile manufacturer whose

trading name was changed to that of ‘Grasim Industries Ltd.”

in 1986. In para 9, the Plaintiffs pleaded their case that

Aditya Birla Group comprises of various prominent

manufacturing and/or service providing companies, including

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Plaintiff Nos.1 and 2 and several other companies and both

Plaintiff Nos.1 and 2 are listed on the Bombay Stock Exchange

and National Stock Exchange alongwith Aditya Birla Capital

Ltd., Aditya Birla Sun Life Ltd., Aditya Birla Fashion & Retail

Ltd. etc.

We, prima facie, find substance in the submissions of the

learned senior counsel Mr.Khambata that a statement was

clearly made in the plaint that they were under the control of

Aditya Birla Group alongwith several other companies listed

on the Stock Exchange. Highlighting the reputation which

Aditya Birla Group has achieved in several industries and

market segments, in paragraph 14, the Plaintiffs have

highlighted their association with BIRLA trademark by stating

that the origin of the trade mark ‘BIRLA’ dates back to the 19 th

century when Seth Shiv Narayan Birla started trading in

cotton and presently Kumar Mangalam Birla is the current

Chairman of the Aditya Birla Group and the categorical

statement is made in para 14, which in our opinion could not

create any doubt about the Plaintiffs not establishing its

connect with Birlas, as we find the following pleading which

has probably escaped the attention of the learned Single

Judge.

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“Mr.Kumar Mangalam Birla chairs the Boards of all major Aditya
Birla Group companies in India and globally, including the
Plaintiffs.”

Another pertinent pleading and of much significance is to be

found in paragraph 15, when the Plaintiffs pleaded thus :-

“15. The Plaintiffs state and submit that on account of the
internal business arrangements of the groups of companies which
fall under the businesses of the Birla Family, only such groups of
companies owned and/or managed by the Birla Family are entitled
to the adoption and/or use of the well-known trade mark BIRLA
either stand-alone or in conjunction with other marks. One such
marks is the ADITYA BIRLA GROUP word mark and logo. The said
marks were adopted in the year 1996 and have been in Multiple
classes. The said marks have been openly, extensively and
continuously used by the Plaintiffs and other group companies. The
use of this mark comes also in conjunction with the other Plaintiff
BIRLA marks. The Plaintiffs craves leave to refer to and rely upon
copies and/or details of any pending trade-mark applications,
and/or trademark registration certificates obtained in relation
trade marks hereinabove, when produced.”

30. Plaintiff No.1 took its case ahead by stating that in order

to accord statutory protection and to prevent

misappropriation, dilution and misuse of the Plaintiffs BIRLA

trade-marks, Plaintiff No.1 by themselves or through their

predecessors in right, title and interest have secured

registrations for a number of ‘BIRLA’ trademarks and the list

thereof was exhibited at Exh.B-1 alongwith Exh.B–with

reference to the report of Plaintiff No.1 as well as Plaintiff

No.2, with a specific averment to the effect that the Plaintiffs

have been openly, continuously and extensively using the

Plaintiffs BIRLA trade marks, including the ‘ADITYA BIRLA

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GROUP’ wordmark extensively in respect of its goods and

services.

Exhibit A to the plaint is in form of details of the

trademark registration of Plaintiffs BIRLA trademarks and

the first 14 items except item No.2 is the registration in Class

19, the goods being cement/slag cements, white wall care putty

etc. The words ‘each of the trademarks’ against the said goods

include the word ‘BIRLA’. In no uncertain words, the

Plaintiffs, in the plaint as well as in the Interim Application,

pleaded their connect with BIRLA Group, but by way of

defence, Defendant No.1 adopted a stand that use of the mark

‘BIRLA’ and ‘BIRLA TMT’ is highly fanciful, and inherently

distinctive coined composite word mark, which, when taken as

a whole, is inherently distinctive of Defendant No.1’s products

alone. It is the case of the Defendant that the relevant class of

consumers of Defendant No.1’s products only associate with

the brand name ‘BIRLA TMT’ qua its products such as TMT

Bar, MS Square, MS flat, MS Round and Angle and Channel etc.

However, in paragraph 6.6 of the reply of the Defendant No.1,

the claim in the Interim Application is opposed by stating that

the Applicants were wrongfully trying to claim a monopoly

over the word ‘BIRLA’, which is in fact a word of general sense

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and meaning being ‘scarce, rate, uncommon’ and since

Defendant No.1 wanted to indicate the rate character of its

goods, being of superior strength, the word ‘BIRLA’ was

adopted and Defendant No.1 is now the proprietor of the

registered trademark in Class 6, where the Plaintiffs do not

enjoy any registration.

31. When we perused the pleadings in the Application and

the response of the Defendants through their reply affidavit,

the pleadings in para 4 to the Application where the Plaintiff

No.1 had pleaded about it being a flagship company of global

conglomerate of Aditya Birla Group, response of the

Defendants is want of knowledge. In para 20.16 of the reply

affidavit, it is suggested that no case for injunction is made out

as Defendant No.1’s mark ‘BIRLA’ and ‘BIRLA TMT’ and the

Applicants mark, when compared as a whole, will not cause

any confusion/deception, since they are different and

distinguishable to each other’s mark and are neither identical

nor deceptively similar and there is also a clear and stark

difference in services/goods being offered by them and that

there is no overlap in respect of the same. In para 20.17, there

is specific denial to the claim of the Plaintiffs that the adoption

of Defendant No.1’s mark is to come close to the Applicants

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mark, by reiterating that the services offered by the

Applicants and Defendant No.1 are under different classes. It

is also sought to be suggested that the Applicants and/or the

Birla family companies were aware and had knowledge about

the existence of Defendant No.1 and its mark and despite this,

they knowingly failed/neglected to take any action against

Defendant No.1 and rather having stood by for a substantial

period, have encouraged Defendant No.1 to carry on its

business in the manner to acquire reputation and to expend

money and after lapse of time, their business cannot be stpped.

32. Reading of the reply affidavit filed by the Defendants and

the stand adopted by them qua the specific pleadings by the

Plaintiffs, we find that the claim of the Plaintiffs in para 4 of

the plaint about its relationship with Aditya Birla Group, there

is simply denial for want of knowledge, which may not be

accepted as denial.

33. According to Mr.Kadam, if the Plaintiffs have filed a suit

as a Commercial Suit, all those necessary documents relied

upon by them ought to have been the part of the plaint.

According to him, the requirement is stricter in Commercial

Suit in the wake of the Commercial Courts Act, 2015, but all

the while the plaint only project that the Plaintiffs will produce

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the documents as and when required and the pleadings,

therefore, require substantiation by necessary documents, but

the Plaintiffs have miserably failed to do so. We have no doubt

in our mind that the one who asserts or claims existence of a

fact, must prove the same and the burden of proof is definitely

on the plaintiff to prove his case. Mr.Kadam has argued that if

Plaintiff No.1 has claimed that it got the title from Seth Shiv

Narayan Birla or whomsoever from Birla Family, it must prove

the same.

We find this to be a misreading of the claim in the plaint

and this is what, according to us, has been patently ignored in

the impugned order, as the learned Single Judge has refused to

rely on the Plaintiffs’ association with Birla Group of

Companies giving exclusive right only to those companies,

which form part of the Birla Group to use the trademark,

containing the word ‘BIRLA’ and to institute action for

infringement of its well-known BIRLA mark, The learned

Judge refer to the pleadings of the Plaintiff No.1 about it being

flagship company and that on account of the internal

arrangement between by Birla Group of Companies which gave

the Plaintiffs exclusive right to use ‘BIRLA’ trademark and in

the words of the learned Single Judge, “the gist of the

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pleadings is that the use by a third party, outside the Birla

group of companies, of the mark using the word Birla infringes

upon the exclusive right of the Birla group of companies.

Considering the manner in which the plaint has been framed,

the basic requirement to be prima facie established by the

Plaintiffs is to demonstrate its association with the Birla group

of companies, even accepting the exclusive right of Birla

group. The Plaintiffs are independent corporate entities who

have initiated infringement action on the strength of

exclusivity to Birla trade mark, which right has to be prima

facie demonstrated.” The learned Judge has further recorded

that, “the Plaintiffs appears to be harboring a misconception

that reference to the well known name of Birla family is

sufficient to accept the exclusive right of Plaintiffs to use the

“BIRLA” trade marks”. It is also recorded in the impugned

order that the plaint pleads that Plaintiff No.1 is a limited

company incorporated in the year 1947 in textile business and

there is not even a bare assertion of user of the “BIRLA” trade

mark by the Plaintiff No.1 in the year 1947 for marketing its

textiles. The claim of the Aditya Birla Group being the user of

“BIRLA” trade mark since the year 1996 is not substantiated

by any document.

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It is further noted that there is no averment in the plaint

to justify the connection between the domain name and

Ultratech Cement Ltd. and the pleadings per se cannot confer

any benefits associated with the Birla trade marks upon the

Plaintiffs and all reference to Birla group is unsubstantiated,

that leaves the Plaintiffs with the claim of being a registered

proprietor of its trade mark which has instituted an action for

infringement of its registered trade mark. Excluding any

association with the Birla group, according to the learned

Single Judge, there is no much difference between the Plaintiff

No.1 and the Defendant No.1, which are both registered

proprietors of their respective trade marks containing the

word Birla.

The learned Judge further proceeded to note that the

registered trade mark ‘BIRLA WHITE’ was registered by

Indian Rayon and Industries Limited in the year 1999 with the

user claim of 1988 and the registration certificates in respect

of the trade mark ‘BIRLA WHITE’ under Registration

No.524399 and 524400 indicate that registration is in the

name of Indian Rayon and Industries Limited and though an

attempt is made that there is demerger between Indian Rayon

and Industries Ltd. and Plaintiff No.1, the scheme of

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arrangement is not placed on record. Thus, an inference is

drawn by the learned Single Judge that no a single document

is produced on record to demonstrate user of the trademark by

Indian Rayon and Industries Ltd. since the year 1988 and that

there is not a single registration of the stand alone word Birla

in registration marks of Plaintiffs in Class 19.

34. Rule 27 of Order XLI relating to Appeals from original

decrees is couched in a negative language by providing that

Parties to an Appeal shall not be entitled to produce additional

evidence, either oral or documentary before the Appellate

Court. It is, however, permissible to bring such evidence only

in the contingencies set out therein; being the Court from

whose decree the Appeal is preferred has refused to admit

evidence which ought to have been admitted or a Party

establish that despite exercise of due diligence such evidence

was not within his knowledge and even after exercise of due

diligence could not be produced at the time when the Decree

which is appealed was passed.

One more contingency stipulated in the provision is,

when the Appellate Court itself require any document to be

produced or any witness to be examined to enable it to

pronounce Judgment or for any other substantial cause and in

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such case the Court may allow such evidence or document to

be produced or witness to be examined.

Whenever additional evidence is allowed to be produced

it is imperative for the Appellate Court to record the reasons

for its admission. In K. Venkataramiah (supra), the Apex

Court, laid its emphasize on sub-clause (2) of Rule 27 as

regards recording of reasons for admitting additional evidence

and the intention of the provision is highlighted.

35. In Union of India Vs. K.V. Lakshman & Ors. 5 the scope of

Clause (1)(aa) of Rule 27 Order XLI came up for consideration

and the Court declared that the additional evidence may be

permitted if the Party seeking to file it satisfy the Court with

justiciable reason for its filing and is able to establish

relevance of such evidence for deciding right of Parties. But if

the application for filing additional evidence is allowed, then

the Appellate Court is obliged to afford opportunity to the

opposite Party to file additional evidence by way of rebuttal.

In Para 36 the Apex Court held that :-

“36. Order 41 Rule 27 of the Code is a provision which enables the
party to file additional evidence at the first and second appellate
stage. If the party to appeal is able to satisfy the appellate court
that there is justifiable reason for not filing such evidence at the
trial stage and that the additional evidence is relevant and material
for deciding the rights of the parties which are the subject-matter of
the lis, the court should allow the party to file such additional
evidence. After all, the court has to do substantial justice to the

5 (2016) 13 SCC 124

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parties. Merely because the court allowed one party to file
additional evidence in appeal would not by itself mean that the
court has also decided the entire case in its favour and accepted
such evidence. Indeed once the additional evidence is allowed to be
taken on record, the appellate court is under obligation to give
opportunity to the other side to file additional evidence by way of
rebuttal.”

36. In case of Union of India Vs. Ibrahim Uddin & Anr. 6, by

placing reliance upon the decision in K. Venkataramiah

(supra) and Municipal Corporation of Greater Bombay Vs.

Lala Pancham & Ors.7 it is categorically held that the Parties

are not entitled, as of right to the admission of evidence at

appellate stage and the provision do not apply, when on the

basis of evidence on record, the Appellate Court can

pronounce a satisfactory Judgment and the matter is entirely

within the discretion of the Court though by way of caution it

is expressed that the power shall be sparingly used and

ordinarily the Appellate Court shall not allow the evidence to

be adduced so as to enable the Party to raise a new point in

appeal, nor is a party on whom the onus of proving any point

lies fail to discharge the onus, he is not entitled to a fresh

opportunity to produce evidence, as the Court can in such a

case pronounce Judgment against him.

In short, at the stage of an Appeal, allowing a document

to be produced or a witness to be examined is only permissible

6 (2012) 8 SCC 148
7 AIR 1965 SC 1008

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when the Court find it necessary for enabling it to pronounce

Judgment, but this do not entitle the Appellate Court to let in

fresh evidence at appellate stage merely for the purpose of

pronouncing Judgment in a particular way i.e. evidence will

not be allowed for removing a lacunae which has caused the

Party and now such lacunae is tried to be filled in.

The words ‘substantial cause’ in the provision also

received interpretation when in Para 40 and 41 the Court

recorded thus :-

“40. The inadvertence of the party or his inability to understand
the legal issues involved or the wrong advice of a pleader or the
negligence of a pleader or that the party did not realise the
importance of a document does not constitute a “substantial cause”

within the meaning of this Rule. The mere fact that certain evidence
is important, is not in itself a sufficient ground for admitting that
evidence in appeal.

41. The words “for any other substantial cause” must be read with
the word “requires” in the beginning of the sentence, so that it is
only where, for any other substantial cause, the appellate court
requires additional evidence, that this Rule will apply e.g. when
evidence has been taken by the lower court so imperfectly that the
appellate court cannot pass a satisfactory judgment.”

But whenever the Court permit the additional evidence

to be led in form of a document or oral evidence, it shall record

its reason for doing so as reason is the heartbeat of every

conclusion and it substitute subjectivity to objectivity.

37. Another question that arise for consideration is at what

stage the Application under Order XLI Rule 27 is to be

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considered at the time of hearing the Appeal on merits and the

true test is whether the Appellate Court is able to pronounce

the Judgment on the material before it without taking into

consideration the additional evidence sought to be adduced

and such occasion would arise only if on examining the

evidence as it stands the Court comes to a conclusion that

some inherent lacunae or defect becomes apparent to the

Court, as the provision is not intended to assist an

unsuccessful litigant to patch up the weak parts of his case

and fill up the omissions or the lacunae when he file an

Appeal. It is, therefore, expected that when an Application is

filed for taking additional evidence on record before the

Appellate Court, it is only when the Court on appreciating the

reasoning adopted in the impugned Order/Judgment and on

appreciation of the evidence is of the view that the additional

evidence must be brought on record so as to enable it to

pronounce the Judgment or for doing substantial justice.

In Parsotim Thakur (supra), the Privy Council

expounded the principle underlying Order XLI Rule 27 and

with reference to Clause (1)(b) held that it is only when the

Appellate Court requires (i.e. finds it needful) that additional

evidence can be admitted and the legitimate occasion for the

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exercise of the discretion is not whenever before the Appeal is

heard a Party applies to adduce fresh evidence, but when on

examining the evidence as it stands some inherent lacunae or

defect becomes apparent. Though the defect may be pointed

out by a Party or that Party may move the Court to supply the

defect, but the necessary requirement of exercise of the power

is that of the Court, who is of the opinion that the additional

evidence is necessary to be brought on record and this could

be done upon appreciation of the evidence by the Court. In no

uncertain words, the Privy Council expressed thus :-

“If the Respondents desired to give evidence as to the thumb-
impression they had ample opportunity to do so in the trial Court.
The provisions of Section 107, Civil Procedure Code, as elucidated
by O. 41, R. 27 are clearly not intended to allow a litigant who has
been unsuccessful in the lower Court to patch up the weak parts of
his case and fill up omissions in the Court of Appeal……….Under Cl.

(1)(b) it is only where the appellate Court “requires”, the
additional evidence can be admitted.”

In Arjan Singh alias Puran (supra) it is ruled that the

discretion to admit additional evidence is not an arbitrary

one, but is a judicial one circumscribed by the limitations

specified in Order XLI Rule 27 and if additional evidence was

allowed to be adduced contrary to the principles governing

the reception of such evidence, it would be a case of improper

exercise of discretion and the additional evidence brought on

record will have to be ignored. Under Order XLI Rule 27 it is

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the Appellate Court that must require the evidence to enable

it to pronounce the Judgment and the legitimate occasion for

application of the rule was set out to be, on examining the

evidence as it stands, some inherent lacunae or defect

becomes apparent, not where discovery is made outside the

Court of fresh evidence and the Application is made to import

it.

38. From the various precedents cited before us, which had

focused upon the scope of the particular provision in form of

production of additional evidence by the Appellate court and

fulcrum of all the pronouncements seeking speak in one

voice, ‘that the said provision does not entitle the appellate

court to laid any fresh evidence, but the Court will exercise its

discretion if in its view any document to be produced or any

witness to be examined is to be examined, to enable it to

pronounce Judgment or for any other substantial cause.

In short, despite the power being conferred on the

Appellate Court to permit the evidence to be brought before it

which was not produced or adduced at the time of trial, the

discretion vested in the Court must be limited to those cases

where it found it necessary to secure such evidence which

would enable it to pronounce the Judgment and in no way it is

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to be construed as a provision to be invoked by a Party to fill

up the lacunae in his case.

39. Once we are clear on the principle flowing from the

aforesaid, when we focus our attention on the Application

filed before us, with reference to the documents which are

sought to be brought on record and this application is to be

appreciated by us in the factual background.

In this regard, it is to be noted that if the Plaintiffs have

associated their claim by pleading a statement of facts, unless

and until there is a denial, the learned Judge could not have

ignored the said pleading merely on the ground that there is

no proof produced alongwith the plaint. The Plaintiffs

alongwith the plaint have annexed several documents, which

included their registrations and it is to be noted that the

Plaintiffs have appended a list of 112 registered trade marks

with the use of the word ‘BIRLA’, with a pleading that on

account of the internal arrangement worked out with Aditya

Birla Group, they were entitled to use the said mark and in fact

have obtained registration in respect of 112 goods/services,

the oldest one to be found registered on 14/12/1990 based on

the user claim from 30/04/1988. When there is no denial of

the claim of the Plaintiffs about their relationship with the

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Aditya Birla Group and, therefore, their entitlement to use the

mark ‘BIRLA WHITE/BIRLA’ in their products, we are of the

view that the documents sought to be produced on record by

way of additional evidence would assist this Court in

appreciating the pleadings of the Plaintiffs as well as the

contest raised to the same.

40. In this background, the Application for bringing on

record the additional evidence and this comprise of a

document in form of scheme of arrangement between Indian

Rayon and Industries Ltd. and Grasim Industries Ltd. i.e.

Plaintiff No.1. The said scheme transferred the business of the

transferor to the transferee company i.e. Grasim and

transferred business in the scheme is the business of Grey

Cement and White Cement Undertaking, including other plants

of the transferor company as a going concern and included

white cement manufacturing unit in Rajasthan (known as

‘Birla White’) and grinding unit of 1.2 million tpa capacity in

the State of Maharashtra (known as ‘Birla Super Cement

Works’).

The aforesaid document sought to be produced in form of

additional evidence is only sufficient to establish the business

of Indian Rayon and Industries Ltd. of Grey Cement and White

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Cement was transferred to Grasim Industries Ltd. As regards

the trade mark ‘BIRLA WHITE’, in Class 19 presently

registered in the name of Plaintiff No.1-Grasim Industries Ltd.,

the trade mark applied for is ‘BIRLA WHITE’, the application

being preferred on 14/02/1990 and the registration being

granted on 14/08/1996.

The Application is accompanied with history/PR details,

which has a reference to the scheme of arrangement

sanctioned by the High Court of Madhya Pradesh under the

Company Petition No.39 and 33 of 1988, order dated

23/02/1999. The order of the Madhya Pradesh High Court,

which is annexed to the Application, is also perused by us. It is

an order passed on the Petition filed by Grasim Industries Ltd.

under Section 394 of the Companies Act, 1956 with a prayer

that the scheme of arrangement of the transferred business of

Indian Rayon and Industries Ltd. with the transferee company

be sanctioned from 01/09/1998. The said scheme of

arrangement also contain no reference to Aditya Birla Group.

The other documents, which are annexed which are conferred

upon the Plaintiff No.1 as well as Plaintiff No.2 as a unit of

BIRLA WHITE only establish that the Plaintiffs are using the

mark ‘BIRLA’ and it is a well-known mark.

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In our view, the relevance of the documents in the wake

of the pleadings in the plaint and the Interim Application, was

not warranted at that stage, as we find that the contingency

for production of the documents has arisen in the wake of the

finding in the impugned order that the Plaintiff No.1 has failed

to establish its relationship with Aditya Birla Group by any

documentary evidence.

In our view, these documents are necessary to be

brought on record to affirm the claim, which was already set

out in the plaint. In order to do substantial justice, we deem it

appropriate to allow the Application, but no way we are

pronouncing upon the admissibility of documents and on the

Application being allowed, we permit the Respondents to file

an additional affidavit, dealing with the said documents within

a period of one week from today.

Interim Application is allowed in the aforesaid terms.

41. The Commercial Appeal is directed to be listed for

further consideration on 23rd April, 2026 on Supplementary

Board.

(MANJUSHA DESHPANDE, J.) (BHARATI DANGRE, J.)

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