Institute of Chartered Tax Advisers of India Ltd cannot use ‘ADIT’ to Launch any Courses during the Pendency of Trademark Suit: Delhi HC [Read Order]

The Delhi High Court has restricted the Institute Of Chartered Tax Advisers of India from using the trademark “ADIT” while launching any new courses during the pendency of the trademark suit filed by the Chartered Institute Of Taxation.

The Chartered Institute Of Taxation approached the High Court against the order dated 16th September, 2019 passed by the Ld. ADJ, Patiala House District Court, Delhi,by contending that it has thesuperior rights in the trademark ‘ADIT’, by virtue of priority in adoption and use of the said trademark in respect of its goods and/or services since the year 2003. The Plaintiff administers and awards two qualifications: the “Advanced Diploma in International Taxation” (ADIT) for international tax professionals around the world, and the “Chartered Tax Adviser” (CTA) qualification for domestic tax practitioners in the United Kingdom. Membership is awarded on passing the Appellant’s/Plaintiffs examinations and completing specified practical taxation experience. The qualifications granted by the Plaintiff are stated to be the ‘gold standard’ in the field of tax education.

Justice Prathiba M. Singh observed that considering the nature of the dispute and the trademark ‘ADIT’ which was first adopted by the Plaintiff, the Defendant who is also using the name ‘Institute of Chartered Tax Advisers of India Ltd.’, cannot be allowed to launch a course under a name which is identical to that of the Plaintiff.

“Moreover, the use of the word CHARTERED also seek to suggest some association with the Plaintiff. The Defendant is clearly a private company which has no connection with the Plaintiff. Accordingly, this Court is of the opinion that the use of a name which is similar coupled with the use of the mark ADIT is likely to cause enormous harm to students and prospectivecandidates who may avail of the course of the Defendant under the mistaken impression that the Defendant is connected or affiliated with the Plaintiff. The ld. Counsel for the Defendant submits that he is willing to continue the assurance given on the last date. It is accordingly directed that the said assurance shall continue to bind the Defendant during the pendency of the suit before the Trial Court,” the Court said.

“The Defendant and all others acting for and on its behalf are restrained from using the trademark ‘ADIT’ for any course which they are presently offering or may offer in future, during the pendency of the suit.Accordingly, the impugned order dated 16th September, 2019 is set aside. The present first appeal is disposed of, with the direction that during the pendency of the suit the Defendant or any other entity connected to the Defendant shall not launch any course by the name ‘ADIT’,” the Court observed.

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