Nalli Pte Ltd v Nalli Kuppuswami Chetti: Trademark, Passing Off & Contract Dispute

Nalli Pte Ltd and Dasarathan Madhavan and Alluri Mahalakshmi Madhavan appealed a decision of the High Court to the Appellate Division of the High Court of Singapore. The case concerned a dispute with Nalli Kuppuswami Chetti and Nalli Ramanathan (trading as Nalli Chinnasami Chetty) and Nalli Chinnasami Chetty Pte Ltd regarding the use of the 'Nalli' name in their businesses, involving claims of breach of contract, malicious falsehood, passing off, and trademark infringement. The Appellate Division allowed the appeal, finding no breach of the Deeds of Settlement, trademark infringement, passing off, or malicious falsehood. The court set aside the injunctions and orders made below and ordered costs to the appellants.

1. Case Overview

1.1 Court

Appellate Division of the High Court

1.2 Outcome

Appeal Allowed

1.3 Case Type

Intellectual Property

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Appeal regarding trademark/passing off dispute over 'Nalli' name. Court allowed appeal, finding no breach of settlement deeds or trademark infringement.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Nalli Pte LtdAppellant, DefendantCorporationAppeal AllowedWon
Dasarathan MadhavanAppellant, DefendantIndividualAppeal AllowedWon
Alluri Mahalakshmi MadhavanAppellant, DefendantIndividualAppeal AllowedWon
Nalli Kuppuswami ChettiRespondent, PlaintiffIndividualClaims DismissedLost
Nalli RamanathanRespondent, PlaintiffIndividualClaims DismissedLost
Nalli Chinnasami ChettyRespondent, PlaintiffPartnershipClaims DismissedLost
Nalli Chinnasami Chetty Pte LtdRespondent, PlaintiffCorporationClaims DismissedLost

3. Judges

Judge NameTitleDelivered Judgment
Belinda Ang Saw EanJustice of the Court of AppealNo
Kannan RameshJudge of the Appellate DivisionNo
Aedit AbdullahJudge of the High CourtYes

4. Counsels

4. Facts

  1. NPL and NCCPL are businesses selling silk sarees and other clothing items.
  2. The dispute arises from the competing use of the name 'Nalli' by NPL and NCCPL.
  3. Deeds of Settlement were entered into in 1997 to allow both entities to use the name 'Nalli'.
  4. NCC registered the mark and NPL registered the WFM.
  5. The respondents alleged that NPL breached the Deeds of Settlement by giving prominence to the word 'Nalli'.
  6. The respondents also claimed that NPL made false statements about the respondents' products.
  7. The appellants argued that the Deeds of Settlement never prohibited NPL from using the word 'Nalli' simpliciter.

5. Formal Citations

  1. Nalli Pte Ltd and others v Nalli Kuppuswami Chetti and Nalli Ramanathan (trading as Nalli Chinnasami Chetty) and another, Civil Appeal No 53 of 2022, [2024] SGHC(A) 18

6. Timeline

DateEvent
Business of selling silk sarees founded in Chennai by Mr Nalli Chinnasami Chetty
Nalli Pte Ltd incorporated
Mr NDC and Mrs Madhavan discovered that Mr NKC and Mr NR planned to incorporate NCCPL in Singapore
Nalli Pte Ltd applied to register the mark “NALLI”
Nalli Chinnasami Chetty Pte Ltd incorporated
NCC applied to register a stylised “Nalli” mark
Nalli Pte Ltd commenced Suit No 1580 of 1992 against NCCPL
Deeds of Settlement entered into between NCC and NPL, and between NCCPL and NPL
NCC and NPL registered the mark and the WFM respectively
Respondents commenced suit against NPL for breach of Deeds of Settlement, malicious falsehood, passing off and trade mark infringement
Trial judge issued written judgment
Trial judge delivered oral judgment
Hearing date
Hearing date
Judgment reserved

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found that NPL did not breach the Deeds of Settlement.
    • Category: Substantive
    • Sub-Issues:
      • Interpretation of deeds of settlement
  2. Trade Mark Infringement
    • Outcome: The court found that NPL was not liable for trade mark infringement.
    • Category: Substantive
    • Sub-Issues:
      • Use of identical or similar sign
      • Likelihood of confusion
  3. Passing Off
    • Outcome: The court found that NPL was not liable for passing off.
    • Category: Substantive
    • Sub-Issues:
      • Misrepresentation
      • Goodwill
      • Damage
  4. Malicious Falsehood
    • Outcome: The court found that NPL was not liable for malicious falsehood.
    • Category: Substantive
    • Sub-Issues:
      • False statement
      • Malice
      • Damage

8. Remedies Sought

  1. Injunctions
  2. Destruction of materials
  3. Inquiry as to damages
  4. Account of profits

9. Cause of Actions

  • Breach of Contract
  • Trade Mark Infringement
  • Passing Off
  • Malicious Falsehood

10. Practice Areas

  • Commercial Litigation
  • Intellectual Property Litigation
  • Contract Disputes

11. Industries

  • Retail
  • Fashion

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
The Audience Motivation Company Asia Pte Ltd v AMC Live Group China (S) Pte LtdHigh CourtYes[2016] 3 SLR 517SingaporeCited for factors in determining honest practices in own name defence under Trade Marks Act.
PT Sandipala Arthaputra and others v STMicroelectronics Asia Pacific Pte Ltd and othersHigh CourtYes[2018] 1 SLR 818SingaporeCited regarding directors' personal liability for company's tortious acts.
Lim Sze Eng v Lin Choo MeeCourt of AppealYes[2019] 1 SLR 414SingaporeCited for principles of contractual interpretation.
PT Bayan Resources TBK v BCBC Singapore Pte LtdCourt of AppealYes[2019] 1 SLR 30SingaporeCited for principles of contractual interpretation.
Y.E.S. F&B Group Pte Ltd v Soup Restaurant Singapore Pte LtdHigh CourtYes[2015] 5 SLR 1187SingaporeCited for principles of contractual interpretation.
CIFG Special Assets Capital I Ltd v Ong Puay KoonHigh CourtYes[2018] 1 SLR 170SingaporeCited for principles of contractual interpretation.
Sembcorp Marine Ltd v PPL Holdings Pte LtdHigh CourtYes[2013] 4 SLR 193SingaporeCited for principles of contractual interpretation.
Yap Son On v Ding Pei ZhenHigh CourtYes[2017] 1 SLR 219SingaporeCited for principles of contractual interpretation.
Zurich Insurance (Singapore) Pte Ltd v B-Gold Interior Design & Construction Pte LtdHigh CourtYes[2008] 3 SLR(R) 1029SingaporeCited for principles of contractual interpretation.
Lucky Realty Co Pte Ltd v HSBC Trustee (Singapore) LtdHigh CourtYes[2016] 1 SLR 1069SingaporeCited for principles of contractual interpretation.
Dr Who Waterworks Pte Ltd and others v Dr Who (M) Sdn Bhd and othersHigh CourtYes[2023] SGHC 156SingaporeCited for elements of trade mark infringement.
Sarika Connoisseur Cafe Pte Ltd v Ferrero SpACourt of AppealYes[2013] 1 SLR 531SingaporeCited for competing sign comparison in trade mark infringement.
Hai Tong Co (Pte) Ltd v Ventree Singapore Pte Ltd and another and another appealCourt of AppealYes[2013] 2 SLR 941SingaporeCited for assessing likelihood of confusion in trade mark infringement.
Staywell Hospitality Group Pty Ltd v Starwood Hotels & Resorts Worldwide, Inc and another and another appealCourt of AppealYes[2014] 1 SLR 911SingaporeCited for factors in assessing confusion inquiry in trade mark infringement.
The Singapore Professional Golfers’ Association v Chen Eng Waye and othersCourt of AppealYes[2013] 2 SLR 495SingaporeCited for elements of the tort of passing off.
Novelty Pte Ltd v Amanresorts Ltd and anotherHigh CourtYes[2009] 3 SLR(R) 216SingaporeCited for misrepresentation in passing off.
Han’s (F & B) Pte Ltd v Gusttimo World Pte LtdHigh CourtYes[2015] 2 SLR 825SingaporeCited for extraneous factors in passing off.
City Chain Stores (S) Pte Ltd v Louis Vuitton MalletierCourt of AppealYes[2010] 1 SLR 382SingaporeCited for trade mark use in trade mark infringement.
Nalli Kuppuswami Chetti and Nalli Ramanathan (trading as Nalli Chinnasami Chetty) and another v Nalli Pte Ltd and othersHigh CourtYes[2022] SGHC 109SingaporeThe judgment being appealed.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Trade Marks Act (Cap 332, 2005 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Nalli
  • Nalli Pte Ltd
  • Nalli Chinnasami Chetty
  • Deeds of Settlement
  • Trade mark
  • Passing off
  • Malicious falsehood
  • WFM
  • Signage
  • Carrier bags
  • Price cards
  • Display case

15.2 Keywords

  • Nalli
  • Trade mark
  • Passing off
  • Breach of contract
  • Singapore
  • Intellectual property
  • Settlement
  • Infringement

17. Areas of Law

16. Subjects

  • Intellectual Property Law
  • Contract Law
  • Trade Mark Law
  • Commercial Law