HDFC Bank Staff Union v. Banking Ombudsman & Others - The activities of the Trade Union with reference to the provisions of the Trade Unions Act, 1926 do not amount to a commercial activity to attract Section 29(4)(b) Trade Marks Act 1999 – Kerala High Court - Decided on 17th December, 2024
HDFC Bank Staff Union is registered Trade Union representing the employees of HDFC Bank Ltd. The petitioner sought to open an account with the Vazhakkala (Kochi) Branch of HDFC Bank Ltd. But the bank did not allow the opening of account in the name of “HDFC Bank Staff Union” on the ground that it amount to an infringement of its registered trade mark. Hence the Union appealed to Banking Ombudsman, Reserve Bank of India Building, Bakery Junction, Thiruvananthapuram – 695 003 against the decision of the Bank. The appeal was rejected by Banking Ombudsman holding that no appeal lies against the order. Hence the Union filed Writ Petition (Civil) before the Kerala High Court for direction to bank for processing the application for opening bank account in the name of the Union as applied for by it.
The application for opening a bank account in the name of the Union is resisted by the Bank with reference to the provisions of the Trade Marks Act, 1999, contending that it had already obtained registration under the afore Statute.
The court observed: on account of a registered trade mark, the Bank has the exclusive right to use the same in relation to “goods/services” in respect to which the trade mark is registered. Infringement of Trademark Occurs only when the registered trademark is used by the unregistered person l “in the course of trade”. The union is not engaged in any sort of trading activity. It is only formed for the welfare of the employees in its relationship with the employer. The union is not involved in any supply of “goods/ services” akin to the Bank. The activities of the Trade Union with reference to the provisions of the Trade Unions Act, 1926, do not amount to a commercial activity, so as to the provisions of the Trade Marks Act, as applicable to this case. Similarly, the name of the Trade Union is registered with reference to Chapter II of the Trade Unions Act.
Hence the Kerala High Court directed the bank to process the application for opening of account as submitted by the Union.
Legal provisions discussed:
- Sections 2(z) ,23, 28 ,29 of the Trade Marks Act, 1999
- Section 2(h) Trade Unions Act, 1926