Page 10 - Banking Finance AUGUST 2015

LEGAL UPDATE

LEGAL 

Official discretion must be used fairly Moderation on use of

When a law grants power to an officer When it arrived at Okha, customs au- trade mark
to take certain action that he "deems thorities took samples and tested it at
it necessary" or has reason to believe, the Central Fuel Research Institute. The Bombay High Court recently re-
it does not mean his subjective satisfac- According to its report, the consign- strained Eu-
tion. Such power should not be exer- ment contained ash content more than robond In-
cised arbitrarily and must be used "in 12 per cent. Therefore, the authorities dustries Ltd.
accordance with the re- from using
straints imposed by law.'' Su- denied exemption from duty. the trade
preme Court stated this while The appellate tribunal con-
allowing the appeal of Tata firmed the stand of the cus- mark 'Eurobond' or any other mark
Chemicals against the order toms inspectors. containing the words Euro or Euro-
of CESTAT. bond or the device of globe within the
On appeal, Supreme Court arms of 'U' or any other mark identi-
The company, engaged in the stated that the samples cal or deceptively similar to that used
manufacture of soda ash and were drawn contrary to law, by Archer Trading House Ltd.
coke, imported coking coal produced by as the company's represen-
an Australian firm. Coking coal with ash tative was not present when they were The mark is used on aluminum com-
content less than 12 per cent was ex- taken. "If the law requires that some- posite panels. In the interim order - the
empt from basic customs duty. The thing must be done in a particular main suit is stayed and pending - the
consignment was tested by an indepen- manner, it must be done in that man- court, however, gave three months to
dent foreign inspection agency which ner," the judgment emphasized, and the company to change its corporate
certified that the moisture content was added that if it was not done so, the name and trading style and also dis-
less than 10 per cent. decision has no existence in the eye of pose of its existing stock of goods bear-
the law at all. ing the trade mark 'Eurobond'.

Air India holds special status on contract labour Though Eurobond had been allowed
to use the trade mark in a 2006
The Bombay High Court has confirmed that there is a specific legal sanction agreement, later its owner termi-
given to Air India to enter into contract with foreign air- nated the contract following changes
lines on ground handling services at Indian airports and in the shareholding of the company
therefore, it is excluded from the provisions of the Con- and it was assigned to Archer Trading.
tract Labour (Regulation & Abolition) Act and the Con- This was the point at which disputes
tract Labour (Regulation & Abolition) Central Rules. arose between the companies over
the trade mark, leading to Archer's
application for injunction.

10 | 2015 | AUGUST | BANKING FINANCE