The dispute between the parties, in this case, had its genesis in the applicant's being informed by the Registrar ofClose Corporations, that its registered name was undesirable. The Registrar had been acting in response to an objection to the name. The Court found that the use of the generic words "Cape" and "Town" in the applicant's name meant that the name could not be regarded as undesirable. It granted the relief sought by the applicant in the main application. The counter­application was dismissed with costs

The case involved the main application and the counter-claim. In the main application, the Court was being asked to set aside the Registrar's decision, and to dismiss the objection referred to above. In a counter­application, the second respondent invoked section 34 of the Trade Marks Act 194 of 1993 for alleging that two of its registered marks, both of them word marks, viz "Town Lodge" and "Town Lodge Limited" were infringed. In support of its argument, reliance was placed on section 34(1)(a) of the Act.