Section 142 Trade Marks Act 1999 makes a person liable for GROUNDLESS THREATS of legal proceedings if:

1. Section 142(1) Trade Marks Act 1999: 'Where a person, by means of CIRCULARS, ADVERTISEMENTS or OTHERWISE, threatens a person with an action or proceeding for INFRINGEMENT of a trade mark which is registered, or alleged by the first-mentioned person to be registered, or with some other like proceeding, a person aggrieved may, whether the person making the threats is or is not the registered proprietor or the registered user of the trade mark, bring a suit against the first-mentioned person and may obtain a declaration to the effect that the threats are unjustifiable, and an injunction against the continuance of the threats and may recover such damages (if any) as he has sustained thereby.' 2. Section 142(2): no suit if the person making threats commences a proceeding for infringement with due diligence. 3. Section 142(3): mere notification that a trade mark is registered or that registration applied for shall not constitute a threat. 4. Hence option B is correct. _Source: Patents Act 1970 / Copyright Act 1957 / Trade Marks Act 1999 (Bare Acts, IPIndia portal + Copyright Office) — Trade Marks Act 1999, Section 142_