Section 124 Trade Marks Act 1999 deals with STAY OF PROCEEDINGS where validity of registration is QUESTIONED. The court must STAY the suit if:

1. Section 124(1) Trade Marks Act 1999: where in any suit for infringement of a trade mark — (a) the defendant pleads that the registration of the plaintiff's trade mark is invalid; OR (b) the defendant raises a defence under clause (e) of sub-section (2) of Section 30 and the plaintiff pleads the invalidity of registration of the defendant's trade mark, the court trying the suit shall — (i) if any proceedings for rectification of the register are pending before the Registrar or the High Court, stay the suit pending the final disposal of such proceedings; (ii) if no such proceedings are pending and the court is satisfied that the plea regarding the invalidity is PRIMA FACIE TENABLE, raise an issue regarding the same and adjourn the case for a period of 3 months from the date of the framing of the issue. 2. Section 124(2): if no rectification application within 3 months, plea of invalidity is deemed abandoned. 3. The Supreme Court in Patel Field Marshal Agencies v. P.M. Diesels Ltd., (2018) 2 SCC 112 clarified the abandonment rule. 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 124_