On the recent order by the BHC directing Patanjali Ayurveda to deposit INR 50 Lakhs, in a Trademark case, we are pleased to bring to you this SpicyIP tidbit by Md. Sabeeh Ahmad. Sabeeh has previously interned with us and is a recent law graduate from AMU, Aligarh. His previous post can be accessed here.
SpicyIP Tidbit: The Woes of Patanjali Continue as BHC directs it to Deposit INR 50 Lakhs
By Md. Sabeeh Ahmad
Patanjali doesn’t seem to escape the wrath of Indian courts and keeps headlining legal news for quite some time. After the Supreme Court drubbing, the Bombay HC has now ordered Patanjali to deposit a sum of Rs. 50,00,000/- for failing to comply with an injunction order dated August 30, 2023. It is pertinent to note here that the injunction order of August 30, 2023 related to a trademark infringement suit brought by Mangalam Organics Limited. Mangalam had alleged that Patanjali infringed on packaging and trade dress of its camphor product. The order dated July 8, 2024 has noted that Patanjali, in violation of the injunction order, continued to supply the product amounting to Rs. 49,57,861/-.
Patanjali was in news earlier, as on May 14, 2024, the Supreme Court reserved judgment on contempt action against Baba Ramdev and Balkrishna (Managing Director) who continued to issue misleading advertisements in spite of the Court orders prohibiting so.
Interestingly, an order dated June 21, 2024, for the first time noted that Patanjali is in breach of the ad-interim order. The product was still being sold at large at Patanjali Megastore in Virar. Thereafter, Patanjali took steps to immediately direct ceasing of such sale. In its affidavit, Patanjali tendered an unconditional and unqualified apology for breach of the Court order. The Court had also directed Patanjali Director Rajnish Mishra (Respondent No. 10) to appear before it. In the final order dated July 8, 2024, director Rajnish Mishra was present in the Court and has admitted committing breach of the ad-interim order. The order further clarified that, Patanjali, in its affidavit stated that the stock value of Rs. 25,94,505/- is still lying at wholesalers/distributors and authorised stores which has been ceased at that respective location. The website of Patanjali also shows the impugned Camphor product being offered for sale as on 8th July 2024, the order notes.
We could not find the order dated August 30, 2023, which granted the injunction order. If our readers could share, we can further analyse the original trademark infringement claim by Mangalam. But a simple google search throws up the various comparisons of the camphor product sold by both Patanjali (on left) and Mangalam.
Patanjali | Mangalam |
For the interest of our readers, in this post here, we discussed an instance when the Delhi HC permitted the Defendant to sell its existing stock without vacating the interim injunction order. The Court had taken the view that balance of equities must be maintained by allowing appellant to sell existing stocks. This makes one wonder if Patanjali could also have taken a similar defence?