In a recent case of Haldiram India Pvt. Ltd vs. M/S Nandipat
Enterprises & Anr. an order was passed by the Delhi High
Court keeping in mind the reputation and goodwill of the popular
brand "HALDIRAM'S". The factual
matrix and background of the case is that the Plaintiff had
initially filed the present suit seeking a permanent injunction
against the Defendants from infringing its registered trademarks
viz. "HALDIRAM BHUJIAWALA" and as well as the copyrights of the Plaintiff,
passing off their goods as those of the Plaintiff and for other
ancillary reliefs, as the Plaintiff is the registered proprietor of
the trademarks "HALDIRAM BHUJIAWALA"/
"HALDIRAM'S" in respect of edible
articles of human consumption. In March 2023, the plaintiff became
aware that its registered marks were being used in conjunction with
logo by the Defendants. In this
regard, the plaintiff filed the suit wherein the Court restrained
the Defendants from using and infringing the plaintiff's
registered trademarks and copyright. Further, on May 19, 2023, the
Defendants reached out to the Plaintiff to settle the matter.
However, it was during this time that the plaintiff learnt that the
Defendant No. 1, operating in Bihar under a Super
Stockiest/Distributorship Agreement with the Defendant No. 2, i.e.,
Mr. Ashok Aggarwal, was using the said trademarks and copyright of
the Plaintiff for its own products instead for the pre-packaged
products of the Defendant No. 1 as per their agreement. Further,
the attention of the Court was brought to the Settlement Agreement
dated May 3, 2016, entered into between the Plaintiff and Defendant
No. 2, wherein the Defendant No. 2 was only permitted to sell
packaged goods manufactured by it using the Plaintiff's marks.
The Plaintiff's marks were also being used on the packaging of
the products manufactured by Defendant No. 1 as well as on its
restaurants. Thus, a prima facie case was made out by the
Plaintiff wherein the Court was convinced that the "balance of
convenience" lies in favour of the Plaintiff and irreparable
harm would be caused to the Plaintiff as well as the public at
large. Further, despite reminders, the Defendants failed to appear
in front of the Court. In view of the above, on June 1, 2023, this
Court granted an interim injunction in favour of the Plaintiff and
against the Defendants.
Further, the application was filed by the Plaintiff under Order
XXXIX Rule 2A of the Civil Procedure Code, 1908 (CPC), to inform
the Court that Defendant No. 1, i.e., Nandipat Enterprises, was
wilfully and deliberately violating the above-mentioned injunction
order passed by this Court. The Plaintiff alleged that Defendant
No. 1 in violation of the Settlement Agreement dated May 3, 2016,
had started manufacturing its own pre-packaged food items and sold
it with the label "HALDIRAM BHUJIAWALA"
alongside the logo. The packaging
as sold by Defendant No. 1 was depicted
as and
, wherein the mark
"HALDIRAM BHUJIAWALA"
was clearly depicted. These items were also sold on food delivery
apps such as Swiggy. Further, the Court also reiterated that the
Settlement Agreement dated May 1, 2016, was also very clear that
Defendant No. 1 is only permitted to use the marks
"HALDIRAM BHUJIAWALA",
and
logo for pre-packaged food items
manufactured by Defendant No. 2. The Court held that the misuse of
the above-mentioned marks of the Plaintiff whether in violation of
the Settlement Agreement or in violation of the injunction earlier
order passed by this Court, would amount to contempt. It was also
held that the mere permission given to Defendant No. 1 to sell
pre-packaged items manufactured by Defendant No. 1 does not permit
it to confuse the public and pass off it goods as the original
products of the plaintiff. The Court also stated that
"HALDIRAM BHUJIAWALA" is an extremely
popular brand for sweets, namkeen and other snack items and thus,
the snacks sold by Defendant No. 1 were misleading to the public at
large as though the said items were Plaintiff's original
"HALDIRAM BHUJIAWALA" products. In
addition to this, it was also alleged that Defendant No. 1 was
using the logo and the name "HALDIRAM
BHUJIAWALA" on the billboards outside its
restaurant in Bihar. In view of the above, the Court appointed a
Local Commissioner to immediately visit and inspect the premises of
Defendant No. 1 and directed the following:
- to seize all the products of the Defendant No. 1 manufactured by Defendant No. 1 and which were not the pre-packaged products of Defendant No. 2, bearing the Plaintiff's marks and logos.
- to ensure that there are no billboards, display boards, menu cards, carry bags, or any other stationery or material bearing the Plaintiff's marks and logos.
- obtain the details since when the Defendants sold infringing products post the injunction order dated June 1, 2023, and obtain copies of their accounts.
- after preparation of the inventory found at Defendant No. 1's premises, the Local Commissioner shall seal the same. If the Defendants wish to remove any food items in the infringing packaging, the same shall be permitted to be removed from the packets and handed over to the Defendant No.1.
- the local SHO of the area was instructed to extend complete assistance to the Local Commissioner in the matter.
It was also clarified that the Defendant No. 1 was free to distribute pre-packaged goods of Defendant No. 2. Further, the listing of the products manufactured by Defendant No. 1 by itself under Plaintiff's marks on the food delivery apps was directed to be taken down with immediate effect. Further, the Court also clarified that if the Defendant No. 2 wants to advertise itself as the authorised distributor of Defendant No. 1, it may do so in its outlets on the shelf where snack products are stored to mitigate any confusion in the minds of the public. The matter is yet to be finally decided by the court.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.