A Division Bench of the Bombay High Court stayed a single-judge’s decision to impose a Rs 4.5 crore penalty on Patanjali Ayurved in a trademark infringement case. The costs were levied on Patanjali by a single Bench of Justice RI Chagla in July this year for violating an interim order that prohibited the company from selling camphor products that allegedly infringed on the trademark of Mangalam Organics. Justices AS Chandurkar and Rajesh Patil today stayed the single-judge orders of July 8 and July 29, but allowed the Rs 50 lakhs already deposited by Patanjali to remain with the Court.
Thank you for reading this post, don't forget to subscribe!
MUMBAI: A Division Bench of the Bombay High Court temporarily stayed a single-judge’s decision to impose a hefty penalty of Rs 4.5 crore on Patanjali Ayurved in a high-profile trademark infringement case.
The penalty had been levied by Justice R.I. Chagla in July 2024 after finding that Patanjali had violated an interim order restraining the company from selling camphor products allegedly infringing on the trademark of Mangalam Organics.
“The costs were levied on Patanjali by a single Bench of Justice R.I. Chagla in July this year for violating an interim order that prohibited the company from selling camphor products that allegedly infringed on the trademark of Mangalam Organics.”
In a recent hearing, Justices A.S. Chandurkar and Rajesh Patil stayed the single-judge’s orders issued on July 8 and July 29. However, they directed that the Rs 50 lakh already deposited by Patanjali with the Court should remain in its custody for the time being.
Mangalam Organics had filed a lawsuit against Patanjali, accusing the company of trademark infringement and “passing off” its camphor products under a similar mark. In response to this lawsuit, the Bombay High Court had issued an injunction on August 30, 2023, barring Patanjali from selling these camphor products.
After the injunction was enforced, Patanjali allegedly breached the Court’s order. This prompted Mangalam Organics to file a contempt petition against the company. In its defense, Patanjali submitted an affidavit acknowledging its mistake, expressing regret, and committing to comply with the Court’s directives moving forward.
“Patanjali later submitted an affidavit in which it expressed regret for the breach and promised to follow the Court’s directives.”
The affidavit also disclosed that after the injunction was issued, Patanjali had shipped camphor products worth approximately Rs 49.6 lakh to distributors until June 24, 2024. While the company claimed that it had ceased sales of the remaining stock valued at Rs 25.9 lakh, Mangalam Organics contested this claim.
The plaintiff pointed out that some of these products were still available for purchase on Patanjali’s official website as of July 8, a detail omitted from Patanjali’s affidavit.
“The affidavit revealed that after the court’s order, Patanjali had shipped nearly Rs 49.6 lakh worth of camphor products to distributors until June 24, 2024.”
During the July 8 hearing, the single judge observed that Patanjali had admitted to possessing stocks of camphor products even after the injunction was issued in August 2023. The Court further noted that sales of these products had continued beyond June 24, 2024.
Consequently, the single judge imposed a penalty of Rs 50 lakh on Patanjali and directed Mangalam Organics to file an affidavit detailing the alleged violations.
“During a hearing on July 8 this year, the single Bench observed that Patanjali had admitted to possessing stock of camphor products after the 2023 injunction was issued, and that sales had continued past June 24.”
On July 29, following further reports of non-compliance, Justice Chagla imposed an additional penalty of Rs 4 crore on Patanjali for contempt of court.
This brought the total penalty to Rs 4.5 crore. Patanjali has since challenged these rulings before the Division Bench of the Bombay High Court.
“On continued non-compliance, on July 29, a single judge imposed an additional penalty of Rs 4 crore on Patanjali for contempt of court.”
The case, which centers on trademark protection and compliance with judicial orders, continues to unfold as Patanjali seeks relief from the penalties imposed by the lower court.
This legal battle underscores the importance of adhering to court injunctions in matters of intellectual property disputes.
Click Here to Read Previous Reports on Patanjali Ayurved
FOLLOW US ON YOUTUBE FOR MORE LEGAL UPDATES
