Today, On 13th February, The Delhi High Court issued stay Adyar Gate from using the ‘Dakshin’ name after ITC filed a lawsuit. ITC claimed exclusive rights over the mark and objected to Adyar Gate’s new restaurant in Chennai’s Alwarpet. The court’s order prevents the restaurant from operating under the disputed name. This ruling highlights the importance of trademark protection in business disputes.
New Delhi: The Delhi High Court prohibited Adyar Gate Hotels Limited from using the name and mark “Dakshin” for their standalone restaurant in Chennai, following a plea from ITC asserting their ownership of the trademark for the renowned restaurant.
Justice Amit Bansal stated that there is a prima facie case in favor of ITC for granting an interim injunction.
Adyar Gate was a well-known five-star hotel situated in Chennai’s Alwarpet area, originally established in the 1970s by the TTK Group. The hotel has undergone several rebrandings, including Park Sheraton and Crowne Plaza, and was a significant landmark, offering luxury accommodations and dining experiences.
“Dakshin,” located within Adyar Gate, was a celebrated South Indian specialty restaurant known for its authentic regional dishes and cultural importance. Established in 1989, Dakshin became one of Chennai’s iconic fine-dining destinations, attracting celebrities, diplomats, and culinary enthusiasts with its menu featuring dishes from Andhra Pradesh, Karnataka, Kerala, Puducherry, Tamil Nadu, and Telangana.
During the hearing, Senior Advocate Mukul Rohatgi, representing ITC, argued that the company holds various registrations for the mark “Dakshin,” dating back to 2000.
He noted that ITC had entered into an agreement with Adyar Gate in 1985 to manage a hotel in Chennai, which was later rebranded as Welcome Group Park Sheraton. Under this agreement, Adyar Gate was granted limited rights to use the name “Dakshin.”
Although Adyar Gate obtained trademark registration for “Dakshin” under Class 42 in 2004, this was permissible as they were an existing license holder with ITC. This arrangement continued until March 2015, when the hotel was rebranded as Crowne Plaza Chennai Adyar Park. During this period, ITC did not object to the operation of Dakshin, recognizing the restaurant’s growing fame.
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However, after the hotel closed in December 2023 and the building was demolished for residential development, Rohatgi expressed shock upon discovering that Adyar Gate had opened a standalone restaurant named “Dakshin” in December 2024, using the same mark.
ITC argued that Adyar Gate’s actions, particularly the opening of the standalone “Dakshin” restaurant, constituted an infringement of ITC’s established brand and goodwill associated with the “Dakshin” name, especially in the context of South Indian cuisine.
ITC was represented by Senior Advocates Mukul Rohatgi and Arvind Nigam, along with advocate Mamta Rani Jha from Inttl Advocare.
Case Title: ITC Ltd Vs Adyar Gate Hotels Ltd