Delhi HC orders trademark law offender to deposit Rs 25 lakh in PM Relief Fund

In addition to directing the entity to deposit a payment of Rs 20 lakh with the court, Justice Prathiba M Singh stated that notwithstanding an order of injunction, the entity was discovered to be manufacturing and marketing its products under the name of the brand of the plaintiff company.

The court stated that although it was inclined to impose the strictest possible punishment on the defendant, only a severe financial penalty was being given in light of the expressed remorse and unequivocal repentance.

According to the court’s order dated 2 August, “The defendants shall pay a sum of Rs 30,00,000 as costs, which the plaintiff has paid for legal fees and the expense of pursuing the contempt applications, as well as for the cost of paying the fees of the local commissioners (etc.).”

“In addition, the defendants shall deposit a sum of Rs 25,00,000 in the Prime Minister’s National Relief Fund, on or before 15 November, 2022. Finally, a sum of Rs 20,00,000 shall be deposited with the worthy Registrar General of this Court, on or before 15 January, 2023. The said amount shall be retained in a fixed deposit on auto-renewal mode, and shall be subject to the final decision in the present suit, the court further ordered.

In its order, the court recorded that the defendant has also already incurred losses as its infringing products stated to worth about Rs 4 crore were donated to Gurdwara Rakab Ganj Sahib and Nizamuddin Dargah after being seized by the local commissioner.

The plaintiff claimed that although the court had, in September last year, restrained the defendant from manufacturing the infringing products under the mark of the plaintiff, the defendant continued to do so and also publicized on an e-commerce platform.

The defendants tendered unconditional apology and told the court they were prepared to replace both their trading name and labelling.

The defendant was ordered by the court to use a different mark or name for their spices, as well as alter the colour of their package.

It further stated that the defendant’s factory would de-sealed so that it may resume operations and deposit the remaining sum after the defendant had paid the plaintiff the remaining Rs 10 lakh of the Rs 30 lakh in fees imposed on it.

(With inputs from PTI)

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