ITC Ltd Vs Adyar Gate Hotels Ltd

Case Title: ITC Ltd & Anr. vs Adyar Gate Hotels Ltd

Date of Order: 13.02.2025

Case Number: CS(COMM) 119/2025

Court: High Court of Delhi

Judge: Hon'ble Mr. Justice Amit Bansal

Facts of the Case:

ITC Limited (Plaintiff No.1) and its associate company ITC Hotels Limited (Plaintiff No.2) filed a suit against Adyar Gate Hotels Limited (Defendant) for trademark and copyright infringement, passing off, and other related reliefs. The dispute arose over the use of the trademark "DAKSHIN", which ITC claims to have exclusively used for its premium South Indian restaurant chain since 1989. ITC alleged that the defendant, despite the expiration of their operating services agreement in 2015, continued using the "DAKSHIN" mark and later opened a standalone restaurant in 2024 under the same name and branding.

Issues:

1. Whether the defendant’s use of "DAKSHIN" amounts to trademark infringement and passing off.

2. Whether the defendant was authorized to continue using the trademark after the expiration of the agreement.

3. Whether the defendant’s actions caused damage to ITC’s goodwill and reputation.

Reasoning and Analysis

ITC had an operating services agreement with the defendant from 1985, which explicitly stated that any trademarks, trade names, and logos used under the agreement belonged exclusively to ITC.

The agreement expired in 2015, and ITC withdrew from the hotel, which was renamed Crowne Plaza Chennai Adyar Park. However, the restaurant named "DAKSHIN" continued to operate until December 2023.

In October 2024, ITC discovered that the defendant had opened a new standalone restaurant under the "DAKSHIN" name, using identical branding and a tagline similar to ITC’s registered trademarks.

The court found prima facie evidence of infringement and passing off, considering the defendant’s mark was identical in name, design, and theme to ITC’s well-established trademark.

The court also noted that the defendant had misleadingly represented itself as a "group company" of ITC while applying for the trademark in 2004.

Decision of the Court:

Interim Injunction Granted: The court restrained the defendant from using the "DAKSHIN" trademark for its restaurant and food business.

Online Removal Directive: The defendant was directed to remove all listings and references to the infringing mark from social media and third-party platforms like Zomato, EazyDiner, and TripAdvisor.

Conclusion:

The Delhi High Court’s ruling in ITC Ltd vs Adyar Gate Hotels Ltd underscores the enforceability of trademark rights even after the termination of an agreement. The court’s ex parte injunction highlights the significance of protecting goodwill and preventing misleading commercial practices.