Wednesday, March 5, 2025

Chotiwala Food and Hotels Pvt. Ltd. Vs Chotiwala

Facts of the Case: The plaintiffs, Chotiwala Food and Hotels Pvt. Ltd., are the proprietors of the well-known restaurant "Chotiwala" in Rishikesh, Uttarakhand, which was established in 1958. Over the years, the plaintiffs have obtained copyright and trademark registrations for the name "Chotiwala" and its artistic depictions, including a Brahmin mascot with a bodhi.

The plaintiffs alleged that several restaurants in Delhi were unauthorizedly using the "Chotiwala" name, creating confusion among customers. Complaints from customers about substandard food led the plaintiffs to investigate, revealing multiple restaurants misleadingly incorporating "Chotiwala" into their trade names to exploit the goodwill associated with the plaintiffs' brand. The plaintiffs filed a suit seeking a permanent injunction to restrain the defendants from using their trademark and copyright-protected artistic works.

Issues before the Court:Whether the defendants' use of the "Chotiwala" name and artistic representations constitutes trademark and copyright infringement.

Reasoning of the Court:The court noted that the plaintiffs have been using the name "Chotiwala" for over 65 years, making it a well-known mark that has acquired secondary meaning. The plaintiffs provided sales figures, trademark registrations, and previous court orders recognizing their rights.The defendants had adopted the "Chotiwala" name to mislead customers and benefit from the goodwill of the plaintiffs. Evidence showed that online food delivery platforms listed multiple restaurants with similar names, creating substantial confusion. The court found that the unauthorized use was deliberate and intended to deceive the public.As the defendants failed to contest the suit despite service of summons, the court proceeded ex parte, holding that the plaintiffs' claims stood uncontested. Under Order VIII Rule 10 of the CPC, the court deemed the allegations in the plaint as admitted.

Decision of the Court:The court granted a permanent injunction restraining the defendants from using the name "Chotiwala" or any similar mark. The court awarded damages of Rs. 1,00,000/- against each defendant for their mala fide infringement of the plaintiffs’ trademarks and artistic works.A decree of mandatory injunction was passed, directing defendant no. 4 to remove all businesses from its online platform that were using "Chotiwala" or similar names.The plaintiffs were awarded actual litigation costs, with instructions to submit a bill of costs for assessment.

Case Title: Chotiwala Food and Hotels Pvt. Ltd. Vs Chotiwala & Ors.
Date of Order: 27th February 2025
Case Number: CS(COMM) 33/2023
Neutral Citation: Not Provided
Court: High Court of Delhi
Hon'ble Judge: Justice Amit Bansal

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