Case Title: B.C. Hasaram & Sons Vs Smt. Nirmala Agarwal, Proprietor of M/s Karmayogi Sharbhang Muni
Case Number: RFA (COMM) 214/2025
Neutral Citation: 2025:DHC:9867-DB
Date of Judgment: 12 November 2025
Court: High Court of Delhi at New Delhi
Coram: Hon’ble Mr. Justice C. Hari Shankar and Hon’ble Mr. Justice Om Prakash Shukla
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FACTUAL BACKGROUND
The case revolved around a dispute between two manufacturers of Ayurvedic eye drops. The respondent, Smt. Nirmala Agarwal, was the proprietor of M/s Karmayogi Sharbhang Muni, who claimed ownership of the registered trademark “Nayan Jyoti,” used for Ayurvedic eye drops since 1990. The appellant, B.C. Hasaram & Sons, operated under the management of Radha Krishna Chandnani and his sons, and was engaged in a similar business of manufacturing Ayurvedic medicines. The plaintiff alleged that the defendant had adopted and used a deceptively similar mark “Amrit Nayan Jyoti” to market identical Ayurvedic eye drops, leading to confusion among consumers.
According to the plaintiff, her trademark “Nayan Jyoti” was well-known under Sections 2(1)(zg) and 11 of the Trade Marks Act, 1999. It was also claimed that the defendant’s mark “Amrit Nayan Jyoti” not only infringed upon her registered trademark but also copied her trade dress—this included the orange-white packaging, typography, depiction of a man, and eye symbol—causing deception and dilution of her goodwill.
The plaintiff also referred to an earlier incident in 2009, when the Director, Ayurveda and Unani Services, Uttarakhand, had issued a warning to the defendant for similar misconduct, resulting in the suspension of their licence. After several years of compliance, the defendant allegedly resumed using the infringing mark in 2023, prompting the plaintiff to initiate legal proceedings.
To verify the alleged infringement, the plaintiff engaged an investigator, who placed an online order for “Amrit Nayan Jyoti” eye drops through the defendant’s website, haridwaryurved.com. The order was delivered in Bhajanpura, Delhi, confirming the defendant’s online sales in the capital city.
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PROCEDURAL HISTORY
The plaintiff filed C.S. (COMM) No. 23/2023 before the Commercial Court, North-East District, Karkardooma Courts, seeking a decree of permanent injunction and damages worth ₹1 crore against the defendant. On 10 May 2023, the trial court granted an ex parte ad-interim injunction in favour of the plaintiff and appointed a Local Commissioner to conduct a search and seizure operation at the defendant’s premises. The Commissioner’s report detailed substantial quantities of goods and packaging materials bearing the infringing mark.
The defendant, however, failed to file its written statement, leading the court to strike off its defence on 5 October 2023. Later, the defendant submitted an affidavit stating that they were no longer manufacturing or selling the disputed products and consented to the decree in terms of one prayer clause of the plaint. Consequently, the interim injunction was made absolute, and the trial court decreed the suit in favour of the plaintiff on 13 January 2025.
In addition to granting a permanent injunction, the District Judge awarded ₹48,35,610 as compensatory damages and ₹2,27,514 as costs. The damages were based on the quantity of goods seized and the price of the plaintiff’s products, which the court treated as equivalent to the infringing goods. The decision relied heavily on precedents like Koninklijke Philips N.V. v. Amazestore (2019 SCC OnLine Del 8198) and Sandisk LLC v. B-One Mobile (2019 SCC OnLine Del 8022), which supported punitive damages in cases of repeated infringement.
Aggrieved by the computation of damages, B.C. Hasaram & Sons filed the present Regular First Appeal before the Delhi High Court under Section 13(1A) of the Commercial Courts Act, 2015 read with Section 96 of the CPC.
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CORE DISPUTE
The appeal raised two core questions before the Delhi High Court:
1. Whether the District Court possessed the territorial jurisdiction to entertain the suit.
2. Whether the damages awarded were based on valid evidence and proper legal reasoning under Section 135 of the Trade Marks Act.
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ARGUMENTS ON BEHALF OF THE APPELLANT
Senior Advocate Ms. Swathi Sukumar argued that the District Court had erred both in jurisdictional finding and in computation of damages. It was contended that no admissible evidence was presented to substantiate the claim for ₹1 crore in damages. The computation of ₹48,35,610, according to the appellant, was based on flawed assumptions—that the seized goods represented one month’s production and that the defendant had been trading for two months before the injunction. The court, she argued, had wrongly applied Sandisk LLC where counterfeit goods were involved, unlike in the present case where the defendant held a valid licence.
The appellant relied on Kabushiki Kaisha Toshiba v. Tosiba Appliances Co. (2024 SCC OnLine Del 5594) and Gujarat Ginning & Manufacturing Co. Ltd. v. Swadeshi Mills Co. Ltd. (1938 SCC OnLine Bom 94), emphasizing that damages must be proven through evidence and not speculation. The appellant also asserted that the District Court incorrectly used the product’s retail price (₹45 per unit) instead of calculating the profit margin or actual loss caused to the plaintiff, contrary to the principle of compensatory damages under Koninklijke Philips.
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ARGUMENTS ON BEHALF OF THE RESPONDENT
In response, Senior Advocate Mr. Anupam Shrivastav defended the District Court’s judgment, submitting that the damages were reasonably estimated in the absence of the defendant’s financial records. The Local Commissioner’s report, he argued, provided sufficient foundation for computing damages, supported by decisions like Haldiram India Pvt. Ltd. v. Berachah Sales Corporation (2023 SCC OnLine Del 8599) and Puma SE v. Ashok Kumar (2023 SCC OnLine Del 2440), where damages were allowed based on reasonable estimation when the infringing party withheld key data. He further noted that the defendant had, through an affidavit, consented to a decree, implying acceptance of liability.
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JUDICIAL REASONING AND ANALYSIS
The Delhi High Court examined the case in detail, identifying the two principal issues as jurisdiction and quantification of damages.
On territorial jurisdiction, the Court referred to the precedent of Banyan Tree Holding (P) Ltd. v. A. Murali Krishna Reddy (2009 SCC OnLine Del 3780), which introduced the “sliding scale” and “effects” tests for online transactions. The Court emphasized that jurisdiction in online trademark disputes arises only when the website is interactive and specifically targets customers in the jurisdiction, causing injury to the plaintiff’s goodwill or business. Applying this principle, the Court found that the plaintiff’s investigator had successfully purchased the infringing product online, with delivery and invoicing in Bhajanpura, Delhi. Thus, the defendant’s activities satisfied both tests, validating the trial court’s jurisdictional finding.
On the issue of damages, the Court carefully analyzed Section 135 of the Trade Marks Act and Rule 20 of the Delhi High Court Intellectual Property Rights Division Rules, 2022, which govern the award of damages in IP disputes. The High Court clarified that a plaintiff claiming damages must provide a reasonable estimate backed by foundational facts and evidence, either documentary or oral, showing actual or probable loss. The Court reiterated that damages cannot rest on speculative calculations or assumptions unsupported by record.
The Court observed that the plaintiff’s claim for damages was first introduced in the written submissions and not supported by affidavit evidence. No witness was cross-examined on the computation of damages, and the trial court’s reliance on the Local Commissioner’s report to determine one month’s stock as the basis for damages was deemed speculative. The assumption that the defendant’s business operated for two months before injunction was also found unsubstantiated.
In light of Kabushiki Kaisha Toshiba (supra), the Bench underscored that speculative or hypothetical assertions cannot justify substantial monetary awards. The plaintiff, having failed to provide a rational evidentiary basis linking the infringement to actual financial loss, had not discharged the burden of proof. Therefore, the damages decree was unsustainable in law.
The Court further emphasized that compensatory damages should reflect either actual loss to the plaintiff or unjust enrichment of the defendant. The absence of a reasoned, evidence-based calculation risked arbitrary enrichment, which goes against the compensatory principles underlying Section 135 of the Trade Marks Act.
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FINAL DECISION
The Delhi High Court upheld the finding of territorial jurisdiction and the injunction restraining the defendant from using the mark “Amrit Nayan Jyoti.” However, it set aside the award of ₹48,35,610 as damages on the ground of lack of evidence and misapplication of principles. The matter was remanded to the District Court for fresh determination limited to the issue of damages and account of profits. Both parties were granted liberty to produce evidence and material to assist the Court in re-evaluating damages in accordance with law. No order as to costs was passed.
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CONCLUSION
This decision by the Delhi High Court reinforces the importance of evidence-based adjudication in intellectual property disputes. While the Court firmly upheld the territorial jurisdiction principle from Banyan Tree, it reiterated that damages in trademark cases cannot be based on assumptions or estimates but must be proven through reliable evidence. The ruling aligns with the emerging jurisprudence that separates injunctive relief—which may be granted on a prima facie showing of infringement—from compensatory damages, which demand concrete proof of loss or gain.
By remanding the matter for fresh assessment, the Court ensured fairness and prevented arbitrary enrichment while reaffirming the procedural discipline necessary for quantification of damages in IP litigation.
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Disclaimer: The information shared here is intended to serve the public interest by offering insights and perspectives. However, readers are advised to exercise their own discretion when interpreting and applying this information. The content herein is subjective and may contain errors in perception, interpretation, and presentation.
Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi
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Suggested Titles for Publication
1. “Beyond Assumptions: Delhi High Court’s Clarification on Evidence-Based Damages in Trademark Infringement”
2. “Trademark Justice and the Burden of Proof: Lessons from B.C. Hasaram & Sons v. Nirmala Agarwal”
3. “From Injunction to Compensation: Understanding the Limits of Speculative Damages under Section 135”
4. “The Rule of Evidence in IP Damages: A Study of Delhi High Court’s Approach in Nayan Jyoti Trademark Case”
5. “Revisiting Trademark Damages: How Delhi High Court Balanced Equity and Proof in IP Litigation”
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