Inder Raj Sahni Vs. Neha Herbals

Case Title: Inder Raj Sahni Vs. Neha Herbals Pvt. Ltd. & Others Case Number: C.O. (COMM.IPD-TM) 355/2021 Date of Order:  19.05.2025 Neutral Citation: 2025:DHC:4037   Name of Court: Delhi High Court  Name of Judge: Hon’ble Justice Sanjeev Narula

Facts:

The dispute concerns the use of the trademark "NEHA" by two entities—Plaintiff Neha Herbals Pvt. Ltd., which has used "NEHA" since 1992 in connection with herbal Mehandi and related products, and Defendant Sahni Cosmetics, which uses "NEHA" for cosmetic products, including creams. The plaintiff claims prior use and registration rights, asserting that the defendant’s use is infringing and causing confusion. The defendant, however, does not hold any trademark registration for "NEHA" and has had applications refused or abandoned.

Procedural History:

• The suit was filed in 2019 claiming infringement and passing off.
• The case was transferred to the Delhi High Court following the abolition of the IPAB in 2021.
• The court framed issues in September 2020 and ordered expedited disposal.
• Parties jointly requested that the related cancellation petitions be heard simultaneously.
• The suit, along with cancellation petitions, was consolidated and the evidence in the suit was admitted in the cancellation proceedings.
• Final arguments concluded by January 2024, with the court directed to decide within 12 months.

Issue:

1. Whether the plaintiff’s use of "NEHA" in relation to herbal Mehandi products predates the defendant’s use in the cosmetic category?
2. Whether the defendant’s use of "NEHA" for face creams causes confusion or deception, amounting to passing off or infringement?

Decision:

The court found that:

• The plaintiff's "NEHA" mark has been in use since 1992, primarily for herbal Mehandi products.
• The defendant's applications to register the mark for creams were refused, and thus, no valid exclusive rights were established for the defendant.
• There was insufficient evidence to prove that the plaintiff's mark had acquired reputation beyond herbal Mehandi, especially in the segment of face creams.
• The overlapping product categories do not automatically establish infringement, especially given the distinct fields and lack of reputation evidence for creams.
• The court held that the use of "NEHA" by the defendant was not likely to cause confusion or constitute passing off.

Hence, the suit was decided against the plaintiff on the merits of infringement and passing off.