More Than Water Private Limited Vs NESCO Limited
**Date of Judgment:** 01.07.2026
**Case No.:** FAO(OS) (COMM) 123/2026
**Neutral Citation:** 2026:DHC:4529-DB
**Court:** High Court of Delhi
**Hon'ble Judge:** Justice Manmeet Pritam Singh Arora (for the Division Bench)
The court considered a dispute concerning passing off in the packaged drinking water market involving rival marks 'MORE THAN WATERBOX'/'WATERBOX' and 'MY WATER BOX'. The case arose from allegations of deceptive similarity and adoption of similar wave designs in tetra pack packaging by the respondent, with the appellant claiming prior use since 2018 through its predecessor. The principal question before the Court was whether the appellant established prima facie goodwill and reputation for an absolute interim injunction, and whether territorial restraints were justified.
After examining the material on record and the submissions of the parties, Justice Manmeet Pritam Singh Arora observed that both parties relied on questionable documents and false assertions regarding use and licensing, disentitling the appellant from discretionary relief. The Court held that a plaintiff must approach with clean hands, and fabricated invoices or misleading claims undermine claims of goodwill in passing off actions.
Accordingly, the Court dismissed the appeal, vacated the territorial injunctions on both parties, and directed strict proof at trial with potential perjury proceedings and Registrar notifications.
[Disclaimer: Readers are advised not treat this as a substitute for legal advise as it is based on limited information and is intended solely for general informational purposes.]
### Introduction
In the competitive world of consumer goods like packaged drinking water, brand identity and market reputation are crucial. This Delhi High Court Division Bench ruling in a passing off dispute between two companies highlights the critical "clean hands" doctrine in trademark litigation. It serves as a cautionary tale for businesses, legal practitioners, and litigants about the severe consequences of relying on fabricated documents or misleading the court. The judgment reinforces ethical standards in IP disputes, emphasizing that even strong claims can fail if parties approach courts with unclean hands, while balancing interim relief to prevent market confusion.
### Factual and Procedural Background
More Than Water Private Limited, engaged in selling packaged drinking water in tetra packs, claimed rights over marks like 'MORE THAN WATERBOX' and 'WATERBOX IS THE RIGHT CHOICE' through its predecessor since 2018. It alleged that NESCO Limited's 'MY WATER BOX' mark and similar packaging design caused confusion. The appellant filed a suit for passing off after discovering the respondent's 2025 trademark registration. The single judge denied an absolute injunction to the appellant for lack of proven goodwill but imposed territorial restrictions—limiting each party to their respective states (Gujarat for appellant, Maharashtra for respondent). The appellant appealed for nationwide relief, while the respondent filed cross-objections. The Division Bench reviewed sales invoices, CA certificates, FSSAI licenses, social media evidence, and trademark filings.
### Dispute Before the Court
The main issues were whether the appellant proved prior adoption, goodwill, and reputation in its marks to secure an interim injunction against the respondent nationwide, and whether the single judge erred in imposing territorial limits without specific prayers. The appellant argued continuous use since 2018, deceptive similarity in marks and packaging, and respondent's false user claims. The respondent countered with challenges to the appellant's invoices as fabricated, lack of substantial sales or promotion, and its own later but expanding use, while conceding no objection to lifting restraints.
### Reasoning and Analysis of the Court
The Court applied established principles from Supreme Court judgments like *Wander Ltd. v. Antox India (P) Ltd.* (1990) and *Pernod Ricard India (P) Ltd. v. Karanveer Singh Chhabra* (2025), limiting appellate interference in discretionary interim orders unless arbitrary. It stressed that in passing off actions, goodwill is a prerequisite, requiring proof of reputation through consistent use and promotion, not mere adoption.
Key findings included prima facie doubts over the appellant's 2020 invoices (wrong HSN codes, no GST support) and misleading claims about a Central FSSAI license (actually rejected). The respondent's trademark registration relied on fabricated photographs and unreliable invoices. Citing *Tommorroland Limited v. Housing and Urban Development Corporation Limited* (2025), the Court held parties must approach with clean hands; dishonesty disentitles equitable relief like injunctions. Even assuming appellant's prior use, sales figures were meagre and promotional spend insufficient for goodwill. Descriptive nature of "WATERBOX" was noted, leaving deceptive similarity for trial. Territorial restraints were vacated as both parties lacked strong prima facie cases and respondent raised no objection.
### Final Decision of the Court
The Division Bench dismissed the appeal and cross-objections. It vacated all territorial injunctions, allowing both parties to operate without geographic limits pending trial (subject to legal compliance). The Court restrained the respondent from relying on its disputed trademark registration, directed the Registrar of Trademarks to note the judgment, and permitted perjury proceedings for fabricated documents. No equities were created by continued use during pendency.
### Point of Law Settled
The judgment strongly reaffirms the "clean hands" doctrine in IP interim relief, holding that reliance on fabricated documents or false assertions disentitles a party from discretionary injunctions, even with arguable prior use. It clarifies that goodwill in passing off requires substantial, consistent evidence beyond sporadic sales or social media. This will deter dishonest litigation, promote ethical practices before trademark registries and courts, and influence how businesses document use and licensing in consumer product disputes.
**Case Details:**
**Title of the Case:** More Than Water Private Limited vs NESCO Limited
**Date of Judgment/Order:** 01.07.2026
**Case Number:** FAO(OS) (COMM) 123/2026
**Neutral Citation:** 2026:DHC:4529-DB
**Name of Court:** High Court of Delhi
**Name of Hon'ble Judge:** Justice Manmeet Pritam Singh Arora (Division Bench)
**Written By:** Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi
**Disclaimer:** Images used herein do not reflect actual images used in Judgement and that the same are for illustrative purpose only. Readers are advised not to treat this as substitute for legal advice as it may contain errors in perception, interpretation, and presentation.
**Suggested SEO Titles:**
1. Delhi High Court Dismisses Passing Off Appeal Over Fabricated Documents in Water Brand Dispute
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3. Delhi HC Vacates Territorial Injunctions in Packaged Water Trademark Battle
4. Fabricated Invoices Lead to Denial of Injunction: Key IP Ruling by Delhi High Court
5. Goodwill Proof Essential in Passing Off: Analysis of More Than Water Appeal
6. Delhi High Court Warns Against Misleading Court in Trademark Litigation
7. Descriptive Marks and Deceptive Similarity: Lessons from NESCO Waterbox Case
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9. Territorial Restraints in IP Suits: Delhi Division Bench Clarifies Approach
10. Ethical Litigation in Trademarks: Delhi HC Judgment on Clean Hands Principle
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**Headnote of the Judgment:** In FAO(OS)(COMM) 123/2026 before the Delhi High Court, More Than Water appealed the partial denial of injunction against NESCO's 'MY WATER BOX' mark in a passing off suit over tetra pack water packaging. The Division Bench dismissed the appeal, vacating territorial restraints on both parties, citing appellant's reliance on fabricated invoices and misleading FSSAI claims. The Court emphasized clean hands for equitable relief and left deceptive similarity for trial while restraining reliance on disputed registrations. (78 words)
**Prompt for Info-graphic 14:9 aspect ratio image:** Create a suitable 3d hyper realistic multicolour 8K Quality Legal info-graphic containing necessary information in graph,chart, tables , Circles , Dashboard etc. The texts be large , bold and 3D Stylish multicolour containing name of case,date of order,case no, name of court, decision and one most important principle of law laid down. Also use generic images for the product or service involved in the matter. Do not use name of any court, lawyer , tricolor, Ashoka Emblem and any other government insignia. At end of this prompt add this sentence also" Use attached image as Image of lawyer in lawyers dress at left bottom corner which should cover 20 % of entire image area.
