Veerji Restaurant Pvt. Ltd. Vs. Yash Rai:July 8, 2025:CS(COMM) 662/2023:2025:DHC:5834: Hon'ble Mr. Justice Amit Bansal
The plaintiff, Veerji Restaurant Pvt. Ltd., a company incorporated on November 9, 2020, operates a leading restaurant chain under the trademark VEERJI MALAI CHAAP WALE, adopted in 2016 by its predecessor proprietorship. The mark, incorporating the Punjabi word "VEERJI" meaning brother, is used for food and restaurant services.
The plaintiff runs approximately 70 branches across India, achieving significant sales, including Rs. 3,61,39,58,690/- in 2022-23, and promotes its business through its website, food delivery platforms like Zomato and Swiggy, and social media such as YouTube, Instagram, and Facebook. The plaintiff has invested heavily in advertising, spending Rs. 4,00,99,86,340/- in 2022-23, and engaged actor Vindu Dara Singh as its brand ambassador. The plaintiff holds multiple trademark registrations for VEERJI-formative marks and a copyright in the label's artistic work.
In September 2023, the plaintiff discovered that defendants Yash Rai and others were using identical or deceptively similar marks, such as VEER JI MALAI CHAAP WALE and THE VEER JI MALAI CHAAP WALE, for their restaurant and food delivery businesses in locations including Bhopal, Delhi, Raipur, Haridwar, and Moradabad. Defendant no.1 also maintained an Instagram profile under VEERJI_LALGHATI, and defendants no.2 to 6 were listed on food delivery platforms.
Procedurally, the suit was filed seeking a permanent injunction against trademark and copyright infringement and passing off, along with damages and costs. On April 25, 2024, the plaintiff and defendants no.1 and 4 were referred for mediation, resulting in a settlement with defendant no.1 on July 22, 2024. Defendants no.2, 3, and 6 did not appear, and defendant no.4 ceased appearing after the mediation referral. None of these defendants filed a written statement or contested the plaintiff's allegations, despite an interim injunction against them. The plaintiff sought a summary judgment under Order XIIIA of the Code of Civil Procedure due to the defendants' non-participation.
The core dispute involved the defendants' unauthorized use of marks identical or deceptively similar to the plaintiff's VEERJI MALAI CHAAP WALE trademark in identical restaurant and food delivery services. The plaintiff argued that this use infringed its registered trademarks and copyright and constituted passing off by exploiting its goodwill and reputation, deceiving consumers.
The court found that the plaintiff established continuous use of its mark since 2016, supported by significant sales, extensive promotion, and trademark and copyright registrations, creating substantial goodwill. A comparison of the plaintiff's and defendants' marks showed the defendants' marks were identical or similar, used for identical services, and likely to deceive consumers. The defendants' failure to contest the suit or provide a defense indicated mala fide intent and no real prospect of successfully defending the claims. Citing Su-Kam Power Systems Ltd. v. Kunwer Sachdev, the court noted that summary judgment is appropriate in commercial disputes where defendants lack a realistic defense, and no compelling reason exists for a trial. The court also referenced M/s Inter Ikea Systems BV v. Imtiaz Ahamed to justify imposing damages and costs when defendants evade proceedings.
The court decreed the suit in favor of the plaintiff against defendants no.2 to 6, granting the injunctions sought in prayer clauses 73(a) to 73(i) of the plaint. Each of these defendants was ordered to pay Rs. 1,00,000/- in damages and costs, totaling Rs. 5,00,000/-. The plaintiff did not press for additional reliefs, and the court directed the preparation of a decree sheet, disposing of all pending applications.
Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi
Disclaimer: This information report is intended for informational purposes only and does not constitute legal advice.
