Information on this blog is being shared only for the purpose of creating legal awareness in public at large, especially in the field of Intellectual Property Right. As there may be possibility of error, omission or mistake in legal interpretation on the contents of this blog, it should not be treated as substitute for legal advise.
Friday, May 1, 2026
Blackberry Limited Vs. Controller of Patents and Designs
"Division Bench Obiter: Guiding Light or Mere Suggestion for Single Judges?"
Introduction: The Role of Obiter Dictum in Indian
Judicial Hierarchy:
The Indian legal system, like other common law jurisdictions, operates on the doctrine of precedent to ensure consistency and predictability in judicial decisions. At the core of this doctrine lies the distinction between ratio decidendi, the legal principle that forms the basis of a decision, and obiter dictum, statements made by judges that are incidental to the main issue and not essential to the outcome of the case. While the former holds the force of binding precedent, the latter carries no binding authority but may be persuasive in nature.
In practice, however, determining whether a particular statement made by a higher bench is ratio or obiter can be contentious. This dilemma becomes especially significant when Single Judges are tasked with interpreting statements made by Division Benches. The Delhi High Court’s recent decision in Balar Marketing Pvt. Ltd. v. Lakha Ram Sharma, 2025:DHC:2322, by Hon’ble Single Judge, Delhi High Court, shed light on the question of whether a Single Judge is bound by an obiter dictum of a Division Bench of the same High Court. The case revolved around the application of Section 124 of the Trade Marks Act, 1999 in trademark infringement and passing off proceedings.
Factual Background and Procedural History:
The dispute between Balar Marketing Pvt. Ltd. (the petitioner) and Lakha Ram Sharma, the proprietor of Kundan Cable India (the respondent), centered on the use of the trademark "KUNDAN" and its variants, including "KUNDAN CAB" and "KUNDAN CABLE." Both parties operated in the electrical goods industry, and each claimed the exclusive right to the trademark based on prior adoption.The petitioner asserted that its predecessor had adopted the mark in 1975 and had continuously used it. The respondent, on the other hand, claimed to have adopted and used the mark earlier, leading to a series of protracted legal disputes. Multiple suits were filed between 1994 and 2006, including passing off and infringement actions. These suits were consolidated, and the case went through various procedural developments.
In
January 2025, the respondent sought a stay on all the suits under Section
124 of the Trade Marks Act, citing the pendency of rectification
proceedings before the Madras High Court. The Trial Court granted a stay on all
suits (except TM No. 931/2016) on January 18, 2025, relying on the Division
Bench decision in Amrish Aggarwal
Trading as Mahalaxmi Product v. Venus Home Appliances, 2024 SCC OnLine Del 3652. Aggrieved by
this order, the petitioner filed a writ petition under Article 227
of the Constitution of India, seeking judicial review. The decision of the
Delhi High Court in Balar Marketing is significant for its clarity in
defining the limits of obiter dictum and its binding effect.
Core Legal Issue:
The
principal legal issue in this case was whether the Trial Court
was justified in staying the passing off suits under Section 124
of the Trade Marks Act based on the observations made in Amrish Aggarwal DB? The subsidiary
question was whether the remarks made by the Division Bench
regarding the stay of passing off suits were obiter dictum or
binding precedent?
Parties Contention:
The
petitioner contended that the reference to passing off suits in paragraph 44 of
Amrish Aggarwal DB was a mere obiter
dictum. The Division Bench in that case was primarily addressing
procedural issues concerning the stay of infringement suits
during the pendency of rectification proceedings, not passing off actions. The
petitioner relied heavily on the judgment in Puma Stationer Pvt. Ltd. v. Hindustan
Pencils Ltd., 2010 (43) PTC 479 (Del.) (DB), where the Division Bench had
explicitly ruled that passing off suits are not subject to stay under
Section 124. This principle, according to the petitioner, should not
be disturbed by an incidental remark in Amrish Aggarwal.
The respondent, on the other hand, argued that even obiter dicta from a Division Bench of the High Court must be followed by a Single Judge to ensure judicial consistency. To support this view, the respondent cited cases such as Naseemunisa Begum v. Shaikh Abdul Rehman, 2002 (2) Mah L.J. 115 and Crocs Inc. USA v. Aqualite India Ltd., 2019 SCC OnLine Del 11957, in which it was held that even remarks made in passing by a Division Bench could be binding, especially when they did not contradict established law.
Contextual Interpretation of Amrish Aggarwal DB Case:
The
Hon’ble Single first examined the context of the Amrish Aggarwal case.
The Division Bench in that case was primarily concerned with procedural issues
arising out of the abolition of the Intellectual Property Appellate Board
(IPAB) and whether rectification proceedings triggered a stay under Section
124 of the Trade Marks Act. The primary issue in Amrish Aggarwal DB was not related
to passing off suits, but rather the procedural question of whether
infringement actions could be stayed during the pendency of rectification
proceedings. The Division Bench’s reference to passing off suits was made incidentally
in paragraph 44, without any extensive legal reasoning or
argumentation. Therefore, Justice Bansal concluded that the remark was not part
of the ratio decidendi and should be treated as obiter dictum.
No Express Overruling of Binding Precedent (Puma Stationer):
The
Hon’ble Single Judge, Delhi High Court noted that the Division Bench in Amrish
Aggarwal had relied on Puma Stationer Pvt. Ltd. v. Hindustan
Pencils Ltd., 2010 (43) PTC 479 (Del.) (DB), which had clearly held
that passing off actions are not subject to stay under Section 124.
The Division Bench in Amrish Aggarwal did not overrule or even address
this binding precedent, further supporting the conclusion that the reference to
passing off suits was incidental and lacked any binding authority.
Application of Supreme Court Precedents on Obiter Dictum:
The
court drew upon established Supreme Court principles that clarify the nature
and scope of obiter dictum. In Mohinder Singh Gill v. Chief Election
Commissioner, (1978) 1 SCC 405, the Supreme Court held that only the ratio
decidendi of a judgment is binding, and obiter dictum,
or incidental remarks, are not enforceable in subsequent cases. Similarly, in State of Orissa v. Sudhansu Sekhar
Misra, AIR 1968 SC 647, the Supreme Court emphasized that casual
observations or statements made without a thorough examination of the issue do
not form part of the binding law.
The Hon’ble Single Judge also referred to the case of Gudri v. Ram Kishun, AIR 1984 All 100, where it was held that even stray or inadvertent remarks made by a Full Bench, if inconsistent with settled law, do not bind lower courts. This case further reinforced the position that obiter dictum, even when expressed by larger benches, cannot override established legal principles.
Lack of Detailed Legal Reasoning in Amrish Aggarwal on Passing Off
The
Division Bench in Amrish Aggarwal made no reference to key statutory
provisions such as Section 27(2) of the Trade Marks Act, which
expressly preserves common law rights in passing off actions,
independent of the statutory registration status. Moreover, the Division Bench
did not cite or discuss previous case law that dealt directly with the
application of Section 124 to passing off claims. The lack of legal reasoning
and analysis led Justice Bansal to conclude that the reference to passing off
suits was inadvertent and non-binding.
Distinction from Other Cases Cited by the Respondent:
Justice
Bansal distinguished the cases relied upon by the respondent, such as Naseemunisa Begum v. Shaikh Abdul Rehman and Crocs Inc. USA
v. Aqualite India Ltd., where the
observations made by the higher benches were integral to the judicial reasoning
and central to the legal issues at hand. In contrast, the reference to passing
off in Amrish Aggarwal was not framed as an issue for determination
and did not involve a detailed examination of the law.
Decision and Legal Principle Clarified:
In
light of the above analysis, the Court held that the Trial Court had misapplied
the judgment in Amrish Aggarwal by staying the passing off suits. Paragraph
44 of the judgment was not part of the ratio decidendi, and as such,
the Single Judge was not bound to follow it. The court emphasized that a Single
Judge is not bound by an obiter dictum of a Division Bench of the same
High Court, particularly when it contradicts established precedent and lacks
legal reasoning. Accordingly, the Court set aside the stay order dated January
18, 2025, and directed that all the pending suits—TM Nos. 968/2016, 971/2016,
1030/2016, and 932/2016—proceed to trial along with TM No. 931/2016.
Author’s Comment: A Call for Doctrinal Coherence and Resolution by Larger Bench:
This decision reaffirms a crucial tenet of the doctrine
of precedent: that only the ratio decidendi of a judgment possesses
binding force, whereas obiter dicta, even if emanating from a Division
Bench, lack precedential authority if they are unreasoned or conflict with
established legal principles. This judgment emphasizes the necessity of
maintaining doctrinal clarity to prevent the misapplication of incidental
judicial remarks as binding law. This ruling serves to uphold the autonomy of
common law rights—particularly the right of passing off—while also delimiting
the scope of Section 124 of the Trade Marks Act, 1999, which concerns the stay
of infringement suits pending rectification proceedings.
However, a critical unresolved issue lingers at the intersection of judicial interpretation and precedential conflict. In the earlier Division Bench decision of Puma Stationer Pvt. Ltd. v. Hindustan Pencils Ltd., the Court stayed the trademark infringement suit under Section 124 but permitted the passing off action to continue. Contrastingly, in the subsequent Amrish Aggarwal v. Venus Home Appliances Pvt. Ltd. (DB), the Division Bench—after noting the petitioner’s reliance on Puma (see para 34)—expressly rejected that reasoning (see para 53) and held (at paras 2 and 44) that both infringement and passing off claims must await the outcome of rectification proceedings.
This divergence reveals an apparent conflict between two Division Bench decisions. In such cases, as established in Christian Louboutin v. Abu Baker, 2019 (78) PTC 262 (Del) (DB), paras 32 and 35, when two coordinate Bench decisions conflict, the matter should be referred to a larger Bench for authoritative resolution. The Balar Marketing judgment, however, sidesteps this necessity by characterizing the relevant observations in Amrish Aggarwal as obiter, thereby preserving the Puma precedent.This interpretive strategy is complicated further by the earlier Single Judge decision in Abbott Healthcare Pvt. Ltd. v. Raj Kumar Prasad & Anr. [2018:DHC:53] @Para 23,24, where the Court concluded that Puma’s observations regarding the continuation of passing off actions did not constitute binding precedent.
The judgment reasoned that since the Division Bench in Puma
did not fully adjudicate the issue with reasoned analysis, its observations
were not authoritative. This leads to a paradox: in Abbott, the Single
Judge declined to treat Puma as binding, while in Balar, a
subsequent Single Judge relied on Puma while dismissing Amrish
Aggarwal as mere obiter. In both instances, the judges attempted to
reconcile conflicting DB judgments through the lens of ratio vs obiter,
yet arrived at opposing conclusions regarding which precedent to follow.
The resulting jurisprudential inconsistency underscores the urgent need for clarity. When two Division Bench judgments express diametrically opposed views on the procedural bifurcation of infringement and passing off under Section 124, reliance on interpretive discretion at the Single Judge level only perpetuates confusion. A definitive pronouncement by a Larger Bench is essential to restore uniformity and doctrinal stability. Until such clarity is provided, judicial uncertainty will persist, potentially undermining the predictability and coherence that the doctrine of precedent is designed to secure.
Written By: Advocate Ajay Amitabh Suman, IP Adjutor, Patent and Trademark Attorney, High Court of Delhi.
Thursday, April 30, 2026
Mr. David Davidar Vs Ms. Sivasundari Bose
UltraTech Cement Limited Vs Shiv Cement Co.
Case Title: UltraTech Cement Limited Vs Shiv Cement Co.:28.04.2026:Commercial IP Suit No. 126 of 2016:2026:BHC-OS:11103:Arif S Doctor, H.J.
The Bombay High Court decreed a trademark infringement and passing off suit in favour of UltraTech Cement Limited, granting permanent injunction and imposing substantial costs against the Defendant for dishonest adoption of deceptively similar marks.
The Plaintiffs, proprietors of the well-known “UltraTech” trademarks in respect of cement and building materials, established extensive use since 2003, along with significant goodwill, reputation, and statutory protection, including recognition of UltraTech as a well-known trademark in India.
The dispute arose from the Defendant’s use of marks such as “UltraPlus”, “Ultra HiTouch”, and “Ultra Power” for identical goods, i.e., cement. The Court found that the impugned marks incorporated the dominant and essential feature “ULTRA”, which is the key distinguishing element of the Plaintiffs’ marks, and were visually, phonetically, and structurally deceptively similar.
Notably, the Defendant failed to appear or contest the proceedings, leading to the Plaintiffs’ evidence remaining unchallenged. The Court also noted seizure of infringing cement bags and observed that the Defendant’s conduct reflected mala fide intent to ride upon the Plaintiffs’ goodwill and mislead consumers, particularly in a sector impacting public safety.
Applying settled principles of deceptive similarity and trademark infringement, the Court held that use of the impugned marks would inevitably cause confusion and amount to infringement and passing off. The Court further emphasized that minor variations or additions do not dilute infringement where the essential feature of the mark is appropriated.
While declining full claimed damages due to lack of precise proof, the Court awarded ₹50 lakhs as costs along with reimbursement of litigation expenses, highlighting the Defendant’s dishonest conduct and failure to participate in proceedings.
Accordingly, a decree of permanent injunction was granted restraining the Defendant from using the impugned marks or any deceptively similar variations, along with directions for delivery and destruction of infringing materials.
Written By:Advocate Ajay Amitabh Suman,IP Adjutor [Patent and Trademark Attorney],High Court of Delhi
#IPUpdate #IPCaselaw #IPCaseLaw #IPLaw #IPRNews #IPIndiaupdate #Trademark #Copyright #DesignLaw #PatentLaw #Law #Legal #IndianIPUpdate #AdvocateAjayAmitabhSuman #IPAdjutor
**UltraTech Cement’s Victory Against “Ultra” Mark Infringement: Bombay High Court Decrees Suit in Favour of Well-Known Trademark Owner**
### Introduction
UltraTech Cement Limited, one of India’s leading cement manufacturers, successfully protected its famous “UltraTech” brand against a smaller player using similar sounding and looking marks like “UltraPlus Cement”, “Ultra HiTouch Cement”, and “UltraPower”. In a detailed ex-parte judgment, the Bombay High Court examined trademark infringement and passing off claims. The court found that the defendant’s marks were deceptively similar to the plaintiffs’ registered and well-known trademarks. This case highlights how courts safeguard established brands from copycats in the competitive building materials market, especially when the defendant remains absent and the adoption appears dishonest.
### Factual Background
UltraTech Cement Limited and its group company (collectively referred to as the plaintiffs) have built a strong reputation in the cement industry since the early 2000s. They own multiple registered trademarks featuring “UltraTech” and the prominent word “Ultra”. These marks appear on cement bags, packaging, and promotional materials. Over the years, through continuous use, heavy advertising, and massive sales, the “UltraTech” brand has become strongly associated with quality cement in the minds of consumers and traders. The plaintiffs even secured recognition of “UltraTech” as a well-known trademark in India.
The defendant, M/s. Shiv Cement Co., started using marks such as “Ultraplus Cement”, “Ultra HiTouch Cement bemisal Majbuti”, and “UltraPower” on its cement bags. These marks prominently featured the word “Ultra” combined with other terms, and the overall look, colour scheme, and get-up closely resembled the plaintiffs’ packaging. The plaintiffs discovered these products in the market around 2012 and later in 2016. They viewed the defendant’s actions as an attempt to ride on their hard-earned goodwill by creating confusion among buyers.
### Procedural Background
The plaintiffs filed a commercial intellectual property suit in the Bombay High Court seeking a permanent injunction against the defendant for trademark infringement and passing off. They also prayed for damages and delivery up of infringing materials for destruction.
Early in the proceedings, the court granted ex-parte ad-interim relief and appointed a Court Receiver. The Receiver visited the defendant’s premises and seized over a thousand cement bags bearing the impugned marks. Despite proper service of summons, the defendant never appeared in court, filed no written statement, and led no evidence. The suit proceeded as undefended. The plaintiffs filed their evidence through an affidavit of their senior manager, supported by trademark registrations, sales records, promotional materials, and court orders from earlier cases recognizing their rights. The matter was heard and reserved, leading to the final judgment.
### Dispute
The core dispute centered on whether the defendant’s use of marks containing “Ultra” (such as UltraPlus, Ultra HiTouch, and UltraPower) for cement amounted to infringement of the plaintiffs’ registered “UltraTech” trademarks and also constituted passing off. The plaintiffs argued that “Ultra” forms the essential and distinctive feature of their marks. They claimed the defendant’s marks were visually, structurally, and phonetically deceptively similar, likely to confuse ordinary consumers. They further alleged the defendant acted dishonestly to exploit their reputation, especially since the cement sold under the impugned marks was reportedly of substandard quality, posing risks in construction projects.
The defendant offered no defense, leaving the plaintiffs’ evidence unchallenged.
### Reasoning
The court carefully analyzed the evidence and legal principles. It noted the plaintiffs’ long and extensive use of the “UltraTech” marks since 2003, backed by sales figures, advertisements, and annual reports. This use had created immense goodwill, and the mark had acquired secondary meaning, exclusively pointing to the plaintiffs. The court also took note of “UltraTech” being listed as a well-known trademark.
On similarity, the judge applied the test of overall impression rather than side-by-side microscopic comparison. Marks are remembered by their salient features and general idea, especially by consumers of average intelligence with imperfect recollection. Here, the prominent “Ultra” element, combined with similar get-up, colour scheme, and use on identical goods (cement), created a strong likelihood of confusion and association. Minor additions like “Plus” or “HiTouch” did not sufficiently distinguish the marks.
The court rejected any narrow interpretation that would limit protection only to the full composite mark. It relied on earlier Bombay High Court decisions to hold that when a part of a registered mark (like “Ultra”) is distinctive, the proprietor can still claim protection against similar use. The defendant’s complete absence and failure to justify its adoption pointed to bad faith and mala fide intention to trade upon the plaintiffs’ reputation. Substandard quality of the defendant’s product further heightened public interest concerns.
### Judgements with Complete Citation and Their Context Discussed
The court drew significant support from its own earlier rulings involving the plaintiffs’ “UltraTech” marks and general principles of deceptive similarity.
It referred to *Hiralal Prabhudas v. Ganesh Trading Company & Ors* (AIR 1984 Bom 218). In that case, the Bombay High Court laid down important tests for deciding deceptive similarity: focus on the main idea or salient features of the marks; consider how marks are remembered by general impressions rather than photographic memory; overall similarity is key; view from the perspective of an average buyer with imperfect recollection; examine overall structure, phonetic similarity, and idea conveyed; and compare marks as wholes without microscopic differences. The court in the present case found these principles directly applicable, as the defendant’s marks shared the essential “Ultra” feature and created the same overall impression.
Another key precedent was *Ultra Tech Cement Ltd. v. Alaknanda Cement (P) Ltd.* (2011 SCC OnLine Bom 783), later confirmed by the Division Bench in *Alaknanda Cement (P) Ltd. v. Ultratech Cement Ltd.* (2011 SCC OnLine Bom 1487). In those proceedings, the court protected “UltraTech” even when challenges were raised under Section 17 of the Trade Marks Act regarding composite marks. The Division Bench clarified that registration of a composite mark does not prevent protection of its distinctive parts if those parts are not common to the trade and have acquired distinctiveness. Section 17 does not bar exclusivity where the element is distinctive and the registration itself shows no disclaimer. The present judgment found these observations fully applicable, reinforcing that “Ultra” as a prominent and distinctive feature deserved protection.
The court also noted prior orders where various courts had restrained third parties from using similar infringing marks, further strengthening the plaintiffs’ reputation and well-known status.
### Final Decision of Court
The Bombay High Court decreed the suit in favour of the plaintiffs. It granted a perpetual injunction restraining the defendant, its agents, and anyone claiming under it from using the impugned marks or any deceptively similar marks containing “Ultra” (alone or in combination) in relation to cement or building materials. The defendant was also ordered to deliver up all infringing bags, packaging, and materials for destruction.
On monetary relief, the court awarded costs of Rs. 50 lakhs to the plaintiffs, considering the defendant’s dishonest conduct, absence from proceedings, and the commercial nature of the suit. It further directed payment of Rs. 16,48,006 towards the plaintiffs’ actual expenses incurred in investigation and litigation. In case of non-payment within eight weeks, interest at 8% per annum would apply. The Court Receiver was discharged upon the plaintiffs’ undertaking to bear its costs.
### Point of Law Settled in the Case
This judgment reinforces that in trademark disputes, courts will protect the essential and distinctive features of a registered mark, even within a composite mark, particularly when that feature has acquired strong distinctiveness and secondary meaning. It underscores the importance of overall similarity test, consumer perspective with imperfect recollection, and the role of get-up and trade dress in assessing confusion. Dishonest adoption, especially by a non-appearing defendant in a well-known mark case, invites not only injunction but also substantial costs as a deterrent. The decision affirms that substandard goods sold under infringing marks raise serious public interest issues in sectors like construction. It also highlights the evidentiary value of well-known trademark status and unchallenged plaintiff evidence in ex-parte proceedings.
**Case Detail**
**Title:** UltraTech Cement Limited & Anr. Versus M/s. Shiv Cement Co.
**Date of Order:** 28th April 2026
**Case Number:** Commercial IP Suit No. 126 of 2016
**Neutral Citation:** 2026:BHC-OS:11103 (as appearing on the judgment)
**Name of Court:** High Court of Judicature at Bombay (Ordinary Original Civil Jurisdiction, Commercial Division)
**Name of Hon'ble Judge:** Arif S. Doctor, J.
**Disclaimer:** Readers are advised not to treat this as substitute for legal advise as it may contain errors in perception, interpretation, and presentation.
Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi
**Suggested Titles for Legal Journal:** UltraTech Cement Trademark Infringement Suit Decreed by Bombay High Court, Protection of Prominent Features in Composite Marks, Well-Known Trademark Safeguarded Against Deceptive Similarity in Cement Industry
**Suitable Tags:** trademark infringement, passing off, deceptive similarity, well known trademark, Bombay High Court, UltraTech Cement, ex parte decree, commercial courts act, intellectual property, cement industry dispute
**Headnote of Article:** Bombay High Court grants permanent injunction and costs in favour of UltraTech Cement against defendant’s use of deceptively similar “Ultra” prefixed marks for cement, reiterating tests for deceptive similarity and protection of distinctive elements of registered well-known trademarks in undefended proceedings.
Multani Pharmaceuticals Limited Vs Mayuri Bhupal Bhamare
Case Title: Multani Pharmaceuticals Limited Vs Mayuri Bhupal Bhamare:28.04.2026:CS(COMM) 934/2024:2026:DHC:3575:Hon'ble Judge Jyoti Singh
The Delhi High Court decreed a trademark infringement and passing off suit in favour of the Plaintiff, Multani Pharmaceuticals Limited, while also declaring its mark “MULTANI” as a well-known trademark under Section 2(1)(zg) of the Trade Marks Act, 1999.
The Plaintiff, a longstanding Ayurvedic pharmaceutical company with origins dating back to 1905, established extensive use, goodwill, and reputation in the mark MULTANI, supported by decades of commercial use, multiple trademark registrations across classes and jurisdictions, substantial sales turnover, and wide promotional activities.
The dispute arose from the Defendant’s use and application for a deceptively similar mark in relation to identical products such as skin care, hair care, and cosmetic goods. The Court had earlier granted an ex parte ad interim injunction restraining such use. Subsequently, the parties entered into a settlement agreement, which was accepted by the Court and formed part of the decree.
Despite settlement of infringement claims, the Court proceeded to adjudicate the Plaintiff’s prayer for declaration of MULTANI as a well-known trademark. Applying the statutory factors under Sections 11(6) and 11(7) of the Act, the Court considered the mark’s long duration of use (over 80 years), extensive geographical presence, significant promotional efforts, widespread recognition across consumer segments, and consistent enforcement against infringers.
The Court noted that the mark enjoys substantial recognition in India and internationally, is widely available across pharmacies and e-commerce platforms, and has been endorsed through extensive advertising, including celebrity endorsements. It further observed that the Plaintiff’s WHO-GMP certification and large-scale operations reinforced the credibility and distinctiveness of the mark.
Accordingly, the Court held that MULTANI satisfies the criteria for a well-known trademark in relation to Ayurvedic pharmaceutical products and granted a decree declaring it as such, thereby affording it enhanced protection under trademark law.
Disclaimer:Do not treat this as a substitute for legal advice as it may contain subjective errors.
Written By:Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi
#IPUpdate #IPCaselaw #IPCaseLaw #IPLaw #IPRNews #IPIndiaupdate #Trademark #Copyright #DesignLaw #PatentLaw #Law #Legal #IndianIPUpdate #AdvocateAjayAmitabhSuman #IPAdjutor
Legrand France Vs. Bhawani Singh
Himalaya Global Holdings Ltd. Vs. AB Allcare Herbal
Goldmedal Electricals Pvt. Ltd. Vs. Vikram Kumar Jain
Case Note: Goldmedal Electricals Pvt. Ltd. Vs. Vikram Kumar Jain & Ors., FAO (COMM) 141/2025, Delhi High Court (Order dated 23 May 2025)
The present appeal before the Delhi High Court arose from the dismissal of an application for interim injunction by the Commercial Court, Saket, on the ground of lack of territorial jurisdiction. The appellant, M/s Goldmedal Electricals Pvt. Ltd., instituted a commercial suit alleging infringement of its registered trademarks “GOLDMEDAL” and associated device marks, along with passing off by the respondents, who were engaged in the sale of electrical goods bearing identical/deceptively similar marks.
The Commercial Court had declined interim relief under Order XXXIX Rules 1 and 2 CPC, primarily holding that the plaintiff failed to establish territorial jurisdiction, observing that listings on platforms such as IndiaMART and JustDial were merely advertisements and that no conclusive evidence of sale within its jurisdiction had been produced.
Setting aside this approach, the High Court held that the findings of the Commercial Court were both factually and legally unsustainable. The Court emphasized the evolved jurisprudence on territorial jurisdiction in the context of e-commerce, relying on precedents such as World Wrestling Entertainment Inc. v. Reshma Collections and Tata Sons Pvt. Ltd. v. Hakunamatata Tata Founders. It reiterated that the availability of interactive websites enabling commercial transactions within a jurisdiction is sufficient to confer territorial jurisdiction, even in the absence of proof of completed sales. The Court clarified that modern commercial realities necessitate recognition of “virtual presence” as equivalent to physical business operations.
On merits, the Court found a strong prima facie case of trademark infringement and passing off, noting that the respondents had blatantly copied the appellant’s registered marks for identical goods. The Court further underscored the heightened public interest involved, as counterfeit electrical products could pose risks to consumer safety.
Relying on settled principles laid down in Midas Hygiene Industries (P) Ltd. v. Sudhir Bhatia and Laxmikant V. Patel v. Chetanbhai Shah, the Court held that in clear cases of infringement, immediate injunctive relief is warranted. Consequently, an ad interim injunction was granted restraining the respondents from using the impugned marks in any manner, whether in physical or online marketplaces. Directions were also issued for takedown of infringing listings from e-commerce platforms.
Additionally, the Court appointed Local Commissioners to visit multiple premises of the respondents in Vijayawada for the purpose of search, seizure, and inventory of infringing goods, along with ancillary materials used for counterfeiting. Detailed procedural safeguards were prescribed for execution of the commission.
The judgment reinforces the expanded scope of territorial jurisdiction in the digital era and reiterates the strict approach of courts in cases of blatant trademark counterfeiting, particularly where public safety concerns are implicated.
#IPUpdate #IPCaselaw #IPCaseLaw #IPLaw #IPRNews #IPIndiaupdate #Trademark #Copyright #DesignLaw #PatentLaw #Law #Legal #IndianIPUpdate #AdvocateAjayAmitabhSuman #IPAdjutor
=====
Introduction:
The Delhi High Court was called upon to examine the correctness of a Commercial Court’s refusal to grant interim relief on the ground of lack of territorial jurisdiction. The case assumes importance not merely for its treatment of trademark infringement and passing off, but more crucially for its recognition of how online marketplaces and digital interfaces reshape traditional concepts of jurisdiction. The Delhi High Court held that accessibility and interactivity of e-commerce platforms are sufficient to confer territorial jurisdiction in trademark infringement cases, even in the absence of proof of actual sales within the jurisdiction. The Court further reaffirmed that in cases of clear counterfeiting and passing off, immediate interim injunction and appointment of Local Commissioners are warranted to prevent consumer deception and protect public interest.
Factual Background
The appellant, a well-known manufacturer and seller of electrical goods, claimed rights in the registered trademark “GOLDMEDAL” along with several associated label marks. The grievance of the appellant was that the respondents were engaged in manufacturing and selling electrical products bearing marks identical or deceptively similar to the appellant’s trademarks. These goods were alleged to be counterfeit in nature and were being circulated not only through physical markets but also across various online platforms. The appellant asserted that such use amounted to infringement of its statutory trademark rights and also constituted passing off, as consumers were likely to be misled into believing that the respondents’ goods originated from the appellant.
An important aspect of the appellant’s case was that the infringing products were available on widely accessible online platforms. It was contended that these platforms enabled interaction and purchase by consumers across different regions, including within the territorial jurisdiction of the Delhi courts. The appellant also expressed concern about the potential harm caused by counterfeit electrical goods, which could pose safety risks to unsuspecting consumers.
Procedural Background
The appellant instituted a commercial suit before the Commercial District Court, Delhi seeking injunction and other reliefs. Alongside the suit, an application for interim injunction and appointment of a Local Commissioner was filed to prevent further circulation of the infringing goods and to secure evidence. However, the Commercial District Court , Delhi declined to grant interim relief. The primary reason for such refusal was the perceived absence of territorial jurisdiction. The court observed that the defendants were based outside Delhi and that there was insufficient material to show that any actual sale had taken place within its jurisdiction. It further viewed online listings on platforms such as IndiaMART and JustDial as mere advertisements rather than concrete evidence of commercial transactions.Aggrieved by this refusal, the appellant approached the Delhi High Court by way of an appeal.
Dispute
The central issue before the High Court was whether the Commercial Court was justified in rejecting the application for interim relief on the ground of lack of territorial jurisdiction. This, in turn, raised a broader question regarding the extent to which online availability of goods and digital platforms can confer jurisdiction upon courts. A related issue concerned whether a strong prima facie case of trademark infringement and passing off was made out, warranting immediate injunctive relief.
Reasoning
The High Court undertook a careful examination of the evolving nature of commerce in the digital era. It rejected the narrow view adopted by the Commercial Court that online listings were merely advertisements. The Court observed that modern e-commerce platforms are not passive spaces but active marketplaces where buyers and sellers interact, negotiate, and conclude transactions. The presence of such platforms effectively enables a seller to carry on business across multiple jurisdictions simultaneously.
The Court emphasized that the traditional requirement of proving an actual completed sale within a jurisdiction is no longer indispensable in the context of online commerce. Instead, the ability of consumers within a jurisdiction to access a website, interact with the seller, and potentially enter into transactions is sufficient to establish a part of the cause of action. This approach reflects a shift from a rigid territorial understanding to a more flexible and realistic appreciation of virtual commercial activity.
On the merits of the case, the Court found that the respondents had adopted marks that were virtually identical to those of the appellant. Given that the goods in question were identical, the likelihood of confusion was considered extremely high. The Court also highlighted the element of public interest, noting that counterfeit electrical goods could have serious safety implications.
Judgments and Their Context
The Court relied on the decision in World Wrestling Entertainment Inc. v. Reshma Collections (2014) 60 PTC 452 , where it was recognized that transactions conducted through websites can give rise to jurisdiction in places where the website is accessed and where customers interact with it. This judgment laid the foundation for acknowledging the concept of a “virtual shop,” equating online commercial presence with physical business operations.
Further reliance was placed on Tata Sons Pvt. Ltd. v. Hakunamatata Tata Founders (2022) 92 PTC 635, which clarified that even the mere accessibility of a website in a particular jurisdiction could be sufficient to establish targeting, especially in cases involving trademark infringement. The Court in that case observed that aggressive targeting is not necessary and that the possibility of consumer confusion within a jurisdiction is a relevant consideration.
The High Court also invoked the principles laid down by the Supreme Court in Midas Hygiene Industries (P) Ltd. v. Sudhir Bhatia 2004 (3) SCC 90, which underscores that in cases of clear infringement, courts should not hesitate to grant injunctions. Similarly, Laxmikant V. Patel v. Chetanbhai Shah (2002) 3 SCC 65 was cited to reiterate that protection against passing off is essential to preserve business goodwill and prevent deception.
These precedents collectively guided the Court in adopting a liberal and purposive interpretation of jurisdiction and in recognizing the necessity of immediate judicial intervention in cases of blatant infringement.
Final Decision
The High Court set aside the findings of the Commercial Court on territorial jurisdiction and held that the appellant had successfully established a prima facie case. It granted an ad interim injunction restraining the respondents from using the impugned trademarks in any manner, whether in physical markets or on online platforms. The respondents were also directed to take down infringing listings from e-commerce websites.
In addition, the Court appointed Local Commissioners to visit the premises of the respondents, seize infringing goods, and prepare inventories. This measure was intended to prevent further circulation of counterfeit products and to preserve evidence for trial.
Point of Law Settled
The judgment settles an important principle that in the context of e-commerce, territorial jurisdiction cannot be confined to traditional notions of physical presence or completed transactions. The accessibility of an interactive website and the possibility of commercial interaction within a jurisdiction are sufficient to confer jurisdiction. The decision also reinforces that in cases of clear trademark infringement, particularly involving counterfeit goods, courts must act swiftly to grant injunctive relief, keeping in mind both proprietary rights and public interest.
Case Title: Goldmedal Electricals Pvt. Ltd. Vs. Vikram Kumar Jain & Ors.Date of Order: 23 May 2025
Case Number: FAO (COMM) 141/2025
Court: Delhi High Court
Bench: Hon’ble Mr. Justice C. Hari Shankar and Hon’ble Mr. Justice Ajay Digpaul
Disclaimer: Readers are advised not to treat this as substitute for legal advise as it may contain errors in perception, interpretation, and presentation.
Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi
Headnote
The Delhi High Court held that accessibility and interactivity of e-commerce platforms are sufficient to confer territorial jurisdiction in trademark infringement cases, even in the absence of proof of actual sales within the jurisdiction. The Court further reaffirmed that in cases of clear counterfeiting and passing off, immediate interim injunction and appointment of Local Commissioners are warranted to prevent consumer deception and protect public interest.
Blog Archive
- May 2026 (8)
- April 2026 (71)
- March 2026 (38)
- February 2026 (44)
- January 2026 (80)
- December 2025 (108)
- November 2025 (62)
- October 2025 (44)
- September 2025 (75)
- August 2025 (103)
- July 2025 (95)
- June 2025 (93)
- May 2025 (118)
- April 2025 (91)
- March 2025 (148)
- February 2025 (116)
- January 2025 (58)
- October 2024 (8)
- September 2024 (34)
- August 2024 (68)
- July 2024 (39)
- June 2024 (57)
- May 2024 (49)
- April 2024 (6)
- March 2024 (44)
- February 2024 (39)
- January 2024 (21)
- December 2023 (29)
- November 2023 (23)
- October 2023 (27)
- September 2023 (33)
- August 2023 (29)
- July 2023 (29)
- June 2023 (2)
- May 2023 (1)
- April 2023 (5)
- March 2023 (6)
- February 2023 (1)
- November 2022 (17)
- October 2022 (11)
- September 2022 (30)
- August 2022 (46)
- July 2022 (36)
- June 2022 (26)
- October 2020 (1)
- September 2020 (1)
- April 2020 (1)
- March 2020 (1)
- February 2020 (2)
- December 2019 (1)
- September 2019 (3)
- August 2019 (2)
- July 2019 (1)
- June 2019 (2)
- April 2019 (3)
- March 2019 (2)
- February 2019 (2)
- January 2019 (2)
- December 2018 (3)
- November 2018 (1)
- October 2018 (2)
- September 2018 (2)
- August 2018 (8)
- July 2018 (2)
- June 2018 (1)
- May 2018 (41)
- April 2018 (7)
- March 2018 (3)
- February 2018 (4)
- January 2018 (2)
- December 2017 (6)
- November 2017 (4)
- September 2017 (5)
- August 2017 (6)
- July 2017 (1)
- June 2017 (1)
- May 2017 (10)
- April 2017 (16)
- November 2016 (3)
- October 2016 (24)
- March 2015 (2)
- January 2014 (1)
- December 2013 (4)
- October 2013 (2)
- September 2013 (7)
- August 2013 (27)
- May 2013 (7)
- September 2012 (31)
- December 2009 (3)
- September 2009 (1)
- March 2009 (3)
- January 2009 (2)
- December 2008 (1)
Featured Post
WHETHER THE REGISTRAR OF TRADEMARK IS REQUIRED TO BE SUMMONED IN A CIVIL SUIT TRIAL PROCEEDING
WHETHER THE REGISTRAR OF TRADEMARK IS REQUIRED TO BE SUMMONED IN A CIVIL SUIT TRIAL PROCEEDING IN ORDER TO PROVE THE TRADEMARK REGISTRA...
-
A Party is not allowed to argue a case, what is not pleaded. Introduction: This case revolves around a fundamental principle of civil proce...
-
Introduction In the dynamic realm of pharmaceutical innovation, where intellectual property rights safeguard groundbreaking discoveries, th...
My Blog List
-
1 - सुराग तेरी कोशिशें नाकाम मुझमें ढूँढ क्या लोगे तुम, अब तक तो मैं हीं ना रहा मुझमें क्या लोगे तुम। वक़्त के आईने में इक टूटा हुआ हूँ लम्हा , बिखरे हुए ...3 days ago
-
IPL:Spice In, Nationality Out - I was sitting in my office. It was a hot afternoon. The fan was running slowly and making strange sounds like an old typewriter. Files were lying on my d...1 year ago
-
-
My other Blogging Links
- Ajay Amitabh Suman's Poem and Stories
- Facebook-My Judgments
- Katha Kavita
- Lawyers Club India Articles
- My Indian Kanoon Judgments
- Linkedin Articles
- Speaking Tree
- You Tube-Legal Discussion
- बेनाम कोहड़ा बाजारी -Facebook
- बेनाम कोहड़ा बाजारी -वर्ड प्रेस
- बेनाम कोहड़ा बाजारी-दैनिक जागरण
- बेनाम कोहड़ा बाजारी-नवभारत टाइम्स
- बेनाम कोहड़ा बाजारी-ब्लॉग स्पॉट
- बेनाम कोहड़ा बाजारी-स्पीकिंग ट्री