HC fines Patanjali Ayurved Rs 50 lakh for breach of order

The Bombay high court has directed Patanjali Ayurved to deposit Rs 50 lakh for alleged breach of the HC's interim order restraining it from selling its camphor products, in relation to a trademark infringement case filed by another company.

Following trademark infringement allegations by Mangalam Organics Ltd, the HC in an interim order in August 2023 restrained Patanjali Ayurved Ltd from selling its camphor products.

A single bench of Justice R I Chagla on July 8 noted that Patanjali, in an affidavit submitted in June, admitted breach of the earlier order granting injunction against sale of the impugned camphor products.

"Such persistent breach of the injunction order dated 30th August 2023 by defendant no. 1 (Patanjali) cannot be tolerated by this court," Justice Chagla said in the order, a copy of which was made available on Wednesday.

The bench said it would be appropriate to direct Patanjali to deposit a sum of Rs 50 lakh prior to passing of an order for contempt/breach of the injunction order.

The HC posted the matter for further hearing on July 19.

In August 2023, the high court, in an interim order, prohibited Patanjali from selling or advertising the camphor products.

Mangalam Organics had filed a suit against Patanjali Ayurved, alleging copyright infringement of their camphor products. It later filed an application, claiming Patanjali was in breach of the interim order as it continued selling the camphor products.

The HC took note of the June 2024 affidavit submitted by Patanjali director Rajneesh Mishra, tendering an unconditional apology and an undertaking to abide by the orders passed by the high court.

In the affidavit, Mishra said that after the passing of the injunction order, there has been a cumulative supply of the impugned camphor product amounting to Rs 49,57,861.