Trademark case: HC slaps Rs 4 cr cost on Patanjali for court order breach

The Bombay high court on Monday imposed a cost of Rs 4 crore on Patanjali Ayurved Ltd for the alleged breach of a 2023 interim order that restrained the company from selling its camphor products in relation to a trademark infringement case filed by Mangalam Organics Ltd.

A single bench of Justice RI Chagla noted that there was a "wilful and deliberate" breach of the court order by Patanjali.

The bench said it has no doubt in its mind that Patanjali had an intention to flout the court order.

The bench disposed of a petition filed by Mangalam Organics Ltd seeking contempt action against Patanjali for selling its camphor products despite a restraining order from the court.

Justice Chagla directed Patanjali to deposit Rs 4 crore within two weeks.

This was in addition to Rs 50 lakh the high court had directed the company to deposit earlier this month.

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

Mangalam Organics had filed a suit against the company alleging copyright infringement of their camphor products.

Mangalam Organics later filed an application claiming that the Ayurveda firm was in breach of the interim order as it continued selling the camphor products.

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

Mishra, in the affidavit, claimed there was a cumulative supply of the impugned camphor product amounting to Rs 49,57,861 after the passing of the injunction order.

The bench on Monday said while a case of imposing imprisonment on defendant Mishra was made out, it was refraining from passing such an order as his personal liberty was at stake.

The court said if Rs 4 crore is not deposited within two weeks, Mishra would be taken into custody immediately.