Bombay HC Directs Patanjali To Deposit ₹50 Lakh For Alleged Breach Of 2023 Interim Order

Bombay HC Directs Patanjali To Deposit ₹50 Lakh For Alleged Breach Of 2023 Interim Order

The court noted that Patanjali had filed an affidavit on July 8 admitting to breaching the injunction order even in June this year. In August 2023 the HC had passed an interim order granting injunction against sale of the impugned camphor products.

Urvi MahajaniUpdated: Wednesday, July 10, 2024, 04:52 PM IST
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Bombay HC Directs Patanjali To Deposit ₹50 Lakh For Alleged Breach Of 2023 Interim Order |

Mumbai: The Bombay High Court has directed Patanjali Ayurved Ltd to deposit a sum of Rs 50 lakh for alleged breach of a 2023 interim order by which it was restrained from selling its camphor products, while hearing an alleged infringement of trademark case filed by Mangalam Organics Ltd.

The court noted that Patanjali had filed an affidavit on July 8 admitting to breaching the injunction order even in June this year. In August 2023 the HC had passed an interim 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 Riyaz Chagla said in the order of July 8. The judge said it would be appropriate to direct Patanjali to deposit a sum of Rs 50 lakh prior to passing of order for contempt/breach of the injunction order.

Mangalam Organics had filed a suit against Patanjali claiming passing off and copyright infringement of their camphor products. The HC, on August 30, 2023, passed an inter order restraining Patanjali from selling the camphor products. Mangalam filed an application claiming that Patanjali was in breach of the earlier order as it still sold the camphor products.

Patanjali filed an affidavit dated June 2 issuing an unconditional apology and an undertaking to abide by the orders of the Court. However, the affidavit filed by director of Patanjali Ayurveda Rajneesh Mishra admitted to breaching the August order stating that the camphor products worth Rs 49,57,861 were sold after the injunction order. It added that, however, products worth Rs 25,94,505 are still lying at its wholesalers / distributors and authorised stores and the same have been ceased at that respective location.

The court noted that Patanjali has itself admitted that it has been supplying camphor products post the injunction order. Justice Chagla said that there was an admission of breach on the part of the defendant [Patanjali], “for which the Defendants would necessarily have to purge the contempt of the injunction order”.

The court noted that Patanjali had sold camphor after the order and as recently as July 8. Further, its website still listed the camphor product for sale. Hence, before passing an order in contempt of the injunction order, the HC directed the company to deposit Rs 50 lakh with the court within one week. The HC has kept the matter on July 19 for further hearing.

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