On Monday, the Bombay High Court directed Patanjali Ayurved to deposit ₹50 lakh for violating an ad-interim order that restrained the company from selling its camphor products. The case, Mangalam Organics Ltd v. Patanjali Ayurved Ltd and Ors, was heard by Justice RI Chagla.
Justice Chagla noted that Patanjali had admitted to supplying camphor products after the injunction order issued in August 2023, requiring them to remedy their contempt.
“The persistent breach of the injunction order dated August 30, 2023, by Defendant No. 1 cannot be tolerated by this Court. Accordingly, it is appropriate to direct Defendant No. 1 (Patanjali) to deposit in this Court, within one week from the date of this order, a sum of ₹50,00,000 (Rupees Fifty Lakh only)…” the order stated.
The Court was considering an interim application by Mangalam Organics in a trademark infringement suit against Patanjali Ayurved, alleging passing off and trademark infringement of its camphor products.
On August 30, 2023, the Court had prohibited Patanjali from selling its camphor products. However, through the interim application, it was revealed that Patanjali had violated this order.
In an affidavit, Patanjali issued an unconditional apology and promised to comply with the Court’s orders. The affidavit admitted that after the injunction order, camphor products amounting to ₹49,57,861 had been supplied to distributors until June 24. It also stated that products worth ₹25,94,505 were still with distributors, and their sale had been stopped.
Mangalam Organics claimed that Patanjali continued to sell the products after June 24 and pointed out that the camphor products were still available on Patanjali’s website on July 8, information not mentioned in Patanjali’s affidavit.
The Court acknowledged Patanjali’s admission of supplying camphor products after the injunction order and the additional sales after June 24.
“Having considered that Defendant No. 1, in the affidavit dated July 2, 2024, has admitted to supplying the impugned camphor products post the injunction order and which, according to Defendant No. 1, continued until June 24, 2024, there is an admission of the breach of the injunction order committed by Defendants, for which the Defendants would necessarily have to purge the contempt of the injunction order,” the Court said.
In addition to ordering Patanjali to deposit ₹50 lakh, the Court directed Mangalam Organics to submit an affidavit detailing the breaches by Patanjali. The case will be heard further on July 19.
Patanjali Ayurved was represented by Advocates Hiren Kamod, Anees Patel, Usha Chandrasekhar, and Avisha Mehta, instructed by Advocate Suvarna Joshi. Mangalam Organics was represented by Senior Advocate Zal Andhyarujina and Advocate Serena Jethmalani, instructed by Advocates Archit Virmani, Atul Gupta, Anshul Kochar, and R Kumar.
