Bombay High Court Imposes ₹4.5 Cr Fine On Patanjali Ayurved For Violating Injunction In Trademark Case

Bombay High Court Imposes ₹4.5 Cr Fine On Patanjali Ayurved For Violating Injunction In Trademark Case

The Bombay High Court on Monday imposed costs of ₹4.5 crores on Patanjali Ayurved for violating an ad-interim order that restrained the company from selling its camphor products.

Justice R.I. Chagla passed the order in response to an interim application by Mangalam Organics. The application was part of a trademark infringement suit against Patanjali Ayurved, which alleged passing off and trademark infringement concerning its camphor products.

On August 30, 2023, the Court restrained Patanjali from selling its camphor products. However, through an interim application, the Court was informed that Patanjali had violated this order.

In response, Patanjali submitted an affidavit tendering an unconditional apology and undertaking to abide by the Court's orders. The affidavit admitted that after the injunction order was passed, there had been a cumulative supply of camphor products amounting to $49.57,861 to distributors until June 24. It further stated that products worth $25,94,505 remained with distributors and that their sale had been stopped.

Mangalam Organics claimed that Patanjali continued selling the products even after June 24. They also pointed out that the camphor products were available on Patanjali's website as of July 8. This information was not included in Patanjali's affidavit, Mangalam Organics submitted.

During a hearing on July 8, the Court noted that Patanjali itself admitted to supplying camphor products after the injunction order. It also noted the submission that products were sold even after June 24.

Consequently, the Court determined that Patanjali would have to remedy their contempt and ordered them to deposit Rs. 50 lakh. It also directed Mangalam Organics to submit an affidavit detailing the breaches by Patanjali.

Today, Justice RI Chagla imposed an additional Rs. 4 crores on Patanjali. The Court noted that Patanjali misled the Court by filing false affidavits through its director, Rajneesh Mishra.

The court remarked that this was a fit case for sending the director to prison but did not proceed with it and imposed costs instead.