Bombay High Court Imposes ₹50 Lakh Penalty For Contempt In Fevicol Trademark Case

Bombay High Court Imposes ₹50 Lakh Penalty For Contempt In Fevicol Trademark Case

the Bombay High Court has imposed a substantial penalty of ₹50 lakhs on a company found in contempt for using a Trademark deceptively similar to Fevicol, despite an existing injunction. Justice Riyaz Chagla delivered the ruling, emphasizing that the company continued to sell products resembling Fevicol’s trademark, violating the court’s earlier order.

Justice Chagla scrutinized the claim by Kusum Puri Goswami, the original defendant, who argued that responsibility for the contempt should not fall on her as she had sold the company to Rajinder Puri Goswami. The judge rejected this argument, stating that the new owner, Rajinder Goswami, and the newly established company were also bound by the injunction. Furthermore, the judge dismissed the claim from Rajinder Goswami and the new company that they were unaware of the July 13, 2017 injunction and the agreement not to use the impugned Trademark.

The court found that Respondents 1 and 2 had made false statements in their affidavit, claiming they had ceased operations related to the disputed products. Despite presenting income tax returns showing a ‘NIL’ status, evidence indicated that the business continued through Respondents 3 and 4, who are interrelated to Kusum and Rajinder Goswami.

Justice Chagla criticized the respondents for failing to apologize or show remorse for their actions, which constituted a willful disobedience of the court’s orders. The court emphasized that strict action was necessary to uphold the court’s authority and deter further contempt.

As a result, the court ordered the respondents to pay ₹50 lakh to Pidilite within four weeks of the order being uploaded on the High Court's website. Failure to comply would result in civil imprisonment for up to two weeks at Arthur Road Jail, Mumbai.

The petitioner, Pidilite, had initially secured an injunction in July 2017, agreeing with the defendants to halt the sale of products similar to Fevicol MR Artistic Work, Fevicol MR Bottle, and Fevicol MR Glue Pens. Despite this agreement, the defendants persisted in selling the infringing products, prompting the contempt proceedings.