Delhi High Court Stays Interim Order Against Indiabulls' Use Of "SAMMAAN" Mark

Delhi High Court Stays Interim Order Against Indiabulls' Use Of "SAMMAAN" Mark

The Delhi High Court on Tuesday stayed an interim order that had restrained Indiabulls from using the mark "SAMMAAN" or any deceptively similar version, including domain names, as part of its rebranding strategy.

A division bench comprising Justices Hari Shankar and Ajay Digpaul, however, issued directions for Sammaan to include a disclaimer in all advertisements stating that it was previously known as Indiabulls Housing Finance and to display its earlier logo. The court gave Sammaan four weeks from the date of the order to comply with these directions, allowing existing advertisements to run their course.

The case revolves around a trademark dispute between Svamaan Financial Services and Indiabulls Housing Finance concerning the use of the mark "SAMMAAN." Svamaan, a registered RBI NBFC-MFI, has been using the "Svamaan" mark since 2017 for its financial services. It argues that Indiabulls' adoption of the "SAMMAAN" mark is deceptively similar to its registered mark, leading to claims of trademark infringement and passing off. Svamaan had sought an interim injunction to stop Indiabulls from using the mark.

In its defense, Indiabulls Group, which rebranded in 2024 by replacing "Indiabulls" with "Sammaan," argued that the marks were distinct, as both "SVAMAAN" (meaning self-respect) and "SAMMAAN" (meaning honor) are common Hindi words and cannot be monopolized. It contended that the adoption of "SAMMAAN" was done in good faith, after due diligence and regulatory compliance, and that Svamaan's legal action was delayed. Indiabulls also highlighted its substantial investment in the new brand.

The interim injunction had been granted in Svamaan's favor by a single judge of the Delhi High Court on February 10, which restrained Indiabulls from using "SAMMAAN" pending a final decision. The judge found that Svamaan had made a prima facie case for trademark infringement, and the balance of convenience was in its favor. Following this, Indiabulls appealed to a division bench, which ordered a status quo on the use of the mark on February 13. The latest order, issued after an elaborate hearing on February 14, stayed the injunction, allowing Indiabulls to continue using the mark with conditions.