LI Network
Published on: December 28, 2023 at 18:23 IST
In a recent development, the Bombay High Court has upheld its ex-parte injunction against KLF Nirmal Industries, preventing the use of blue packaging and labels closely resembling those of Parachute Coconut Oil for its coconut oil products.
Justice RI Chagla, presiding over the case, maintained that KLF Nirmal Industries failed to substantiate Marico Ltd’s alleged suppression of delay in seeking the injunction against the packaging of its coconut oil products.
The Court expressed a prima facie view, stating, “I am of the opinion that there has been no delay in the Plaintiff approaching this Court, and there is no suppression of delay.”
The judgment highlighted the lack of evidence from the defendant proving when Marico had knowledge of KLF Nirmal’s products, contrasting it with Marico’s claim of awareness in July 2023. The court acknowledged Marico’s prompt action upon becoming aware of the alleged infringement.
Marico Limited, a consumer goods manufacturer, initiated a Commercial IPR Suit against KLF Nirmal Industries, accusing the latter of trademark infringement through similarities in packaging and labeling of coconut oil products. Marico argued that the visual resemblances could lead to consumer confusion, potentially harming the goodwill and brand image of Parachute Coconut Oil.
The Bombay High Court had previously granted an ex-parte ad-interim injunction on August 18, 2023, restraining KLF Nirmal Industries from using the allegedly infringing packaging.
KLF Nirmal Industries sought the vacation of the injunction under Order 39 Rule 4 of the CPC, emphasizing Marico’s prior knowledge of their product.
Order 39 Rule 4 of the CPC allows a Court to discharge, vary, or set aside an injunction order. However, the court found KLF Nirmal’s evidence speculative and lacking substance, stating that the burden of proving Marico knowingly made false or misleading statements rested with the defendant.
The court concluded that the Information Memorandum from 2021 presented by KLF Nirmal Industries was not material or relevant to the trademark infringement case. The attempt to link the Non-Disclosure Agreement (NDA) with the Information Memorandum was deemed tenuous and lacking substance.
As a result, the court ruled that KLF Nirmal Industries failed to establish Marico’s knowingly false or misleading statements, finding no merit in their application. The ex-parte ad-interim order will continue until further orders, with the next hearing scheduled for January 11, 2024.
Case Title: Marico Limited v. KLF Nirmal Industries Pvt. Ltd.
