Bombay High Court Slaps ₹4.5 Crore Fine on Patanjali Ayurveda for Trademark Infringement and Contempt

Keywords: Patanjali Ayurveda, Mangalam Organics, trademark infringement, Bombay High Court, contempt of court

The Bombay High Court has imposed a hefty fine of ₹4.5 crore on Patanjali Ayurveda for violating a restraining order in a trademark infringement case filed by Mangalam Organics. The penalties stem from Patanjali’s non-compliance with the Court’s injunction, which prohibited the sale of its camphor products, and subsequent contemptuous conduct.

Case Background

Mangalam Organics initiated legal proceedings against Patanjali, alleging trademark infringement and passing off concerning camphor products. On August 30, 2023, the Bombay High Court issued an injunction restraining Patanjali from selling camphor products under dispute. Despite the order, Mangalam Organics discovered that Patanjali continued to distribute the products, leading them to file a contempt petition.

In response to the petition, Patanjali filed an affidavit admitting that camphor products worth ₹49.6 lakh had been shipped to distributors post-injunction. The company expressed regret and claimed to have ceased sales of remaining stock worth ₹25.9 lakh. However, Mangalam Organics presented evidence that Patanjali’s camphor products were still available for purchase on its website as late as July 8, 2024. This raised concerns about incomplete disclosure in Patanjali’s affidavit.

Court’s Observations

The Bombay High Court found Patanjali guilty of violating its earlier order and criticized the company’s lack of transparency and corrective action. Key observations included:

• Continued Sales Post-Injunction: The Court noted that despite admitting to holding stock, Patanjali failed to completely halt sales, as evidenced by the availability of camphor products online even after the injunction.
• Incomplete Disclosure: The Court highlighted that Patanjali’s affidavit did not fully detail the extent of the violation, limiting the Court’s ability to assess the breach comprehensively.
• Disregard for Judicial Orders: The Court remarked that Patanjali’s actions reflected a deliberate attempt to downplay the breach, demonstrating a lack of respect for the judiciary and hindering the administration of justice.

Imposition of Fines

The Court imposed two rounds of penalties:

1. ₹50 Lakh Fine: Initially, the Court levied a fine after determining that Patanjali had distributed camphor products worth ₹49.6 lakh in violation of the restraining order.
2. ₹4 Crore Fine: Subsequently, on July 29, 2024, the Court imposed an additional fine after Mangalam Organics produced evidence showing that Patanjali’s camphor products were still being sold online.

The cumulative fine of ₹4.5 crore underscores the Court’s firm stance on contempt and its emphasis on strict compliance with judicial orders.

Significance of the Ruling

This judgment highlights the critical importance of adherence to court orders in intellectual property disputes. By penalizing Patanjali Ayurveda, the Bombay High Court has sent a clear message about the consequences of non-compliance with judicial directions.

Legal experts note that this case also reinforces the principle of transparency in court proceedings. Failure to disclose complete details or attempts to downplay violations can lead to aggravated penalties, as seen in this instance.

Conclusion

The Bombay High Court’s decision marks a significant development in trademark law enforcement, particularly in cases involving high-profile companies. For Patanjali Ayurveda, the ruling underscores the importance of promptly complying with judicial orders to avoid reputational and financial damage.

The case also sets a precedent for stricter scrutiny and enforcement in intellectual property disputes, ensuring that the rights of aggrieved parties like Mangalam Organics are upheld effectively.

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