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Delhi High Court - Orders

Haldiram India Pvt. Ltd vs M/S Nandipat Enterprises & Anr on 25 September, 2023

Author: Prathiba M. Singh

Bench: Prathiba M. Singh

                                          $~39
                                          *    IN THE HIGH COURT OF DELHI AT NEW DELHI
                                          +                                  CS(COMM) 388/2023 and I.A. 18714/2023
                                                      HALDIRAM INDIA PVT. LTD                                                          ..... Plaintiff
                                                                                         Through:                Mr. Neeraj Grover, Mr. Naveen
                                                                                                                 Grover, Mr. Kashish Sethi, Ms.
                                                                                                                 Sunidhi Gupta and Ms. Ayushi
                                                                                                                 Chandra,     Advocates     (M:
                                                                                                                 9810376869).

                                                                                         versus

                                                      M/S NANDIPAT ENTERPRISES & ANR.                                              ..... Defendants
                                                                                         Through:                Mr. Manoj Singh, Advocate for D-1.
                                                                                                                 Mr. Ashok Kumar Jain, Advocate for
                                                                                                                 D-2 (M: 9810012586).

                                                      CORAM:
                                                      JUSTICE PRATHIBA M. SINGH
                                                               ORDER

% 25.09.2023

1. This hearing has been done through hybrid mode. I.A. 18714/2023 (u/O XXXIX Rule 2A CPC) in CS(COMM)-388/2023

2. This is an application filed by the Plaintiff- Haldiram India Pvt. Ltd. under Order XXXIX Rule 2A CPC to bring to the knowledge of the Court the fact that Defendant No. 1- Nandipat Enterprises is wilfully and deliberately violating the injunction order passed by this Court on 1st June, 2023. The operative portion of the order dated 1st June, 2023 reads as under:-

"28. Consequently, till the next date of hearing, an ex parte ad interim injunction is passed in the following terms:
I. The defendant no.1, its directors, agents, CS(COMM) 388/2023 Page 1 of 9 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/09/2023 at 22:39:02 servants, representatives are restrained from selling, conducting, offering for sale, stocking, advertising, directly or indirectly dealing in any food items, Indian sweets, namkins, and/or any other allied/cognate goods and/or any other goods or restaurant services under the marks "HALDIRAM BHUJIAWALA", and/or and/ or "HALDIRAM'S" and /or and/or any other marks either identical or deceptively similar to the marks of the plaintiff, except by way of lawfully selling the pre-packed goods manufactured by the defendant no.2 in compliance of the Settlement Agreement dated 3rd May, 2016;
II. The defendant no.1, its directors, agents, servants, representatives are restrained from using the mark "HALDIRAM" as part of names of their social media pages, e-mail IDs, and/or in any manner representing their restaurant as "HALDIRAM BHUJIAWALA", and/or ."

3. The Plaintiff is Haldiram India Pvt. Ltd. - Defendant No. 1 is M/s CS(COMM) 388/2023 Page 2 of 9 This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/09/2023 at 22:39:02 Nandipat Enterprises, and Defendant No. 2 is Mr. Ashok Aggarwal. The said Defendant No. 2 has entered into a Settlement Agreement dated 3rd May, 2016 with the Plaintiff which has various clauses.

4. Pursuant to the said settlement, it is stated the Defendant No. 1 has been appointed as an authorised distributor of pre-packed goods of Defendant No.

2. However, the allegation of the Plaintiff is that the Defendant No. 1, has started manufacturing and selling its own pre-packed food items and on the said packaging it seeks to use the name 'HALDIRAM BHUJIAWALA', as also logo and describe itself as an authorised distributor. The said logo is as follows:

5. On a query from the Court, ld. Counsel for Defendant No. 2 has made it clear that Defendant No. 1 cannot use the name 'HALDIRAM BHUJIAWALA' or logo or any images of Defendant No. 2 on the products manufactured by Defendant No.1 by itself. The packaging of the Defendant No. 1 reproduced in the contempt application are set out below:-
CS(COMM) 388/2023 Page 3 of 9
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/09/2023 at 22:39:02 CS(COMM) 388/2023 Page 4 of 9 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/09/2023 at 22:39:03
6. The mark and name 'HALDIRAM BHUJIAWALA' is extremely popular for sweets, namkeens and other snacks. Any misuse of this mark would not be condoned.
7. Moreover, the interim injunction order granted on 1st June, 2023 is also extremely clear to the effect that Defendant No. 1 is only permitted to use the mark 'HALDIRAM BHUJIAWALA', and logo for the pre-packed goods manufactured by Defendant No. 2 in terms of Settlement Agreement dated 3rd May, 2016.
CS(COMM) 388/2023 Page 5 of 9

This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/09/2023 at 22:39:03

8. Ld. Counsel for Defendant No. 1 submits that since it is an authorised distributor, it is entitled to use the same. This Court does not agree. The use of 'HALDIRAM BHUJIAWALA' which is either in violation of the settlement dated 3rd May, 2016 or in violation of the injunction, would constitute contempt.

9. The snack products being sold by Defendant No. 1 are misleading to the consumers as though these are the Plaintiff's original 'HALDIRAM BHUJIAWALA' products. In addition, Defendant No. 1 is using the logo and the name 'HALDIRAM BHUJIAWALA' on the billboards outside their restaurant situated in Bihar. The images are set out below:

10. The mere permission to sell pre-packaged goods of Defendant No. 2 does not permit the Defendant No. 1 to advertise in this manner, and create confusion for the consumers that it is the original 'HALDIRAM BHUJIAWALA' of the Plaintiff. The Defendant No. 1's activity to pass off its products as that of the Plaintiff's cannot be allowed to go on unabated.

11. The Plaintiff has also placed on record photographs of the Defendant CS(COMM) 388/2023 Page 6 of 9 This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/09/2023 at 22:39:03 No. 1's products being sold on food delivery apps such as Swiggy. Such listings by Defendant No. 1 on food delivery apps also cannot be allowed.

12. Accordingly, this Court deems it appropriate to appoint a Local Commissioner to immediately visit and inspect the Defendant No. 1 premises situated at 'M/s Nandipat Enterprises Vidya Bharti NA, Ward No. 27, Nandipat Complex, Sonavati Colony Dumra Road, Sitamarhi, Bihar- 843302'. Mr. Rahul Mourya, [M:7834933890] is appointed as a Local Commissioner in the present matter to inspect the Defendant's premise.

13. The mandate of the Local Commissioner is as follows:

i) The Local Commissioner shall seize all the products of the Defendant No. 1 manufactured by Defendant No. 1 and which are not the pre-packaged products of Defendant No. 2, bearing the mark "HALDIRAM BHUJIAWALA" or the following logos:
ii) The Local Commissioner shall also ensure that there are no billboards, display boards, menu cards, carry bags or any other stationery or other material etc. bearing the mark "HALDIRAM BHUJIAWALA" in a manner so as to confuse the same the Plaintiff's outlet which would be in violation of the interim injunction order dated 1st June 2023.
iii) The Local Commissioner shall also obtain the details since when infringing products were sold by the Defendants post the CS(COMM) 388/2023 Page 7 of 9 This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/09/2023 at 22:39:03 injunction order dated 1st June 2023, and obtain copies of the accounts. The Defendants shall cooperate and give password to the computer file containing the accounts, if the same is on a computerised software;

iv) After preparation of the inventory, the infringing goods including stationery, packaging materials, pamphlets, brochures, semi-manufactured and fully-manufactured products, raw materials, found at the Defendant No. 1's premises shall be sealed by the Local Commissioner. If the Defendants wish to remove any food items in the infringing packaging, for the purpose of sale in the usual course of business, the same shall be permitted to be removed from the packets and handed over to the Defendant no.1.

v) Upon being requested, the concerned SHO of the location mentioned in the above table shall extend complete assistance to the Local Commissioner in executing the commission, as per this order, at the Defendant's premises;

vi) The Local Commissioner is permitted to take photographs or videos of the proceedings, if it is deemed appropriate. Two representatives of the Plaintiffs, which would include a lawyer, are permitted to accompany the Local Commissioner;

vii) The Local Commissioner, while executing the commission, shall ensure that there is no disruption to the business of the Defendants, except for the purposes of the execution of the commission. The commission shall be executed in a peaceful manner;

CS(COMM) 388/2023 Page 8 of 9

This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/09/2023 at 22:39:03

14. The fee of the Local Commissioner is fixed at Rs. 1,50,000/-, excluding out of pocket expenses, which is to be borne by both the parties.

15. The Local Commissioner shall file the report within two weeks of the execution of the commission. The Local Commission shall be executed with the one week.

16. It is clarified that the Defendant No. 1 is free to distribute pre-packaged goods of Defendant No. 2.

17. The listings on the food delivery apps shall also be taken down with immediate effect by Defendant No. 1.

18. The Defendant No. 1 is only permitted to use the name 'Rameshwar' on its listings on food delivery directories and not the name 'HALDIRAM BHUJIAWALA'.

19. If Defendant No. 1 wishes to advertise itself as the authorised distributor of Defendant No.2, it may do so in their outlets on the shelf where the snack products are being stored, so that consumers are aware that the products being sold are the pre-packaged products of Defendant No. 2.

20. The Defendant No. 1 is warned and cautioned to ensure that the Local Commission is not obstructed or impeded in any manner. The SHO of the concerned area shall render complete assistance to the Local Commissioner.

21. List on 5th October, 2023, the date already fixed.

22. Order dasti.

PRATHIBA M. SINGH, J SEPTEMBER 25, 2023 mr/dn CS(COMM) 388/2023 Page 9 of 9 This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/09/2023 at 22:39:03