The Bombay High Court on Friday extended the deadline for Patanjali Ayurved Ltd. by a week to deposit the ₹4 crore fine imposed on the firm for their alleged violation of a 2023 ad-interim order that restrained the firm from selling camphor products. The order was passed in relation to a trademark infringement suit filed by Mangalam Organics Ltd. against Patanjali. On July 29, a single Bench judge Justice R.I. Chagla had passed the order and noted that Patanjali had made a ‘wilful and deliberate breach’ of the court’s order and there is no doubt that the firm had the intention to flout the court orders.
Justice Chagla had disposed of the petition filed by Mangalam Organics which is seeking contempt action against Patanjali for selling Mangalam camphor despite the court’s restraining order. The Bench has directed Patanjali Ayurved Ltd. to deposit ₹4 crore within two weeks’ time. The same month, the high court had directed Patanjali Ayurved Ltd. to deposit ₹50 lakh in addition.
On August 23 [Friday], a Division Bench of Justices Atul Chandurkar and Rajesh Patil suggested both the parties get the matter resolved among themselves by having a discussion. “Why don’t you both sit together and sort out the dispute. And if that’s done, this suit gets worked out,” Justice Patil said.
Representing Mangalam Organics, advocate Hiren Kamod responded to the Bench and submitted, “There is a specific finding that the Patanjali Ayurved Ltd. are guilty of contempt. That order is passed for safeguarding and sanctity of this court and its orders. We are okay if the amount of ₹4 crore is given to some charity.”
Appearing for Patanjali Ayurved Ltd, senior counsel Zal Andhyarijuna stated the willingness to sit and resolve the matter, “We canwork outt the suit by changing our packaging e.t.c. Such issues, I believe can be sorted out by sitting across the table. We are willing to change our product’s packaging in a way that it should not resemble their product in any possible way.”
After hearing both the parties, the judges Bench extended the deadline to deposit the fine and said, “Till the parties return to us, we extend the deadline till September 2 to deposit ₹4 crore, as imposed in the impugned order.” The matter will be heard on the same date of the deadline.
The Bombay High Court on August 30, 2023, in an interim order, had restricted Patanjali from selling or advertising its camphor products. After the court’s restraining order, Mangalam Organics later informed the court that Patanjali had violated the court order by continuing its sale and advertisement of the same camphor products.
In June 2024, Rajneesh Mishra, director of Patanjali Ayurved Ltd., tendered an unconditional apology, and, in an affidavit, he admitted that the company had continued to display and sell the restrained camphor products. Even after the injunction order was passed, the firm admitted selling camphor products amounting to ₹49,67,861 till June 2024. Representing Patanjali, senior advocate Zal Andhyarujina and advocate Serena Jethmalani, instructed by advocates Archit Virmani, Atul Gupta, Anshul Kochar, and R. Kumar, also stated that camphor products worth ₹25,94,505 were still with the distributors but their client (Patanjali) had stopped the sale.
However, Mangalam Organics claimed that Patanjali continued the business of selling and supplying camphor products even after June 2024 and the product was available for purchase on Patanjali’s website on July 8. Patanjali had accepted the same on the July 8 hearing at the high court. On this, the court ordered Patanjali to deposit ₹50 lakh and directed Mangalam Organics to tender an affidavit with details of all the breaches of the order by Patanjali.
Published - August 23, 2024 09:47 pm IST
