Introduction
In a landmark case, Haldiram India Pvt. Ltd. initiated legal proceedings against multiple defendants for the unauthorized use of the trademarks ‘HALDIRAM’ and ‘HALDIRAM BHUJIWALA’. The legal tussle involved six defendants: Berachah Sales Corporation, Berachah Foods India Pvt. Ltd., Haldiram Restro Private Limited, and Haldiram Builders Private Limited, along with their proprietors. Haldiram sought both trademark protection and recognition of its ‘well-known’ status, aiming to safeguard its brand integrity.
Background and Legal Proceedings
The conflict intensified when Defendant No. 3 established Haldiram Restro Pvt. Ltd. on February 27, 2019. This led Haldiram to petition the Registrar of Companies, Delhi, under Section 16(1)(b) of the Companies Act, 2013, which addresses the rectification of a company name infringing on a registered trademark. In defense, Haldiram Restro Pvt. Ltd. asserted its trademark applications and pointed out the existence of other similarly named companies.
Upon conducting trademark searches, Haldiram discovered applications by the defendants for variations such as ‘HALDIRAM BHUJIAWALA’ and ‘HALDIRAM RESTRO’. Additionally, the defendants had registered the domain www.haldiramrestro.com. Haldiram also received a complaint from M/s. D. K. Enterprises about financial misconduct by Defendant No. 1, prompting further investigations that uncovered the defendants’ Facebook page announcing product launches. These findings led to the initiation of legal proceedings.
Ex Parte Injunction and Investigations
On September 11, 2019, the court granted an ex parte injunction, prohibiting the defendants from using ‘HALDIRAM BHUJIAWALA’ and/or ‘HALDIRAM’S’, and operating www.haldiramrestro.com and associated social media platforms under ‘HALDIRAM RESTRO’. A Local Commissioner was appointed to seize infringing goods, revealing the defendants’ sale of various products under the mark ‘HALDIRAM BHUJIAWALA’. Additionally, expired products under ‘HALDIRAM INC’ were seized.
Despite the defendants’ written statements and an affidavit of admission/denial of documents in December 2019, their willingness to settle in 2022 failed, leading to their eventual disinterest in contesting. As Haldiram submitted evidence affidavits, the case proceeded ex parte, culminating in a permanent injunction against the defendants, mandating the delivery of infringing materials for destruction.
Damages and Well-Known Mark Status
Relying on the Local Commissioner’s report, the court awarded exemplary damages of Rs. 50 lakhs to Haldiram, noting the defendants’ absence and failure to produce accounts. An additional Rs. 2 lakhs was decreed as costs.
Haldiram contended that its ‘HALDIRAM’ and ‘HALDIRAM BHUJIAWALA’ marks were valid nationwide, except in West Bengal, as per a dissolution deed. It asserted the mark’s well-known status across India and internationally, supported by its long-standing presence and reputation since the 1960s in the food industry. The court recognized ‘HALDIRAM’S’ mark and the oval-shaped mark as ‘well-known’ for food items and eateries. Consequently, the defendants’ trademark applications for ‘HALDIRAM’ and ‘HALDIRAM BHUJIAWALA’ were directed for rejection by the Registrar of Trademarks.
Conclusion
The verdict in Haldiram India Pvt. Ltd vs Berachah Sales Corporation & Ors. marks a significant victory for Haldiram, reinforcing the protection of its brand and trademarks. The case highlights the critical importance of intellectual property rights in maintaining brand integrity and preventing unauthorized use. The court’s decision to award substantial damages and declare the marks as ‘well-known’ sets a precedent for future trademark disputes, underscoring the judiciary’s role in safeguarding established brands against infringement. As the global market continues to expand, such rulings are pivotal in ensuring that renowned brands like Haldiram retain their rightful place and reputation in the industry.
