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Bombay HC Directs Patanjali To Deposit Rs 50 Lakh For Flouting Its Order

The Bombay High Court has directed Patanjali Ayurveda to deposit ₹50 lakh as per its violation of an ad-interim order that prohibited the company from selling camphor products. The Court was hearing an interim application filed by Mangalam Organics in a trademark infringement lawsuit against Patanjali Ayurved.

| Published on July 10, 2024

Bombay HC Directs Patanjali To Deposit Rs 50 Lakh For Flouting Ad-Interim Order

The Bombay High Court directed Patanjali Ayurved to deposit ₹50 lakh for violating an ad-interim order that restrained the company from selling its camphor products.

As per reports, Justice RI Chagla noted that Patanjali had admitted the supply of camphor products following the injunction order passed in August 2023. Consequently, the company is required to address the contempt of court proceedings stemming from this admission.

“Such persistent breach of the injunction order dated 30th August 2023 by Defendant No. 1 cannot be tolerated by this Court. Accordingly, it is appropriate to direct the Defendant No.1 (Patanjali) prior to passing of order for contempt/breach of the injunction order to deposit in this Court, within a period of one week from the date of this order, a sum of Rs 50,00,000,” the order stated, as per reports.

The Court was hearing an interim application filed by Mangalam Organics in a trademark infringement lawsuit against Patanjali Ayurved. Mangalam Organics alleged passing off and trademark infringement concerning its camphor products.

On August 30, 2023, the Court issued a restraining order against Patanjali, prohibiting the sale of its camphor products. The Court was informed through an interim application that Patanjali had violated its order.

Patanjali submitted an affidavit offering an unconditional apology and committing to comply with the Court’s directives.

The affidavit admitted that following the injunction order, a total of ₹49,57,861 worth of camphor products had been supplied to distributors up to June 24. It additionally noted that products valued at ₹25,94,505 remained with distributors, with sales halted, as per reports.

Mangalam Organics claimed that Patanjali continued selling their products beyond June 24, noting specifically that camphor products were available on Patanjali’s website as late as July 8. They highlighted that this detail was not mentioned in Patanjali’s submitted affidavit.

The court observed that Patanjali admitted to supplying camphor products despite the injunction order. It also noted the submission that sales of these products continued even after June 24.

The Court not only instructed Patanjali to pay ₹50 lakh but also directed Mangalam Organics to submit an affidavit outlining Patanjali’s breaches. The matter will be heard on July 19.

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