The Delhi High Court has granted interim relief to quick commerce company Zepto, restraining an NBFC operating under the name ‘Zepto Finance’ from using the ‘Zepto’ trademark for its lending business.
The order follows the court’s finding of a prima facie case of trademark infringement and its observation that the use of the mark could mislead consumers into believing the financial services were associated with the grocery delivery platform.
Justice Jyoti Singh also restrained the defendants from promoting or advertising financial services under the disputed branding until further orders. The court noted that the balance of convenience favored Zepto and that continued use of the mark could cause irreparable harm to the company’s reputation and goodwill.
Court Says Brand Similarity Could Mislead Consumers
According to court filings, Zepto argued that it owns registered trademarks for the ‘Zepto’ brand and has expanded its financial offerings through products such as Zepto Cash and Zepto Pay Later. The company claimed that the defendants’ use of ‘Zepto Finance’ for loan services created a false impression of commercial association, especially given its own presence in digital payments and credit-related services.
The court also noted instances of actual consumer confusion, including legal notices and court summonses intended for the defendants that were mistakenly served on Zepto. It observed that such incidents indicated a real possibility of deception and supported the company’s case for interim protection of its trademark rights.
What the Interim Order Means
Along with restraining the use of the ‘Zepto’ and ‘Zepto Finance’ marks, the court directed that the disputed domain associated with the lending business should not be transferred during the pendency of the case. The commercial suit will now proceed before the Delhi High Court, where the parties will present their arguments on the merits of the trademark dispute.
