Bombay High Court stays ₹4.5 crore penalty on Patanjali in trademark infringement case

The Bombay High Court has stayed a single-judge ruling that imposed a ₹4.5 crore penalty on Patanjali Ayurved in a trademark infringement case. According to reports, the penalty had been levied in July for violating an interim order that prohibited the company from selling camphor products allegedly infringing on the trademark of Mangalam Organics.

In its order on Friday, a Division Bench, comprising Justices AS Chandurkar and Rajesh Patil, stayed the decisions made by Justice RI Chagla on July 8 and July 29. However, the Court allowed the ₹50 lakh already deposited by Patanjali to remain with the Court.

The case stemmed from a lawsuit filed by Mangalam Organics accusing Patanjali of trademark infringement and passing off in relation to its camphor products. On August 30, 2023, the High Court issued a restraining order against Patanjali, preventing the company from selling its camphor items.

Mangalam Organics later filed a contempt petition after Patanjali allegedly violated the court’s order. The company submitted an affidavit in which it expressed regret for the breach and promised to comply with the Court’s directives. However, the affidavit revealed that Patanjali had shipped ₹49.6 lakh worth of camphor products to distributors after the injunction was issued. The company claimed that sales had stopped for the remaining stock valued at ₹25.9 lakh, but Mangalam Organics argued that some of the products were still available on Patanjali's website in July, a detail not mentioned in Patanjali's affidavit.

On July 8, the single Bench of Justice Chagla observed that Patanjali had admitted to possessing stock after the injunction and continued sales beyond the June 24 cut-off. Consequently, a ₹50 lakh fine was imposed, and Mangalam Organics was instructed to submit an affidavit detailing the violations.

On July 29, the single judge increased the penalty by an additional ₹4 crore for continued non-compliance, prompting Patanjali to challenge the order before the Division Bench.