Bombay High Court stays ₹4.5 crore costs on Patanjali Ayurved in trademark case

A Division Bench of the Bombay High Court has stayed a single-judge's decision to impose a ₹4.5 crore penalty on Patanjali Ayurved in a trademark infringement case. .The costs were levied on Patanjali by a single Bench of Justice RI Chagla in July this year for violating an interim order that prohibited the company from selling camphor products that allegedly infringed on the trademark of Mangalam Organics. Justices AS Chandurkar and Rajesh Patil today stayed the single-judge orders of July 8 and July 29, but allowed the ₹50 lakhs already deposited by Patanjali to remain with the Court..Mangalam Organics had filed a lawsuit accusing Patanjali of trademark infringement and passing off in relation to its camphor products. In response, the High Court had issued a restraining order on August 30, 2023, preventing Patanjali from continuing to sell its camphor items.After the injunction was imposed, Patanjali allegedly violated the Court's order, which led Mangalam Organics to file a contempt petition. Patanjali later submitted an affidavit in which it expressed regret for the breach and promised to follow the Court's directives. The affidavit revealed that after the court's order, Patanjali had shipped nearly ₹49.6 lakh worth of camphor products to distributors until June 24, 2024. While the company claimed that sales had been halted for the remaining stock worth ₹25.9 lakh, Mangalam Organics argued that some products were still available for purchase on Patanjali's website on July 8, which was not mentioned in Patanjali's affidavit..During a hearing on July 8 this year, the single Bench observed that Patanjali had admitted to possessing stock of camphor products after the 2023 injunction was issued, and that sales had continued past June 24. In light of this, the Court ordered Patanjali to pay a ₹50 lakh fine and instructed Mangalam Organics to submit an affidavit detailing Patanjali's violations.On continued non-compliance, on July 29, a single judge imposed an additional penalty of ₹4 crore on Patanjali for contempt of court.This has now been challenged by Patanjali before the Division Bench.