Delhi High Court restrains Adyar Gate from using ‘Dakshin’ mark after ITC files suit

Delhi High Court on Thursday restrained Adyar Gate Hotels Limited from using the name and mark ‘Dakshin’ for their stand alone restaurant located in Chennai after ITC filed a plea contending that they own the rights to the trademark of the iconic restaurant [ITC Ltd Vs Adyar Gate Hotels Ltd]..Justice Amit Bansal, who passed the order said that prima facie case is made out in favour of ITC for grant of interim injunction. .Adyar Gate was a prominent five-star hotel located in Chennai's Alwarpet neighbourhood. Originally established in the 1970s by the TTK Group, it underwent rebranding several times, including Park Sheraton and later Crowne Plaza. The hotel was a significant landmark in the city, offering luxury accommodation and dining experience.Dakshin, which was located within Adyar Gate, was a renowned South Indian specialty restaurant celebrated for its authentic regional cuisine and cultural significance. Established in 1989, Dakshin has earned a reputation as one of Chennai’s most iconic fine-dining destinations, attracting celebrities, diplomats, and culinary enthusiasts.It offers a menu showcasing the cuisine of Andhra Pradesh, Karnataka, Kerala, Puducherry, Tamil Nadu and Telangana..During the course of the hearing, Senior Advocate Mukul Rohatgi, who appeared for ITC, contended that they own various registrations to the mark Dakshin and the registration for the mark dates back to 2000. He contended that ITC had entered into an agreement with Adyar Gate in 1985 to operate and manage a hotel in Chennai. This was followed by a new agreement in 1985, which saw the launch of the hotel under the name Welcome Group Park Sheraton. Under this agreement, Adyar Gate was granted a limited right to use the name ‘Dakshin’. Meanwhile, Adyar Gate had obtained trademark registration for ‘Dakshin’ under Class 42 in 2004, however since it was an existing license holder with ITC then, it did not appear to be a problem for the conglomerate. .This arrangement between the companies continued until March 2015, after which the hotel was rebranded as the Crowne Plaza Chennai Adyar Park. During this time, ITC argued that they did not object to the operation of Dakshin in the premises as it had gained considerable fame. .The hotel shut down in December 2023 and the building was demolished to make way for a residential building. Rohatgi argued that they were shocked to discover that Adyar Gate had opened a stand alone restaurant called Dakshin in December 2024 using the same mark.ITC said that Adyar Gate’s actions, specifically the opening of the standalone "Dakshin" restaurant, amounted to an infringement of ITC's established brand and goodwill associated with the "Dakshin" name, particularly in the context of South Indian cuisine..ITC was represented by Senior Advocates Mukul Rohatgi and Arvind Nigam with advocate Mamta Rani Jha from Inttl Advocare.