Bombay High Court Grants One Week To Patanjali For Depositing ₹4 Crore Cost, Suggests It To Sort Out Dispute With Mangalam Organics

The Bombay High Court on Friday extended by a week, the deadline for Patanjali Group to deposit the Rs 4 crore fine imposed on it by a single-judge for disobeying the court's orders.

A division bench of Justices Atul Chandurkar and Rajesh Patil advised the parties - Patanjali Ayurveda and Mangalam Organics, to sit together and try to resolve their dispute in the Trademark Infringement case.

"Why don't you both sit together and sort out the dispute. And if that's done, this suit gets worked out," Justice Patil told the counsel appearing for Patanjali and Mangalam Organics.

Advocate Hiren Kamod, representing Mangalam Organics, responded to the suggestion that the parties can sit across the table and consider resolving the dispute but the issue of the single-judge imposing hefty costs needs to be kept open as there is a specific finding that the defendants (Patanjali) wilfully disobeyed the court's order.

"There is a specific finding that they (Patanjali) are guilty of contempt. That order is passed for safeguarding and sanctity of this court and its orders. We are okay if the amount (of Rs 4 Crore) is given to some charity," Kamod submitted. 

Weighing in senior counsel Zal Andhyarijuna for Patanjali, told the judges that his clients are ready to sit and resolve the dispute. 

"We can workout the suit by changing our packaging etc... such issues, I believe can be sorted out by sitting across the table...We are willing to change our product's packaging in a way that it should not resemble their product in any possible way," the senior advocate submitted.

The judges then deferred the hearing in the appeal filed by Patanjali for the parties to revert on whether there was any possibility of working out the dispute.

"Till the parties return to us, we extend the deadline to deposit Rs 4 crore, as imposed in the impugned order," the judges said, while extending the deadline till September, 2, the day when the matter would be heard next.

The bench was hearing an appeal filed by the Patanjali group challenging the July 29 order of single-judge Justice Riyaz Chagla, who imposed an additional fine of Rs 4 crore on the group for breaching the August 30, 2023 order of the High Court, by virtue of which, it had restrained Patanjali from selling camphor products, which were deceptively similar to the product of Mangalam Organics. 

Mangalam Organics had filed a commercial IPR suit against Patanjali Ayurved, claiming passing off and copyright infringement of their camphor products. It pointed out the breach of the ad-interim order passed on August 30, 2023.

Subsequently, the Patanjali group through one of its directors Rajeesh Mishra filed an affidavit dated June 2, 2024, issued an 'unconditional apology' and undertook to abide by the orders of the Court. However, in the same affidavit, Mishra admitted to breaching the ad-interim order and stated that the camphor products worth Rs. 49,57,861 were sold after the injunction order.

Noting the same, the bench had initially imposed a cost of Rs 50 lakh, which was ordered to be paid to the Mangalam Organics.