PhonePe Trademark Suit: Madras High Court Temporarily Restrains MobilePe From Providing BHIM/ UPI Services

In a trademark infringement suit filed by Indian digital payments and financial technology company PhonePe, the Commercial Division of Madras High Court has temporarily restricted "MobilePe" from offering any UPI or BHIM services.

Justice M Sundar passed the interim order after prima facie satisfaction that a case of deception has been made out by PhonePe, which is in similar business. The Court said that instead of a side by side comparison, it stepped into the shoes of an average man with "ordinary prudence"and "imperfect recollection" and found a prima facie case of deception against MobilePe.

Besides, the court noted that a possible irreparable injury was also made out and since the balance of convenience was in favor of PhonePe, the court thought it fit to grant the reliefs,

Therefore, besides prima facie case, possible irreparable legal injury aspect qua 'Payments and Financial Services' ['UPI' and 'BHIM'] is also made out. This moves the balance of convenience aspect towards grant of limited order of status quo as alluded to supra. Therefore, prima facie case, balance of convenience and irreparable legal injury parameters have impelled this Commercial Division to grant this limited order of status quo as of today.

The plaintiff/applicant submitted that it is the registrant/proprietor of the mark. The plaintiff had previously sent Cease and Desist Notice to the defendants which was followed by a reply, rejoinder, and sur-rejoinder. After the sur-rejoinder, the plaintiff was made to believe that the defendant company would not move forward with their trademark application. However, on 29th August, the plaintiff came to know that the defendant's trademark application was accepted.

The court after hearing the parties was convinced that "contemplation of urgent interim relief" under Section 12A of the Commercial Courts Act was made out. 

The Court however made it clear that MobilePe and its related companies can continue with all other business activities presently carried out by them including wallet recharge services.