Bombay High Court directs Patanjali to deposit ₹50 lakh for flouting its order

The Bombay High Court on Monday directed Patanjali Ayurved to deposit ₹50 lakh for violating an ad-interim order restraining the company from selling its camphor products. [Mangalam Organics Ltd v. Patanjali Ayurved Ltd and Ors].Justice RI Chagla observed that Patanjali had itself admitted supply of camphor products post the injunction order passed in August 2023 and, therefore, they would have to remedy their contempt."Such persistent breach of the injunction order dated 30th August 2023 by Defendant No. 1 cannot be tolerated by this Court. Accordingly, it is appropriate to direct the Defendant No.1 (Patanjali) prior to passing of order for contempt/breach of the injunction order to deposit in this Court, within a period of one week from the date of this order, a sum of Rs. 50,00,000/- (Rupees Fifty Lakh only)..." the order stated..The Court was hearing an interim application by Mangalam Organics in a trademark infringement suit against Patanjali Ayurved claiming passing off and trademark infringement in respect of its camphor products. On August 30, 2023, the Court had restrained Patanjali from selling its camphor products.Through the interim application, the Court was informed that Patanjali had violated its order. .In an affidavit, Patanjali tendered an unconditional apology and undertook to abide by the Court's orders. The affidavit admitted that after the injunction order was passed, there had been a cumulative supply of camphor products amounting to ₹49,57,861 to distributors till June 24. It further stated that products worth ₹25,94,505 were still with the distributors and that their sale had been stopped..Mangalam Organics claimed that Patanjali sold the products even after June 24. It further pointed out that the camphor products were on sale on Patanjali's website on July 8. This information, Mangalam Organics pointed out, was not mentioned in the affidavit tendered by Patanjali..The Court noted Patanjali had itself admitted supply of camphor products after the injunction order. It also noted the submission that products were sold even after June 24. "Having considered that the Defendant No. 1 in the said Affidavit dated 2nd July 2024 has itself admitted that it has been supplying the impugned Camphor products post the injunction order and which according to Defendant No. 1, continued till 24th June 2024, there is an admission as to the breach of the injunction order having been committed by Defendants for which the Defendants would necessarily have to purge the contempt of the injunction order," the Court said..Apart from ordering Patanjali to deposit ₹50 lakh, the Court also directed Mangalam Organics to tender an affidavit detailing the breaches by Patanjali.The matter will be heard further on July 19..Managalam Organics was represented by Advocates Hiren Kamod, Anees Patel, Usha Chandrasekhar and Avisha Mehta, instructed by Advocate Suvarna Joshi.Patanjalai Ayurved was represented by Senior Advocate Zal Andhyarujina and Advocate Serena Jethmalani, instructed by Advocates Archit Virmani, Atul Gupta, Anshul Kochar and R Kumar..[Read Order]