Why Bombay High Court imposed ₹4.5 crore costs on Patanjali

The Bombay High Court on Monday imposed ₹4.5 crore costs on Patanjali Ayurved 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 passed the order on an interim application by Mangalam Organics in a trademark infringement suit against Patanjali Ayurved for 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 was not mentioned in the affidavit tendered by Patanjali, Mangalam Organics submitted..During a hearing on July 8, the Court noted Patanjali itself admitted that it had supply of camphor products after the injunction order. It also noted the submission that products were sold even after June 24. Accordingly, the Court determined that Patanjali would have to remedy their contempt and ordered them to deposit ₹50 lakh. It also directed Mangalam Organics to tender an affidavit detailing the breaches by Patanjali.When the matter was heard today, the Court ordered Patanjali to deposit another ₹4 crore for breaching its order..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]