Delhi High Court Restrains Moti Mahal's Ex-Franchisee From Infringing The Chain's Trademark And Copyright

The Delhi High Court has issued a temporary injunction in favour of Moti Mahal Delux Management Services Pvt. Ltd., which owns and operates the popular Moti Mahal restaurant chains in India and various countries, against trademark and copyright infringement by its ex-franchisee engaged in similar business.Moti Mahal is the owner of the trademarks 'MOTI MAHAL', 'MOTI MAHAL GROUP', 'MOTI MAHAL MANAGEMENT SERVICES' and 'TANDOORI TRAIL'It entered into a Franchise Agreement with M/S. Srmj Business Promoters Pvt. Ltd. (defendant no. 1), which came to an end on 05 October, 2022. The defendant is engaged in the business of providing restaurant, catering and hospitality services. Moti Mahal stated that despite the Franchise Agreement coming to end, the defendants continued to use its trademarks. It submitted stated that being a party to the Franchise Agreement, the defendant was aware that it had no rights in the trademarks. Moti Mahal contended that the defendant's malafides are evident from the fact that it has continued to use 'MOTI MAHAL DELUX TANDOORI TRAIL' trademark. Further, it has dishonestly adopted 'MOTI MAHAL DELUX' mark, which is deceptively similar to the plaintiffs' registered trademarks. Moti Mahal argued that it was the defendant's effort to mislead the consumers, potential franchisees, public and also to ride upon its immense goodwill and reputation. It also stated that the defendant's is also using the Moti Mahal's labels/artistic work, which is an infringement of its copyrights. Moti Mahal further stated that despite the termination of the Franchise Agreement, the defendant displayed the marks on various third-party websites including Google, Zomato, Justdial, Magicpin and Wedding.in. It contended that as the defendant is using the impugned marks for identical goods/services, the consumers and potential franchisees are likely to assume and confuse that the defendant's goods/services are connected to Moti Mahal. Justice Mini Pushkarna noted that the defendants did not appear despite service and thus proceeded ex-parte. Considering the circumstances, the Court was of the view that Moti Mahal demonstrated a prima facie case for grant of injunction. It stated that if no ex parte ad interim injunction is granted, Moti Mahal will suffer an irreparable loss.The Court thus restrained the defendants from advertising, selling, marketing, or promoting any restaurant and catering business using the impugned marks or any marks deceptively similar to the Moti Mahal's marks. It also directed the defendant to remove the references of the impugned mark from board/hoarding of its premises and from social media and third-party websites. Case title: Moti Mahal Delux Management Services Pvt. Ltd. & ors. vs. M/S. Srmj Business Promoters Pvt. Ltd. & anr.Citation: 2024 LiveLaw (Del) 1350Click Here To Read/Download Order

Delhi High Court Restrains Moti Mahal's Ex-Franchisee From Infringing The Chain's Trademark And Copyright

Sanjana Dadmi

Tags