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Synopsis

The Bombay High Court has stayed the Rs. 4.5 crore cost imposed on Patanjali Ayurved Ltd after it violated a 2023 order that restrained the company from selling its camphor product in a trademark infringement case filed by Mangalam Organics Ltd.

A division bench of the high court, comprising Justice AS Chandurkar and Justice Rajesh Patil, stayed the order of the single-judge bench pending the company's appeal. However, it said that Rs. 50 Lakh deposited by the company would remain with the court.

In July 2024, a single-judge high court bench comprising Justice RI Chagla was hearing a contempt petition filed by Mangalam Organics against Patanjali, alleging that the company violated the interim order passed by the high court.

On July 29, the bench passed an order imposing a cost of Rs. 4 crores on Patanjali. However, in June, the bench had imposed a cost of Rs. 50 lakhs on Patanjali.

The high court had passed the order restraining Patanjali from selling the camphor products in August 2023.

The bench noted that in June 2024, the affidavit filed by Patanjali stated that the company would abide by the court's order and offered an unconditional apology.

The bench was informed that camphor products amounting to Rs. 49,57,861 were sold after the passing of the injunction order.

While imposing the cost on Patanjali, the high court noted that it had no doubt that Patanjali had the intention to violate the interim order passed by the court.

The high court also said that although a case was made out for passing an order imposing imprisonment against the director of the company, the bench was refraining from passing such an order as the personal liberty of the director was involved.