Bombay High Court Grants ITC Limited Ad-Interim Relief in Trademark Infringement Case

Court restrains defendants from manufacturing and selling counterfeit "Gold Flake" cigarettes, citing health hazards and trademark infringement.

In a significant legal development, the Bombay High Court has granted ad-interim relief to ITC Limited, prohibiting Abbas Mohammad Shaikh and associated parties from manufacturing, selling, or distributing counterfeit "Gold Flake" cigarettes. The order, passed by Justice Sharmila U. Deshmukh, underscores the urgency and severity of the case, which involves trademark and copyright infringement, as well as potential public health risks.

The case presented by ITC Limited, a prominent player in the cigarette industry, highlighted the unauthorized and illicit production of counterfeit "Gold Flake" cigarettes. These counterfeit products were being manufactured in a sophisticated unit uncovered during a police raid on October 24, 2024, in a farmhouse located in Raigad district. The raid, prompted by ITC's complaint, led to the seizure of machinery, raw materials, and finished goods worth approximately Rs. 4.94 Crores. Subsequently, an FIR was registered under the Bharatiya Nyaya Sanhita, 2023, and a charge-sheet was filed in May 2025.

The court was convinced of the prima facie evidence presented by ITC Limited, which included the longstanding reputation and goodwill associated with the "Gold Flake" trademark, registered since 1942, and the artistic work related to it. ITC's legal team, led by Senior Advocate Mr. Ravi Kadam, argued that the counterfeit products not only infringed on ITC's trademark rights but also posed a significant health risk due to the use of sawdust and chemicals in the cigarettes.

In her judgment, Justice Deshmukh emphasized the potential harm to ITC's reputation and the public's health, warranting immediate relief without prior notice to the defendants. The ad-interim relief includes a temporary injunction preventing the defendants from manufacturing, selling, or marketing any products with the "Gold Flake" trademark or any deceptively similar mark. Additionally, the court ordered the defendants to disclose information about individuals and entities involved in the counterfeiting operation and to reveal details about their inventories and manufacturing units.

The case highlights the importance of protecting intellectual property rights and the responsibilities of corporations to safeguard public health. ITC Limited's swift legal action demonstrates its commitment to maintaining the integrity of its brand and ensuring consumer safety.

The court has scheduled further hearings for December 10, 2025, to consider additional evidence and arguments. Meanwhile, the ad-interim relief will remain in effect, providing ITC Limited with critical protection against ongoing counterfeiting activities.

Bottom Line:

Trademark law - Ad-interim relief granted to restrain defendants from manufacturing, selling, offering for sale, advertising, or dealing in counterfeit "Gold Flake" cigarettes infringing plaintiff's registered trademark, copyright, and trade dress.

Statutory provision(s): Trade Marks Act, 1999 Sections 28, 29; Copyright Act, 1957 Sections 13, 51; Bharatiya Nyaya Sanhita, 2023

ITC Limited v. Abbas Mohammad Shaikh, (Bombay) : Law Finder Doc Id # 2809096