Court Grants Interim Injunction to Protect Kamdhenu's Trademark; Dismisses Ashiana's Claims of Passing Off
In a landmark decision delivered by the Delhi High Court on April 10, 2026, Justice Tejas Karia ruled in favor of M/s Kamdhenu Limited in a contentious trademark dispute against Ashiana Ispat Limited. The ruling highlights the ongoing complexities surrounding trademark rights and licensor-licensee relationships under the Trade Marks Act, 1999.
The case involved two suits filed by the parties against each other, revolving around the use of the mark 'AL KAMDHENU GOLD' by Ashiana Ispat Limited, which Kamdhenu Limited argued was deceptively similar to its registered marks, including 'KAMDHENU', 'KAMDHENU GOLD', and 'KAMDHENU GOLD TMT'. Kamdhenu Limited sought an interim injunction to restrain Ashiana Ispat from using the impugned mark.
Justice Karia, analyzing the agreements between the parties, determined that the relationship was clearly that of a licensor and licensee, with Ashiana Ispat having no proprietary rights except conditional use rights. The court found that any goodwill generated by Ashiana's use of the mark during the license period accrued solely to Kamdhenu Limited.
The court also examined the claim of novation, with Kamdhenu contending that a new agreement in 2021 replaced the original agreement from 2002, thus extinguishing Ashiana's rights under the earlier contract. The court agreed, stating that the 2021 agreement, addressing new products, constituted a novation of the 2002 agreement, reflecting a shift in the nature of products from CTD bars to TMT bars.
In addressing the interim injunction sought by Kamdhenu Limited, the court held that the impugned mark was likely to cause confusion and harm to Kamdhenu's goodwill, thereby justifying the grant of interim relief. The court emphasized the importance of protecting established trademark rights, noting the potential for irreparable harm to Kamdhenu's reputation and goodwill if Ashiana were allowed to continue using the mark.
Justice Karia's judgment underscores the principles of trademark law, particularly the rights of trademark proprietors and the implications of novation and licensing agreements. The decision reinforces the need for parties to exercise diligence in safeguarding trademark rights and navigating the complexities of commercial agreements.
The ruling grants the interim injunction sought by Kamdhenu Limited, restraining Ashiana Ispat Limited and other defendants from using the impugned mark or any deceptively similar marks. The decision marks a significant victory for Kamdhenu Limited in protecting its trademark rights and serves as a cautionary tale for companies engaged in licensor-licensee relationships.
Bottom line:-
Trademark Law - Licensor-licensee relationship under trademark agreements - Interim injunction granted to restrain the use of a deceptively similar mark on grounds of infringement and passing off.
Statutory provision(s): Trade Marks Act, 1999 Sections 2(1)(r), 48(2), 28, 29; Contract Act, 1872 Section 62; Code of Civil Procedure, 1908 Section 151
Ashiana Ispat Limited v. M/s Kamdhenu Limited, (Delhi) : Law Finder Doc id # 2881721
