Court rules that the dispute is not a "commercial dispute" under the Commercial Courts Act and dismisses Emami's claims of disparagement.
In a significant legal development, the Calcutta High Court has set aside an interim injunction order against Sun Pharmaceutical Industries Limited, originally restraining the company from broadcasting an allegedly disparaging advertisement against Emami Limited's products. The Division Bench, comprising Justices Sabyasachi Bhattacharyya and Supratim Bhattacharya, concluded that the suit filed by Emami does not qualify as a "commercial dispute" under the Commercial Courts Act, 2015.
The legal tussle arose when Emami Limited alleged that Sun Pharmaceutical's advertisement disparaged their popular Ayurvedic products, including "Zandu Balm" and "Mentho Plus Balm." Emami sought a permanent injunction to prevent Sun Pharmaceutical from airing the contentious video and demanded an apology along with damages for loss of reputation.
Sun Pharmaceutical contested the jurisdiction, arguing that the case should be classified as a commercial dispute due to references to trademarks and intellectual property. However, the court determined that the references to trademarks and copyrights were incidental and did not form the basis of the relief sought by Emami. The court highlighted that the suit primarily involved disparagement, which does not fall under the ambit of commercial disputes as defined by the Act.
The judgment emphasized that disparagement focuses on the denigration of a product or brand, contrasting it with trademark infringement, which acknowledges the trademark's value by attempting to imitate it. The court also noted that generic references in the advertisement did not specifically target Emami's products, and thus, the claim of disparagement was not substantiated.
This ruling underscores the distinction between disparagement and intellectual property infringement, setting a precedent for similar cases in the future. The court's decision allows Sun Pharmaceutical to continue airing the advertisement, though the matter will continue to be adjudicated in the trial court, which has been directed to expedite the proceedings.
Bottom Line :
Suit for disparagement of products does not fall under "commercial dispute" within the meaning of Section 2(1)(c)(xvii) of the Commercial Courts Act, 2015 if it does not arise out of intellectual property rights relating to trademarks, copyrights, or designs.
Statutory provision(s): Commercial Courts Act, 2015 Section 2(1)(c)(xvii), Trade Marks Act, 1999 Section 29(8).
Sun Pharmaceutical Industries Limited v. Emami Limited, (Calcutta)(DB) : Law Finder Doc id # 2961910
