Court finds prima facie trademark, copyright infringement and passing off after police raid uncovers clandestine cigarette manufacturing unit disguised as a cattle shed
The Delhi High Court has granted an ex parte ad interim injunction in favour of ITC Limited, restraining Ravi Kishor and others from manufacturing, selling, distributing or marketing counterfeit cigarettes bearing ITC’s well-known GOLD FLAKE marks and related trade dress.
Justice Jyoti Singh passed the order in a commercial suit filed by ITC, which alleged large-scale counterfeiting of its cigarette products. The court noted that the plaintiff had made out a prima facie case of trademark infringement, copyright infringement and passing off, and held that the balance of convenience lay in ITC’s favour. It also observed that irreparable harm would be caused if immediate protection was not granted.
According to ITC, its GOLD FLAKE brand has been in use for over a century and enjoys enormous goodwill in the market. The company told the court that it owns several registered trademarks, including the GOLD FLAKE word mark, roundel devices, and the GOLD FLAKE PREMIUM trade dress, apart from copyright in the artistic features of its packaging and label designs.
The suit was triggered after information surfaced that counterfeit cigarette manufacturing was being carried out at a premises in Village Dudhli Khadar. Acting on the complaint, police conducted a raid on the night of September 3-4, 2026, and allegedly found around 20 workers manufacturing fake GOLD FLAKE PREMIUM cigarettes. The premises, according to the plaintiff, was an old school building camouflaged behind a board marked as a cattle shed in an apparent attempt to evade detection.
ITC alleged that the raid led to the seizure of ready-made counterfeit cigarettes, loose cigarettes, packaging material, machinery, and raw materials. The company said the counterfeit products copied every essential feature of its genuine packs, including the red-and-gold colour scheme, roundel devices, house marks, and manufacturing details. It further argued that the goods were being produced and sold without any licence, registration or authorisation.
The court took note of the plaintiff’s long-standing use of the brand, its registrations, and the scale of its sales, saying these factors reflected strong goodwill and reputation. It held that the defendants’ acts amounted to more than mere infringement and were in the nature of organised counterfeiting. The court also accepted ITC’s submission that such illegal activity could harm public health and result in loss to the public exchequer through tax evasion.
In view of the urgency, the court also granted ITC exemption from pre-institution mediation under Section 12-A of the Commercial Courts Act, 2015, relying on Supreme Court and Delhi High Court precedents. It additionally exempted the plaintiff from advance service on the defendants.
The defendants have now been restrained, until the next date of hearing, from manufacturing, selling, offering for sale, marketing or distributing any product using the impugned marks, labels, wrappers, packaging or trade dress identical or deceptively similar to ITC’s GOLD FLAKE-related intellectual property.
Bottom Line :
Trade Marks and Copyright - Counterfeit cigarettes - Plaintiff, proprietor of GOLD FLAKE marks, roundel devices and GOLD FLAKE PREMIUM trade dress, made out prima facie case of trademark infringement, copyright infringement and passing off against defendants clandestinely manufacturing and packaging counterfeit cigarettes - Ex parte ad interim injunction granted restraining manufacture, sale, distribution and use of identical or deceptively similar marks, devices, labels, get-up and trade dress - Exemption from pre-institution mediation also granted in view of urgent relief sought.
Statutory provision(s): Section 12-A, Commercial Courts Act, 2015; Order XXXIX Rules 1, 2 and 7, Code of Civil Procedure, 1908; Order XI Rule 1(4), Commercial Courts Act, 2015; Section 151, Code of Civil Procedure, 1908; Sections 28 and 29, Trade Marks Act, 1999; Copyright Act, 1957; Sections 318(4), 338, 340(2) and 342, Bharatiya Nyaya Sanhita, 2023; Sections 63 and 65, Copyright Act, 1957
ITC Limited v. Ravi Kishor, (Delhi) : Law Finder Doc id # 2983536
