Court restrains "Settlement Guru" and others from misleading borrowers with fake loan settlements, orders removal of infringing content to protect bank's goodwill
In a significant judgment dated August 24, 2026, the Delhi High Court, presided over by Justice Jyoti Singh, granted an ex parte ad interim injunction in favour of IDFC First Bank Limited, restraining multiple defendants from unauthorized use of the bank's registered trademarks on various social media platforms. The defendants, operating under names such as "Settlement Guru," "AHK Tips," and "Expert Loan Settlement Advice," were found to be misleading borrowers by purporting to offer loan settlement services using the bank's intellectual property, thereby damaging the bank's reputation and goodwill.
IDFC First Bank, a Scheduled Commercial Bank with an extensive nationwide presence and a registered proprietor of trademarks including "IDFC First," approached the Court alleging trademark infringement and passing off under Section 29 of the Trade Marks Act, 1999. The bank demonstrated that the defendants were running unauthorized online channels that deceptively used its registered trademarks and official-looking settlement letters to induce borrowers to default on their loans, promising them illegal "haircuts" or discounts of up to 70-80% on outstanding dues.
The Court noted that the defendants not only infringed the trademark rights of the bank but also engaged in tortious interference with the bank's contractual relationships by encouraging customers to breach loan agreements. Moreover, the defendants uploaded doctored and selectively edited call recordings falsely portraying the bank's recovery agents as harassing customers, thus tarnishing the bank's image and undermining public confidence in the banking system. The defendants' actions were also found to violate the Information Technology Act, 2000 and related IT Rules, 2021.
Justice Singh observed that the plaintiff had established a prima facie case for infringement and passing off, and the balance of convenience lay in favour of the bank. The Court held that allowing the impugned content to remain accessible would cause irreparable harm to the plaintiff's goodwill and reputation, which could not be quantified in monetary terms.
Accordingly, the Court issued an interim injunction restraining the defendants from using the plaintiff's trademarks or any deceptively similar marks in any manner, including in videos, posts, or promotional materials. The defendants were also directed to remove all infringing URLs and weblinks within 36 hours, failing which the social media intermediaries, including Google LLC, were instructed to lock and suspend the offending content. The Ministry of Electronics and Information Technology was impleaded for facilitating enforcement of the order.
The judgment underscores the judiciary's firm stance against the misuse of registered trademarks and fraudulent online practices that jeopardize contractual and regulatory frameworks, especially in the sensitive financial sector. It sends a strong message to unauthorized entities exploiting social media for illegal financial schemes and protects the interests of both banks and their customers.
Bottom Line:
Trademark Infringement - Unauthorized use of registered trademarks of a commercial bank by individuals/entities on social media platforms, misleading the public, and causing harm to the bank's reputation and goodwill - Interim injunction granted restraining such activities.
Statutory provision(s):
Trade Marks Act, 1999 Section 29, Information Technology Act, 2000, Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, Civil Procedure Code, 1908 Order XXXIX Rules 1 and 2, Reserve Bank of India Act, 1934 Section 2(e), Commercial Courts Act, 2015 Section 12-A
IDFC First Bank Limited v. Settlement Guru, (Delhi) : Law Finder Doc Id # 2971997
