Delhi High Court awards ₹25 lakh to manufacturer of Daawat Basmati Rice in trademark infringement suit

The Delhi High Court recently awarded ₹25 lakh in damages and costs to LT Foods, manufacturer of 'Daawat' Basmati Rice, in a trademark infringement suit. [LT Foods Limited vs Saraswati Trading Company].Justice Prathiba M Singh held that the defendant, a Raipur-based seller, was clearly indulging in blatant violation of LT Foods' statutory and common law rights in the mark."In the opinion of this Court, the Defendant is clearly indulging in blatant violation of the Plaintiff’s statutory and common law rights in the marks ‘DAWAT’ / ‘DAAWAT’. Moreover, considering that the product is rice for human consumption, the misrepresentation by the Defendant that the same is Basmati Rice is also impermissible," the Court said..LT Foods filed the suit through advocate R Abhishek after acquiring the defendant's product in 2021 and noticing that its packaging was identical to that of their own. Their case was that owing to the strict quality control standards maintained by them, the products under the marks ‘Dawat’ / ‘Daawat’ have attained enormous goodwill and reputation not only in India but in several countries of the world.Further, they claimed that the product was Jawaphool rice and did not match the standards of Basmati Rice.Therefore, they sought an order of permanent injunction against the respondents along with damages and costs..Considering the Local Commissioner's report and also the non-filing of written statement by the respondent, the Court determined that no ex-parte evidence was required.Further, it noted that the defendant was using counterfeit packaging identical to the plaintiff's packaging to sell Jawaphool rice while misrepresenting it as Basmati rice, rather that simply misusing the brand.Therefore, it held that the suit was liable to be decreed."These are goods for human consumption. Considering the Plaintiff’s reputation and the fact that ‘DAAWAT’ is a well-known mark in India, the suit is liable to be decreed," the Court said..Holding that the defendant's action was completely contrary to law and was also diluting the plaintiff's reputation and goodwill, the Court directed the defendant to pay ₹20 lakh as damages and ₹5 lakhs as costs..[Read Judgment]