Delhi High Court lifts stay on use of ‘Dakshin’ mark by Adyar Gate hotel

A Division Bench of the Delhi High Court on Monday set aside a single judge order that had restrained Adyar Gate Hotels Limited from using the name and mark ‘Dakshin’ for their standalone restaurant located in Chennai..A Division Bench of Justices Navin Chawla and Shailender Kaur passed the order after noting that Adyar Gate had been using the 'Dakshin' mark since 2015 without objection. The Division Bench has sent the matter for further consideration by the single judge. While a final decision remains pending, the Bench clarified that Adyar Gate can only use the 'Dakshin' mark on the existing outlet, and not expand its use. "Admittedly, appellant (Adyar Gate) has used the mark since 2015. The respondents (ITC) do not contend that this was an unauthorised use. Appellant is a registered proprietor of the mark and it has not been contested. For the present appellant will only use the mark in the premises and will not expand to catering. Appellant will go back to original premises once the construction is over. In view of the above, we set aside the order passed by the single judge. The appellant shall file a response. Interim application shall be listed before the single judge for consideration on March 18, 2025. Ld Single judge would make an endeavour to hear the same," the order said. .Adyar Gate was a prominent five-star hotel located in Chennai's Alwarpet neighbourhood. Originally established in the 1970s by the TTK Group, it underwent rebranding several times, including Park Sheraton and later Crowne Plaza. The hotel was a significant landmark in the city, offering luxury accommodation and dining experience..Earlier this month, ITC contended that they own various registrations to the mark Dakshin and the registration for the mark dates back to 2000. It was contended that ITC had entered into an agreement with Adyar Gate in 1985 to operate and manage a hotel in Chennai.This was followed by a new agreement in 1985, which saw the launch of the hotel under the name Welcome Group Park Sheraton. Under this agreement, Adyar Gate was granted a limited right to use the name ‘Dakshin’.Meanwhile, Adyar Gate obtained trademark registration for ‘Dakshin’ under Class 42 in 2004. However, since it was an existing license holder with ITC then, it did not appear to be a problem for the conglomerate. This arrangement between the companies continued until March 2015, after which the hotel was rebranded as the Crowne Plaza Chennai Adyar Park. During this time, ITC argued that they did not object to the operation of Dakshin on the premises as it had gained considerable fame. .The hotel shut down in December 2023 and the building was demolished to make way for a residential building. ITC argued that they were shocked to discover that Adyar Gate had opened a standalone restaurant called Dakshin in December 2024 using the same mark.ITC said that Adyar Gate’s actions, specifically the opening of the standalone "Dakshin" restaurant, amounted to an infringement of ITC's established brand and goodwill associated with the "Dakshin" name, particularly in the context of South Indian cuisine.On February 13, Justice Amit Bansal opined that ITC had made out a prima facie case in its favour for the grant of interim injunction. Accordingly, he issued an interim injunction order restraining Adyar Gate from using the 'Dakshin' mark. .Adyar Gate filed an appeal against this order before the Division Bench. It argued that the order came to be passed without any basis as it had not been given a cease and desist notice prior to the institution of the litigation. The Division Bench granted Adyar Gate relief today by quashing the single-judge's interim injunction order. .Adyar Gate was represented by Senior Advocates Rajiv Nayar and Amit Sibal. .ITC was represented by Senior Advocates Mukul Rohatgi, Arvind Nigam and Arvind Nayar.