Delhi High Court restrains ‘Zepto Finance’ from using Zepto trademark for loan services

The Delhi High Court has restrained people operating under the name of ‘Zepto Finance’ from using marks identical or deceptively similar to the registered trademarks of quick-commerce company Zepto Limited [Zepto Limited and Another v. Sailendra Kashyap and Others].

Justice Jyoti Singh passed the ex parte interim order on July 22 after finding prima facie evidence of actual confusion among consumers about Zepto and Zepto Finance.

“There is not only likelihood but actual confusion amongst members of public, which is causing damage to the business as also reputation and goodwill of the Plaintiffs,” the Court said.

Zepto told the Court that the defendants were using ‘Zepto Finance’ and similar marks through the website zeptofinance.com and an Instagram account. They were allegedly offering loan facilities and engaging in illegal loan disbursements and forceful recoveries.

Zepto added that several third parties sent legal notices to the company, stating that they had been duped by Zepto Finance. Summons issued by the City Civil and Sessions Court at Chennai in a suit concerning a personal loan of ₹52,000 was also delivered to Zepto’s dark store in Mylapore, though it was intended for Zepto Finance, the Court was told.

The Court found that the deceptively-similar marks prima facie infringed Zepto’s registered trademarks. It observed that their adoption appeared to be intended to encash upon Zepto’s goodwill, misrepresent an association with the company and make unlawful monetary gains.

The Court also took note of Zepto’s expansion into financial and credit-related services by the launch of digital wallet service called Zepto Cash and Zepto Pay Later.

It said Zepto Pay Later was essentially a specialised form of credit, meaning that the company had already expanded into services akin to or overlapping with the defendants’ financial services.

The Court thus restrained defendants and persons acting on their behalf from rendering, advertising, promoting or marketing services under Zepto Finance or any mark identical or deceptively similar to Zepto’s trademarks. The matter will be heard next on November 30.

Senior Advocate Swathi Sukumar appeared for Zepto along with Advocates Aarshia Behl, Shruti Baid, Aman Sagar, Aashi Sharma, Bhavya Manda, Ritik Raghuwanshi, Rishika Aggarwal and Anshu Tulsyan.

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