Bombay HC Restricts Apollo Tyres From Publishing "Defamatory" Ad Content Against Ceat

According to sources, Apollo Tires was recently served with a preliminary injunction by the Bombay High Court, prohibiting them from running an advertisement that was considered to "ridicule and disparage" Ceat Tyres.

In a ruling dated September 12, single-judge Justice Riyaz Chagla prohibited Apollo Tires from airing a visual commercial (VC) that painted Ceat Tires unfavourably.

"Upon examining the impugned advertisement and the accompanying storyboard, it appears that the Plaintiff is the sole owner of the unique and distinctive tread pattern of its CROSSDRIVE AT tyre, and has established significant goodwill and reputation about this design," the judge stated in the order. "Furthermore, the Impugned Advertisement unfairly compares the Plaintiff's worn-out tyre with the Defendant's brand-new tyre, and its underlying premise is to discredit and defame the Plaintiff's CROSSDRIVE AT tyre," as per reports.

The Bombay High Court further found that the visual commercial (VC) aired by Apollo Tyres was "prima facie" derogatory and disparaged Ceat's product.

"Under these circumstances, I am convinced that the Plaintiff has established a strong prima facie case for the grant of interim relief," the judge stated. "The balance of convenience favors the Plaintiff. Without the requested relief, the Plaintiff will suffer irreparable harm or injury that cannot be compensated financially. The Defendant is absent despite notice. There are no equities in favour of the Defendant. Therefore, interim relief shall be granted against the Defendant."

Ceat, in its statement, explained that it has developed new and original tread patterns for various types and sizes of its tyres over the years, to ensure durability, a smooth ride, and secure road grip. Around 2020, the company created a new tyre tread design for its All Terrain (AT) tyres, intended for use in motor vehicles, which they named CROSSDRIVE AT. Ceat has been utilising its CROSSDRIVE AT tyre since May 2022.

On September 4, 2024, the Ceat company discovered a VC uploaded by Apollo on its YouTube channel, promoting its Apollo Apterra AT2 tyre for use in the Mahindra THAR, a sports utility vehicle. In this VC, the plaintiff alleged that the defendant had "unfairly" depicted the Plaintiff's CROSSDRIVE AT tyre as worn out while "cleverly obscuring" its (Plaintiff's) embossed Ceat trademark.

The VC, the plaintiff added, further compared the "worn-out Ceat tyre" to a fresh and brand-new Apollo Apterra AT2 tyre. It stated that through the defendant's advertisement campaigns on various online platforms, such as YouTube, X, Instagram, LinkedIn, and Facebook, a message was being conveyed to potential buyers suggesting that the Plaintiff's Ceat all-terrain tyres are of inferior and substandard quality, inferior to the Defendant's Apollo Apterra AT2 tyre, and should be discarded. Plaintiff argued that its Ceat all-terrain tyres had been unfairly criticised and presented in a negative light in this advertisement.

While prohibiting the defendants from broadcasting its VC, the judge adjourned the matter for a detailed hearing on October 11.