Rs 4.5 Crore Penalty On Patanjali Put On Hold By Bombay HC

The Bombay High Court's Division Bench on Tuesday stayed a single-judge order imposing a cumulative penalty of Rs 4.5 crore on Patanjali Ayurved, as per media reports. The penalties were levied for alleged non-compliance with a trademark infringement injunction related to camphor products.

In July 2024, Justice R.I. Chagla had directed Patanjali to pay Rs 50 lakh for violating an August 2023 restraining order obtained by Mangalam Organics. The injunction prohibited Patanjali from selling camphor products purportedly infringing Mangalam’s trademark. After additional violations were alleged, the Court imposed an additional Rs 4 crore penalty on July 29. Patanjali subsequently challenged these penalties before the Division Bench of Justices A.S. Chandurkar and Rajesh Patil.

The Division Bench, while granting interim relief, stayed the July 8 and July 29 orders but allowed the Rs 50 lakh already deposited by Patanjali to remain with the Court.

The trademark dispute originated from a lawsuit filed by Mangalam Organics, accusing Patanjali of infringement and passing off. The High Court, responding to Mangalam’s plea had issued an injunction on August 30, 2023, restraining Patanjali from selling its camphor products.

In its affidavit, Patanjali admitted to dispatching products worth Rs 49.6 lakh to distributors before halting sales of the remaining stock valued at Rs 25.9 lakh. Based on these admissions, the single judge imposed the initial Rs 50 lakh penalty and directed Mangalam to file an affidavit detailing further violations. Continued non-compliance led to the additional Rs 4 crore penalty.

Patanjali’s appeal against these orders resulted in the Division Bench staying enforcement of the penalties pending further review.