Court Denies Brewholik Private Limited's Plea to Sell Seized Liquor, Emphasizes Compliance with Trademark and Excise Laws
In a significant ruling, the Delhi High Court has denied Brewholik Private Limited's application to sell whisky imported under the "Old Forester" brand, which infringes upon the registered trademark held by Brown-Forman Distillery. The decision, delivered by Justice Tushar Rao Gedela, underscores the importance of trademark protection and adherence to statutory provisions under both the Trade Marks Act, 1999, and the Delhi Excise Act, 2009.
Brewholik, represented by Senior Advocate Mr. J. Sai Deepak, sought permission to sell 3464 boxes of seized whisky and an additional 2600 boxes pending import formalities, citing financial distress and contractual obligations with the Delhi Government. The company's defense hinged on the legality of the import agreements with M/s Yeti Distillery in Nepal, which holds the trademark "OLD FORESTER" in its jurisdiction.
However, the court found that the importation and sale of goods infringing the "OLD FORESTER" trademark constituted a clear violation of Section 29 of the Trade Marks Act. The court further emphasized that under Section 2(16) of the Delhi Excise Act, the infringing liquor qualifies as "counterfeit liquor," which cannot be legally imported or sold in India.
Justice Gedela, addressing the defendant's plea, clarified that the inherent powers of the court under Section 151 of the Civil Procedure Code cannot be invoked to override specific provisions of the law when alternative remedies exist. The judgment referenced past cases but found them inapplicable due to differences in the nature of goods and the legal context.
The court's decision reinforces the protection of trademark rights and the prohibition of counterfeit goods in the market, prioritizing statutory compliance over financial considerations. It highlights the judiciary's role in maintaining the integrity of intellectual property laws and the excise regulations governing the sale of liquor.
Brewholik's application was dismissed, with the court maintaining the interim injunction against the sale of the infringing products. This ruling sets a precedent for similar cases, ensuring that trademark holders can safeguard their rights against unauthorized use and counterfeit imports.
Bottom Line:
Trademark infringement - Goods infringing a registered trademark cannot be imported or sold in India, and when such goods are liquor, they are deemed as "counterfeit liquor" under the Delhi Excise Act, 2009. Courts cannot permit the sale of such goods as it would contravene the provisions of the Trade Marks Act, 1999, and the Delhi Excise Act, 2009.
Statutory provision(s): Trade Marks Act, 1999 - Sections 29(2)(c), 29(3), 29(6)(c); Delhi Excise Act, 2009 - Section 2(16); Civil Procedure Code, 1908 - Section 151.
Brown-Forman Distillery v. Brewholik Private Limited, (Delhi) : Law Finder Doc id # 2876839
