Court restricts operations of both parties to their respective states as it evaluates evidence of goodwill and prior use in ongoing trademark case.
In a significant ruling on April 15, 2026, the Delhi High Court, presided over by Mr. Justice Tushar Rao Gedela, denied an ad-interim injunction sought by More Than Water Private Limited against NESCO Limited in a contentious trademark infringement and passing off case. The court's decision was based on the inability of More Than Water to establish substantial goodwill, consistent use, and prior adoption of the trademarks in question, namely "Water Box is the Right Choice" and "More Than Water Box."
The case revolves around the alleged infringement and passing off by NESCO Limited's use of the trademark "My Water Box." More Than Water contended that it was the prior adopter and user of the trademarks since 2018, claiming substantial goodwill and reputation. However, the court found inconsistencies in the plaintiff's evidence, including questionable invoices and lack of continuous use of the trademarks.
Key arguments from More Than Water included assertions of prior use and promotion through various social media channels and e-commerce platforms. They also highlighted alleged consumer confusion due to the similarity in packaging between the two brands. Conversely, NESCO Limited, represented by Mr. J. Sai Deepak, argued that their trademark was registered in 2025 with a claimed user date of 2020 and refuted the claims of More Than Water's substantial goodwill and reputation.
The court meticulously examined evidence from both parties, including sales figures, promotional expenses, and regulatory compliance issues related to packaging standards. The analysis revealed that neither party demonstrated sufficient evidence of substantial goodwill within the contested jurisdiction. The court noted the absence of sales beyond the state of Gujarat for More Than Water and the lack of evidence for NESCO's sales beyond Maharashtra.
In light of these findings, the court ruled that More Than Water failed to establish a prima facie case for an interim injunction. However, in a move to maintain status quo and mitigate potential consumer confusion, the court directed both parties to limit their operations to their respective states-Gujarat for More Than Water and Maharashtra for NESCO-pending the final outcome of the suit.
The court's decision underscores the importance of demonstrating substantial goodwill and consistent use in trademark disputes, particularly in cases involving claims of passing off and territorial jurisdiction.
Bottom Line:
Passing off action - Plaintiff must establish prior goodwill, misrepresentation, and damages to succeed in a passing off claim. Lack of consistent use of trademarks and absence of evidence of substantial goodwill or promotion weakens the plaintiff's case for ad-interim injunction.
Statutory provision(s): Trade Marks Act, 1999, Food Safety and Standards Authority of India (FSSAI) Packaging Regulations, 2018, BIS Regulations, 2022, Code of Civil Procedure, 1908.
More Than Water Private Limited v. NESCO Limited, (Delhi) : Law Finder Doc id # 2883739
