Delhi High Court Dismisses Appeal by Sai Trading Company Over Trademark Dispute

In a recent ruling, the Delhi High Court dismissed the appeal filed by M/S Sai Trading Company in a long-standing trademark dispute with M/S KRBL Limited. The case centred on the alleged infringement of KRBL Limited's trademark "GOLDEN GATE" by Sai Trading Company, which used a similar mark for its rice products.

Background

The dispute dates back to 2017 when KRBL Limited filed a lawsuit against Sai Trading Company for using the trademark "GOLDEN GATE" along with a similar gate device for their rice products. The Additional District Judge-03 at Patiala House Court initially restrained Sai Trading from using, selling, or advertising the disputed trademark. In response, Sai Trading Company filed an appeal challenging this decision, which has been under litigation for nearly seven years.

Court Proceedings

Throughout the litigation, the Delhi High Court attempted to mediate between the parties multiple times to reach an amicable settlement. However, these efforts proved unsuccessful, as Sai Trading Company failed to cooperate during the mediation sessions. Notably, the company did not submit the required modifications to their trade dress or packaging design, a crucial negotiation step.

Over the years, the case has seen numerous adjournments and hearings. On several occasions, the counsel representing Sai Trading Company sought to withdraw from the case due to a lack of instructions from their client. Despite court notices being issued to Sai Trading Company, they did not respond, leading to repeated delays.

Final Decision

In a decisive move, the Delhi High Court, presided over by Hon'ble Ms. Justice Mini Pushkarna, dismissed the appeal on July 29, 2024, due to non-prosecution. The Court observed that Sai Trading Company exhibited negligence in pursuing the appeal and noted that KRBL Limited had incurred significant costs in defending the case.

Given the protracted nature of the litigation and the appellant's lack of interest, the Court also considered awarding costs of INR 10 lakh to KRBL Limited. This decision underscores the Court's Commitment to ensuring that judicial resources are not wasted due to frivolous or negligent litigation.

Implications

The dismissal of Sai Trading Company's appeal effectively upholds the earlier order, prohibiting the company from using the "GOLDEN GATE" trademark for its rice products. This outcome reinforces the importance of trademark protection and companies' legal obligations to respect others' intellectual property rights.

The case also reminds us of prolonged litigation's financial and legal consequences, particularly in commercial disputes.