The Bombay High Court has imposed a Rs. 50 lakh fine on Premier Stationery Industries Pvt. Ltd. and associated companies for violating a previous court order that protected the Fevicol MR trademark, owned by Pidilite Industries.

The Bench of Justice RI Chagla held that the Respondents have committed willful contumacious contempt of this Court, it would be necessary for them to purge their contempt by penalizing them rather than their being punished by civil imprisonment.

"Accordingly, I consider this to be a fit case to impose a penalty/costs on the Respondents. The Respondents shall jointly and/or severally pay to the Petitioner an amount of Rs.50,00,000/- (Rupees Fifty lakh only) within a period of four weeks from the uploading of this Order," the Bench ordered.

The bench further observed: "The scope of execution proceedings are irrelevant for contempt jurisdiction of this Court. The Court’s power to punish for contempt under Article 215 of the Constitution of India r/w Contempt of Courts Act r/w Section 151 of the CPC, is not only wider than, but is also independent of any rights of parties inter se in any execution proceeding.."

Pidilite Industries, the renowned owner of the Fevicol brand, had initially filed a lawsuit against a stationery company—later acquired by Premier Stationery—alleging that the company had copied Fevicol’s distinctive packaging and branding for its glue bottles and guns.

Following a consent agreement, the Court issued a permanent injunction on July 13, 2017, prohibiting any use of packaging similar to Fevicol's. Despite this injunction, Premier Stationery, which acquired the infringing company later that year, resumed using the infringing packaging in August 2020, prompting Pidilite to seek contempt proceedings.

During the proceedings, Premier Stationery argued that it was not bound by the earlier court orders, as it had acquired the business after the initial ruling.

However, the Single-Judge dismissed this argument, affirming that the Court's authority under contempt proceedings extended beyond the rights of the original parties. The Court emphasized that Premier Stationery was aware of the court's order and acted in willful disobedience.

The Court not only imposed the substantial financial penalty but also criticized Premier Stationery for its lack of remorse and failure to comply with previous orders. The judgment highlighted that the company did not offer any apology, indicating a lack of regret for its wrongful acts.

“The Respondents have failed to offer any apology, let alone an unconditional apology, which is evident from their lack of remorse or regret for their wrongful acts and willful disobedience of the Court's Orders. It is well settled that the Court ought not to allow its processes to be set at naught and breach of its Orders by parties such as the Respondents, and strict action ought to be taken against the Respondents for their malafide conduct,” the Court said.

In addition to the fine, the Court also ordered Premier Stationery to immediately cease using the infringing packaging and destroy any remaining products. The Court further warned that continued non-compliance could result in further legal consequences, including potential civil imprisonment. "Failure on the part of the Respondent Nos.2 and 4 to comply with this Order would result in the Respondents being taken into custody and detained for a period of two weeks in Civil Prison namely, Arthur Road Jail, Mumbai," the Bench said in its order dated August 13.

Accordingly, the Court disposed of the contempt petition.

Cause Title: Pidilite Industries v. Premier Stationery Industries [Neutral Citation No: 2024:BHC-OS:13228]

Appearance:-

Petitioner: Advocates Hiren Kamod, Nishad Nadkarni, Aasif Navodia, Khushboo Jhunjhunwala, Jaanvi Chopra, Rakshita Singh

Respondent: Advocates Aseem Naphade, Pooja Yadav, Sonali Bhosale, JV Bhosale, Akshay Dunde

Click here to read/download the Order


Justice RI ChaglaBombay High CourtTrademarkContempt Petition

Sukriti Mishra