Full Text
HIGH COURT OF DELHI
Date of Decision: 4th August, 2022
GUJARAT COOPERATIVE MILK MARKETING FEDERATION
LTD & ANR. ..... Plaintiffs
Through: Mr. Abhishek Singh, Advocate.
Through: None.
JUDGMENT
1. This hearing has been done through hybrid mode.
2. The present suit seeking permanent injunction for restraining the infringement of the trademark, defamation, permanent and mandatory injunction and damages has been filed by the Plaintiff No.1 - Gujarat Cooperative Milk Marketing Federation Ltd. and Plaintiff No.2 - Kaira District Cooperative Milk Producers’ Union Ltd., who are the owners of the mark ‘AMUL’ and the variants thereof.
3. As set out in the Plaint, the Plaintiff No.1 is India’s largest cooperative society engaged in marketing of milk and milk products. The Plaintiff No.1 is stated to have been established with an objective to carry out activities for the welfare and economic development of the dairy farmers by efficiently organising and marketing milk and milk products and other similar products, all across the country and abroad. The Plaintiff No.1 is also recognized as Asia’s largest dairy and ‘AMUL’ has become a top dairy 2022:DHC:3932 brand. The Plaintiff No.2 is a District Cooperative Milk Producers’ Union federated of the Plaintiff No.1.
4. The mark ‘AMUL’ was coined and adopted way back in the year 1948, and since then, has become one of India’s most well-known marks in the field of milk, milk products and other cognate and allied products. The Plaintiff No.2 has applied for and obtained registrations for the mark ‘AMUL’ and its variants in several classes, including Classes 5, 29, 30, 31, 32, and 35 in India. The oldest registrations of the trade mark ‘AMUL’ in Class 29 under Application No.185698 dated 1st July, 1958 which was published under the Trademark Journal No.260, and in Class 30 under Application No.286348 dated 1st March, 1973 which was published in the Trademark Journal No.599. Owing to extensive promotions and high standard quality of the products of the Plaintiffs, the mark ‘AMUL’ has become a well-known mark and a household name in India and abroad. As per the Plaint, the global annual turnover of ‘AMUL’ for the year 2019-20 is 38,542 crores and the marketing expenses of ‘AMUL’ for the year 2019-20 is 862.96 crores.
5. It is submitted that the Plaintiff No.2 is the registered proprietor of the mark ‘AMUL’, which has licensed the right to use the ‘AMUL’ trademarks in respect of milk, milk products and other cognate and allied products, in favour of Plaintiff No.1, vide Trademark License Agreement dated 15th January, 2001.
6. The Defendant No.1 - Akshar Foods and Beverages is a milk manufacturer involved in the production and sale of ‘Gir Cow Milk’/‘A[2] Milk’. The Defendant No.2 is the Domain Name Registrar in respect of the Defendant No.1’s website being ‘www.aksharmilk.com’. The grievance of the Plaintiffs is that, on 29th June, 2021, Defendant No.1, through its website, has published an article titled as ‘Is Amul Milk Pure?: Must Know Health-Related’ which is stated to be highly libellous and disparaging, and wherein various allegations against the Plaintiffs and its products have been levelled. According to the Plaintiffs, the tone and tenor of the said article was meant to completely tarnish the reputation of the ‘AMUL’ brand and make baseless and unverified allegations against the Plaintiffs.
7. Vide order dated 8th July, 2021, the Court had granted an ex parte adinterim injunction against the Defendants, in the following terms:
8. Thereafter, the matter continued to be listed before the Joint Registrar. Vide order dated 29th November, 2021, the interim injunction already granted was made absolute. Vide order dated 31st May, 2022, the right of the Defendants to file the written statement has been closed.
9. On behalf of the Plaintiffs, it is submitted that the website of the Defendant No.1, which itself is a milk producer, would show that the campaign was meant to target, tarnish and dilute the ‘AMUL’ brand. The allegations made in the said article were that the Plaintiffs, as also elaborated upon in the Plaint, including the following: i. It was alleged that the Plaintiffs receive milk from the farmers of the surrounding region in Gujarat, who use those chemicals or synthetics in the milk, so as to earn more profits. ii. It was further alleged that the pasteurisation done by the Plaintiff removes 90% of enzymes, nutrition, proteins, and vitamins from the milk. iii. It has also been alleged that, due to the use of the tetra pack in the Plaintiffs’ products, 95% of the nutrients are dead or lost.
10. The screenshots of the impugned article have also been placed on record.
11. Mr. Abhishek Singh, ld. Counsel submits that, since the passing of the order dated 8th July, 2021 granting an interim injunction, the Defendants have taken down the impugned article which had been published on their website. Hence, he prays that a permanent and mandatory injunction be granted in the present suit, along with damages and costs.
12. This Court has heard ld. Counsel for the Plaintiffs and has also perused the record. A perusal of the impugned article makes it clear that various derogatory terminology has been used in the said article in respect of the Plaintiffs’ brand ‘AMUL’. At certain places, words such as “drinking rubbish”, “dead or lost nutrients”, “synthetic milk”, etc. have been used. The said article further claims that Plaintiffs’ ‘AMUL’ milk products, particularly the tetra pack product, are adulterated and devoid of all nutrients. The foregoing allegations are extremely derogatory and defamatory, against the Plaintiffs and its mark ‘AMUL’. The article itself is clearly targeted at ‘AMUL’ and intends to cause panic in the members of the public, who consume ‘AMUL’ branded products.
13. In a similar fact situation, in Mother Dairy Foods and Processing Ltd. v. Zee Telefilms Ltd. [AIR 2005 Delhi 195], the Court was concerned with an application seeking interim injunction restraining the Defendant from telecasting, publishing and showing on its website, its programme titled “Inside Story- Safed Doodh Ka Kala Karobar”. The Plaintiff, which is a public sector enterprise engaged in the supply of milk and milk products, also aggrieved by virtue of the said telecast investigating into how synthetic milk is being manufactured and sought damages for defamation. The Court, while rejecting the application seeking interim injunction, made the following observations which are relevant to the present case:
14. In Tata Chemicals Ltd. v. Puro Wellness Pvt. Ltd. [CS (OS) 403/2018 decided on 15th March, 2019], this Court was concerned with disparaging and slanderous advertising material, including pamphlets/booklets, television commercials, articles/interviews and videos, used by the Defendant which claimed that the Plaintiff’s product- ‘TATA’ Salt is harmful for health and not fit for human consumption. Relying upon the settled position of law as reiterated in several decisions, this Court observed as under:
15. Similarly, in Annhueser Busch LLC v. Rishav Sharma & Ors. [CS(COMM) 288/2020 decided on 30th July, 2020], the Plaintiff sought an injunction against the proprietors of a website ‘www.thefauxy.com’. It was the case of the Plaintiff that the Defendants had tarnished its reputation associated with its ‘Budweiser’ beer, by maliciously publishing defamatory/disparaging posts and videos to perpetrating the fictitious report/fake news of the Plaintiff’s employees urinating in the ‘Budweiser’ beer sold to its customers. In this context, the ld. Single Judge granted an interim injunction in the following terms:
16. In Hamdard National Foundation & Ors. v. Hussain Dalal & Ors. [CS (OS) No.1225/2013 decided on 7th June, 2013], the Plaintiffs, who are the proprietors of the well-known mark ‘Roohafza’, filed a suit against the Defendants for commercial disparagement and tarnishment of goodwill and damages. It was the grievance of the Plaintiffs, that the Defendants had released a movie, which had already hit the cinema halls, containing certain dialogues which showed the Plaintiffs’ ‘Roohafza’ product in a bad light, and the same was likely to tarnish the Plaintiffs’ reputation. While permitting the Defendants to release the home version of the impugned movie after omitting the objectionable contents therein, the ld. Single Judge observed as under:
25. The crucial question is where to draw a line between the 'right to tell' and 'no right to tell' because blanket rights and powers sometime become dangerous if checks and balances are not checked. The same must be resulted in some type of cases where the fundamental rights of other parties who has otherwise clean and good reputation of the person or institution against whom something adverse is said without any fault by a public figure whose versions are taken as truth.
26. As discussed earlier, in the present case, this Court is totally agreed with the observations of the Supreme Court. The said offending dialogues in the film are uncalled for, the same are in poor taste and these could have been avoided. The same are likely to tarnish the reputation of the plaintiffs.”
17. Similarly, in Marico Limited v. Abhijeet Bhansali [Notice of Motion No.1094 of 2019 in COMIP No.596 of 2019 decided on 15th January, 2020], the Plaintiff sought an injunction against the Defendant, who was a ‘Youtuber’/blogger on the popular website ‘www.youtube.com’, restraining him from publishing the impugned video or communicating the same to the public, as also, for disparaging or denigrating the Plaintiff’s ‘Parachute Coconut Oil’ product. It was the case of the Plaintiff that the Defendant had published a video on its ‘YouTube’ channel, titled “Is Parachute Coconut Oil 100% Pure?” wherein he had reviewed the Plaintiff’s product and made false statements in respect thereof. Under these facts and circumstances, the ld. Single Judge of the Bombay High Court held that the Plaintiff has made out a prima facie case for the grant of interim reliefs, and observed as under: “17.[1] …In order to make out a case for disparagement/slander of goods the Plaintiff must show the following: a) That the Defendant's statements are false; b) That the said statements were made and published maliciously/recklessly, c) That the said statements caused special damages to the Plaintiff.
25. The Defendant cannot under the garb of educating/bring the true facts to public, provide misleading information to disparage the Plaintiff's product. Any campaign to educate the members of the public by placing before them the true and correct facts may be welcomed. However, under the garb of educating and/or bringing the correct facts before the members of the public, no one should put misleading information which disparages/discredits or belittles someone else's product or influences the consumer not to buy the said product. Additionally, the unauthorized use of the Plaintiff's registered trademarks by the Defendant in a manner which is detrimental to its distinctive character or reputation cannot ever be in accordance with the honest practices in industrial or commercial matters.”
18. In an appeal challenging the above judgment in Marico Limited (supra), while permitting the impugned video to be published with certain modifications, the ld. Division Bench of the Bombay High Court in Abhijeet Bhansali v. Marico Limited [Interim Application No. 1 of 2020 in Commercial Appeal (L) No. 31 of 2020 in Notice of Motion No. 1094 of 2019 in COMIP No. 596 of 2019, decided on 14th February, 2020], laid down the following principles in respect of disparaging and defamatory statements leading to tarnishment of a brand:
25. Where an objective analysis of words and expressions used is capable of being debated upon, the issue pertaining to defamation would have to charter a route in the context of freedom of speech-vs.reputation.
26. Where a person asserts a matter of fact, he cannot be restrained from expressing himself. Law does not so permit. Because if he fails to make good the fact asserted, damages are awarded.
27. But with respect to opinions and subjective issues, which cannot demonstrably be shown to reveal the facts on which opinions are based, then different yardstick applies. If the statement is per se defamatory, an injunction must follow.
28. Labelling a statement as an opinion does not automatically make it an opinion or make it safe from the possibility of it being defamatory.
29. If a reader or listener could reasonably understand that the communication is stating a fact which can be verified, such communication is not treated as stating an opinion.
30. An expression of opinion may be simple or mixed. A simple expression of opinion is made after the facts on which the opinion is based are presented. A mixed expression of opinion is not accompanied by the facts. They may be employed by the speaker or assumed by those receiving the communication.
31. If an expression of an opinion is based on disclosed non-defamatory facts, an action is not supported, no matter how unreasonable or derogatory the opinion is.
32. However, if the expression of opinion is based on undisclosed or implied facts, support of an action depends on the understanding of the statement. If the recipient reasonably believes the truth of an undisclosed or implied defamatory fact about the subject of the statement, the speaker is liable for making defamatory statement.”
19. In the recent decision in T.V. Today Network Limited v. News Laundry Media Private Limited & Ors. [CS(COMM) 551/2021 decided on 29th July, 2022], the case of the Plaintiff, which operates the prominent television channels, namely ‘Aaj Tak’, ‘India Today Television’ and ‘Good News TV’, was that the Defendants have ridiculed and defamed the Plaintiff Company by publishing various videos and articles containing false, malicious, defamatory and derogatory information, through their digital news platform being ‘Newslaundry’. On the issue of commercial disparagement, the ld. Single Judge of this Court observed as under:
20. From the above decisions it is clear that disparaging remarks about any brand or products cannot be made without properly verifying the underlying facts. Sensationalism has to be avoided especially in matters of goods relating to mass consumption. Responsibility has to be taken before publication of articles that denigrate a product or a brand. While defamation may apply qua an individual, commercial disparagement would be caused to a brand or a business against whom unfounded allegations are made.
21. In the present case, the well-known nature of the Plaintiffs’ brand ‘AMUL’ is hardly disputed. There are a large variety milk and milk products sold under the Plaintiffs’ ‘AMUL’ brand. The products are consumed by young and old. If the Defendant No.1 which is itself a milk producer had any information as to the quality of the ‘AMUL’ products, it could have availed of proper remedies or approached the regulatory authorities. The putting up of a slanderous article on its own website without adducing any proof or evidence, if permitted, would give a free hand to defamation and slander. Thus, if any allegations had to be made against the Plaintiffs, the Defendant No.1 ought to have presented them in the form of facts before the Court. The allegations made in the impugned article which was published on the website of Defendant No.1, seems to be clearly baseless and without any confirmation or proof of the facts which are projected in the said article. While the Defendant No.1 could have raised a defence and established the contents of the impugned article, it has chosen to stay away from the Court, and has, in fact, complied with the order for removal of the article. Publication of unverified allegations purely with an intent to tarnish and dilute the reputation of a known brand or mark cannot be permitted or tolerated. In this case, the Defendant No.1 is a milk producer and is aware of the consequences of such allegations being made without any evidence. The same is clearly a thought-out and deliberate act of the Defendant No.1 with a view to vilify the Plaintiffs and the ‘AMUL’ brand.
22. Following the rationale of the judgment of the ld. Single Judge of this Court in Disney Enterprises Inc. & Anr. v. Balraj Muttneja &Ors. [CS (OS) 3466/2012 decided on 20th February, 2014], no ex parte evidence would be required in this matter. The same has been reiterated by the Court in S. Oliver Bernd Freier GMBH & CO. KG v. Jaikara Apparels and Ors. [210 (2014) DLT 381], as also, in United Coffee House v. Raghav Kalra and Ors. [2013 (55) PTC 414 (Del)]. The relevant observations from the judgment in Disney Enterprises Inc. (supra), are as under: “3. Though the defendants entered appearance through their counsel on 01.02.2013 but remained unrepresented thereafter and failed to file a written statement as well. The defendants were thus directed to be proceeded ex-parte vide order dated 04.10.2013and the plaintiffs permitted to file affidavits by way of exparte evidence. 4. The plaintiffs, despite having been granted sufficient time and several opportunities, have failed to get their affidavits for leading ex-parte evidence on record. However, it is not deemed expedient to further await the same and allow this matter to languish, for the reason that I have in Indian Performing Rights Society Ltd. Vs. Gauhati Town Club MANU/DE/0582/2013 held that where the defendant is ex parte and the material before the Court is sufficient to allow the claim of the plaintiff, the time of the Court should not be wasted in directing ex parte evidence to be recorded and which mostly is nothing buta repetition of the contents of the plaint.”
23. A perusal of the impugned article shows that it seems to have made minute comparisons between ‘A[1] Milk’ and ‘A[2] Milk’. However, no test reports have been placed on record to corroborate and prove the allegations levelled by the Defendant No.1 falsely claiming that ‘AMUL’ milk is harmful to the consumers.
24. In these facts and circumstances coupled with the lack of any defence having been placed before the Court by the Defendants, the present suit is liable to be decreed in terms of the reliefs of permanent and mandatory injunction, as sought in paragraphs (i) and (ii) of the prayer clause as set out in the Plaint. Accordingly, the Defendants and all others acting for and on its behalf are permanently restrained from uploading any articles/videos/photographs/posts identical or similar to the impugned defamatory article or any portions thereof, titled as ‘Is Amul Milk Pure?: Must-Know Health Related Facts’ in future, on any social media platform, websites or anywhere on the internet or anywhere in print or electronic media.
25. Considering the fact that the Defendants have chosen to stay away from the Court despite being aware of the same, as also, the fact that the entire article is completely based on unverified facts, the Defendant No.1 is directed to pay litigation costs of Rs.[3] lakhs to the Plaintiffs.
26. The Defendant No.1 shall pay the said costs to the Plaintiffs within three months, failing which, the Plaintiffs shall be permitted to seek execution of the decree or avail of its remedies, in accordance with law.
27. Decree sheet be drawn accordingly. All pending applications are also disposed of.
PRATHIBA M. SINGH JUDGE AUGUST 4, 2022/dk/ad (corrected and released on 16th August, 2022)