In a significant legal development, the Bombay High Court has imposed a hefty penalty of Rs 4 crore on Patanjali Ayurved Ltd for violating a 2023 court order that restrained the company from selling its camphor products amid an ongoing trademark infringement case with Mangalam Organics Ltd.
Justice R I Chagla, presiding over the case, ruled that Patanjali had willfully and deliberately breached the court’s interim order. This decision comes after Mangalam Organics sought contempt action against Patanjali for continuing to market and sell their camphor products despite the court’s explicit prohibition.
The court’s directive requires Patanjali to deposit the amount within two weeks, adding to an earlier penalty of Rs 50 lakh imposed on the company this month for similar violations. The August 2023 interim order initially sought to halt Patanjali’s camphor product sales and advertising, following allegations by Mangalam Organics of copyright infringement.
During the proceedings, the court reviewed a June 2024 affidavit from Rajneesh Mishra, Patanjali’s director, who offered an unconditional apology and assured compliance with the court’s orders. However, it was disclosed in the affidavit that Patanjali had continued to distribute camphor products worth Rs 49,57,861 post-injunction, further compounding their non-compliance.
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Justice Chagla expressed that, while there was a compelling case for imprisonment of Mishra due to the severity of the breach, the court refrained from such an order considering the implications for his personal liberty. Nonetheless, he warned that failure to comply with the financial penalty would result in immediate custody for Mishra.
