Whalesbook
The Delhi High Court has issued an ex-parte ad-interim injunction preventing a Delhi-based hotel, Bukhara Inn, from using the "Bukhara" trademark. This ruling supports ITC Limited and ITC Hotels' claim that Bukhara Inn's adoption of the mark was dishonest and infringed upon ITC's well-established brand.
ITC launched its iconic Bukhara restaurant at ITC Maurya, New Delhi, in the late 1970s. The "BUKHARA" trademark has multiple registrations dating back to 1985 and was officially recognized as a "well-known trademark" by the High Court in 2024, granting it enhanced legal protection. ITC reported FY 2024-25 revenue of approximately ₹48.84 crore for Bukhara.
Justice Manmeet Pritam Singh Arora noted that ITC is the prior adopter and registered proprietor of the trademark. The court found that Bukhara Inn's actions demonstrated "mala fides and deliberate infringement," as the adoption of the mark appeared to be with full knowledge of ITC's renowned status. The defence citing the proprietor's surname was deemed insufficient justification.
The court granted an ad-interim injunction, stating that ITC had established a strong prima facie case and that the balance of convenience favored ITC, preventing irreparable loss. The defendant is restrained from using the "BUKHARA" trademark or any deceptively similar mark. The next hearing is scheduled for April 14, 2026.
Heading: Impact
This ruling reinforces ITC's brand protection and intellectual property rights, safeguarding its valuable brand equity. For investors, it highlights ITC's ability to defend its assets against infringement, potentially boosting confidence in the company's management and brand value. The successful defense of a "well-known trademark" is positive for the company's long-term brand strategy and revenue streams from its hospitality division.
Rating: 7/10
Heading: Difficult Terms
Ex-parte ad-interim injunction: A court order granted without hearing the opposing party (ex-parte) for a temporary period (ad-interim) to prevent immediate harm until a full hearing can take place.
Prima facie: At first sight; based on initial evidence, the case appears strong enough to proceed.
Infringement: The unauthorized use of a trademark in a way that is likely to cause confusion among consumers about the source or sponsorship of goods or services.
Passing off: A form of unfair competition where one party misrepresents its goods or services as being associated with another established business, causing damage to the latter's reputation and goodwill.
Mala fides: In bad faith; with dishonest intent.
Well-known trademark: A trademark that is widely recognized by the public as belonging to a particular company, even outside of the goods/services it directly represents, offering higher levels of protection.