Trademark Dispute Escalates: Swagath Restaurant Chains Face Off In Delhi High Court

Trademark Dispute Escalates: Swagath Restaurant Chains Face Off In Delhi High Court

Introduction

The popular restaurant chain Swagath has filed a lawsuit against a Telangana-based hotel, also named Swagath, alleging trademark infringement. The plaintiff has also sought cancellation of the defendant's registered mark.

Factual Background

Swagath Delhi, a restaurant chain operating in North India, claims to have acquired goodwill and reputation under the mark 'SWAGATH'. The defendant, Hotel Swagath, is a restaurant and hotel chain that has been operating under the same name since 1991 and currently runs 11 establishments across Telangana.

Procedural Background

The Delhi High Court has issued notice in both the infringement suit and the rectification petition. The case will be considered next on August 27, 2025 on the issue of interim relief. The bench of Justice Amit Bansal has ordered the plaint to be registered as a suit and listed before the Court on August 27 for consideration of the application for interim injunction.

Issues Involved

1. Trademark Infringement: The court will determine whether the defendant's use of the mark 'SWAGATH' constitutes trademark infringement.

2. Goodwill and Reputation: The court will consider the plaintiff's claim of acquired goodwill and reputation under the mark 'SWAGATH'.

3. Cancellation of Registered Mark: The plaintiff seeks cancellation of the defendant's registered mark.

Contentions of the Parties

Plaintiff's Contentions: Swagath Delhi claims that the defendant's use of the mark 'SWAGATH' constitutes trademark infringement and seeks cancellation of the defendant's registered mark.

Defendant's Contentions: Hotel Swagath claims to have been operating under the name 'SWAGATH' since 1991 and has 11 establishments across Telangana.

Reasoning & Analysis

The case portrays the complexities of trademark law and the importance of protecting brand identity. The court's decision will depend on the evidence presented by both parties and the application of relevant trademark laws.

Final Outcome

The case is ongoing, and the final outcome will depend on the court's decision on the issue of trademark infringement and cancellation of the registered mark.

Implications

The case has significant implications for businesses operating in India, particularly in the hospitality industry. It highlights the importance of conducting thorough trademark searches and ensuring that brand identities do not infringe on existing trademarks.

In this case the plaintiff was represented by Mr. Hemant Singh, Ms. Mamta Rani Jha, Ms. Anupriya Shyam and Ms. Anjeeta Rani, Advocates.

Meanwhile the defendant was represented by Mr. RajShekhar Rao, Senior Advocate with Mr. Resu Mahender Reddy, Senior Advocate and Mr. B. Shravanth Shankar, Mr. Rohit Bharadwaj, Ms. Prerna Robin, Ms. Shwetha Bhaskar Dhanturi, Mr. Vikas Dhanturi, Mr. Resu Kaushik Reddy & Mr. Shivnath Sawhney, Advocates for R-1. Ms. Nidhi Raman, CGSC with Mr. Om Ram & Mr. Nikunj Bindal, Advocates.