Anand & Anand Defends Rasna's Trademark Rights: Delhi High Court Restrains Franchise India
Anand & Anand Defends Rasna's Trademark Rights: Delhi High Court Restrains Franchise India
Introduction
The Delhi High Court, on May 9, 2025, granted an ex parte ad interim injunction restraining Franchise India Brands Limited and Ichakdana Food Services LLP from using the trademark "Rasna" or "Rasna Buzz". This decision came after industrialist Piruz Khambatta and Rasna Pvt. Ltd. filed a suit alleging trademark infringement and unauthorized franchise expansion.
Factual Background
Rasna, a well-known brand in the food and beverage sector since the 1970s, is the registered proprietor of the ‘Rasna’ trademark across various classes. The brand had operated over 25 ‘Rasna Buzz’ franchise outlets in partnership with the defendants under a 2018 Work Order and a Master License Agreement. However, disputes arose over unpaid franchise fees, royalty dues, and non-transparent revenue disclosures, leading to the non-renewal of the agreement.
Issues Involved
1. Trademark Infringement: Whether the defendants' continued use of the ‘Rasna Buzz’ mark constituted trademark infringement.
2. Unauthorized Franchise Expansion: Whether the defendants' actions amounted to unauthorized franchise expansion.
Contentions of the Parties
Plaintiffs' Contentions: The plaintiffs argued that the defendants continued launching and promoting new ‘Rasna Buzz’ outlets without authorization, causing confusion among consumers and potential harm to the brand.
Defendants' Contentions: No contentions were recorded as the order was passed ex parte.
Reasoning and Analysis
The court was presided by Justice Saurabh Banerjee who observed that the continued use of the ‘Rasna Buzz’ mark by the defendants posed a risk of confusion among consumers, particularly since the mark pertains to edible goods. The Court held that, “The plaintiffs have been able to make out a prima facie case… allowing the defendants to continue passing off their products as that of the plaintiffs… is prone to cause irreparable harm, loss and injury.”
Final Decision
The Court decided that the defendants, their directors, partners, main officers, servants, agents, franchisees, affiliates, sub-franchisees, operator licensees, and others are prohibited from using the trademarks 'Rasna', 'Rasna Buzz', or any other deceptively similar mark. The hearing on the case will be held in September 2025.
Law Settled
This decision reinforces the principle that trademark infringement and unauthorized franchise expansion can cause irreparable harm to a brand, and courts may grant injunctions to protect the brand's interests.
In this case the plaintiff was represented by team Anand & Anand led by Mr. Saif Khan, Mr. Shobhit Agarwal, Ms. Meghana Kudligi and Mr. Prajjwal Kushwaha, Advocates.
