Relief to Tata's IHCL; Delhi HC bars 'Taj Iconic' from using 'Taj' name

Delhi High Court has ordered the MD of Taj Iconic to pay Rs 10 lakh in damages and Rs 5 lakh in costs to IHCL, in a trademark lawsuit filed by the Tata Group

The Delhi High Court on Monday granted significant relief to Tata Group-owned Indian Hotels Company Ltd (IHCL) by permanently barring the managing director of Taj Iconic Membership from using the ‘Taj’ name in its content, corporate name, and logo, according to a report by The Economic Times.

Background of Taj trademark case

This decision follows a trademark lawsuit filed by the Tata Group against the managing director of Taj Iconic Membership.

The court observed that Taj Iconic indulged in criminal activity by impersonating the petitioner and defrauding a jeweller of a hundred gold coins worth Rs 51 lakh.

As a result, the High Court directed the MD of Taj Iconic to pay Rs 10 lakh in damages and Rs 5 lakh in costs to IHCL. Additionally, the court has ordered the transfer of the Taj Iconic domain name to IHCL.

IHCL has been using the trademark ‘Taj’ since 1903 and operates the luxurious Taj brand of hotels.

In May, the HC had banned Shivgyan Developers Private Limited from unauthorised use of the ‘Vivanta’ brand of ‘Taj’ belonging to the Tata Group, according to a report by Livelaw.

IHCLs' expansion plans

The IHCL is a leading name in the Indian hospitality industry and is rapidly expanding with new business strategies. The company has unveiled its plan - Ahvaan 2025 - aimed at having over 300 hotels, clocking a 33 per cent earnings before interest, taxes, depreciation, and amortisation (Ebitda) margin and having a 35 per cent Ebitda contribution from new businesses and management fees by the financial year 2025-26 (FY26).

On August 29, the company announced expanding its brand portfolio by launching ‘Gateway’ brand. Explaining its objective, Puneet Chhatwal, MD and CEO, IHCL, said, "...the reimagined Gateway introduces a full-service hotel offering in the upscale segment, an ideal fit to capture growth opportunities in micro markets of metros and Tier II and Tier III cities.”