Court imposes Rs 50 lakh fine on Patanjali for flouting camphor sales ban

The Bombay High Court, on Monday, directed Patanjali Ayurved to deposit Rs 50 lakh for violating an ad-interim order restraining the company from selling its camphor products. Justice RI Chagla observed that Patanjali had admitted to supplying camphor products after the injunction order issued in August 2023 and must now remedy their contempt.

"Such persistent breach of the injunction order by Patanjali cannot be tolerated by this court," the judge said.

The court was hearing an interim application by Mangalam Organics in a trademark infringement suit against Patanjali Ayurved, alleging passing off and trademark infringement concerning its camphor products.

The court had initially restrained Patanjali from selling its camphor products on August 30, 2023.

Mangalam Organics informed the court through the interim application that Patanjali had violated this order. Patanjali, in an affidavit, offered an unconditional apology and promised to comply with the court's orders. The affidavit revealed that despite the injunction order, Patanjali had supplied camphor products worth over Rs 49 lakh to distributors till June 24 and that products worth more than Rs 25 lakh were still with distributors, but their sale had been halted.

Mangalam Organics further claimed that Patanjali continued selling the products after June 24 and that the camphor products were available on Patanjali's website on July 8. Mangalam Organics pointed out that this information was not disclosed in Patanjali's affidavit.

The court noted Patanjali's admission of supplying camphor products post-injunction and also acknowledged the claim of continued sales after June 24.

"Having considered that Patanjali in the said affidavit has itself admitted that it has been supplying the impugned camphor products post the injunction order and which according to Patanjali, continued till June 24, 2024, there is an admission as to the breach of the injunction order having been committed by defendants for which the defendants would necessarily have to purge the contempt of the injunction order," the court stated.

Besides ordering Patanjali to deposit Rs 50 lakh, the court also directed Mangalam Organics to submit an affidavit detailing the breaches by Patanjali. The case will be next heard on July 19.