Delhi HC restrains entities from unauthorised use of 'DHANUKA' trademark

The Delhi High Court has restrained various entities from unauthorised use of agrochemical maker Dhanuka Agritech Ltd's trademark 'DHANUKA'.

Justice Tejas Karia granted an interim stay till January 29 on a plea filed by Dhanuka Agritech against Agrim Wholesale Private Limited and others, seeking a permanent injunction, restraining them from "trademark infringement, passing off, dilution, and unfair competition".

"It is clear that the plaintiff is the registered proprietor of the plaintiff's marks. The plaintiff has been able to establish long and continuous use of the plaintiff's mark with respect to the plaintiff's products. The plaintiff has demonstrated the goodwill and reputation acquired by the plaintiffs marks... The defendants' sale of the infringing products is prima facie dishonest and nothing but an attempt to ride the goodwill and reputation of the plaintiffs marks so as to cause confusion in the market," the judge said.

The judge said that Dhanuka Agritech Ltd has made out a prima facie case for grant of an ex-parte ad-interim injunction as the alleged acts attributed to the defendants were likely to cause confusion in the course of trade of the plaintiffs, such that the consumers may associate the infringing products with the plaintiff, "leading to erosion of consumer trust and dilution of the goodwill and reputation of the plaintiff amongst the members of the trade and public. Thus, the balance of convenience lies in favour of the plaintiff."  The judge restrained respondents from "using, soliciting, manufacturing, selling, offering for sale, importing, exporting and advertising in any manner including on the internet and e-commerce platform, directly or indirectly dealing in crop production products under the plaintiff's marks, 'DHANUKA'," till January 29, the next date of hearing.

The court recognised Dhanuka Agritech's long-standing reputation, goodwill, and statutory compliance in the agrochemical sector. With a strong nationwide presence, four ISO-certified manufacturing facilities, and a revenue of Rs 2,035 crore in FY 2024-25, the company has built significant trust among farmers, distributors, and dealers across India.

In its order, the judge noted that the defendants "miserably failed" to follow the rules and were selling products through e-commerce in the name of Dhanuka Agritech Ltd without holding a valid license and a principal certificate to sell its products.

The judge also noted that the Ministry of Agriculture & Farmers Welfare, Government of India, has also issued an advisory to the directors of agriculture in all states and Union Territories to take necessary steps for effective implementation of rules regarding sale of insecticides through e-commerce activities.

"However, defendant no. 1 (Agrim Wholesale Pvt Ltd) has failed to comply with the same," the judge said, noting that Agrim's acts, involving the sale of products in violation of the rules, have resulted in multiple written complaints being filed by several registered pesticide manufacturers.

The judge further noted that two show cause notices were issued to Agrim Wholesale Pvt Ltd by the joint director of agriculture (plant protection and quality control), West Bengal.

Despite the same, the defendants continue to act in breach of the statutory framework and continue to sell such products through their portal/mobile application without obtaining the requisite principal certificates, he noted.