In LT foods limited vs. Saraswati Trading Company, the Delhi High Court granted LT foods limited, a producer of Daawat Basamti Rice, a sum of Rs20 lakh as damages and Rs5 lakhs as costs.
The defendant was found to be selling jawaphool rice rather than basmati rice in addition to using the same packaging to deceive customers, the court concluded.
Justice Prathiba M Singh held “In the opinion of this Court, the Defendant is clearly indulging in blatant violation of the Plaintiff’s statutory and common law rights in the marks ‘DAWAT’ / ‘DAAWAT’. Moreover, considering that the product is rice for human consumption, the misrepresentation by the Defendant that the same is Basmati Rice is also impermissible,”
Thus, the court held that not only such an action by the plaintiff is contrary to the law but also damaging the plaintiff’s goodwill and business.