Brown-Forman Distillery, Inc. vs Brewholik Private Limited And Anr
- Court
- Delhi High Court
- Case type
- Civil Suit Commercial
- Decided on
- 02-04-2026
<div> <br /> <b>* </b> <b>IN THE HIGH COURT OF DELHI AT NEW DELHI</b> <br /> % Order reserved on: 30.03.2026 <br /> Order delivered on: 02.04.2026 <br /> <br /> CS(COMM) 1394/2025, I.A. 32351/2025 & I.A. 2059/2026 <br /> <b>+ </b><br /> <br /> BROWN-FORMAN DISTILLERY, INC. .....Plaintiff <br /> <br /> versus <br /> <br /> BREWHOLIK PRIVATE LIMITED & ANR ....Defendants <br /> <br /> <b>Advocates who appeared in this case:</b> <br /> <br /> For the Plaintiff : Ms. Shwetasree Majumder, Mr. Rohan Krishna Seth <br /> and Mr. Ritwik Marwaha, Advocates. <br /> <br /> For the Defendants : Mr. J. Sai Deepak Senior Advocate with Mr. Kapil <br /> Midha, Ms. Sindhoora Ravindran, Mr. Garv Singh, <br /> Ms. Vartika Gautam and Mr. Abhishek, Advocates <br /> for D-1. <br /> <b>CORAM:</b> <br /> <b>HON’BLE MR. JUSTICE TUSHAR RAO GEDELA</b> <br /> <b>O R D E R</b> <br /> <b>TUSHAR RAO GEDELA, J.</b> <br /> <b>I.A. 2059/2026 (By D1 seeking necessary directions)</b> <br /> 1. Present application has been filed on behalf of defendant no.1 <br /> (hereinafter referred to as <i>“the defendant”</i> ) under Section 151 of Code of <br /> Civil Procedure, 1098 ( <i>‘CPC’</i> ) seeking necessary directions. <br /> 2. Brief background leading to the filing of this application are as under:- <br /> a. Defendant claims to import whiskey under the brand “OLD <br /> FORESTER BLENDED RESERVE WHISKY”, which is <br /> Signature Not Verified<br /> <b><i> </i></b><br /> <b><i>CS(COMM) 1394/2025 </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> Page 1 of 15</i></b> <br /> <br /> <br /> Digitally Signed<br /> By:YASHRAJ<br /> Signing Date:02.04.2026<br /> 17:57:08<br /><br /> <br /> manufactured and bottled by a company namely M/s Yeti Distillery <br /> (P.) Ltd., having its registered office at Nepal. It is claimed that M/s <br /> Yeti Distillery (P.) Ltd. is the owner of the trademark “OLD <br /> FORESTER” in Nepal and holds valid registrations for the same. <br /> b. It is claimed that M/s Yeti Distillery (P.) Ltd. and defendant <br /> <br /> executed a Sale and Purchase Agreement dated 08.11.2023 for <br /> import, sale and distribution of the whiskey under the brand name <br /> “OLD FORESTER BLENDED RESERVE WHISKY” and other <br /> brands in the territories of India. Pursuant to the said Agreement, <br /> defendant claimed to obtain all requisite licenses and approvals for <br /> the purpose of import and sale of the whiskey under the brand <br /> “OLD FORESTER BLENDED RESERVE WHISKY” in <br /> compliance with all the existing and applicable excise, customs, <br /> GST and corporate regulatory frameworks. <br /> c. As per the case set out in the suit, it is claimed that the plaintiff is <br /> registered proprietor of over 100 registrations for the Mark “OLD <br /> FORESTER”, and is engaged in the business of beverage alcohol <br /> products which are manufactured, marketed, and sold around the <br /> world by the plaintiff’s affiliates and authorized licensees. It is <br /> claimed by the plaintiff that sometime in December, 2025, plaintiff <br /> became aware of the defendant’s alleged activities in India when its <br /> representatives came across the product being “BLENDED <br /> RESERVE WHISKEY” bearing the plaintiff’s trademark “OLD <br /> FORESTER”, being sold at liquor stores in Delhi. Upon perusing <br /> the packaging of the products, the plaintiff’s noticed that the said <br /> Signature Not Verified<br /> <b><i> </i></b><br /> <b><i>CS(COMM) 1394/2025 </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> Page 2 of 15</i></b> <br /> <br /> <br /> Digitally Signed<br /> By:YASHRAJ<br /> Signing Date:02.04.2026<br /> 17:57:08<br /><br /> <br /> products were manufactured by an entity, M/s Yeti Distillery Private <br /> Limited, and are being imported and sold by defendant in India. <br /> Being aggrieved thereof, plaintiff filed the suit for permanent <br /> injunction restraining infringement of the registered trademarks, <br /> passing off, rendition of accounts, damages, delivery up/destruction, <br /> etc. by the defendants. <br /> d. This Court by way of an <i>ex-parte ad-interim</i> injunction order <br /> dated 22.12.2025, restrained the defendant from importing, selling, <br /> distributing, marketing or advertising counterfeit products bearing <br /> the mark “OLD FORESTER” or any other deceptively similar <br /> variant thereof. <i>Vide</i> the said order, this Court had also appointed a <br /> Local Commissioner to visit the premises of the defendant and seize <br /> the products bearing the impugned mark “OLD FORESTER”. It is <br /> claimed by the defendant that the Local Commissioner on <br /> 30.12.2025, prepared an inventory of the counterfeiting products <br /> and released the seized goods on <i>superdari</i> to the representative of <br /> the defendant. <br /> e. It is stated by the defendant that <i>qua</i> the stocks lying at its <br /> <br /> premises in Delhi, the defendant had already made payments to M/s <br /> Yeti distillery (P.) Ltd., and had obtained all the requisite <br /> permissions and approvals to sell the said stocks. Furthermore, it <br /> had also paid applicable customs duties, GST, and other taxes on the <br /> Purchase Order in accordance with the Customs Act and GST <br /> regulations. <br /> Signature Not Verified<br /> <b><i> </i></b><br /> <b><i>CS(COMM) 1394/2025 </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> Page 3 of 15</i></b> <br /> <br /> <br /> Digitally Signed<br /> By:YASHRAJ<br /> Signing Date:02.04.2026<br /> 17:57:08<br /><br /> <br /> f. In view thereof, defendant preferred this instant application <br /> seeking permission to sell the existing stock(s) bearing the <br /> trademark “OLD FORESTER” and already placed orders. <br /> 3. Mr. J. Sai Deepak, learned Senior Counsel submitted that by way of the <br /> present application, the defendant seeks release of the seized goods, 3464 <br /> boxes of alleged infringing 180 ml and 750 ml bottles, and further release of <br /> 2600 boxes similar products <i>qua</i> which importation formalities are yet to be <br /> completed so as to enable the defendant to complete its contractual <br /> obligations. According to him, non-fulfillment of contractual obligations with <br /> the State Government is resulting in high penalties for non-supply and there is <br /> a likelihood of the defendant facing show cause notices of blacklisting. <br /> 4. Learned senior counsel stated that the plaintiff concealed material facts <br /> relating to the legality of the goods imported by the defendant and by <br /> misleading this Court, was able to obtain the <i>ex-parte ad-interim</i> injunction <br /> order dated 22.12.2025, predicated on the seized products being counterfeit <br /> products. He invited attention to paras 25 and 26 of the plaint to contend that <br /> while in the said paras, the plaintiff has projected as if it has come to know <br /> about the Nepalese entity M/s. Yeti Distillery (P.) Ltd. for the first time, <br /> however, in reality, the plaintiff had sought cancellation of the M/s. Yeti <br /> Distillery (P.) Ltd. registered trademark “OLD FORESTER” in Nepal, <br /> wherein the plaintiff did not succeed in establishing its rights over the mark <br /> “OLD FORESTER”, and the same was dismissed by the concerned <br /> Department/Authority in Nepal. Learned senior counsel also contended that <br /> had this Court been truthfully disclosed the status of M/s. Yeti Distillery (P.) <br /> Ltd., and the nature of import by the defendant, in all likelihood, at least an <i>ex-</i><br /> Signature Not Verified<br /> <b><i> </i></b><br /> <b><i>CS(COMM) 1394/2025 </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> Page 4 of 15</i></b> <br /> <br /> <br /> Digitally Signed<br /> By:YASHRAJ<br /> Signing Date:02.04.2026<br /> 17:57:08<br /><br /> <br /> <i>parte ad-interim</i> injunction may not have been passed unless an opportunity to <br /> explain the nature of the transaction was explained by the defendant. He <br /> forcefully contended that the plaintiff has to necessarily come clean for grant <br /> of an interim injunction, which is discretionary. <br /> 5. Learned senior counsel contended that he would not like to join issues <br /> <br /> on the aforesaid aspect, yet would submit that the products lawfully imported <br /> by the defendant, <i>arguendo</i> , would be only an infringing product/(s), but <br /> certainly not counterfeit. He would submit that if that were so, keeping in <br /> view the financial burden upon the defendant, coupled with the penalties being <br /> imposed by the Delhi Government over non-supply of the imported goods and <br /> the likelihood of facing a show cause notice for blacklisting the defendant, it <br /> would be in the interests of justice to permit the defendant to deliver and fulfill <br /> the contractual obligations. He would submit that the defendant would, on the <br /> directions of this Court, deposit a sum of Rs.25 to Rs.30 lakhs, without <br /> prejudice, as security in case the defendant is permitted to sell the seized <br /> goods and also import remaining goods as adverted to in paras 26 and 27 of its <br /> application. He also submitted, on instructions, that the defendant would not, <br /> in future, import any such product at all. <br /> 6. In order to buttresses its contentions and to justify the release of the <br /> <br /> goods, learned senior counsel relied on the following judgments passed by this <br /> Court, which are as follows: <br /> <b><i>a.</i></b> <b><i> </i></b> <b><i>Alkem Laboratories Ltd. vs. Laborate Pharmaceuticals India Ltd. </i></b><br /> <b><i>& Ors., </i></b> DHC:2356-DB dated 17.06.2022; <b><i> </i></b><br /> <b><i>b.</i></b> <b><i> </i></b> <b><i>Mr. Sidharth Sareen & Anr. vs. Ms. Benz Packaging Solutions </i></b><br /> <b><i>Pvt. Ltd. & Anr.,</i></b> CS(COMM) 556/2022 dated 23.09.2022; <b><i> </i></b><br /> Signature Not Verified<br /> <b><i> </i></b><br /> <b><i>CS(COMM) 1394/2025 </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> Page 5 of 15</i></b> <br /> <br /> <br /> Digitally Signed<br /> By:YASHRAJ<br /> Signing Date:02.04.2026<br /> 17:57:08<br /><br /> <br /> <b><i>c.</i></b> <b><i>Sun Pharma Laboratories Ltd. vs. Ajanta Pharma Ltd., </i></b><br /> <b><i> </i></b><br /> <b><i>2019:DHC:2573 dated 10.05.2019; </i></b><br /> <b><i>d.</i></b> <b><i>Swiss Bike Vertrjebs GMBH Subsidiary of ACCELL Group vs. </i></b><br /> <b><i> </i></b><br /> <b><i>Imperial Cycle Meg. Co. & Ors.,</i></b> 2022:DHC:5248 dated <br /> 29.11.2022. <b><i> </i></b><br /> 7. <i>Per contra</i> , Ms. Majumdar, learned counsel for the plaintiff submitted <br /> <br /> that there are a number of objections qua this application. <br /> 8. She stated that, on law, the permission to sell the seized goods of this <br /> nature cannot be granted as there is a clear proscription. In that, she drew <br /> attention to Section 29(2)(c), Section 29(3), and Section 29(6)(c) of the Trade <br /> Marks Act, 1999 (hereinafter referred to as “the Act”) which clearly stipulates <br /> that no infringing goods can be imported into India. <br /> 9. In order to support the above, she also referred to Section 2(16) of the <br /> Delhi Excise Act, 2009. She would submit that as per the definition of <br /> <i>“counterfeit liquor”</i> , counterfeit liquor would be those, which are found to be <br /> infringing the provisions of the Act, or the Copyrights Act, 1957 as also in <br /> respect of which an offence under Section 481, 483 or 486 of the Indian Penal <br /> code, 1860 (now Section 345, 347 or 349 of the Bhartiya Nyaya Sanhita, <br /> 2023) has been committed. She would forcefully contend that when Section <br /> 29(2)(c), 29(3), and 29(6)(c) of the Act and Section 2(16) of the Delhi Excise <br /> Act, 2009 are read conjunctively and harmonized, it leaves no doubt that <br /> neither can any infringing goods be imported into India nor can they be <br /> termed as anything other than “counterfeit”. This, coupled with the <i>prima </i><br /> <i>facie</i> finding recorded in the <i>ex-parte ad-interim</i> injunction order dated <br /> 22.12.2025, that the goods of the defendant are counterfeit, no such <br /> Signature Not Verified<br /> <b><i> </i></b><br /> <b><i>CS(COMM) 1394/2025 </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> Page 6 of 15</i></b> <br /> <br /> <br /> Digitally Signed<br /> By:YASHRAJ<br /> Signing Date:02.04.2026<br /> 17:57:08<br /><br /> <br /> permission can at all be granted. She placed reliance on the judgment of this <br /> Court in <b><i>Kapil Wadhwa & Ors. vs. Samsung Electronics Co. Ltd. & Anr., </i></b><br /> <b><i>2012 SCC OnLine Del 5172,</i></b> <i> </i> relevant paras of which are reproduced <br /> hereunder: <br /> <i>“10(i). The import of goods into India without the permission of the </i><br /> <i>registered proprietor of the Trade Mark is governed by Section 29 of </i><br /> <i>the Trade Marks Act 1999 and this flows from a conjoint reading of </i><br /> <i>Section 29(1) and Section 29(6) which require it to be held that when </i><br /> <i>a person uses a Trade Mark in the course of import or export of </i><br /> <i>goods, the same would be under the registered Trade Mark and thus </i><br /> <i>the act of import is in clear and explicit terms of the two provisions, </i><br /> <i>and would be infringement when import is made without the consent of </i><br /> <i>the registered proprietor of the Trade Mark. (Refer paragraphs 19, 22 </i><br /> <i>and 23 of the impugned decision). </i><br /> <i>xx </i> <i> </i> <i> </i> <i> </i> <i> </i> <i>xx </i> <i> </i> <i> </i> <i> </i> <i>xx </i><br /> <i>22. The learned Single Judge has correctly held, and this flows from a </i><br /> <i>bare reading of the various sub Sections of Section 29, that (refer sub </i><br /> <i>Section 1) a registered trade mark is infringed by a person who is not </i><br /> <i>a registered proprietor or a permitted user when he uses, in the course </i><br /> <i>of trade, the said mark or (refer sub Section 2) uses a mark which is </i><br /> <i>likely to cause confusion or which is likely to have an association with </i><br /> <i>the registered trade mark or (refer sub Section 3) uses a mark which is </i><br /> <i>identical or similar to the registered trade mark or (refer sub Section </i><br /> <i>5) uses a registered trade mark as his trade name or part of his trade </i><br /> <i>name or name of his business concern while dealing in goods or </i><br /> <i>services in respect of which the trade mark is registered, or (refer sub </i><br /> <i>Section 6) affixes the mark to goods or packaging thereof or exposes </i><br /> <i>the goods for sale by putting them on the market or imports or exports </i><br /> <i>goods under the mark. In the context of the question which we have to </i><br /> <i>answer, we agree with the reasoning of the learned Single Judge that </i><br /> <i>in view of sub-clause (c) of sub Section 6 of Section 29 where </i><br /> <i>reference is to import as well as export of goods, in the context of </i><br /> <i>Section 29 of the Trade Marks Act, 1999 even import of genuine goods </i><br /> <i>under a trade mark which is registered in India and proprietorship </i><br /> <i>whereof vests in some third party in relation to the description of the </i><br /> <i>goods would constitute an act of infringement.” </i><br /> Signature Not Verified<br /> <b><i> </i></b><br /> <b><i>CS(COMM) 1394/2025 </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> Page 7 of 15</i></b> <br /> <br /> <br /> Digitally Signed<br /> By:YASHRAJ<br /> Signing Date:02.04.2026<br /> 17:57:08<br /><br /> <br /> [emphasis supplied] <br /> 10. That apart, on facts, Ms. Majumdar submitted that the defendant has <br /> baselessly raised the bogey of having spent Rs.25 lakhs only on license fee or <br /> that it is liable to pay penalties. She would contend that the defendant has <br /> failed to place on record even a single document to evidence any such <br /> payment. In fact, according to her, the document placed by the defendant only <br /> reflects a payment of Rs.22,500/- on account of license fee towards the <br /> counterfeit products in question. Thus on this issue, she contended that the <br /> defendant has raised a false bogey of financial distress etc. <br /> 11. Moreover, she would also contend that in commercial jurisdiction, if <br /> parties indulge in infringement of registered trademarks etc, they must also be <br /> ready to suffer damages and penalties, since they are violating the law. It <br /> cannot be countenanced that an entity can indulge in trademark infringement <br /> and procurement of counterfeit goods, and yet, have the entitlement to put <br /> such goods to sale and earn profits. This would be a premium to illegal acts. <br /> According to her, this is impermissible, both in law and on facts. <br /> 12. So far as the knowledge of the plaintiff with respect to the Nepalese <br /> entity, i.e., M/s. Yeti Distillery (P.) Ltd., is concerned, she submitted that the <br /> disclosure has clearly been made. However, what transpired between the <br /> plaintiff and M/s. Yeti Distillery (P.) Ltd., in Nepal regarding the opposition to <br /> the mark “OLD FORRESTER”, has really no relation or bearing in the present <br /> suit. She would have the Court believe that irrespective of the fact that the <br /> plaintiff may have lost out a lawsuit against M/s Yeti Distillery (P.) Ltd. in <br /> Nepal, yet the insurmountable issue looming large is the undeniable fact that <br /> Signature Not Verified<br /> <b><i> </i></b><br /> <b><i>CS(COMM) 1394/2025 </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> Page 8 of 15</i></b> <br /> <br /> <br /> Digitally Signed<br /> By:YASHRAJ<br /> Signing Date:02.04.2026<br /> 17:57:08<br /><br /> <br /> the plaintiff has a registered trademark “OLD FORRESTER” in India. Thus, <br /> according to her, there is no concealment of material facts. <br /> 13. Ms. Majumdar also submitted that the reliance on the judgments placed <br /> by the defendants is misplaced as those judgments pertain to: <br /> a. cases involving deceptively similar trademarks and not identical <br /> <br /> trademarks/ counterfeits, <br /> b. cases where an application under Order XXXIX Rule 4, CPC was <br /> actually filed, <br /> c. cases where the Court, on the first date itself had granted leave to <br /> the Defendant to exhaust its goods, <br /> d. cases that did not involve the judicial seizure of goods under <br /> <i>superdari</i> . <br /> 14. This Court has heard Mr. J. Sai Deepak, learned senior counsel and Ms. <br /> Shwetasree Majumder, learned counsel for the plaintiff extensively, perused <br /> the pleadings, documents on record, and also examined the judgments handed <br /> over by the parties. <br /> 15. At the outset it would be apposite to first examine the law involved in <br /> this controversy. Section 29(2)(c), 29(3), and 29(6)(c) of the Act reads thus: <br /> <i>“</i> <b><i>29.</i></b> <i> xx </i> <i> </i> <i> </i> <i>xx </i> <i> </i> <i> </i> <i> </i> <i> </i> <i>xx </i><br /> <i>(2) A registered trade mark is infringed by a person who, not being a </i><br /> <i>registered proprietor or a person using by way of permitted use, uses </i><br /> <i>in the course of trade, a mark which because of— </i><br /> <i>(a) xx </i> <i> </i> <i> </i> <i>xx </i> <i> </i> <i> </i> <i> </i> <i> </i> <i>xx </i><br /> <i>(b) xx </i> <i> </i> <i> </i> <i>xx </i> <i> </i> <i> </i> <i> </i> <i> </i> <i>xx </i><br /> <i>(c) its identity with the registered trade mark and the identity of the </i><br /> <i>goods or services covered by such registered trade mark, </i><br /> <i>is likely to cause confusion on the part of the public, or which is likely </i><br /> <i>to have an association with the registered trade mark. </i><br /> Signature Not Verified<br /> <b><i> </i></b><br /> <b><i>CS(COMM) 1394/2025 </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> Page 9 of 15</i></b> <br /> <br /> <br /> Digitally Signed<br /> By:YASHRAJ<br /> Signing Date:02.04.2026<br /> 17:57:08<br /><br /> <br /> <i>(3) In any case falling under clause (c) of sub-section (2), the court </i><br /> <i>shall presume that it is likely to cause confusion on the part of the </i><br /> <i>public. </i><br /> <i>xx </i> <i> </i> <i> </i> <i> </i> <i>xx </i> <i> </i> <i> </i> <i> </i> <i> </i> <i>xx </i><br /> <i>(6) For the purposes of this section, a person uses a registered mark, </i><br /> <i>if, in particular, he— </i><br /> <i>(a) xx </i> <i> </i> <i> </i> <i>xx </i> <i> </i> <i> </i> <i> </i> <i> </i> <i>xx </i><br /> <i>(b) xx </i> <i> </i> <i> </i> <i>xx </i> <i> </i> <i> </i> <i> </i> <i> </i> <i>xx </i><br /> <i>(c) imports or exports goods under the mark; or </i><br /> <i>(d) xx </i> <i> </i> <i> </i> <i>xx </i> <i> </i> <i> </i> <i> </i><br /> <i> xx”</i><br /> <br /> On a plain reading of the said section, it appears that the proscription <br /> against export or import of goods into India, which are found to be infringing <br /> registered trademarks, is clearly set out. It makes complete sense too for the <br /> reason that a clever importer may import goods under the trademark which is <br /> registered in India, and while continuing to be in violation thereof, would be <br /> entitled to sell the same and earn profits thereon. This cannot be <br /> countenanced. It appears that in order to precisely avoid this mischief, clause <br /> (c) of sub-section (6) of Section 29 of the Act has been engrafted. <br /> 16. That apart, Section 2(16) of the Delhi Excise Act, 2009 clearly defines <br /> “counterfeit liquor”. It states: <br /> <i>“(16) “counterfeit liquor” means a liquor in respect of which— </i><br /> <i>(a) there is any violation of any right under the Trade Marks Act, 1999 </i><br /> <i>(47 of 1999) or the Copyright Act, 1957 (14 of 1957) or any other </i><br /> <i>similar Act in force, or </i><br /> <i>(b) in respect of which an offence under section 481 or section 483 or </i><br /> <i>section 486 of the Indian Penal Code, 1860 (XLV of 1860) has been </i><br /> <i>committed;” </i><br /> Broadly, sub-section (16) of Section 2 of the Excise Act, 2009 includes <br /> within its ambit any liquor which is found to be in violation of “any right” <br /> Signature Not Verified<br /> <b><i> </i></b><br /> <b><i>CS(COMM) 1394/2025 </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> Page 10 of 15</i></b> <br /> <br /> <br /> Digitally Signed<br /> By:YASHRAJ<br /> Signing Date:02.04.2026<br /> 17:57:08<br /><br /> <br /> under the Trade Marks Act, 1999, etc. Manifestly, there are no qualifications <br /> to the nature of the liquor and unambiguously, it would include all and any <br /> liquor found in violation of the rights, which are conferred under the Act. <br /> Thus, whether the goods procured are validly imported or not may not really <br /> be the primordial question to be addressed. If the goods, i.e., particularly, <br /> liquor, are imported and do infringe any right conferred upon any person or <br /> entity under the Act, they would be <i>“counterfeit liquor”</i> . <br /> 17. Read together, the undisputed view in law that emerges is that goods <br /> which infringe the registered trademark under the Act can neither be exported <br /> nor imported and; in case such goods are “liquor”, the same would be deemed <br /> to be <i>“counterfeit liquor”</i> . If this is so, then the question that the subject <br /> infringing goods having been imported, whether before the injunction order <br /> was passed or later, would really not matter. In fact, sub-section (16) of <br /> Section 2 of the Excise Act, 2009 does not even “deem” such goods to be <br /> counterfeit, rather, goods of such nature are termed as <i>“counterfeit liquor”</i> . <br /> 18. Given the above analysis and background, this Court would now <br /> examine the prayers sought by the defendant. The defendant has sought the <br /> following prayers in the instant application: <br /> <i>“a. Permit the Defendant No.1 to sell the stocks bearing the </i><br /> <i>Trademark ‘OLD FORESTER’ as mentioned in paragraph 26 and 27 </i><br /> <i>of the present application. </i><br /> <i>b. Pass any such order(s)/direction(s) as this Hon’ble Court may deem </i><br /> <i>fit and proper in the interest of justice in favour of the Defendant </i><br /> <i>No.1.”</i> <br /> The defendant has prayed that in terms of paragraphs 26 and 27 of the <br /> application, he may be permitted to (i) discharge the contractual obligations by <br /> supplying the imported goods to the Delhi Government after this Court <br /> Signature Not Verified<br /> <b><i> </i></b><br /> <b><i>CS(COMM) 1394/2025 </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> Page 11 of 15</i></b> <br /> <br /> <br /> Digitally Signed<br /> By:YASHRAJ<br /> Signing Date:02.04.2026<br /> 17:57:08<br /><br /> <br /> permits release of the goods which were seized by the Local Commissioner <br /> during execution of the Commission and; (ii) permit the defendant no.1 to <br /> further supply the yet to be imported goods in Delhi for discharging its <br /> contractual obligations. <br /> 19. At the asking of this Court, learned senior counsel, under instructions <br /> <br /> had also stated that the defendant would be willing to deposit a sum, anywhere <br /> between Rs.25 lakhs to Rs.30 lakhs purely as security to allay the <br /> apprehension of the plaintiff. <br /> 20. Ms. Majumdar had hotly contested that unless the defendant seeks <br /> variation of the interim order by filing an application under Order XXXIX <br /> Rule 4 of the Code of Civil Procedure, 1908 (“CPC”), this Court would not <br /> grant any such relief on an application under Section 151 of the CPC. While <br /> placing reliance on the judgment of the Supreme Court in <b><i>State of Uttar </i></b><br /> <b><i>Pradesh and Ors vs. Roshan Singh (dead) by LRs and Ors., 2008 SCC </i></b><br /> <b><i>OnLine SC 124,</i></b> she submitted that the inherent power under Section 151 of <br /> CPC can only be invoked when alternative remedies do not exist and cannot <br /> be used to override express procedural safeguards. Relevant paras of the same <br /> reads as under: <br /> <b><i>7.</i></b> <i> The principles which regulate the exercise of inherent powers by a </i><br /> <i>court have been highlighted in many cases. In matters with which the </i><br /> <i>Code of Civil Procedure does not deal with, the court will exercise its </i><br /> <i>inherent power to do justice between the parties which is warranted </i><br /> <i>under the circumstances and which the necessities of the case require. </i><br /> <i>If there are specific provisions of the Code of Civil Procedure dealing </i><br /> <i>with the particular topic and they expressly or by necessary </i><br /> <i>implication exhaust the scope of the powers of the court or the </i><br /> <i>jurisdiction that may be exercised in relation to a matter, the inherent </i><br /> <i>powers of the court cannot be invoked in order to cut across the </i><br /> <i>powers conferred by the Code of Civil Procedure. The inherent </i><br /> Signature Not Verified<br /> <b><i> </i></b><br /> <b><i>CS(COMM) 1394/2025 </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> Page 12 of 15</i></b> <br /> <br /> <br /> Digitally Signed<br /> By:YASHRAJ<br /> Signing Date:02.04.2026<br /> 17:57:08<br /><br /> <br /></div><table><thead><tr><th>powers of the court are not to be used for the benefit of a litigant who</th><th></th></tr></thead><tbody><tr><td>has a remedy under the Code of Civil Procedure. Similar is the</td><td></td></tr><tr><td>position vis-à-vis other statutes.</td><td></td></tr></tbody></table><table><thead><tr><th>8. The object of Section 151 CPC is to supplement and not to replace</th><th></th></tr></thead><tbody><tr><td>the remedies provided for in the Code of Civil Procedure. Section 151</td><td></td></tr><tr><td>CPC will not be available when there is alternative remedy and the</td><td></td></tr><tr><td>same is accepted to be a well-settled ratio of law. The operative field</td><td></td></tr><tr><td>of power being thus restricted, the same cannot be risen to inherent</td><td></td></tr><tr><td>power. The inherent powers of the court are in addition to the powers</td><td></td></tr><tr><td>specifically conferred on it. If there are express provisions covering a</td><td></td></tr><tr><td>particular topic, such power cannot be exercised in that regard. The</td><td></td></tr><tr><td>section confers on the court power of making such orders as may be</td><td></td></tr><tr><td>necessary for the ends of justice of the court. Section 151 CPC cannot</td><td></td></tr><tr><td>be invoked when there is express provision even under which the relief</td><td></td></tr><tr><td>can be claimed by the aggrieved party. The power can only be invoked</td><td></td></tr><tr><td>to supplement the provisions of the Code and not to override or evade</td><td></td></tr><tr><td>other express provisions. The position is not different so far as the</td><td></td></tr><tr><td>other statutes are concerned. Undisputedly, an aggrieved person is not</td><td></td></tr><tr><td>remediless under the Act.</td><td></td></tr></tbody></table><div><br /> Though in the final analysis, this question may not be relevant, <br /> however, since it has been raised, it would be appropriate to deal with it. <br /> 21. It is clear from the ratio laid down by the Supreme Court in <b><i>State of </i></b><br /> <b><i>Uttar Pradesh and Ors vs. Roshan Singh (dead) by LRs and Ors.,</i></b> <b> </b> that if a <br /> clear provision under the CPC is provided, Courts would largely not place <br /> reliance on the inherent power conferred by Section 151 CPC. Yet, in order to <br /> do complete justice under the doctrines <i>“ubi jus ibi remedium</i> ” and “ <i>ex dibito </i><br /> <i>justitiae”</i> , there is no complete embargo or absolute lack of such inherent <br /> jurisdiction available with the Court to pass necessary directions, as the need <br /> and case may be. Thus, to advocate that the Civil Court is denuded of all <br /> powers vested and conferred under Section 151 of the CPC, where other <br /> provisions are available, in all circumstances, without having regard the facts <br /> Signature Not Verified<br /> <b><i> </i></b><br /> <b><i>CS(COMM) 1394/2025 </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> Page 13 of 15</i></b> <br /> <br /> <br /> Digitally Signed<br /> By:YASHRAJ<br /> Signing Date:02.04.2026<br /> 17:57:08<br /><br /> <br /> and situations that may arise in a particular case, would lead to incongruity <br /> and in many cases, injustice. This Court is of the considered opinion that the <br /> inherent powers can and ought to be exercised, wherever it is deemed <br /> appropriate, of course on a strictly case to case basis. In the present case the <br /> defendant is seeking permission to dispose of the seized goods without <br /> disturbing the <i>ex-parte ad-interim</i> injunction order, on the anvil of facts as <br /> adumbrated hereinabove. The defendant also canvassed that certain stocks of <br /> seized goods may be kept under the custody of the Local Commissioner for <br /> the purposes of evidence during trial. Thus, this may not be a case as <br /> propounded by the Supreme Court in the aforenoted judgement. <br /> 22. Learned senior counsel strongly urged the aforesaid submissions while <br /> relying upon the judgment of the learned Division Bench in <b><i>Alkem </i></b><br /> <b><i>Laboratories Ltd.</i></b> <i>(supra)</i> . This court has examined the judgment referred to <br /> and finds that in that case two primary reasons had impelled the learned <br /> Division Bench to permit sale of the stocks of the appellant/defendant therein, <br /> namely (i) that the product was a pain reliever and a ‘Schedule -H’ drug and <br /> there was no dispute on the quality of the appellant’s products, and (ii) the <br /> public interest would be subserved if the product of the appellant/defendant <br /> was allowed to be sold. Whereas, in the present case, as noted above the <br /> seized goods would be covered under Section 29(6)(c) of the Act and Section <br /> 2(16) of the Delhi Excise Act, 2009. Moreover, the subject products are not <br /> pharmaceutical preparations or medicines, the release and sale of which can be <br /> said to be in ‘public interest’. Lastly, unlike <b><i>Alkem Laboratories Ltd.</i></b> <i>(supra)</i> <br /> where the respondent/plaintiff had not questioned the quality of the products <br /> involved therein, in the present case the plaintiff has vehemently and seriously <br /> Signature Not Verified<br /> <b><i> </i></b><br /> <b><i>CS(COMM) 1394/2025 </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> Page 14 of 15</i></b> <br /> <br /> <br /> Digitally Signed<br /> By:YASHRAJ<br /> Signing Date:02.04.2026<br /> 17:57:08<br /><br /> <br /> disputed the quality and rather alleges the said seized goods to be counterfeit. <br /> Thus, the reliance on <b><i>Alkem Laboratories Ltd.</i></b> <i>(supra)</i> is misplaced. <br /> 23. That said, on an overall consideration of the arguments of the defendant <br /> and the documents placed on record, though at the initial stage, this Court was <br /> inclined to pass certain directions, however, since the law appears to be clearly <br /> not in favour of the defendant, is refraining to do so. It cannot be <br /> countenanced in law that while sub-section (16) of Section 2 of the Excise <br /> Act, 2009 stands, read with the proscription in Section 29(6)(c) of the Act, this <br /> Court possibly could permit the defendant from selling the seized goods and <br /> placing them in the market. Any such direction may be violative of the <br /> provisions of the aforesaid Acts when read together and harmoniously. <br /> 24. Thus, in view of the above, this Court is unable to accede to the <br /> arguments of the defendant and the application is dismissed. <br /> 25. List on the date already fixed. <br /> 26. It is pertinent to note that all the above observations and findings have <br /> been rendered solely in respect of, and are limited to, the prayers sought in the <br /> present application, and shall not tantamount to any expression on the merits <br /> of the suit. This is for the reason that the aforesaid observations are predicated <br /> on issues and documents that are yet to be tested at trial, except for the legal <br /> analysis undertaken herein, lest it would cause prejudice to the parties. <br /> <br /> <b> </b><br /> <b>TUSHAR RAO GEDELA </b><br /> <b> (JUDGE)</b> <br /> <b>APRIL 02, 2026</b> / <i>rl </i><br /> <br /> Signature Not Verified<br /> <b><i> </i></b><br /> <b><i>CS(COMM) 1394/2025 </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> </i></b> <b><i> Page 15 of 15</i></b> <br /> <br /> <br /> Digitally Signed<br /> By:YASHRAJ<br /> Signing Date:02.04.2026<br /> 17:57:08</div>