Failure to establish substantial goodwill and reputation precludes interim injunction in passing off actions.

The Plaintiff, incorporated in 2022, is engaged in selling packaged drinking water in eco-friendly paper-based boxes under the marks ‘WATERBOX’ and ‘MORE THAN WATERBOX’

The Plaintiff claimed prior adoption and use since 2018 through its predecessor-in-interest, M/s. Meera Enterprises

The Defendant is the registered proprietor of the mark ‘MY WATER BOX’ (Device), registered in 2025 with a user claim dating back to October 15, 2020

The Plaintiff filed a suit for passing off and copyright infringement, seeking an interim injunction against the Defendant’s use of ‘MY WATER BOX’

The Defendant challenged the Plaintiff’s user claims, alleging that two key invoices were forged (sharing the same invoice number), that the Plaintiff had no sales between 2020-2023, and that the packaging used by the Plaintiff was legally prohibited by the Bureau of Indian Standards (BIS) prior to July 2022

1. Whether the Plaintiff established a prima facie case of prior user and substantial goodwill required for an action of passing off.

2. Whether the packaging of alkaline water in tetra packs/paper cartons was legally permitted under BIS and FSSAI regulations prior to July 2022.

3. Whether the Delhi High Court possesses territorial jurisdiction over the Defendant, whose sales are allegedly restricted to Maharashtra.

The court applied the "Classical Trinity" test for passing off, which requires the plaintiff to establish (i) goodwill, (ii) misrepresentation by the defendant, and (iii) damage to that goodwill

S. Syed Mohideen v. P. Sulochana Bai, which establishes that prior user rights are superior to registration

the "Territoriality Principle" from Toyota Jidosha Kabushiki Kaisha v. Prius Auto Industry Ltd., requiring evidence of reputation within a specific jurisdiction

Clause 4(4)(a) of the FSSAI Packaging Regulations (2018) and the BIS Amendment No. 1 (2022) regarding "Processed Liquid Food" packaging standards

The court found the Plaintiff failed to establish prima facie substantial goodwill.

two invoices (MEE-007) from 2020 relied upon to prove prior use were deemed doubtful due to identical numbering and inconsistent "rounding off" figures

A CA certificate submitted by the Plaintiff confirmed zero sales between 2020 and 2023

the Plaintiff’s 2023 trademark application for ‘MORE THAN WATER BOX’ was filed on a ‘proposed to be used’ basis, contradicting its claim of long-standing commercial use

the court observed that ‘Alkaline Water’ constitutes "Processed Liquid Food," which BIS regulations only explicitly permitted in paper-based cartons starting July 2022; thus, the Plaintiff's earlier use appeared non-compliant

the court noted that neither party demonstrated sales beyond their respective home states (Gujarat for the Plaintiff and Maharashtra for the Defendant)

on the principles of equity, the court directed both parties to restrict their manufacturing and sales to their respective territories—the Plaintiff to the State of Gujarat and the Defendant to the State of Maharashtra—during the pendency of the suit

The question of territorial jurisdiction and the veracity of invoices were left for determination at the trial stage