SC junks Adyar Gate plea vs order to waive pre-institution mediation for ITC
This story was originally published at 14:32 IST on 21 March 2025
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NEW DELHI – The Supreme Court on Friday refused to interfere with an order of the Delhi High Court to grant an exemption to ITC Ltd. and ITC Hotels Ltd. from pre-institution mediation in its suit against Adyar Gate Hotels Ltd. regarding 'Dakshin' trademark. However, the apex court said that the mediation process can be taken at any stage by the high court while the suit was being heard. Adyar Gate Hotels had argued that the suit by ITC was something which could be mediated. However, ITC had opposed any mediation between the parties.
On Feb. 24, a division bench of the high court had set aside the order of a single-judge bench which temporarily restrained Adyar Gate Hotels from using or dealing in restaurant and food business under the trademark 'Dakshin' or any other name similar to the registered trademark of ITC Ltd. On Feb. 13, a single-judge bench had passed an ex-parte ad-interim injunction against Adyar Gate Hotels in a suit filed by ITC.
The division bench asked Adyar Gate Hotels to file a response to the interim injunction plea filed by ITC before the single judge. The single judge bench of the high court is currently hearing the case afresh.
The single-judge bench's verdict came on a plea filed by ITC and its associate company ITC Hotels to restrain Adyar Gate Hotels from infringing on the trademarks and copyright of the plaintiffs. ITC said that in October, the petitioners were shocked to learn about Adyar Gate opening a standalone restaurant at a new location in Chennai using an identical mark 'Dakshin'. Further, the defendant was using the mark in an identical style and get-up as used by the plaintiffs and serving a similar cuisine as the plaintiff's restaurants, said ITC and ITC Hotels.
At 1428 IST, shares of ITC Hotels were up 4.7% at INR 191.76 on the National Stock Exchange, while those of ITC were down 0.4% at INR 402.40. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Surya Tripathi
Edited by Ashish Shirke
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