Bombay High Court Imposes ₹50 Lakh Fine in Trademark Fraud Case

The Bombay High Court has ordered a fine of ₹50 lakh against Shoban Salim Thakur, owner of the footwear brand ‘Doctor Extra Soft’, for suppressing crucial facts in a trademark dispute. This ruling came after the court found Thakur had engaged in fraudulent behavior to secure legal relief against his competitor, Chaitanya Arora, based in Delhi.

In June 2023, the court issued an interim order favoring Thakur, preventing Arora and his companies from selling footwear under similar trademarks, including ‘Doctor Health Super Soft’ and ‘Doctor Super Soft’. Arora, who was absent during the initial court proceedings, later submitted an affidavit challenging the validity of Thakur’s claims. He alleged that Thakur had approached the court with “unclean hands,” deliberately withholding important documents regarding the trademark’s geographic limitations.

During the hearings, Advocate Hiren Kamod, representing Arora, contended that Thakur had “consciously and systematically played a fraud on this court” by not disclosing that his trademark registration was valid only in Maharashtra. Despite this limitation, Thakur obtained a nationwide injunction, which the court deemed an egregious misrepresentation.

Senior counsel Janak Dwarkadas, defending Thakur, denied any wrongdoing. He argued that Thakur’s omission of specific details in his complaint was unintentional and not significant enough to warrant cancellation of the order. Nonetheless, the court found these claims unconvincing.

Justice Arif Doctor, presiding over the case, stated that Thakur’s actions were “plainly dishonest” and emphasized that he had not only deceived the court but also attempted to perpetuate the fraud after evidence was brought to light. The judge noted, “The overarching issue before the Court is the dishonest and fraudulent conduct of the Plaintiff and the manner in which the order has been obtained. This is something that cannot be condoned.”

The court’s decision highlighted the significant impact on Arora’s business, which faced a complete halt due to Thakur’s interim order. In a move to rectify the situation, the court mandated Thakur to pay ₹25 lakh each to Chaitanya Enterprises and Sonu Shah, the proprietor of Sonu Enterprises, as compensation for the damages incurred.

This ruling underscores the importance of transparency and honesty in legal proceedings, particularly in trademark disputes, where the stakes can be high for all parties involved. As businesses navigate the complexities of intellectual property rights, the Bombay High Court’s decision serves as a reminder of the legal responsibilities that come with ownership and registration of trademarks.