Hon'ble Delhi High Court restrains VIP Industries Ltd from using Trademark CARLTON / CARLTON LONDON

The Hon'ble Delhi High Court vide its interim order dated 17 July 2023, the copy of which has been uploaded on website of the Hon'ble Delhi High Court and made available on 19 July 2023, has passed an order restraining the Company from using the Trademark CARLTON / CARLTON LONDON or any variants of the same for marketing, selling or offering to sell bags and other allied goods falling in Class 18 in a suit filed by Carlton Shoes Limited and Carlton Overseas Pvt Ltd. The Hon'ble Delhi High Court has by the same interim order also dismissed an interim application in a suit filed by the Company against Carlton Shoes Limited and Carlton Overseas Pvt Ltd. The order mentions that the findings are only tentative and prima facie and shall have no bearing on the final hearing of the suits on merits.

The Company has filed an appeal against the said order and sought for a stay of the said order.

In October, 2019, the Company learned that Carlton Shoes Limited, who were engaged in the business of shoes and accessories like jewellery, perfumes, watches, etc., had started using trademark "Carlton" in relation to the handbags and was in the process of venturing into the luggage business. To restrain Carlton Shoes Limited from entering into Luggage business, the Company had issued a cease-and-desist notice to Carlton on 10 October, 2019. Upon receipt of the notice, Carlton Shoes Limited filed a Suit against the Company before the Hon'ble Delhi High Court and sought injunction against the Company from using the Trademark CARLTON. The Company also immediately filed a Suit against Carlton Shoes Limited and Carlton Overseas Pvt Ltd before the Hon'ble Delhi High Court to protect its rights.

The Hon'ble Delhi High Court heard the interim application in both suits together and by a common order has restrained the Company from using the Trademark - Carlton in the manner mentioned above and dismissed the interim application filed by the Company against Carlton Shoes Limited and Carlton Overseas Pvt Ltd.

Carlton brand caters to the premium luggage segment and contributes to more than Rs. 100 crores in the total revenue of the Company.

The Company expects to get the relief from the Appellate Court and does not anticipate any financial implications on the operation of the Company.

Shares of VIP Industries Limited was last trading in BSE at Rs. 595.00 as compared to the previous close of Rs. 599.50. The total number of shares traded during the day was 9117 in over 729 trades.

The stock hit an intraday high of Rs. 608.00 and intraday low of 592.90. The net turnover during the day was Rs. 5441249.00.

Source : Equity Bulls

Keywords

VIPIndustries INE054A01027 RestrainingOrder CARLTONLONDON CARLTON Trademark