Britannia Industries Ltd. vs ITC Limited
2017 SCC OnLine Del 7391 : (2017) 240 DLT 156 (DB) : (2017) 70 PTC 66
Coram: Hon’ble Justice Badar Durrez Ahmed and Hon'ble Justice Ashutosh Kumar
Forum: Hon’ble High Court of Delhi
Case No.: FAO (OS) (COMM) 77/2016 & CM Nos.33194-97/2016
Date of Decision: 10.03.2017

Facts:

  • ITC Limited(Respondent), a major private sector company with a 2015-16 turnover of Rs. 51,582 crores, entered the biscuit market in 2003 under the Sunfeast brand, launching products like Sunfeast Dark Fantasy in 2005 and expanding into snacks, juices, and dairy, with its 'Sunfeast Farmlite Digestive – All Good' biscuits achieving sales over Rs. 5 crores from February to July 2016, backed by Rs. 14 crores in marketing.
  • Britannia Industries Ltd., the Appellant, held a dominant position in the market with over 66% market share. Britannia had been manufacturing and marketing its range of Nutri Choice Digestive biscuits, characterized by a primary yellow packaging with secondary colors indicating different variants since 2008.
  • Initially, an original suit was filed by the ITC sued Britannia Industries Limited for allegedly using a trade dress similar to ITC's product "Sunfeast Farmlite Digestive – All Good" biscuit with its "Nutri Choice Digestive Zero" biscuit. ITC sought an injunction to prevent Britannia from passing off ITC's trade dress, packaging, label, and diluting the mark.
  • The Learned Single Judge granted an interim injunction in favour of ITC and against Britannia.
  • Hence, aggrieved by the decision of Learned Single Judge the Defendant-Appellant filed the present appeal.



Background:

  • This appeal challenged the order issued by a Learned Single Judge of this court on 06.09.2016 in IA No.10139/2016, which was an application filed by Respondent/Plaintiff under Order XXXIX Rules 1 & 2 of the Code of Civil Procedure, 1908. The Learned Single Judge granted an interim injunction against Britannia in favour of ITC.
  • An interim injunction was issued, restraining Britannia from using its existing packaging for Nutri Choice Digestive Zero biscuits during the suit. Britannia was allowed to use its international packaging or, while retaining the yellow colour, substitute the blue with any distinct colour other than variants of blue.
  • The Defendants aggrieved by the decision of the Learned Single Judge filed the present appeal.


Issue:

Whether the yellow and blue colour combination of the Plaintiff's product packaging had attained exclusive association with the Plaintiff? (Paragraph 16)