Delhi High Court allows Dabur to sell 9,020 Cool King cartons

MUMBAI: The packaging battle has cooled, but the heat is still on. The Delhi High Court has allowed Dabur India to sell 9,020 cartons of its Cool King Thanda Tael that were already in stock, giving the company until September 30 to clear the inventory in its packaging dispute with Emami.

The case stems from a complaint by Emami, which markets Navratna Ayurvedic Oil. Emami had accused Dabur of trademark infringement, passing off and unfair trade practices, arguing that the trade dress of Cool King Thanda Tael was deceptively similar to its Navratna packaging.

The court had earlier restrained Dabur from selling Cool King in the disputed packaging. A division bench upheld that restriction on May 22, observing that the products’ overall appearance, layout and colour scheme could potentially mislead consumers.

Dabur subsequently sought permission to sell stock manufactured before the injunction. A single judge allowed the request on June 19, subject to conditions including disclosure of sales and recall of unsold inventory after September 30.

Emami challenged that order, arguing that once the injunction had been upheld by a division bench, a single judge could not modify it. The division bench agreed with Emami on that legal point, holding that any relaxation or variation of an injunction affirmed on appeal would have to be considered by the division bench or a superior court.

There was, however, a packaging reprieve of sorts. Emami gave its no-objection to Dabur clearing the existing stock, provided the safeguards attached to the earlier permission remained in place.

That means Dabur can sell the remaining Cool King inventory only through physical outlets operated by wholesalers and retailers. The company must also withdraw the product from e-commerce platforms and seek removal of its listings and product images from platforms including Amazon and BigBasket.

Any stock left unsold after September 30 must be recalled. The court has also made clear that Dabur can rely on the permission only if it is able to complete the recall.

If the company cannot do so, it will not be allowed to continue selling Cool King in the disputed trade dress and will have to switch to packaging that is distinct from Emami’s.

The underlying injunction against selling Cool King in packaging deceptively similar to Navratna remains intact. The May 22 division bench ruling had held that the similarity in the products’ overall visual appearance and get-up was sufficient, at the prima facie stage, to justify the restraint.

So, while Dabur gets a limited window to move its existing stock, the court has kept the larger packaging line firmly drawn.