Delhi High Court Grants Permanent Injunction to Rishikesh’s Chotiwala Restaurant in Trademark Infringement Case, Awards ₹3 Lakh in Damages

The Delhi High Court has issued a permanent injunction in favor of Chotiwala Food And Hotels Private Limited, a well-known restaurant based in Rishikesh, Uttarakhand. The ruling restrains three Delhi-based restaurants from using the name, trademark, or artistic work of 'Chotiwala' without authorization. Additionally, the court has awarded ₹3 lakh in damages to the original Chotiwala restaurant, recognizing the deliberate trademark infringement by the defendants.

Background of the Case

Established in 1958, Chotiwala Food and Hotels Pvt. Ltd. was originally known as Chotiwala Shudh Ghee Bhojanalay and Chotiwala Bhojanalay. In 1995, the restaurant rebranded as ‘Chotiwala’ and secured multiple trademark registrations for its name and associated artistic work.

A key branding element of Chotiwala is its real-life mascot, which is deployed at the restaurant to engage with customers. Over the years, the mascot has become an iconic symbol, making 'Chotiwala' distinctive and widely recognized in the food and hospitality industry. The restaurant claimed that its consistent operation for over 65 years has led to ‘Chotiwala’ acquiring secondary meaning, strengthening its goodwill and brand reputation.

According to court submissions, Chotiwala recorded annual sales of over ₹2 crore in FY 2021-2022, further demonstrating its strong market presence.

Trademark Infringement by Delhi-based Restaurants

Chotiwala approached the Delhi High Court after receiving complaints from customers visiting New Delhi, who reported ordering food from a so-called ‘Chotiwala’ branch in Delhi but found the quality to be substandard. Upon investigation, the plaintiffs discovered that multiple restaurants in Delhi had unlawfully incorporated the ‘Chotiwala’ name in their branding to mislead customers and capitalize on the original restaurant’s goodwill.

The court found that these Delhi-based restaurants had used Chotiwala’s name, trademark, and artistic elements with malafide intent, thereby deceiving the public. Additionally, they created fake listings on online food delivery platforms, including Zomato and Magicpin, leading to substantial customer confusion.

Also Read: Delhi High Court Rules in Favor of Kiranakart in Zepto Trademark Battle

Court’s Ruling and Observations

In its earlier order, the Delhi High Court had already directed Zomato and Magicpin to remove the infringing restaurants from their platforms. The final judgment, delivered by Justice Amit Bansal, proceeded ex parte against the defendants, as they failed to submit any written statements in their defense.

The court invoked Order VIII Rule 10 CPC, allowing it to pronounce judgment in the absence of a written statement from the defendants. It ruled in favor of Chotiwala, recognizing its long-standing trademark use and its established goodwill among customers.

Key Court Observations:

Trademark Validity and Secondary Meaning

• The ‘Chotiwala’ name and its associated artistic elements have been in use for over 65 years, making them distinctive and widely recognized.
• The term ‘Chotiwala’ has acquired a secondary meaning, automatically linking it to the plaintiff’s restaurant in Rishikesh.

Malafide Intent of Defendants

• The defendants deliberately misused Chotiwala’s brand identity to deceive the public.
• The creation of delivery listings on food delivery apps and social media platforms added to consumer confusion.

Stringent Approach Towards Damages

• The court emphasized the need for strict penalties in cases of willful trademark infringement.
• The defendants were found guilty of dishonest conduct, leading to the imposition of ₹3 lakh in damages.

Final Court Orders:

Permanent injunction restraining the defendant-restaurants (Defendants 1 to 3) from using the name ‘Chotiwala’, its trademarks, or any similar artistic work.

Magicpin (Defendant 4) was ordered to remove all listings of restaurants misusing the ‘Chotiwala’ name or any deceptively similar trade name from its platform.

Implications for the Food Industry

This ruling sets a strong precedent for trademark protection in the food and hospitality sector. It reinforces the importance of brand identity and ensures that well-established restaurants can protect their goodwill from fraudulent competitors. The case also highlights the responsibility of online food aggregators to prevent misleading restaurant listings.

With this victory, Chotiwala Food And Hotels Pvt. Ltd. has successfully safeguarded its 65-year-old legacy, ensuring that customers can continue to associate the ‘Chotiwala’ name with authentic quality and tradition.

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