Bombay High Court stays Rs 4 crore fine on Patanjali Ayurved

New Delhi: The Bombay High Court has paused a judge's order that required Patanjali Ayurved to pay Rs 4 crores for violating a temporary court order in a trademark case brought by Mangalam Organics.

Patanjali filed an interim application challenging the single bench's order, which directed it to deposit Rs 4 crore, in addition to Rs 50 lakhs imposed by a previous order.

A single judge bench of Justice RI Chagla imposed the fine on Patanjali Ayurved in July 2024 after determining that the Baba Ramdev-led business had violated an August 2023 judgment prohibiting it from marketing a camphor product. Mangalam Organics filed a contempt petition alleging that Patanjali Ayurved has violated interim orders prohibiting it from marketing the Patanjali Camphor Cone product.

Patanjali sent around Rs 49.6 lakh worth of camphor products to distributors until June 24, 2024, as per their affidavit. However, Mangalam Organics claimed that some products were still available on Patanjali's website on July 8, which wasn't mentioned in the affidavit.

The court noted that sales continued past June 24 and that Patanjali had stock after the 2023 injunction. Consequently, the court fined Patanjali Rs 50 lakh and asked Mangalam Organics to provide an affidavit detailing Patanjali's violations.

Due to continued non-compliance, a single judge imposed an additional penalty of Rs 4 crore on Patanjali for contempt of court on July 29. Patanjali has now challenged this ruling before the Division Bench.