Delhi High Court Grants Permanent Injunction Against Fraudulent Website Misusing 'HERO ELECTRIC' Trademarks and Awards Damages

A single-judge bench of Justice Tushar Rao Gedela heard a suit challenging the dishonest adoption and unauthorised use of the registered trademarks and copyrights of a prominent electric-vehicle brand through the domain www.evbikedealership.online and the e-mail contact@evbikedelearship.online, and claims of soliciting dealership enquiries and collecting money by impersonation. The plaintiffs sought permanent injunctions, damages and costs against the individual operators of the website and a sole-proprietorship trading as "Hero Electric" / "Hero Motocrop".

The Court held that the plaintiffs established a strong case for relief, proceeded ex parte against the absent defendants, and decreed the suit. The Court recorded that the domain had already been transferred to the plaintiffs by the Domain Name Registrar and that bank records showed receipts and rapid withdrawals indicative of a fraudulent scheme. The Court awarded a permanent injunction restraining the defendants from using the plaintiffs' trademarks and copyrights, directed payment of damages and costs, and ordered final decree formalities to follow. The Court, in its reasoning, observed: “Having regard to the nature of transactions entered into by defendant nos.1 and 2 and the manner in which the rogue website was being misused to not only infringe the registered trademarks of the plaintiffs but also to cheat the investors and the general public, the plaintiffs have established a strong case for decree of permanent injunction as prayed for in prayer clause of the plaint. Undoubtedly, as there is no rebuttal or controverting of the facts or documents of the plaintiffs by the defendant nos.1 and 2, coupled with the fact that the plaintiffs are owners of the registered trademarks HERO/HERO ELECTRIC which are renowned, the balance of convenience is clearly tilted in favour of the plaintiffs and against defendant nos.1 and 2. The observations and analysis above and the manner in which the defendant nos.1 and 2 have made use of the infringed trademarks of the plaintiffs to cheat the general public, would clearly and undoubtedly evidence the irreparable injury caused to the plaintiff. As a consequence, the plaintiffs are entitled to a decree of permanent injunction as prayed for.” The Court also relied on the procedural power to proceed in absence of defence, noting that “the Court may pass summary judgment, without the requirement of filing a specific application seeking summary judgment…”

Background The plaintiffs were a vehicle manufacturer and its trademark-holding partner which owned registered trademarks and distinctive artistic logos in the formative mark HERO / HERO ELECTRIC since 2008 and operated multiple official domains and e-commerce channels. They alleged that defendant nos.1 and 2 operated the website www.evbikedealership.online and solicited payments by posing as authorised dealers, using the plaintiff’s trademarks, forged approval letters and fake identity cards to induce investors. Bank records produced by RBL Bank (defendant no.4) showed cash receipts totalling approximately Rs.8.84 lakhs with rapid withdrawals, supporting the plaintiffs’ contention that the account was used to defraud customers.

The plaintiffs obtained an ex parte ad-interim injunction in February 2022 directing takedown and restraining transfer of the domain and freezing of the bank account; the DNR later transferred the domain to the plaintiffs and was deleted as a party on its compliance. Despite multiple service attempts, defendant nos.1 and 2 did not appear or file written statements and were proceeded against ex parte. The Court treated the plaint and accompanying documents as admitted in the absence of defence and, applying IPD Rules and Original Side Rules permitting summary adjudication, granted final relief. The Court also followed established principles on exemplary damages and, assessing the degree of mala fide and impact, awarded Rs.20,00,000 as damages and Rs.3,00,000 as litigation costs, jointly and severally against defendant nos.1 and 2. The suit was decreed and disposed of; procedural directions were given for decree-sheet formalities and affixation of any deficient court-fees.

Case Details: Case No.: CS(COMM) 104/2022 Case Title: Hero Electric Vehicles Private Limited & Anr. v. Mr. Nitish Kumar & Ors. Appearances: For the Petitioner(s): Ms. Pragya Mishra, Advocate for Plaintiff No.2. For the Respondent(s): None.