A Bitter Taste: Delhi High Court Restrains 'Rasna Buzz' Outlets in Trademark Dispute

In a significant move to protect intellectual property rights within the food and beverage sector, the Delhi High Court has issued an ex parte ad interim injunction against Franchise India Brands Limited and its subsidiary, M/s. Ichakdana Food Services LLP . The order comes amidst allegations that the defendants continued to leverage the iconic ‘Rasna’ brand even after the expiration of their licensing agreements.

A Sour Turn in a Sweet Partnership

The dispute finds its roots in a 2018 business collaboration. The plaintiffs, representing the legacy ‘Rasna’ brand—a staple in Indian households since 1972—had entered into a Master License Agreement with the defendants to expand the ‘Rasna Buzz’ chain. The goal was to establish a nationwide franchise network. However, the partnership soured as financial discrepancies in royalty payments emerged.

Despite a formal meeting in September 2024, where the defendants acknowledged pending financial obligations and committed to a reconciliation process, the plaintiffs discovered in early 2025 that the defendants were continuing to launch new ‘Rasna Buzz’ outlets without authorization. Even after receiving a formal cease-and-desist letter, the defendants allegedly continued to promote the brand on social media platforms, showing no intent to halt activities.

The Court’s Reasoning: Protecting the Brand

Justice Saurabh Banerjee, presiding over the matter, underscored the court’s responsibility to intervene, particularly because the goods involved are edible items intended for public consumption.

The court noted that because the defendants continued to solicit business and utilize the ‘Rasna’ trademark after the expiration of the Work Order—all while failing to clear outstanding financial dues—their actions exhibited clear mala fides . The court emphasized that such unauthorized use poses a significant risk of confusion and deception among the public.

Key Observations

The judgment reflects the court's strict stance on maintaining the integrity of registered trademarks:

• "The defendants, though were licensee of the plaintiffs for promotion of their brands... kept on soliciting clients/ people using the marks of the plaintiffs without even paying the fees as per their agreement, which shows clear mala fides on their part."
• "It is imperative that this Court has to be cautious and careful while dealing with such edible items, particularly, since there may be a huge element of confusion and deception amongst the members of the trade and also of the general public."
• "The balance of convenience and probabilities tilt in favour of the plaintiffs for grant of an ex parte ad interim injunction."

Legal Precedent and The Path Forward

In exempting the plaintiffs from pre-litigation mediation under the Commercial Courts Act, the Court relied on the Supreme Court’s ruling in Yamini Manohar v. T.K.D. Krithi (2024) and the Division Bench decision in Chandra Kishore Chaurasia v. R. A. Perfumery Works Private Limited (2022) , which recognize the necessity of urgent relief in intellectual property matters.

The Final Order

The Delhi High Court has directed an immediate halt to all unauthorized activities. The defendants, including their directors, partners, and franchisees, are now strictly restrained from: 1. Using the trademarks ‘Rasna’ or ‘Rasna Buzz’. 2. Operating or franchising outlets under the ‘Rasna Buzz’ name. 3. Advertising or misrepresenting any connection with the plaintiffs.

The matter is now set to return before the court on September 4, 2025, where the defendants will have the opportunity to respond to the allegations. For now, the injunction serves as a firm reminder that professional partnerships, once expired, cannot be treated as a license to build upon another entity's hard-earned goodwill.