Delhi High Court Vacates Injunction Against Nugenesys, Finds Celagenex Wilfully Suppressed Facts

The Delhi High Court has set aside an ex-parte ad-interim injunction obtained by Celagenex Research (India) against Nugenesys Pharmaceuticals, ruling that the injunction was procured through a wilful suppression of material facts. A Division Bench of Justices V. Kameswar Rao and Manmeet Pritam Singh Arora, in a judgment delivered on 20 August, vacated the interim restraint order and imposed costs of ₹2 lakh on Celagenex, payable to the Delhi High Court Legal Services Committee. The decision underscores the judiciary’s zero-tolerance approach towards concealment of facts in interlocutory proceedings, particularly when the suppression is found to be deliberate and part of a broader pattern of conduct.

Background: The Trademark Dispute

The dispute arose over the use of two similar marks for nutraceutical products: Celagenex’s registered trademark “NUREWIRE” (Class 5) and Nugenesys’s mark “RewireX”. Celagenex, a company co-founded by Shoyeb Abdul Gafoor Mandlekar, had manufactured and sold its product under the “NUREWIRE” brand. In October 2024, Mandlekar resigned from Celagenex, holding 99% of its founding shareholding. Soon after, in early 2025, Nugenesys Pharmaceuticals was incorporated.

Nugenesys applied for registration of the mark “RewireX” in March 2025 and subsequently launched its nutraceutical product under that mark in March 2026. Celagenex, claiming it only became aware of this launch in the first week of May 2026, filed a suit before a Single Judge of the Delhi High Court seeking an injunction. The Single Judge granted an ex-parte ad-interim injunction on 20 May 2026, restraining Nugenesys from selling products under the “RewireX” mark.

The Appeal: Unearthing the Suppression

Nugenesys appealed the interim order, contending that Celagenex had been aware of the adoption of the “RewireX” mark since at least October 2025. The appellant argued that Celagenex had issued a cease-and-desist notice to Nugenesys on 29 October 2025, and had even filed a trademark opposition on 27 January 2026. Despite this, the plaint and the injunction application claimed that Celagenex had discovered the mark only in May 2026.

The Division Bench examined the record and found that Celagenex had indeed sent the notice and filed the opposition well before the alleged date of discovery. The court noted that these documents were part of the record but were “tucked away” under an obscure heading in the document index, rendering them effectively invisible to the Single Judge.

“The conduct of the Respondent in wilfully suppressing the Notice dated 29.10.2025 and the Objections dated 27.01.2026, in the plaint, stands established beyond any doubt,” the bench observed.

A Pattern of Misconduct

The court did not stop at finding suppression in this case. It also pointed to what it described as a “persistent pattern of suppression and non-disclosure” by the filing counsel representing Celagenex, across at least three separate suits. The bench referred to two earlier matters in which Single Judges had similarly recorded findings of concealment by the same counsel.

Citing the famous phrase “once is happenstance, twice is coincidence, three times is enemy action,” the bench remarked: “A repeated event is no longer random, but is a deliberate act. In this case, the proceedings of the three suits show a consistent pattern/trend followed by the filing counsel, by design, with an intent of interfering with the judicial process.”

The court held that Celagenex, having signed the Statement of Truth accompanying the plaint, was “as much responsible for this suppression as is the filing counsel.” Consequently, the benefit of an ex-parte injunction obtained through concealment could not be retained.

Vacating the Injunction and Imposing Costs

The Division Bench concluded that the suppression had directly influenced the grant of the ex-parte injunction, as the Single Judge was “unaware of the issuance of the Notice... and Objections.” It held that condoning the wilful suppression would cause greater harm to the judicial process than any harm caused by the continued sale of the products.

“If the Respondent’s wilful misconduct is condoned, the harm caused to the judicial process will be far more than that caused by the sale of the Appellants’ products,” the bench observed.

Accordingly, the court vacated the injunction granted on 20 May 2026, dismissed the interim injunction application, and directed the release of products seized from Nugenesys from superdari. It imposed costs of ₹2 lakh on Celagenex, payable to the Delhi High Court Legal Services Committee within two weeks.

Legal Implications and Takeaways

The judgment serves as a stern reminder to litigants and their counsel about the duty of full and frank disclosure in ex-parte proceedings. The court’s willingness to not only vacate the injunction but also impose substantial costs underscores the seriousness with which the judiciary views any attempt to mislead the court.

For intellectual property practitioners, the case highlights the importance of including all relevant correspondence—especially cease-and-desist notices and trademark opposition filings—in the plaint and injunction application. Failure to do so may not only result in the loss of interim relief but also expose the party to sanctions.

Moreover, the court’s observation about the pattern of conduct by the filing counsel may have wider repercussions. It signals that the judiciary is prepared to scrutinise repeated instances of suppression by the same legal representative, potentially leading to professional misconduct proceedings.

Conclusion

The Delhi High Court’s decision in this case reinforces the principle that the grant of interim relief is a matter of judicial discretion, exercised on the basis of complete and truthful material. Any attempt to obtain such relief through suppression will be met with swift reversal and penal costs. Legal professionals would do well to ensure that all material facts, even those that may be adverse to their case, are placed before the court in the spirit of utmost good faith.