Mumbai: In a significant development in the ongoing trademark dispute between PepsiCo and Parle Agro, the Delhi High Court has imposed a cost of ₹10 lakh on Parle Agro for failing to adhere to court-mandated disclosure norms.
The order was passed by Justice Tushar Rao Gedela while hearing an application filed by PepsiCo, which alleged that Parle Agro had violated earlier directions issued on September 18, 2023. These directions governed the usage of the tagline “For The Bold” in connection with Parle Agro’s ‘B Fizz’ beverage.
Court Takes Strict View on Sales Disclosure Lapse
The Court came down firmly on Parle Agro’s failure to submit certified sales data of ‘B Fizz’ at two-month intervals—a requirement that had been in place for over two and a half years. It held that such non-compliance constituted a “clear and serious violation” of its earlier order.
Rejecting the company’s argument that these disclosures were only relevant at the trial stage, the Bench emphasised that adherence to judicial directions cannot be left to a party’s discretion. It further noted that Parle Agro neither offered a satisfactory explanation nor issued an apology in its affidavits.
Highlighting the importance of judicial discipline, the Court underscored that the “sanctity and purity” of its orders must be preserved at all times.
No Wilful Disobedience on Social Media Posts
On the issue of continued use of the disputed tagline on social media, the Court adopted a more lenient stance. It acknowledged that two posts containing the phrase had remained online but accepted Parle Agro’s clarification that these were legacy posts from 2022 that were inadvertently not removed.
The Court ruled that such an oversight did not amount to wilful or deliberate disobedience, especially considering the scale of digital content handled by large companies, and therefore did not warrant punitive action.
Background: Tagline Dispute Since 2021
The dispute dates back to 2021, when PepsiCo approached the High Court seeking to restrain Parle Agro from using the tagline “For The Bold.” While the Court declined to grant an outright injunction, it allowed limited use of the tagline under specific conditions.
These included ensuring that the tagline did not dominate advertising campaigns, directing the removal of certain promotional content on platforms like Facebook, and mandating periodic disclosure of certified sales figures.
Compliance Directions and Next Steps
As part of the latest order, the Court has directed Parle Agro to deposit the ₹10 lakh penalty with the Bharat Ke Veer fund within three weeks. Additionally, the deponent of the company’s affidavits has been instructed to submit an unconditional apology within four weeks.
The matter is scheduled for further hearing on September 10.
PepsiCo was represented by Senior Advocate Dayan Krishnan along with a team of counsels, while Parle Agro was represented by Senior Advocate Chander M. Lall and other advocates.
