Chennai: The Madras High Court has reserved its orders in a trademark infringement suit filed by Sangeetha Caterers and Consultants LLP, the owners of the popular Chennai-based restaurant chain Sangeetha, against its former franchisees, who now operate several outlets under the brand name Geetham.
Justice Senthilkumar Ramamoorthy deferred the verdict after hearing senior counsel A.K. Sriram for the plaintiff and senior counsel P.S. Raman for the defendants. The judge permitted the parties to attempt an out-of-court settlement before he pronounces orders, instructing them to inform the court if an agreement is reached.
The judge noted, “Both parties concluded arguments. Judgment reserved. Since parties have indicated that they would continue to endeavour to resolve the dispute amicably, both parties are granted leave to mention the matter in case they are able to reach a settlement.”
Raman informed the court that a settlement could be feasible if the demand were around ₹3 crore, rather than the substantial ₹130 crore. He therefore requested the court to reserve its judgment and allow the parties the liberty to report back in case a settlement is reached.
Background of the Case
During arguments on the merits of the suit, it was noted that Sangeetha was founded by P. Suresh and P. Rajagopal in 1985, and over the years it expanded into a chain of 29 outlets in Chennai and 21 more internationally, driven by the efforts of the founders and strong customer patronage.
In 2009, Sangeetha granted a franchise to Rasnam Foods Pvt. Ltd. to open a restaurant in Velachery, Chennai, followed by additional outlets in Thoraipakkam, Medavakkam, Tata Consultancy Services’ office in Siruseri, T. Nagar, and Navalur.
The franchisees opted to exit the franchise in 2022, leading to the closure of the Sangeetha outlets on May 31, 2022. The following day, Rasnam Foods and its associated companies launched restaurants under the brand name Geetham at the same locations. The plaintiff alleged that the new branding closely resembled Sangeetha and sought to capitalize on decades of goodwill and reputation.
Rasnam Foods argued that the need to start Geetham arose after Sangeetha declined a request to relocate the Medavakkam outlet, which was experiencing losses due to nearby Metro Rail construction. The refusal to permit relocation escalated into a dispute between the franchisor and franchisee. Defendants also cited pre-paid rent as the reason for continuing operations at the same locations and noted that they had modified the logo colors in line with interim court directions.
The defendants further clarified their independence from Sangeetha by issuing full-page advertisements in major publications. The plaintiff filed the trademark infringement suit approximately one year after the Geetham restaurants had been successfully operating.
