SUIT (L) NO. 204 OF 2017.

Suit for permanent injunction restraining the Defendants from telecasting/broadcasting/publishing two television commercials which allegedly disparage/denigrate the Plaintiff's frozen desserts under the brand 'KWALITY WALL'S'.

Plaintiff sought an interim injunction to restrain Defendant Nos. 1 and 2 from telecasting/broadcasting/publishing the impugned TVCs or any similar advertisement that disparages its frozen dessert products.

Defendant No. 1, a competitor, was broadcasting two TVCs that allegedly spread false information about frozen desserts as a whole, thereby disparaging the entire product category and specifically affecting the Plaintiff's market-leading brand.

On 29th March 2017, the Plaintiff applied for urgent ad-interim relief; the Court gave Defendant No.1 time to file a reply. Defendant No.1 filed an affidavit raising preliminary objections regarding territorial jurisdiction and non-issuance of notice under Section 167 of Gujarat Co-operative Societies Act, 1961. On 7th April 2017, Defendant No.1 waived these objections for the purposes of the Notice of Motion and the Suit. The Notice of Motion was then taken up for final hearing.

When disparagement of a product can be said to have taken place. Entitlement of a manufacturer to sue for disparagement of its product when an entire class of products is disparaged.

Plaintiff argued that the two impugned TVCs seek to spread false information about frozen desserts as a whole by generalizing the entire class, and that even though Plaintiff's brand is not named, the reference is unmistakably directed at its market-leading KWALITY WALL'S products.

the present Suit is in the nature of an action for generic disparagement/slander of goods of the product category of Dairy Based Desserts referred to as “Frozen Desserts”. it is necessary to examine as to when disparagement of a product can be said to have taken place, and the entitlement of a manufacturer of a product to sue for disparagement of its product when an entire class of products is disparaged. the Learned Senior Advocate appearing for the Defendant No.1, upon instructions of Defendant No.1 on 7th April, 2017, waived both the preliminary objections for the purposes of not only the above Notice of Motion but also the Suit.

On 29th March 2017, Plaintiff filed a Notice of Motion seeking ad-interim reliefs. The Court directed Defendant No.1 to file a reply by 3rd April 2017. Defendant No.1 filed its Affidavit-in-Reply on 3rd April 2017, raising preliminary objections on territorial jurisdiction and non-issuance of notice under Section 167 of the Gujarat Co-operative Societies Act, 1961. Plaintiff filed a Rejoinder on 5th April 2017. On 7th April 2017, Defendant No.1 waived both preliminary objections for the purposes of the Notice of Motion and the Suit. The Notice of Motion was thereafter heard finally.

• Companies Act, 1913:
• Companies Act, 1956:
• Gujarat Co-operative Societies Act, 1961: Section 167
• Food and Safety Standards Act, 2006: