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The Delhi High Court on Wednesday in appeals against its earlier judgment in Britannia Industries Ltd. vs. ITC Ltd. & others observed that the dispute between the two companies, regarding the alleged deceptive packaging of their digestive biscuits, has been amicably resolved following agreement on certain terms. 

Keeping the question of law in the pair of appeals open, the Division Bench comprising  Justice Manmohan and Justice Navin Chawla disposed of the matter stating the impugned order dated April 5, 2021is set aside and the same shall not be treated as a precedent. 

Through the order of April 5th, a Single Bench of the High Court refused to grant relief to the Britannia Industries which sought an interim injunction restraining the ITC Ltd. from manufacturing or selling biscuits in the impugned packing, pending disposal of the present suit. The Britannia Industries claimed that the ITC Ltd. and others have been manufacturing and selling “Sunfeast Farmlite 5-Seed Digestive” biscuits in adopting a confusingly similar packing which is deceptively similar to the packing in which it sells its “Nutri Choice Digestive” biscuits.

In regard to the same matter, ITC moved Supreme Court against one other Delhi High Court order which allowed Britannia to use its current packaging for selling the "Nutri Choice Digestive" biscuit. The Apex court adjourned the matter giving an opportunity to the concerned parties to settle their dispute amicably out of the Court. 

Resulting from the same, the Delhi High Court Division Bench disposing of the presents appeals drafted the terms under which the parties have amicably settled the matter. The terms are stated as;

- ITC Ltd. will not use the impugned product packaging. 

- As its products ‘Sunfeast Farmlite 5-Seed Digestive’ and ‘Sunfeast Farmlite Veda Digestive’ are already in the market with the modified packaging, Britannia will refrain from having any objection to the use of the modified packaging of the ITC.

- In consideration of this acknowledgment by ITC, Britannia will give up its claim for rendition of accounts, damages, costs, etc.

- Lastly, that parties have agreed that will this settlement the appeals will be disposed of. 

Matter in Brief

The factual matrix of the case is that Britannia Ltd. claimed that on 11 September 2020, it had registered a trademark on the packaging of Nutri Choice Digestive biscuits and it had been using the same since 2014. It contended that ITC Ltd and others had infringed their trademark.

Britannia further stated that ITC's Sunfeast changed the packaging of its FarmLite 5-Seed Digestive biscuits that is deceptively similar to NutriChoice's packaging and that ITC is taking undue advantage of Britannia's goodwill and reputation.

(Case Title: BRITANNIA INDUSTRIES LTD. vs. ITC LTD & ORS. FAO(OS) (COMM) 65/2021)