In the camphor products of Mangalam Organics Ltd. infringement trademark Case, Patanjali was ordered to deposit Rs. 4 crores for violating an injunction.
Patanjali challenged the order, arguing that under Order 39 Rule 2A CPC, penalties beyond attachment of property or civil detention are unauthorized.
The Bombay HC stayed the order, stating there was no clear legal basis for the penalty amount.
The Court found that the Rs. 50 lakh already deposited was enough to protect Mangalam Organics' claim and granted interim relief, holding the amount in a fixed deposit until the final decision.
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