Court Orders Franchisee to Cease Use of 'Kake Di Hatti' Trademark Amid Legal Dispute

In a significant development, the District Commercial Court in Tis Hazari, Delhi, has ruled in favour of KDH Food (OPC) Pvt. Ltd., the proprietor of the renowned trademark "Kake Di Hatti." The court has restrained Amir Khan, the franchisee and respondent in the case, from continuing to operate a food business under the disputed trademark.

Case Background

The dispute arose after Amir Khan, who had entered into a franchise agreement with KDH Food in September 2020, allegedly breached the terms of the contract. Under the agreement, Khan was authorized to use the trademark "Kake Di Hatti" for a restaurant in Kanpur, Uttar Pradesh, and was required to pay a monthly royalty fee of ?1,00,000 along with applicable GST. However, KDH Food claimed that the respondent failed to fulfil his financial obligations, accumulating outstanding dues of ?34,27,000 by March 2024.

Legal Proceedings

Despite multiple defect cure notices and a legal warning, Khan did not take corrective action. This led to the termination of the franchise agreement in April 2024, citing multiple breaches. Post-termination, Khan allegedly continued to use the "Kake Di Hatti" brand, including related trademarks and logos such as "Kake," "KDH," and "King of Naan," without authorization.

Court's Decision

Presiding Judge Ravinder Bedi noted that the petitioner presented a compelling case. The court emphasized that the franchise termination notice revoked the respondent's rights to operate under the trademark and that continued unauthorized use of the brand damaged KDH Food's goodwill and reputation.

In the ruling, the court issued an ex-parte injunction, ordering Amir Khan and his associates to:

• Cease using the trademarks "Kake Di Hatti," "Kake," "KDH," and "King of Naan."
• Remove all signs, advertisements, and references associated with these trademarks.

The order remains effective until any modification or annulment by a duly constituted arbitral tribunal.

Implications and Next Steps

This decision underscores the importance of adhering to franchise agreements and the legal protection afforded to registered trademarks. For KDH Food, it reinforces its control over the brand's integrity and prevents unauthorized usage that could potentially mislead consumers or dilute the brand's value.

The case highlights ongoing challenges in franchise operations and the critical role of intellectual property enforcement in safeguarding brand reputation.

Read the judgement here