Excise Commissioner Odisha Calls For Show Cause For Disobeying Delhi High Court And Alleged Fraud

Based on the matter filed by United & United against Indus Birra Beverages for violating the order passed y the Delhi High Court on 16th September 2022 restraining Tensberg Breweries Pvt Ltd. & Ors from selling their products under the trademark mark "Tensberg" and their impugned trade dress which was similar to "Carlsberg".

The hearing was conducted on 10th August 2023, where the Counsels from United & United pointed out that -

• The Delhi High Court imposed an injunction restraining Tensberg Breweries from selling products under the trademark 'Tensberg' and trade dress, deceptively similar to 'Carlsberg'.
• Against the injunction passed by the Court, Tensberg Breweries appealed before the Division Bench of the Hon'ble Delhi High Court. The Division Bench passed a judgement on 01st November 2022, allowing Tensberg to exhaust the already manufactured stock. The Court decreed on 02nd June 2023 that, based on the terms of the mutual settlement, to exhaust the supply of Tensberg by 10th November 2023 maximum and only in the states who have approved and valid licenses as of the date of signing the agreement.

The appellate counsels argued that Tensberg deliberately disobeyed the instructions of the Delhi High Court by fraudulently stating that they possessed a valid license as of 02nd June 2023 in Odisha to exhaust its stock in Odisha. In reality, they did not have any valid claim or label registration as of the said date for the sale of their stock.

It was claimed that the permissions granted for selling Beer under the Tensberg mark or by any partners and associates concerns within the state of Odisha should be withdrawn, and the stocks underlying in their warehouses, Retail Outlets, Bars etc., of beer under the mark of Tensberg may be seized to prevent any unauthorized sale.

The verification confirmed that Tensberg had valid licenses only in 3 states - Delhi, Himachal Pradesh and Chhattisgarh, but fraudulently gave an undertaking that they had proper permits in 7 states, including Odisha.

Given the facts mentioned above, a notice under Rule 102(8) of Odisha Excise Rules, 2017 was issued and may be withdrawn at any time by the Excise Commissioner for reasons to be recorded in writing and after giving the affected party a reasonable opportunity of being heard. A notice is issued to the supplier unit to show cause, a reason supporting their side, and a reason to believe that the authority should not pass an order in favour of the petitioner.

The next hearing is scheduled for 25th August 2023 at the office chamber of the Excise Commissioner Odisha at Cuttack.