The Delhi High Court has allowed Dabur India Limited to dispose of its existing stock of “DABUR Cool King Thanda Tel” under strict conditions, while making it clear that any unsold stock must be recalled after September 30, 2026. The Division Bench also held that the earlier Single Judge order permitting sale of the stock could not have been passed at that stage because the injunction had already been affirmed by the Division Bench.
Background of the Case
The dispute arose from a trademark and trade-dress infringement suit filed by Emami Limited against Dabur India Limited. On January 31, 2026, the Single Judge had restrained Dabur from selling “DABUR Cool King Thanda Tel” under the disputed trade dress or any deceptively similar trade dress.
Dabur challenged that order, but the Division Bench dismissed the appeal on May 22, 2026, and upheld the injunction, finding that the overall visual appearance, layout and colour scheme of the products were deceptively similar and could mislead consumers.
After that, Dabur approached the Single Judge seeking permission to exhaust its existing stock. The Single Judge permitted disposal of the stock up to September 30, 2026, subject to conditions including recall of unsold products.Court’s Observation
A Division Bench comprising Justice V. Kameswar Rao and Justice Manmeet Pritam Singh Arora first examined whether the appeal itself was maintainable. The Bench held that it was maintainable because the Single Judge’s order effectively varied the earlier injunction and therefore amounted to an order under Order XXXIX Rule 4 of the Code of Civil Procedure.
The Bench then examined whether the Single Judge had jurisdiction to entertain Dabur’s application after the Division Bench had already upheld the injunction.
“The learned Single Judge’s judgment dated 31.01.2026 thus merged into the Division Bench’s judgment dated 22.05.2026,” the Bench observed.
It added that any clarification, variation or relaxation of the Division Bench’s injunction had to be sought before the Division Bench or a superior court.
The Court further held that allowing the Single Judge to subsequently modify an injunction confirmed by the Division Bench would undermine judicial hierarchy and finality of court orders.
Decision of the Court
Although the Division Bench set aside the reasoning of the Single Judge on jurisdiction, it decided not to withdraw the conditional permission to dispose of the existing stock. Instead, the Bench deemed that permission to have been granted by the Division Bench itself.
Dabur was permitted to dispose of its existing stock strictly according to the conditions imposed earlier. The Court rejected Dabur’s request to remove the requirement of recalling unsold stock from retailers and wholesalers after September 30, 2026.
The Bench also clarified that Dabur could exercise the conditional permission only if it was capable of recalling unsold stock on September 30. Otherwise, it could repackage the goods in a trade dress distinct from Emami’s trade dress.
The appeal was accordingly allowed, and the pending applications were disposed of.
Case Details:
Case Title: Emami Limited v. Dabur India Limited
Case Number: FAO(OS) (COMM) 177/2026; CM APPL. 45249/2026
Judge: Justice V. Kameswar Rao and Justice Manmeet Pritam Singh Arora
Decision Date: August 10, 2026
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