The Delhi High Court has issued a permanent injunction in favor of Castrol Ltd., ruling against unauthorized manufacturers who infringed on its trademarks. The court, presided over by Justice Mini Pushkarna, ordered ₹20 lakh in damages against Kapil Auto Workshop and Makkvoll Lubricants for unlawfully copying Castrol’s ACTIV and ACTIBOND trademarks and trade dress.
The court found that the defendants deliberately misled consumers by replicating Castrol’s distinctive packaging, color scheme, and branding elements. It held that their actions were an intentional attempt to deceive customers and benefit from Castrol’s goodwill.
"Upon a careful comparison of the trade dress of the plaintiff and that of the defendants, it becomes apparent that the overall color scheme, get-up, and layout of the defendants’ impugned packaging is nearly identical to that of the plaintiff’s trade dress," the court observed.
The issue came to light when Castrol found Facebook profiles advertising engine oils under the names Makkvoll Lubricants and Makkvoll Engine Oil. A Facebook group, "All India Lubricant Manufacturers," was also promoting these products. Castrol’s investigation revealed that the infringing products were being manufactured and sold by Kapil Auto Workshop through its retail store in Rajasthan.
The defendants actively used social media platforms and online marketplaces like IndiaMart to promote and distribute their counterfeit products. They even attempted to modify Castrol’s trademarks by adding an "E" to ACTIV, making it "ACTIVE," and copying ACTIBOND entirely.
"The defendants are using deceptively similar marks and packaging to mislead customers and capitalize on Castrol’s goodwill and reputation," the company argued in court.
The Local Commissioner’s report confirmed that the defendants were producing and stocking large quantities of infringing products. It was found that multiple boxes of counterfeit Castrol products were being stored at Kapil Auto Workshop. The investigation also revealed that the business had been using these fake products alongside genuine Castrol goods to further mislead customers.
Referring to this evidence, the court stated:
"Perusal of the aforesaid clearly shows that defendant no. 1 has been dealing with, manufacturing, and marketing its products under the infringing marks and packaging, in large commercial quantities."
The court also noted that the defendants failed to submit a written defense, leading to an uncontested ruling in Castrol’s favor.
The Delhi High Court ruled that the defendants had committed a clear case of trademark infringement and ordered a permanent injunction against them. They were prohibited from manufacturing, selling, or advertising any products using Castrol’s branding or similar packaging.
The court also imposed financial penalties on the defendants. Kapil Auto Workshop and Makkvoll Lubricants were ordered to pay ₹10 lakh each, totaling ₹20 lakh, to Castrol within six months. The court further granted Castrol permission to destroy the counterfeit goods found at the defendant’s premises.
"Considering the extent of the infringing activities, the defendants are liable to pay damages. The plaintiff is entitled to recover ₹20 lakh in costs and damages," the court ruled.
Case title: CASTROL LIMITED vs. KAPIL & ANR. (CS(COMM) 532/2024 & I.A. 31989/2024)