The Delhi High Court has permitted the Moradabad-based restaurant “Gulshan-e-Karim” to continue using its existing trade name, while directing it to include a clear and prominent disclaimer stating that it has no connection with the well-known Delhi restaurant chain “Karim’s”.
The judgment came in an appeal filed after a Commercial Court had earlier restrained the restaurant from using the word “Karim” in any manner. The High Court, however, held that a complete prohibition would be disproportionate, especially considering the restaurant’s long-standing local use of the name.
The Bench observed that although the names “Karim’s” and “Gulshan-e-Karim” are visually and phonetically similar, the infringement appeared to be “innocent” rather than deliberate. According to the Court, remedies in trademark disputes must remain proportionate, particularly when there is no evidence of intentional misrepresentation.
To reduce the risk of consumer confusion, the Court ordered that Gulshan-e-Karim must display an unmistakable disclaimer on all signboards, advertisements, packaging, menus and online platforms stating that it is not associated with the original Karim’s of Delhi.
The appeal was accordingly disposed of with a modified injunction, allowing continued use of the name subject to strict compliance with the disclaimer requirement.
