The Supreme Court refused to interfere with the Delhi High Court’s order exempting ITC Ltd and ITC Hotels from the pre-institution mediation process in a dispute with Adyar Gate Hotels over the use of the trademark “Dakshin”. The Supreme Court noted that the mediation process can be taken at any stage by the high court while the suit is being heard. Adyar Gate Hotels had argued that the single judge had erred in granting an exemption from the mandatory requirement of Section 12A of the Commercial Courts Act, which requires parties to undergo mediation before filing a suit. ITC, on the other hand, opposed any mediation, claiming that Adyar Gate Hotels had “stolen” its name, business, and goodwill.
The dispute dates back to 2015, when Adyar Gate Hotels began using the “Dakshin” mark without permission. ITC had originally granted Adyar Gate Hotels a limited right to use the mark in 1985, but when the agreement expired in 2015, ITC did not object to the continued use of the mark. However, in 2023, Adyar Gate Hotels opened a standalone restaurant in Chennai using the “Dakshin” mark, which ITC claimed was an infringement of its trademark.
The Delhi High Court had previously issued an interim order restraining Adyar Gate Hotels from using the “Dakshin” mark, but the division bench set aside that order and allowed Adyar Gate Hotels to continue using the mark at its existing restaurant. The case is now being heard by a single judge, who has the discretion to allow or disallow mediation between the parties. The outcome of the case is still pending.