Bombay High Court Slaps ₹2.5 Lakh Costs On Mumbai Khadi Body For Breaching Order Barring Use Of 'Khadi' Mark

The Bombay High Court has held that the Mumbai Khadi & Village Industries Association (MKVIA) wilfully breached a 2022 injunction restraining it from manufacturing, selling, or advertising products under the “Khadi” mark and from using KVIC's Charkha logo or deceptively similar marks in the prohibited commercial context.

Justice Somasekhar Sundaresan observed, “MKVIA went on to do exactly what it wanted to do regardless of Injunction Order.”

The court, however, declined to attach MKVIA's property or send its trustees to civil prison. It noted that such measures are meant to secure compliance, and MKVIA had not held another Khadi event after the violation.

The court instead directed MKVIA to pay ₹2.5 lakh in litigation costs to the Khadi & Village Industries Commission (KVIC).

The court  was dealing with an application under Order XXXIX Rule 2A of the Code of Civil Procedure and a separate contempt petition filed by KVIC over alleged violations of the December 14, 2022 injunction.

The dispute followed a 2021 suit in which KVIC alleged that MKVIA was selling products described as “Khadi” without certification. The suit was withdrawn after MKVIA undertook not to sell products called, labelled or described as “Khadi” without KVIC certification.

The alleged breach concerned “Khadi Mahotsav 2.0”, a three-day trade fair held in May 2023 at MKVIA's premises. It was the second edition of a fair held shortly before the injunction.

Promotional material carried the names of Atharva Foundation, Atharva School of Fashion and Arts and MKVIA as organisers.

The court rejected MKVIA's claim that it was unaware of the event. Justice Somasekhar Sundaresan observed, “No person of average intelligence and imperfect recollection in the market can be reasonably expected to believe that MKVIA had nothing to do with the sale and promotion of Khadi products through the event.”

KVIC's separate contempt allegations concerned a March 30, 2025 Agreement for Sale through which MKVIA agreed to sell land to Rishabraj Estate Developers Pvt. Ltd. It also pointed to an older third-party digital listing describing MKVIA as a Khadi garment shop.

The court rejected both allegations. On the property transaction, Justice Somasekhar Sundaresan observed, “The Agreement for Sale is a document for sale of land and not sale of 'Khadi' products.”

It also found no basis for contempt over the digital listing because there was no allegation of a fresh listing after the injunction.

The court directed MKVIA's trustees not to host any event relating to Khadi or its promotion, whether at its premises or elsewhere.

They were also directed to file affidavits with audited financial details of the Mahotsav and disclose measures taken to prevent any recurrence, including efforts to remove MKVIA's name from third-party platforms.