Delhi High Court Bars Ex-Franchisee From Using 'Moti Mahal' Trademark After Franchise Termination

The Court observed that once a franchise agreement is terminated, the former franchisee retains no legal right to operate a restaurant using the trademarked name.

On February 25, 2026, Justice Jyoti Singh observed that the company had established a prima facie case for urgent relief and would suffer irreparable harm if the unauthorized use of its brand was allowed to continue.

The suit was filed by Moti Mahal Legendary Hospitality and its sole proprietor, Ashim Gujral, against Sant Foods. 

The primary relief requested was a restraining order to prevent Sant Foods from advertising or operating any restaurant or catering business under the "MOTI MAHAL" trademark and a direction to withdraw all infringing physical and digital materials, such as menus, signages, and social media content.

This legal action was initiated because Sant Foods allegedly breached a 2025 Franchise Agreement by failing to remit royalties and disclose sales data; despite the subsequent termination of the agreement, the defendant reportedly continued unauthorized commercial operations under the "MOTI MAHAL" banner, which the plaintiffs contended constituted trademark infringement and passing off.

The Court remarked, “Prima facie, once the Agreement stands terminated, Defendant No. 1 has no right to run the restaurant using the MOTI MAHAL trademark.”

Justice Singh remarked that Moti Mahal and its associates are the valid registered proprietors of the trademark and that Sant Foods had only been permitted to operate under a non-exclusive, limited license that has now ended.

The judge noted that the continued use of the mark by the former franchisee, post-termination, appeared unauthorized and likely to cause dilution and damage to the brand's hard-earned reputation and goodwill.

The order directs the former franchisee to immediately cease advertising, selling, or operating any restaurant or catering business under the “MOTI MAHAL” mark or any identical or deceptively similar name. The Court also directed the defendant to withdraw all infringing materials, including menus, stationery, signage, and digital content, from both physical premises and online platforms within one week of receiving the notice.

The matter is now listed before the Court on April 24, 2026.

For Moti Mahal Legendary Hospitality: Advocate Rishabh Sharma

For Defendants: Advocates Anirudh Bhatia and Shreya Sethi