Delhi High Court Restrains Ex-Franchisee From Using 'Moti Mahal' Marks After Termination Of Agreement

The Delhi High Court on 14 May granted an ex-parte ad-interim injunction restraining Zikra Hotels and Restaurants LLP, a former franchisee of the Moti Mahal restaurant chain from running, advertising, or marketing its restaurant under the 'Moti Mahal' marks after it terminated the franchise agreement for non-payment of fees.

Justice Tushar Rao Gedela held:

“The defendant, M/s Zikra Hotels and Restaurants LLP, had continued using the mark 'Moti Mahal Delux Tandoori Trail' despite its franchise agreement having been terminated in December 2025.”

The Moti Mahal brand, founded by Late Kundan Lal Gujral in 1920, operates more than 100 franchises globally. The plaintiffs hold registered trademarks in 'Moti Mahal', 'Moti Mahal Group', 'Tandoori Trail', and related marks across multiple jurisdictions, including the USA, UAE, Bahrain, Japan, and Singapore.

The franchise agreement, executed in July 2022 for a term of 72 months, required payment of franchise fees. The plaintiffs alleged that the defendant defaulted on these payments from July 2021 onwards, resulting in dues of Rs 7,69,440 along with a penalty of Rs 2,53,12,327. They issued a termination notice in December 2025, followed by a cease-and-desist notice in January 2026.

The defendant did not respond to either notice. They then conducted an online search and found that the defendant continued operating and listing its restaurant under the 'Moti Mahal' brand on platforms including Zomato, Swiggy, MakeMyTrip, Facebook, and Instagram.

The Court recorded that the defendant, under the agreement itself, had “clearly acknowledged that it had no right in the name 'Moti Mahal Delux Tandoori Trail'” and observed that continued use after termination “is not bona fide and appears to be unauthorised.”

Finding prima facie infringement, the Bench directed removal of all references to the impugned marks from the defendant's restaurant boards, hoardings, menus, cutlery, brochures, and online platforms within two weeks. It also restrained the defendant and its agents from using the marks 'MOTI MAHAL', 'MOTI MAHAL DELUX', or 'TANDOORI TRAIL' in any manner.

Accordingly, the High Court listed the matter for completion of service and pleadings before the Joint Registrar on 6 August 2026. The next hearing is scheduled for 29 October 2026.