Delhi High Court Refuses To Lift Injunction Against KS Agro's Rice Packaging Over Similarity To Zarda King

The Delhi High Court has refused to lift an interim injunction restraining KS Agro Impex from selling Golden Sella Basmati Rice in packaging alleged to imitate GRM Foodkraft's 'Zarda King' trade dress.

The court held that KS Agro's packaging was deceptively similar to GRM's. It further held that GRM had established a prima facie case of passing off and copyright infringement.

Justice Jyoti Singh observed that a comparison of the rival packaging revealed striking similarities. The court found that these similarities outweighed the differences highlighted by KS Agro.

"Defendant No.1 has visibly copied all essential elements to come as close as possible to Plaintiffs' trade dress," the court held.

GRM Foodkraft, a wholly owned subsidiary of a major basmati rice exporter, launched its 'Zarda King' Golden Sella Basmati Rice in 2021. According to the suit, the packaging features a green-and-gold colour scheme. It also uses gold lettering designed to resemble Urdu or Arabic script, hanging lanterns and stars, a crescent moon with a star, imagery resembling Arabic architecture with minarets and a pulao dish.

The company claimed that products sold under the packaging generated more than ₹86 crore in sales within three years. It also stated that it spent more than ₹8 crore on promotion and advertising. This included endorsements by Salman Khan and Saina Nehwal.

GRM approached the court in 2024, alleging that KS Agro had adopted a deceptively similar trade dress for its competing Golden Sella Basmati Rice. The rival product was sold under the mark 'Double Chabi Zarda Special'.

According to GRM, KS Agro copied key features of its packaging. These included the colour scheme, stylised lettering, decorative elements and overall visual presentation.

KS Agro opposed the injunction. It argued that no trader could claim monopoly over colours or common elements such as stars, lanterns, minarets and crescent moons. It also contended that 'Zarda' was a generic and descriptive term. The company further argued that its prominent house mark 'Double Chabi' distinguished its product from GRM's.

Rejecting the defence, the court applied the test of overall similarity and overall impression. It held that the rival packaging shared several prominent visual features.

The court noted that the products were identical. It also noted that the trade channels were common and the target consumers were the same. According to the court, the similarities in the packaging were more significant than the differences relied upon by KS Agro.

"It is thus settled that the test is 'overall impression and similarity' and Courts must give greater attention to points of similarities than dissimilarities, especially when one sees dishonesty," the court observed.

The court was not persuaded by KS Agro's reliance on its house mark. It observed that the overall visual impression created by a trade dress is an important factor while assessing the likelihood of confusion.

The court ultimately declined to vacate the injunction granted in August 2024. It clarified that KS Agro could continue to sell its product using packaging that was distinct and not deceptively similar to GRM Foodkraft's trade dress.