{"id":312112,"date":"2024-01-24T17:00:55","date_gmt":"2024-01-24T11:30:55","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=312112"},"modified":"2024-02-20T16:57:01","modified_gmt":"2024-02-20T11:27:01","slug":"dhc-orders-permanently-block-websites-defrauding-people-recruiting-croma-legal-news","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2024\/01\/24\/dhc-orders-permanently-block-websites-defrauding-people-recruiting-croma-legal-news\/","title":{"rendered":"Delhi High Court orders to permanently block websites defrauding people on pretext of recruiting for part-time jobs with Croma"},"content":{"rendered":"<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"margin-bottom: 3%;\"><span style=\"font-weight: bold;\">Delhi High Court:<\/span> The instant suit concerned infringement and passing off of plaintiff&#8217;s registered trade marks CROMA, <a href=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/01\/MicrosoftTeams-image-1.png\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/01\/MicrosoftTeams-image-1.png\" alt=\"\" width=\"75\" height=\"40\" \/><\/a>, INFINITI RETAIL, <a href=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/01\/MicrosoftTeams-image-2.png\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/01\/MicrosoftTeams-image-2.png\" alt=\"\" width=\"90\" height=\"50\" \/><\/a> and their formative variants, by Defendants 1 to 4. <span style=\"font-weight: bold;\">Sanjeev Narula, J.*<\/span>, held that plaintiff was entitled to a permanent injunction and further directed Defendants 5 to 7 to permanently block access to the impugned websites namely, www.croma-share.com, www.croma-2.com and www.croma-1.com.<\/p>\n<p style=\"font-weight: bold;\">Background<\/p>\n<p style=\"margin-bottom: 3%;\">Plaintiff, a wholly owned subsidiary of Tata Sons Pvt. Ltd., and a part of the TATA Group, owned and managed a nation-wide retail chain, under &#8216;CROMA&#8217; marks. It offered a wide range of electronics, consumer products, household and kitchen appliances, mobile phones, computers, audio and video products, cameras, grooming and wellness products etc. at more than 260 stores spread across India and through their website www.croma.com. The mark <a href=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/01\/MicrosoftTeams-image-3.png\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/01\/MicrosoftTeams-image-3.png\" alt=\"\" width=\"62\" height=\"29\" \/><\/a> was declared as a well-known trade mark by the Trade Marks Registry on 24-02-2020.<\/p>\n<p style=\"margin-bottom: 3%;\">Defendants 1 to 4 were owners of domain names\/websites www.croma-share.com, www.croma-2.com, www.croma-1.com, and www.croma-3.com, respectively. In November 2022, upon receipt of several complaints, plaintiff discovered that Defendants 1 to 4 were operating the impugned websites for defrauding people by taking money under the pretext of recruiting them for part-time jobs with Croma\/ Infiniti Retail Ltd., using the mark &#8216;CROMA&#8217;. The job process required the customers to pay an increasing amount of money for each subsequent level, from Rs 180 to Rs 42,000. The modus operandi of Defendants 1 to 3 was identical. When consumers asked for proof of authenticity, Defendants 1 to 4 supplied false and fabricated employee IDs, corporate registration in Belize, communications bearing plaintiff&#8217;s letterheads purportedly signed by plaintiff&#8217;s CEO. On 05-12-2022, while issuing summons, an <span style=\"font-style: italic;\">ex-parte<\/span> ad-interim injunction was issued whereby Defendants 1 to 4 were restrained from infringing plaintiff&#8217;s &#8216;CROMA&#8217; marks.<\/p>\n<p style=\"font-weight: bold;\">Analysis, Law, and Decision<\/p>\n<p>The Court took note of the following extracts from the impugned websites, which were identically designed:<\/p>\n<p style=\"text-align: center; margin-bottom: 3%;\"><a href=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/01\/MicrosoftTeams-image-4.png\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/01\/MicrosoftTeams-image-4.png\" alt=\"\" width=\"562\" height=\"332\"\/><\/a> <a href=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/01\/MicrosoftTeams-image-5.png\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/01\/MicrosoftTeams-image-5.png\" alt=\"\" width=\"230\" height=\"402\"\/><\/a><\/p>\n<p style=\"margin-bottom: 3%;\">The Court opined that it was evident that Defendants 1 to 4 were using plaintiff&#8217;s &#8216;CROMA&#8217; mark to create a misperception of association with plaintiff and through the impugned websites, Defendants 1 to 4 were soliciting personal information and money from consumers. The said defendants approached an unsuspecting consumer with a lucrative job offer, requiring them to purchase goods from the impugned websites with a promise to return the amount with an added component of commission. As the impugned domain names wholly incorporated plaintiff&#8217;s &#8216;CROMA&#8217; mark, the public, under the mistaken belief that they were procuring a job at plaintiff&#8217;s company, fell prey to defendants 1 to 4&#8217;s ploy. The likelihood of confusion was evident as defendants 1 to 4&#8217;s activities amounted to infringement and passing off of plaintiff&#8217;s CROMA marks. Plaintiff&#8217;s counsel informed that the impugned websites also emulate the terms and conditions of use, privacy policy etc. displayed on plaintiff&#8217;s website www.croma.com, which amounted to passing off of plaintiff&#8217;s copyright vested therein.<\/p>\n<p style=\"margin-bottom: 3%;\">The Court, after considering plaintiff&#8217;s annual revenue and promotional figures and the well-known status of CROMA marks, opined that impugned activities were causing irreparable loss to their goodwill and reputation. Thus, the Court held that plaintiff was entitled to a permanent injunction. The Court opined that no purpose would be served by directing plaintiff to lead ex-parte evidence as the pleadings and accompanying documents proved that defendants were misusing plaintiff&#8217;s CROMA marks, entitling plaintiff to protection. Therefore, the Court, in exercise of its power under Order <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001523643\" target=\"_blank\" rel=\"noopener\">VIII Rule 10<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726944\" target=\"_blank\" rel=\"noopener\">Civil Procedure Code, 1908<\/a>, held that it was inclined to issue a decree in plaintiff&#8217;s favour.<\/p>\n<p style=\"margin-bottom: 3%;\">The Court directed Defendants 5 to 7 to permanently block access to the impugned websites namely, www.croma-share.com, www.croma-2.com and www.croma-1.com. The Court further directed Defendants 8 to 16 to permanently suspend and disable the UPI IDs and mobile numbers related to the impugned websites.<\/p>\n<p style=\"margin-bottom: 3%;\">[<span style=\"font-weight: bold; color: #632423;\">Infiniti Retail Ltd. v. Croma-Share, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/SwKGLG4v\" target=\"_blank\" rel=\"noopener\">2024 SCC OnLine Del 424<\/a>, decided on 19-01-2024<\/span>]<\/p>\n<p style=\"text-indent: 18pt;\"><strong><span style=\"color: #000080;\">*Judgment authored by: Justice Sanjeev Narula<\/span><\/strong><\/p>\n<hr\/>\n<p>Advocates who appeared in this case:<\/p>\n<p style=\"margin-left: 18pt;\"><span style=\"font-weight: bold;\">For the Plaintiff:<\/span> Kruttika Vijay, Sauhard Alung, Advocates<\/p>\n<p style=\"margin-left: 18pt;\"><span style=\"font-weight: bold;\">For the Defendants:<\/span> Manish Mohan, CGSC; Ashwini C., Kishan Rawat, Piyush Singhal, P.S. Sudheer, Anne Mathew, Mayank Mikhail Mukherjee, Advocates<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p style=\"font-style: italic;\">&#8220;The impugned websites emulate the terms and conditions of use, privacy policy etc. displayed on plaintiff&#8217;s website www.croma.com, which amount to passing off of plaintiff&#8217;s copyright.&#8221;<\/p>\n","protected":false},"author":1,"featured_media":303940,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[64665,57695,32417,2543,64667,50817,62139,64666],"class_list":["post-312112","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-block-websites","tag-croma","tag-defraud","tag-Delhi_High_Court","tag-infiniti-retail","tag-jobs","tag-permanently","tag-recruit"],"yoast_head":"<!-- This site is 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