Delhi High Court’s Trademark Ruling
The Delhi High Court has issued a significant ruling restraining individuals operating under the name ‘Zepto Finance’ from using marks that are either identical to or deceptively similar to the trademarks registered by Zepto Limited, a prominent quick-commerce company. This interim order was passed by Justice Jyoti Singh on July 22, following a demonstration of initial evidence highlighting consumer confusion between Zepto and Zepto Finance.
In her ruling, Justice Singh noted, “There is not only likelihood but actual confusion amongst members of the public, which is causing damage to the business as also reputation and goodwill of the Plaintiffs.”
Consumer Confusion and Legal Actions
Zepto Limited brought to the court’s attention that the defendants were utilizing ‘Zepto Finance’ and similar branding on platforms such as the website zeptofinance.com and an Instagram account. These entities were reportedly offering loan facilities and were implicated in illegal loan disbursements and aggressive recovery practices.
Moreover, Zepto Limited received multiple legal notices from third parties who claimed they had been defrauded by Zepto Finance. One notable incident involved a summons issued by the City Civil and Sessions Court in Chennai regarding a personal loan of ₹52,000, which was mistakenly delivered to Zepto’s store in Mylapore, instead of Zepto Finance.
Trademark Infringement and Business Expansion
The court concluded that the similar marks used by ‘Zepto Finance’ prima facie infringed on Zepto’s registered trademarks. The intention behind adopting these marks seemed to be an attempt to capitalize on Zepto’s established goodwill, falsely suggesting an association with the company for illicit financial gain.
More Read
The court also acknowledged Zepto’s business expansion into the financial sector with services like Zepto Cash and Zepto Pay Later, which provide digital wallet and credit-related services. This expansion demonstrates that Zepto’s services already overlap with those offered by the defendants.
Judicial Directive and Future Proceedings
Consequently, the court has restrained the defendants and their affiliates from offering, advertising, promoting, or marketing services under the name ‘Zepto Finance’ or any similar mark that could be confused with Zepto’s trademarks. The case is scheduled for further hearing on November 30.
Representing Zepto in this case, Senior Advocate Swathi Sukumar was joined by a legal team that included Advocates Aarshia Behl, Shruti Baid, Aman Sagar, Aashi Sharma, Bhavya Manda, Ritik Raghuwanshi, Rishika Aggarwal, and Anshu Tulsyan.
