New Delhi: In a relief for ITC Ltd, the Delhi high court on Thursday restrained Chennai-based Adyar Gate Hotels Ltd from using the name and trademark “Dakshin” for their standalone restaurant.
The court granted an interim injunction in response to ITC’s trademark infringement lawsuit, which asserted its ownership of the iconic restaurant’s name.
Justice Amit Bansal noted that a prima facie case was made for the injunction.
Senior advocate Mukul Rohatgi, appearing for ITC, said the company held multiple trademark registrations for “Dakshin”, with the earliest dating back to 2000.
He said ITC had entered into an agreement with Adyar Gate Hotels in 1985 to manage the Welcomgroup Park Sheraton hotel in Chennai, granting limited rights to use the “Dakshin” name.
Adyar Gate secured trademark registration for “Dakshin” under Class 42 in 2004, but ITC did not object, given their ongoing licensing arrangement.
This partnership continued until 2015, when the hotel was rebranded Crowne Plaza Chennai Adyar Park. ITC said it did not raise concerns about the restaurant’s operations as the brand had gained significant goodwill by then.
The situation changed when the hotel shut down in December 2023 and was demolished to make way for twin residential towers by the Baashyaam Group. The property was sold in a part-cash, part-development deal, reportedly valued at ₹10-12 crore per ground (one ground equals 2,400 sq. ft.).
ITC said it was shocked to discover that Adyar Gate had opened a standalone restaurant named “Dakshin” in December 2024, arguing that this was a clear attempt to capitalize on the goodwill associated with its brand.
The company further warned that if the restaurant continued to operate, it could lead to similar outlets being opened in other cities, with the name potentially being promoted through delivery apps like Zomato and Swiggy, causing significant harm to ITC’s business and its iconic mark.
Dakshin, established in 1989, is renowned for its authentic South Indian cuisine and cultural ambience. The brand has expanded beyond Chennai, with branches in Bengaluru (ITC Windsor), Hyderabad (ITC Kakatiya, Begumpet), and Mumbai (ITC Grand Central, Parel).
The demerger of ITC Hotels from ITC took effect on 1 January, 2025. Post-demerger, ITC retains a 40% stake in the hotel business, while 60% is distributed to existing shareholders.
According to data from Lemonn Markets, the hotel business contributed only 3% to ITC’s revenue in FY24.
