Delhi High Court: A suit was filed by ‘Ramada International Inc.’ (plaintiff) seeking permanent injunction restraining ‘ClubRamada Hotels and Resorts Private Limited’ (defendants) from infringing and using the impugned marks i.e., ‘CLUB RAMADA’, ‘CLUB RAMADA HOTELS AND RESORTS’, ‘CLUB RAMADA VACATION’ and ‘HOLIDAYS BY CLUB RAMADA VACATION’ and any other deceptively similar mark to that of plaintiff’s. Mini Pushkarna, J., granted permanent injunction to the plaintiff in its favour restraining the defendants from using the infringing ‘Ramada’ mark and awarding ₹10 lakh in damages for trademark infringement.
Ramada International Inc., the plaintiff, first adopted the trademark ‘RAMADA’ in 1954 for its hotel in Arizona, USA. Over the years, it expanded its operations, franchising and managing over 900 hotels across more than 60 countries, including India. The plaintiff first registered its ‘RAMADA’ trademark in India on23-12-1970, with a registration granted on 29-01-1972. The plaintiff’s earliest valid trademark registration for the ‘RAMADA’ word and device mark in India dates back to 08-10-1991, in Class 16, followed by subsequent registrations in Class 42 for hotel and related services.
The plaintiff discovered in November 2020 that the defendants had unlawfully adopted the ‘RAMADA’ mark as part of their corporate name ‘ClubRamada Hotels and Resorts Private Limited’ and were using infringing marks such as ‘CLUB RAMADA,’ ‘CLUB RAMADA HOTELS AND RESORTS,’ and ‘CLUB RAMADA VACATION.’ The defendants had also registered domain names <clubramadavacation.com> and <clubramadahotelsandresorts.com> to promote their services. Despite cease-and-desist notices, the defendants refused to comply, prompting the plaintiff to initiate legal proceedings.
The Court took note of the extensive trademark registrations owned by the plaintiff in India and worldwide, which demonstrated its longstanding and exclusive rights over the ‘RAMADA’ mark. The plaintiff also submitted evidence of the international reputation of the mark, including multiple domain names featuring ‘RAMADA’ and past legal actions successfully taken to prevent infringement.
The Court found that despite multiple opportunities, the defendants failed to provide a valid defense or justification for adopting the infringing marks. Instead, the defendants’ reply to the plaintiff’s legal notice admitted knowledge of the ‘RAMADA’ mark but provided an implausible explanation that one director’s religious beliefs led to the adoption of the name. The Court held that this defense was an afterthought and lacked bona fide intent.
The Court also took into account the defendants’ continued violations of previous injunction orders. Even after being directed to cease using the infringing marks, the defendants persisted, leading to contempt proceedings. The Court recorded that the defendants’ actions displayed a blatant disregard for its orders.
The Court ruled in favor of the plaintiff, granting a decree of permanent injunction against the defendants, restraining them from using the marks ‘CLUB RAMADA,’ ‘CLUB RAMADA HOTELS AND RESORTS,’ ‘CLUB RAMADA VACATION,’ or any deceptively similar variant.
Further, considering the willful and continued violation of injunction orders, the Court awarded damages of ₹10 lakhs to the plaintiff. Additionally, the Court directed the plaintiff to file a bill of costs within three months for reimbursement of litigation expenses.
[Ramada International Inc. v. ClubRamada Hotels and Resorts Private Limited, CS(COMM) 649/2021, decided on 17-02-2025]
Advocates who appeared in this case:
Mr. Ashwani Balayan, Ms. Richa Pushpam, Advocates for plaintiff
None for defendants
