Legal truth key: Failure to disclose complaints leads to dismissal of injunction application.

Reckit Benckiser (India) Ltd. Versus Naga Ltd.

Reckit Benckiser (India) Ltd. Versus Naga Ltd. - [2003] 45 SCL 305 (DELHI) Issues involved:
The Plaintiff filed a Suit for injunction against the Defendant's television commercial disparaging its product, Dettol Soap. The Defendant's commercial depicted a woman in need of medical assistance during a train journey, highlighting its Ayush Soap as a protector from infection.

Judgment Details:

1. The Plaintiff alleged that the Defendant's commercial disparaged Dettol Soap, the leader in brand equity. The commercial's portrayal of Dettol Soap as inferior was contested by the Plaintiff, emphasizing the soap's properties and consumer perception.

2. The Defendants were initially restrained from broadcasting certain advertisements but later withdrew applications related to the injunction. The Plaintiff's application for an injunction was under consideration.

3. Legal distinctions between defamation and malicious falsehood were discussed, emphasizing the need for false and disparaging statements causing special damage for an actionable claim. The requirement of proving disparagement, falsity, and special damage in cases of slander of goods was highlighted.

4. The absence of a claim for damages and the focus on seeking injunction only raised concerns about the bar under Order II Rule 2 of the Code of Civil Procedure. The necessity of obtaining leave for substantive claims before seeking injunctive relief was underscored.

5. The central issue was whether the Defendant disparaged the Plaintiff's product without making false statements. The commercial's impact on viewers regarding the antiseptic qualities of Dettol Soap and Ayush Soap was analyzed, clarifying that no imprimatur was granted to the Defendant's soap.

6. The Defendant argued that Dettol Soap is marketed as a cosmetic, not an antiseptic soap, unlike Dettol liquid. The Plaintiff's claim of disparagement was deemed indefensible, as correcting consumer misconceptions does not constitute libel if based on truth.

7. Consumer perception of Dettol Soap's efficacy and the Plaintiff's claim of induced belief were examined. The Court emphasized that truth is a complete defense against allegations of disparagement, especially when correcting mistaken beliefs.

8. The Plaintiff's failure to disclose material facts, including prior complaints to the Advertising Standards Council of India, and delayed legal action were noted. The Court highlighted the need for diligent disclosure and timely pursuit of legal remedies for injunctive relief.

9. The availability of alternative forums for adjudication, such as the M.R.T.P. Commission, was discussed. The Plaintiff's choice of legal recourse and the Defendant's actions in correcting consumer misconceptions were considered in light of the Specific Relief Act.

10. The application for injunction was dismissed with costs, citing various reasons including lack of merit, failure to disclose relevant facts, and delayed legal action.

Conclusion:
The judgment dismissed the Plaintiff's application for injunction against the Defendant's commercial, emphasizing the importance of truth, diligent legal pursuit, and disclosure of material facts in seeking injunctive relief.