Supreme Court Questions Dangerous Liquor Tetra Packs in Major Trademark Dispute Between Whisky Giants

Justice Bagchi expressed concerns that governments are prioritizing revenue over public health.

New Delhi:

The Supreme Court raised serious concerns on Monday regarding liquor being sold in tetra packs, questioning whether such packaging should be permitted at all. During a trademark dispute hearing between two major liquor companies, the bench described the packaging as "dangerous" and potentially deceptive.

When counsel presented tetra packs from both companies to highlight similarities in branding, Justices Surya Kant and Joymalya Bagchi were visibly surprised. "What is this -- a juice packet?" Justice Kant asked, expressing shock that the government allowed alcohol to be distributed in such containers.

The court was hearing a trademark dispute between John Distilleries Pvt Ltd, manufacturer of 'Original Choice' whisky, and Allied Blenders and Distilleries Pvt Ltd, which produces 'Officers Choice' whisky. Both brands command significant market share in India's whisky industry.

The Supreme Court appointed former Justice L Nageswara Rao as mediator to facilitate an amicable resolution between the competing companies.

Senior advocate Mukul Rohatgi, representing John Distilleries, confirmed these were indeed whisky tetra packs, noting they were among the highest-selling products in Karnataka. The bench expressed deep concern, stating, "This is very dangerous. It can be taken to schools or colleges by students in their bags. Parents can be easily deceived."

Justice Kant remarked this was his first encounter with liquor in tetra packaging and questioned how governments could approve such packaging, suggesting the court would be interested in examining this issue if someone filed public interest litigation.

Both senior advocates Rohatgi and Abhishek Singhvi, the latter representing Allied Blenders, acknowledged that multiple brands use similar packaging, noting that governments primarily focus on revenue generation from these products.

Justice Bagchi pointedly commented that governments were "trading on the health of the people," adding, "Just understand how many tons are wasted on health because of earning revenue."

While requesting Justice Rao to mediate, the bench emphasized the urgency of the matter and asked that the settlement process be conducted expeditiously.

Rohatgi explained that Allied Blenders had filed two suits, though injunction was declined, and noted that both companies had modified their packaging over time. He expressed openness to settlement but requested a time-bound process.

When issuing the order, Justice Kant urged both companies to consider the tetra-pack issue in the broader public interest, emphasizing its seriousness.

The case stems from John Distilleries challenging a November 7 Madras High Court order that favored Allied Blenders and directed the removal of the 'Original Choice' trademark from the registry, ruling it deceptively similar to 'Officer's Choice.'

The high court determined that 'Original Choice' violated the Trade Marks Act, 1999, while confirming the validity of Allied Blenders' registration for 'Officer's Choice.'

The dispute began when Allied Blenders petitioned the trademark registry to remove John Distilleries' "Original Choice" mark, claiming phonetic and visual similarity that could confuse consumers. John Distilleries countered with allegations that Allied Blenders had suppressed facts when registering its mark.

In 2013, the Intellectual Property Appellate Board (IPAB) dismissed both petitions, finding the marks were not deceptively similar. Both companies subsequently appealed to the Madras High Court, which ruled on November 7 that the now-defunct IPAB had erred in its 2013 judgment.