**Delhi High Court Prohibits Adyar Gate Hotels from Using ITC’s “Dakshin” Trademark**
In a significant ruling for ITC Ltd, the Delhi High Court has issued an interim injunction preventing Chennai-based Adyar Gate Hotels Ltd from utilizing the name and trademark “Dakshin” for their standalone restaurant. This decision came in response to ITC’s lawsuit alleging trademark infringement, asserting its ownership of the well-known restaurant name. Justice Amit Bansal acknowledged that a prima facie case was established for the injunction.
Senior advocate Mukul Rohatgi, representing ITC, highlighted that the company possesses multiple trademark registrations for “Dakshin,” with the earliest dating back to 2000. He explained that ITC had entered into a management agreement with Adyar Gate Hotels in 1985 for the Welcomgroup Park Sheraton hotel in Chennai, which allowed limited rights to use the “Dakshin” name.
Although Adyar Gate obtained trademark registration for “Dakshin” under Class 42 in 2004, ITC did not raise any objections at that time due to their ongoing licensing arrangement. This partnership lasted until 2015 when the hotel was rebranded as Crowne Plaza Chennai Adyar Park. ITC refrained from voicing concerns about the restaurant’s operations, as the brand had already established considerable goodwill.
The situation shifted dramatically when the hotel closed in December 2023 and was subsequently demolished to make way for twin residential towers by the Baashyaam Group. The property was sold in a deal valued at approximately ₹10-12 crore per ground (one ground equals 2,400 sq. ft.).
ITC expressed its shock upon learning that Adyar Gate had launched a standalone restaurant named “Dakshin” in December 2024, arguing that this move was a blatant attempt to exploit the goodwill associated with its brand. The company cautioned that if the restaurant continued to operate, it could lead to the establishment of similar outlets in other cities, potentially promoted through delivery apps like Zomato and Swiggy, which could severely impact ITC’s business and its iconic trademark.
Established in 1989, Dakshin is celebrated for its authentic South Indian cuisine and cultural ambiance. The brand has expanded beyond Chennai, with locations in Bengaluru (ITC Windsor), Hyderabad (ITC Kakatiya, Begumpet), and Mumbai (ITC Grand Central, Parel).
The demerger of ITC Hotels from ITC took effect on January 1, 2025. Following the demerger, ITC retains a 40% stake in the hotel business, while the remaining 60% is distributed among existing shareholders. According to data from Lemonn Markets, the hotel business contributed only 3% to ITC’s revenue in FY24.
