M/S GM MODULAR PVT LTD vs. M/S HAVELLS INDIA LTD.
In disparaging advertisement cases the key issue is that the Plaintiff who feels that his business product or services has been disparaged is required to prove that the Plaintiff or its product or services is being shown in bad light and as a result the advertisement has caused damage to the Plaintiff’s reputation. This is exactly what GM Modular was able to prima facie establish in the Delhi High Court against Havells. Both GM and Havells are manufacturers of switches and other electrical accessories. Havells released a television commercial depicting a peace conference in which when one of the dignitaries switches on a light switch he suffers an electrical shock and the dignitary is heard screaming that he has been shocked and a voice in the background says everything was done right except using HAVELLS RCCB & MCBs which resulted in the shock. The court ruled that the theme of the commercial and the presentation did show the Plaintiff’s products in bad light, which diluted GM’s brand value. As a result, an interim injunction was granted.