Mumbai: The Bombay High Court has granted a 90-day injunction against an Australian distributor of Wonderchef, barring it from making disparaging statements about Wonderchef Home Appliances, owned by Celebrity Chef Sanjeev Kapoor, and its products. The order comes in response to a petition filed by Wonderchef, which sought to restrain the distributor from harming its reputation through emails sent to various parties, including other distributors, government officials, and potential investors.
The dispute stems from a Distribution Agreement signed in December 2017, which contains an arbitration clause. Wonderchef alleged that the distributor had been sending emails claiming that the company’s products had defects and that the distributor had been treated unfairly. Arguing that these statements were damaging its reputation, Wonderchef sought an order under Section 9 of the Arbitration and Conciliation Act, 1996, to prevent further harm before arbitration could be formally invoked.
The distributor did not appear before the court. However, after reviewing the emails submitted as evidence, the court acknowledged that the distributor had been raising concerns about Wonderchef’s products and business practices. The company contended that some of the emails contained “confidential information” about its products, which violated the terms of the agreement.
Justice Somasekhar Sunderesan, on January 27, however, was cautious in granting a gag order, emphasising that commercial speech falls under the right to free expression. “It is not easy for a court to prohibit a party from expressing grievances about a product acquired in commerce,” the judge observed, adding that it must be determined whether the distributor’s statements were truthful or unjustified.
At the same time, the court recognized that the agreement included a clause requiring the distributor to maintain Wonderchef’s reputation. “There is an element of the Respondent having consciously and autonomously bound himself not to harm the Petitioner’s reputation,” the order noted.
In balancing free speech and contractual obligations, the court ruled that the distributor must comply with the agreement’s reputation clause for the next 90 days and refrain from making further statements that could harm Wonderchef’s image. “Higher the stature of the celebrity, thicker the skin,” the court remarked, acknowledging the brand’s association with a well-known Indian chef while stating that Wonderchef had not demonstrated significant reputational damage.