New Delhi: In what comes as a major moral victory to Khadi and Village Industries Commission (KVIC), the clothing retailer Fabindia Overseas Pvt Ltd has given an undertaking to the Bombay High Court that it would not use the term 'Khadi' in their current or future products. The bench of Justice S.J. Kathawala, on Monday, had accepted the undertaking of the company and gave Fabindia four weeks' time to submit its response to a petition filed by the KVIC .
In the undertaking, Fabindia had committed not use the term 'Khadi' in their products. With this order the court has disposed off injunction application of KVIC , however application for Rs.525 Crore damages will go on.
It may be noted that KVIC had filed a damage suit of Rs 525 crore against Fabindia with the Bombay High Court on June 13 this year for 'illegally' using its trademark 'Charkha' and selling mill made fabric products with the 'Khadi' tag. And, this development has come as a major victory for KVIC since it has sought the Court's intervention to restrain Fabindia from using the 'Khadi' tag to its factory-made cotton garments. The KVIC had also informed the High Court that Fabindia continued to sell garments in the name and style of 'Khadi', despite several reminders sent to them by the KVIC .
This autonomous body under the Ministry of Micro, Small & Medium Enterprises (MSME) had also sent a legal notice to fab india in February this year, asking them to refrain from doing so.
It may be noted here that as per the norms of the Khadi Mark Regulations, 2003, and Khadi & Village Industries Commission Act, 1956, "no textile shall be sold or otherwise traded by any person, or certified Khadi institution as 'Khadi products', in any form or manner, without it bearing a 'Khadi Mark' tag or label issued by KVIC".