New Delhi: In what comes as a major moral victory to Khadi and Village Industries Commission (KVIC), 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.
A bench of Justice SJ 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 submitted on Tuesday, Fabindia committed to not to 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 for ‘illegally’ using its trademark ‘charkha’ and selling factory-made cotton garments with the ‘khadi’ tag.
Ever since KVIC moved the court, today’s development has come as a major victory for the company. 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 Fabindia 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”.