Zepto vs 'Mohammad Arshad's Zepto': Delhi HC rules in favour of ...

Kiranakart, the parent company of quick commerce giant Zepto, has won a nearly year-long trademark dispute in the Delhi High Court. As reported by Inc42, the Judge Amit Bansal ruled in favour of the four-year-old startup’s petition to cancel the trademark "Zepto," which had been registered by Mohammad Arshad on July 14, 2014. The Delhi High Court ordered its removal from the trademark register, siding with Zepto’s rectification plea.
In its ruling, the court said that Zepto had been consistently and extensively using the trademark in India since July 2021, building a strong reputation under its brand logo. In contrast, Arshad had not commercially utilised the trademark in the eight years since its registration. Judge Bansal reportedly noted, “The respondent no.1 (Arshad) has no bona fide intention to use the impugned mark for the services claimed in its registration. Despite nearly eight years passing since its entry on the Register of Trade Marks, respondent no.1 has failed to use it in relation to Class 35 services.” The court deemed Arshad’s trademark a mere obstruction on the register, lacking merit.

Mohammad Arshad’s "Zepto" was registered under Trademark Classes 9 and 35, covering services like smartphone distribution, phone accessories, computer software, and telephone instruments, with a claimed usage dating back to April 1, 2011. However, Zepto argued that Arshad’s opposition to its own trademark application was a deliberate attempt to delay registration and harass the company. The startup further alleged dishonesty, pointing to Arshad’s July 2024 settlement offer, which Zepto rejected, suspecting it was an extortion attempt disguised as an amicable resolution.
Arshad neither responded to the petition nor appeared in court, leading to the uncontested approval of Kiranakart’s plea. Citing Section 47(1)(b) of the Trade Marks Act, the court explained that a trademark unused for five continuous years, up to three months before a rectification petition, is liable for removal. Arshad’s prolonged non-use met this criterion.
Zepto highlighted its scale to the court, noting it operates around 350 dark stores, employs over 1,000 professionals and 40,000 delivery executives, and serves more than 8 million customers across 10+ cities in India.