Bombay High Court restrains Apollo Tyres from "defamatory" ad against CEAT

The Bombay High Court recently issued a preliminary injunction against Apollo Tyres, preventing them from airing an advertisement that was deemed to "ridicule and disparage" CEAT Tyres, as per reports.

Single-judge Justice Riyaz Chagla, in an order passed on September 12, restrained Apollo Tyres from broadcasting a Visual Commercial (VC) that depicted CEAT Tyres in a negative light.

"Upon examining the impugned advertisement and the accompanying storyboard, it appears that the Plaintiff is the sole owner of the unique and distinctive tread pattern of its CROSSDRIVE AT tire, and has established significant goodwill and reputation in relation to this design," the judge stated in the order. "Furthermore, the Impugned Advertisement unfairly compares the Plaintiff's worn-out tire with the Defendant's brand-new tire, and its underlying premise is to discredit and defame the Plaintiff's CROSSDRIVE AT tire," as per reports.

The Bombay High Court further found that the Visual Commercial (VC) aired by Apollo Tyres was "prima facie" derogatory and disparaged CEAT's product.

"Under these circumstances, I am convinced that the Plaintiff has established a strong prima facie case for the grant of interim relief," the judge stated. "The balance of convenience favors the Plaintiff. Without the requested relief, the Plaintiff will suffer irreparable harm or injury that cannot be compensated financially. The Defendant is absent despite notice. There are no equities in favor of the Defendant. Therefore, interim relief shall be granted against the Defendant."

CEAT, in its statement, explained that it has developed new and original tread patterns for various types and sizes of its tires over the years, to ensure durability, a smooth ride, and secure road grip. Around 2020, the company created a new tire tread design for its All Terrain (AT) tires, intended for use in motor vehicles, which they named CROSSDRIVE AT. CEAT has been utilizing its CROSSDRIVE AT tire since May 2022.

On September 4, 2024, the CEAT company discovered a VC uploaded by Apollo on its YouTube channel, promoting its Apollo Apterra AT2 tire for use in the Mahindra THAR, a sports utility vehicle. In this VC, the plaintiff alleged that the defendant had "unfairly" depicted the Plaintiff's CROSSDRIVE AT tire as worn out while "cleverly obscuring" its (Plaintiff's) embossed CEAT trademark.

The VC, the plaintiff added, further compared the "worn-out CEAT tire" to a fresh and brand-new Apollo Apterra AT2 tire. It stated that through the defendant's advertisement campaigns on various online platforms, such as YouTube, X, Instagram, LinkedIn, and Facebook, a message was being conveyed to potential buyers suggesting that the Plaintiff's CEAT all-terrain tires are of inferior and substandard quality, inferior to the Defendant's Apollo Apterra AT2 tire, and should be discarded. The Plaintiff argued that its CEAT all-terrain tires had been unfairly criticized and presented in a negative light in this advertisement.

While prohibiting the defendants from broadcasting its VC, the judge adjourned the matter for a detailed hearing on October 11.