"Counterfeiting of Medical Devices is a Grave Offence That Endangers Lives": Delhi High Court Issues Permanent Injunction Against Sale of Fake ‘SURGICEL’ and ‘ETHICON’ Surgical Products
Kiran Raj
The Delhi High Court Single Bench of Justice Amit Bansal has issued a permanent injunction restraining the defendants from manufacturing, distributing, and selling counterfeit medical products bearing the trademarks 'SURGICEL,' 'LIGACLIP,' and 'ETHICON.' The court further awarded compensatory and exemplary damages to the plaintiff, Johnson & Johnson, amounting to over INR 3.34 crore. The court stated that the defendants' conduct posed a significant risk to public health and safety due to the sale of substandard and counterfeit surgical products.
Johnson & Johnson, an internationally recognized corporation based in the United States, initiated this lawsuit to protect its intellectual property and the safety of consumers who rely on its surgical devices. The plaintiff, through its subsidiary Ethicon, manufactures and sells medical devices, including surgical sutures, haemostatic agents, and wound closure products, under the trademarks 'SURGICEL' and 'ETHICON.' These products are widely used by healthcare professionals in critical surgical procedures worldwide.
The plaintiff alleged that the defendants, Pritamdas Arora, trading as M/s Medserve, and Ritika Arora, were engaged in the unlawful sale of counterfeit versions of 'SURGICEL' and 'ETHICON' branded surgical devices. The issue came to light when a neurosurgeon at the University of Kentucky Medical Centre in the United States observed irregularities in a 'SURGICEL' product during a surgical procedure. Upon further examination, the plaintiff confirmed that the product was counterfeit and lacked the necessary sterility and quality standards required for medical use.
Subsequent investigations traced the counterfeit products to Lion Heart Surgical Supply LLC, based in Florida, which had procured them from Pure Care Traders F.Z.E. in the UAE. Documentation recovered during the investigation revealed that Pure Care Traders sourced the counterfeit goods from M/s Medserve, operated by defendant Pritamdas Arora in New Delhi. The plaintiff provided documentary evidence, including invoices, purchase orders, and communications between the defendants and international suppliers, demonstrating that the counterfeit products had been exported from India to multiple countries.
During searches conducted by court-appointed Local Commissioners, significant quantities of counterfeit surgical devices were discovered at the defendants’ premises. Seized records and electronic communications revealed that the defendants had also been involved in repackaging expired products with falsified expiration dates and selling them as new. These counterfeit products were being distributed to hospitals and medical suppliers worldwide, endangering patient safety.
The plaintiff sought relief in the form of a permanent injunction, damages, and the destruction of counterfeit goods. Initially, the defendants contested the suit but later ceased appearing before the court. As a result, the court proceeded ex-parte against them.
Justice Amit Bansal examined the evidence, including physical records, electronic communications, and testimony from the plaintiff’s witnesses. The court noted the extensive nature of the counterfeiting operation and its direct impact on public health and safety.
“On examination of the shipping records and invoices obtained during the raid, it is apparent that the defendants had established a network through which counterfeit goods were distributed to international markets, and the defendants had sold approximately 250,000 counterfeit medical devices between 2017 and 2019 to at least nine different countries.”
The court examined WhatsApp messages and email exchanges between the defendants and their international buyers, which confirmed their involvement in counterfeiting and repackaging of expired surgical products. The defendants had provided instructions to foreign suppliers regarding the replication of the plaintiff’s product packaging, including details on branding and labelling to deceive consumers into believing that the products were genuine.
The court also noted that the defendants had engaged in tax evasion and money laundering, using multiple undisclosed foreign bank accounts to receive payments for counterfeit goods. The financial records submitted in court revealed that transactions exceeding INR 9.39 crore had taken place in connection with these counterfeit sales.
Regarding the health risks associated with counterfeit surgical devices, the court observed:
“The counterfeit medical products sold by the defendants pose a significant threat to public health. Counterfeiting of medical devices is not merely a case of trademark infringement; it is a grave offence that endangers the lives of people.”
Further, evidence demonstrated that the defendants had knowingly sold expired and contaminated surgical products. Messages exchanged between defendant Pritamdas Arora and his associates showed that they had discussed methods to conceal expired dates and alter packaging to mislead buyers. In one conversation, the defendant explicitly instructed a business associate to relabel expired goods and distribute them under the guise of newly manufactured medical supplies.
The court also considered the defendants' failure to cooperate with legal proceedings. Multiple court orders directing them to appear and disclose financial records were ignored. Despite efforts by law enforcement agencies, including the Delhi Police and Cyber Cell, the defendants remained untraceable. The court noted that their evasion of legal proceedings further indicated their intent to continue unlawful activities.
The Court issued the following directives:
- Permanent Injunction: The court permanently restrained the defendants from manufacturing, selling, or distributing counterfeit products bearing the plaintiff’s trademarks.
- Destruction of Counterfeit Products: The plaintiff was permitted to destroy all counterfeit products seized during the investigation.
- Damages: The court awarded compensatory damages of INR 2,34,82,986/- and exemplary damages of INR 1,00,00,000/-.
- Cost Recovery: The plaintiff was granted actual litigation costs, with an order for a cost assessment to be conducted before the Joint Registrar. Plaintiff shall pay the additional court fees on the differential amount awarded in favour of plaintiff within four (4) weeks.
Advocates Representing the Parties
- For the Plaintiff: Ms. Nancy Roy, Mr. Raghav Malik, Ms. Prakirti Varshney, and Mr. Prashant, Advocates
- For the Defendants: None (Defendants proceeded ex-parte)
Case Title: Johnson & Johnson v. Pritamdas Arora T/A M/s Medserve & Anr.
Neutral Citation: 2025: DHC:1585
Case Number: CS(COMM) 570/2019
Bench: Justice Amit Bansal
[Read/Download order]
