SC raises concern over liquor in tetra packs

The Supreme Court on Monday questioned whether liquor should be permitted to be sold in tetra packs, describing such packaging as “dangerous” and potentially misleading. The observation came during the hearing of a trademark dispute between two major Indian liquor companies.

A bench of justices Surya Kant and Joymalya Bagchi expressed concern after a counsel produced the tetra pack versions of the companies’ whisky products in court. Noting the similarity in branding, the bench also questioned how governments had allowed alcohol to be sold in such packaging, calling it a “serious issue”.

The case involves John Distilleries Pvt. Ltd., maker of ‘Original Choice’ whisky, and Allied Blenders and Distilleries Pvt. Ltd., producer of ‘Officer’s Choice’ whisky. The Supreme Court appointed former SC judge L. Nageswara Rao as mediator to help the companies settle the dispute amicably.

Senior advocate Mukul Rohatgi, appearing for John Distilleries, produced the whisky tetra packs during the hearing. Justice Kant remarked, “What is this packet? Juice,” after which Rohatgi clarified that these were whisky tetra packs, which are among the highest-selling formats in Karnataka.

The bench noted that such packaging could be easily carried into schools or colleges undetected, potentially deceiving parents. Justice Kant observed that it was the first time he had seen liquor in tetra packs and said the court would examine the issue if a public interest litigation (PIL) were filed.

Senior advocates Rohatgi and Abhishek Singhvi, the latter representing Allied Blenders, submitted that several other liquor brands also use tetra packs and that state governments prioritise revenue from alcohol sales.

Justice Bagchi commented that governments were “trading on the health of the people,” noting the public health implications of such sales.

The bench asked Justice (retd.) Rao to take up the mediation on priority, given the urgency, and try to conclude the process at the earliest. Justice Kant also urged both companies to consider the broader public interest associated with tetra pack liquor sales.

Rohatgi informed the court that two suits filed by Allied Blenders had previously been dismissed at the injunction stage and acknowledged that both companies had changed their packaging over the years. He said he had no objection to a time-bound settlement.

John Distilleries has challenged a November 7 Madras High Court order that ruled in favour of Allied Blenders, directing the removal of the ‘Original Choice’ trademark from the trademarks register. The High Court held that ‘Original Choice’ was deceptively similar to ‘Officer’s Choice’ and that its registration violated the Trade Marks Act, 1999. The court also upheld Allied Blenders’ registration for ‘Officer’s Choice’.

The dispute began when Allied Blenders filed a petition before the Trademark Registry seeking removal of ‘Original Choice’ on grounds of phonetic and visual similarity. John Distilleries then filed a cross-petition against ‘Officer’s Choice’, alleging that Allied Blenders had suppressed facts in its application and had applied for registration in 1990 before acquiring rights to the mark.

In 2013, the Intellectual Property Appellate Board (IPAB) dismissed both petitions, stating that the marks were not deceptively similar. Both companies later challenged the IPAB’s ruling before the Madras HC, which overturned the Board’s findings in its November 7 judgement.