Delhi High Court Dismisses Patanjali Ayurved's Appeal Against Order To Pay ₹48.5 Lakh To Supplier

The Delhi High Court on Thursday dismissed an appeal by Patanjali Ayurved Limited against a lower court order that directed the company to pay nearly Rs 48.5 lakh to Ujala Goel, proprietor of Ru Overseas, for goods supplied to it.

A bench of Justices V Kameswar Rao and Vinod Kumar while dismissing the appeal however reduced the interest payable on the amount from 15% to 9%.

“The appeal is dismissed, however, the rate of interest is reduced to 9%”, the court said.

The dispute began after Goel filed a case in 2021, claiming that Patanjali had not cleared full payment for products delivered. Patanjali admitted receiving the goods but argued that some of them were defective, saying it had deducted Rs 38.94 lakh as a penalty.

The commercial court examined the case and ruled in January 2024 that Patanjali had failed to prove its claim about defective goods. It ordered the company to pay Rs 48,49,342 along with interest at 15% per year.

Patanjali challenged this decision before the High Court seeking stay. In March 2024, the High Court granted a conditional stay on the condition that Patanjali deposit the full payment with interest.

However, after hearing both sides, the court has now dismissed Patanjali's appeal.

Case Title: Patanjali Ayurved Limited v. Ujala Goel, Proprietor of R.U. Overseas

Case Number: RFA (COMM) 109/2024

For Appellant: Advocates Sachin Jain, Ajay Agarwal, Shobhit

For Respondent: Advocates Kailash Chand Goel, Rashmi Verma, Shweta Singh