The Bombay High Court on Monday temporarily halted a Pune Court's decision that had dismissed a trademark infringement lawsuit filed by US fast-food giant Burger King against a local burger joint using the same name.

A bench of Justices AS Chandurkar and Rajesh Patil allowed Burger King's appeal and issued an injunction, preventing the local establishment from infringing on the US company's trademark until the appeal is heard and a final decision is made.

"The Division Bench will be the last fact-finding court and the entire evidence will be looked into. Therefore, interim relief granted by the court requires to be continued," the Court observed.

The Court also directed both Burger King and the Pune burger joint to preserve their business records for the past ten years. Previously, the Court had granted an interim stay on the trial court's order.

The dispute revolves around Burger King Corporation, which entered the Indian market in 2014, and a Pune-based restaurant that has been using the "Burger King" name since 2008. 

Burger King argued that the local establishment's use of the name was harming its brand reputation and sought a permanent injunction to prevent the restaurant from continuing to use the trademark.

In July, the Pune court ruled in favor of the local restaurant, noting that it had been using the name long before Burger King Corporation entered India. The trial court highlighted that the Pune restaurant had been operating since the early 1990s, while the US corporation only registered its trademark for restaurant services in India in 2006. The court concluded that the Pune restaurant was a prior and honest user of the name, dismissing the US company’s suit.

Burger King (the US company) appealed the ruling in the Bombay High Court, arguing that its trademark had been registered in India since 1979, despite its late entry into the market. The local restaurant’s legal team countered that the business had been using the name since 1992, well before the US fast-food giant established operations in India.

After hearing both sides, the High Court reserved its decision on the stay application on October 1, which was granted today.