H&M Receives Interim Relief From Delhi HC In Labelling Case

Trade & Policy

H&M Receives Interim Relief From Delhi HC In Labelling Case

The Delhi High Court granted interim relief to Hennes & Mauritz in a case pertaining to the alleged flouting of labeling norms in India. The Delhi High Court has stayed the proceedings that were taking place in a lower court. The stay will be in effect till the Delhi High Court hears the matter on October 15.

Citing the Legal Metrology (Packed Commodities) Rules, 2011, the Delhi government had engaged in litigation with the Swedish fashion retailer by filing criminal charges against the company. The government claimed that H&M had mentioned the length of a garment in a label as 122 cm and not 1.22 metres as was mandated by the rule. It contended that this amounted to the flouting of labeling norms.

The government had come across the alleged anomaly while conducting a check on the H&M outlet in Delhi way back in May 2016. This was seven months subsequent to the retail giant’s entry into India. However, only recently, the lower court issued summons to H&M which led to the retail brand approaching the Delhi High Court. H&M refused to comment on the matter stating that it would amount to sub judice as matter was being heard in the court. On H&M’s behalf, the counsel had contended in the High Court that the brand sells loose garments and they don’t fall under the pre-packaged category and thus the rule is not applicable to it.

H&M currently has plans to open 50 stores in India by the year 2020 and has earmarked an investment of INR 700 crore. In the recently concluded six months, the sales of H&M in India went up by 19% to a whopping INR 535 crore from INR 450 crore a year ago.