Mumbai, June 30: The Bombay High Court on Tuesday granted interim relief to the Bombay Group in the Vadilal trademark dispute, holding that its claim to use the 'Vadilal' brand is, at least prima facie, based on a family settlement and not merely on a commercial licence that can be terminated.
Court Grants Interim Relief
Justice Amit Borkar passed the order on a petition filed by Bombay Group's Shailesh Gandhi, Bela Gandhi and Vadilal Dairy International Ltd. under Section 9 of the Arbitration and Conciliation Act, 1996.
The petitioners claimed they have permanent and irrevocable rights to manufacture and sell ice cream and juices under the 'Vadilal' brand in Maharashtra, Goa, Karnataka, Kerala and Andhra Pradesh (including Telangana). According to them, these rights arose from a 1993 family settlement between the Bombay and Ahmedabad branches of the Gandhi family.
The dispute began after Vadilal International Pvt. Ltd., part of the Ahmedabad Group, issued a communication on May 26, 2026, terminating the registered user agreement and revoking an irrevocable power of attorney. The Bombay Group argued that the move effectively sought to take away its long-standing right to use the 'Vadilal' brand.
Family Settlement At Core
The High Court noted that four documents were executed on March 30, 1993—a memorandum of agreement described as the parent agreement, a branding agreement, an irrevocable power of attorney and a registered user agreement.
Justice Borkar observed that the parent agreement appeared to record the overall family settlement, including the separation of businesses, transfer of shares, division of territories and the future use of the 'Vadilal' trademark. The remaining agreements, the court said, were executed to implement that settlement.
"This shows that the Registered User Agreement was not an ordinary commercial licence but was a part of the family settlement under which the Bombay Group received permanent and irrevocable rights in the 'Vadilal' brand after giving up its shareholding and management rights in Vadilal International," the judge said in the detailed 122-page judgment.
The court also held, prima facie, that the four agreements formed part of one integrated arrangement and that the arbitration clause in the parent agreement could extend to disputes arising under the other agreements.
Status Quo Till Arbitration
Rejecting the Ahmedabad Group's contention that the termination of the registered user agreement ended the parties' relationship, the court said the Bombay Group was not seeking to revive a terminated commercial licence but to protect rights claimed under the larger family settlement until the dispute is decided through arbitration.
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Pending arbitration, the High Court restrained the Ahmedabad Group from acting on the May 26 termination letter. It also restrained the group from using the 'Vadilal' brand in the Bombay Group's territories and from transferring, licensing or creating third-party rights in the disputed trademark. The interim protection will continue during the arbitral proceedings and for 90 days after the arbitral award, unless modified by the arbitral tribunal.
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