Bombay High Court Restrains Ahmedabad Group From Revoking Vadilal Trademark
The Bombay High Court in Mumbai has granted interim relief to the Bombay Group in a trademark dispute, ruling that their right to use the 'Vadilal' brand is based on a 1993 family settlement rather than a terminable commercial license.
Justice Amit Borkar passed the order on Tuesday on a petition filed by the Bombay Group, which includes Shailesh Gandhi, Bela Gandhi, and Vadilal Dairy International Ltd. The ruling temporarily protects the group's rights to manufacture and sell ice cream and juices under the 'Vadilal' brand in Maharashtra, Goa, Karnataka, Kerala, and Andhra Pradesh, including Telangana.
The dispute arose after Vadilal International Pvt. Ltd., representing the Ahmedabad Group, issued a communication on May 26, 2026. This notice sought to terminate the registered user agreement and revoke an irrevocable power of attorney, which would have ended the Bombay Group's brand usage.
In his 122-page judgment, Justice Borkar observed that four key documents were executed on March 30, 1993, including a parent memorandum of agreement, a branding agreement, an irrevocable power of attorney, and a registered user agreement. The court found that these documents were part of an integrated family settlement that involved the separation of businesses, transfer of shares, and division of territories.
The judge noted that the registered user agreement was not an ordinary commercial license. Instead, it was part of a family settlement under which the Bombay Group received permanent and irrevocable rights to the brand after relinquishing its shareholding and management rights in Vadilal International.
Pending the outcome of arbitration, the High Court has restrained the Ahmedabad Group from acting on its May 26 termination letter. The Ahmedabad Group is also barred from using the 'Vadilal' brand in the Bombay Group's designated territories and from transferring or licensing the trademark to any third parties. This interim protection will remain in place throughout the arbitration proceedings and for 90 days following the arbitral award.
