Karnataka High Court restrains Classic Legends from using 'Yezdi' mark of Ideal Jawa

The Karnataka High Court recently restrained Classic Legends Pvt Ltd, incorporated by Boman R Irani of Rustomjee Group and Mahindra & Mahindra, from using the trademark 'Yezdi' of Yezdi motorbikes [The Official Liquidator of M/S Ideal Jawa (India) Ltd vs Registrar of Trademarks & Ors.].Justice SR Krishna Kumar ruled that the mark was under the court's custody since the owner of the mark, Ideal Jawa (India) Ltd. which used to manufacture Yezdi motorbikes, was under liquidationThus, Irani's conduct in obtaining registration of the mark during the process of Ideal Jawa's winding up was in bad faith and amounted to misappropriation of the company's assets, the Court held."Mr Irani could not have obtained registration of the marks "Yezdi" during the process of winding up. The conduct of Mr Irani in obtaining registration of the marks is in bad faith and amounts to misappropriation of the assets of the company," the single-judge said..The Court was hearing applications by the official liquidator (OL) of Ideal Jawa and Ideal Jawa Employees Association challenging the registration obtained by Irani. The Court was also seized of an application by the OL to sell the mark 'Yezdi'.Ideal Jawa Employees Association sought to be impleaded and had filed a separate application to stay the registrations granted by the Trademark Registrar so that the marks could be sold in order to realise the dues to the creditors including employees who were awaiting their dues..The trademark ‘Yezdi’ belonged to Ideal Jawa (India) Limited, which was ordered to be liquidated in the year 1996. Thereafter, all the assets of the company came to be vested with the OL. In the interim, Irani obtained registration of the trademark in his personal capacity which was also assailed before the Court. Thereafter, Yezdi motorbikes were re-introduced in the market by Classic Legends Private Limited, a subsidiary of Mahindra & Mahindra and a licensee of Irani..Questioning the conduct of Boman R Irani and Classic Legends Private Limited, the Court imposed costs of ₹10,00,000 on each to be utilised towards the costs and distribution to be made in the process of the winding up of the company.The Court also restrained Irani and Classic Legends Private Limited by an order of injunction from using the mark 'Yezdi' or any other mark containing the word 'Yezdi' as a word or a device whether independently or in conjunction with other words including all domain names which use the word or the mark 'Yezdi'..Senior Advocate Dhyan Chinnappa briefed by advocate Poornachandra B Pattar, Partner, Spectrum Legal, and advocates Adit Shah, Manish, and Vishaka Nikkam represented Ideal Jawa Employees Association.Senior Advocate Aditya Sondhi and advocate KS Mahadevan represented the OL.Classic Legends Pvt Ltd was represented by Senior Advocates SS Naganand and Srinivasa Raghavan and advocate Vikram Unni Rajagopal..[Read Order]