Orders of the Karnataka HC restraining the use of mark 'Yezdi' from Mr. Boman Irani and Classic Legends Private Limited

In a landmark decision, the Hon’ble High Court of Karnataka (Company bench) has restrained Mr. Boman Irani and M/s. Classic Legends Private Limited or any person claiming through or under them from using the 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 / mark “Yezdi”. 

Deciding on an application filed by the Official Liquidator (‘OL’) to sell the trademark ‘Yezdi’ and multiple applications filed by the OL and Ideal Jawa Employees Association, wherein the registration of the trademark ‘Yezdi’ obtained by Mr. Boman Irani was challenged, the Hon’ble High Court has held that Ideal Jawa (India) Limited is the rightful owner of the trademark and not Mr. Boman Irani and that these marks remain in the custodia legis of the Court.

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 these marks could be sold in order to realise the dues to the creditors including the employees who have been waiting to get their dues from several decades. Allowing the said application, the Hon’ble Court restrained Mr. Boman Irani and M/s. 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 / mark “Yezdi”. It may be recalled that the trademark ‘Yezdi’ belonged to Ideal Jawa (India) Limited and ‘Yezdi’ was a cult brand having goodwill and following. Ideal Jawa (India) Limited went into liquidation and 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, Mr. Boman 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 Mr. Boman Irani. Coming down heavily on Mr. Boman Irani and M/s. Classic Legends Private Limited, the Court has not only questioned their conduct, has also imposed costs of 10,00,000/- each to be utilised towards the costs and distribution to be made in the process of the winding up of the Company.

The Hon’ble Court has held that the conduct of Mr. Boman Irani in obtaining registration of the marks is in bad faith and amounts to misappropriation of assets of the Company. The Hon’ble Court has further held that M/s. Classic Legends Private Limited is only a licensee of Mr. Boman Irani and that its claim cannot be beyond that of Mr. Boman Irani and in fact need not be heard, however M/s. Classic Legends Private Limited has been heard extensively in the interest of justice. 

The matter was heard extensively with a battery of Senior Counsels representing the parties before the Court and the Court had reserved the matter for orders on 18.12.2021. The Hon’ble Court pronounced the Order on 16.12.2022 in the open court and upon the request of the Senior Counsels appearing for Mr. Boman Irani and M/s. Classic Legends Private Limited has kept the said orders in abeyance for 30 days.

After a long drawn battle, the employees are still awaiting settlement of their rightful dues. The employees have suffered for more than 2 decades now and most of the employees have succumbed to poverty, suffering and illness awaiting justice which has been eventually done. Only a few of the employees are surviving who are aged and still awaiting settlement of dues. The decision of the Hon’ble Court offers a respite to these employees and their families as the Hon’ble Court has held that the ‘Yezdi’ trademark and brand rightfully belongs to the Company and the same should be sold in order to settle the dues to the employees. Senior Counsel Mr. Dhyan Chinnappa briefed by Mr. Poornachandra B.Pattar, Partner, Spectrum Legal, Mr. Adit Shah, Mr. Manish, and Ms. Vishaka Nikkam represented Ideal Jawa Employees Association.