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2025 Supreme(Kar) 2254

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
D.K.SINGH, VENKATESH NAIK T, JJ.
Classic Legends Private Limited - Appellant
Vs.
Tide Water Oil. Co. (India) Ltd. - Respondent
Original Side Appeal No. 8, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13 of 2023
Decided On : 27-11-2025

Advocate Appeared:
For the Appellant :Sri S.S.Naganand, Senior Counsel For Sri Vikram Unni Rajagopal, Advocate Sri Udaya Holla, Senior Counsel, For Sri P Chinnappa, Advocate
For the Respondent:Dr. Aditya Sondhi, Senior Counsel A/W Sri K.S.Mahadevan, Advocates Sri Dhyan Chinnappa, Senior Counsel A/W Ms. Bhavna Arul, Advocate For Sri Poorna Chandra B. Pattar, Advocates

Trade marks that have not been used for over 15 years and not renewed are considered abandoned, leading to forfeiture of rights. The company in liquidation cannot claim ownership over such trademarks.

Headnote:(A) Companies Act, 1956 - Sections 446 and 483 - Trade Marks Act, 1999 - Sections 25(3), 34, and 47 - Appeals against the Single Judge's order on trade mark ownership and use - Court found that the trade marks 'YEZDI' were abandoned by the Ideal Jawa due to non-use for over 15 years - The Official Liquidator failed to act to protect the marks, leading to the conclusion that the marks could not remain in limbo - Court affirmed that non-renewal and the long absence of use equated to forfeiture of rights - Registration in the name of the appellant declared null and void and all rights to the trade mark transferred to Ideal Jawa (in liquidation). (Paras 66-110)

(B) Goodwill and Trade Marks - The court held that goodwill is directly related to active business operation and ceases when the business is discontinued - Cessation of use for over 15 years resulted in loss of goodwill - Trade marks abandoned cannot be claimed post-cessation without active use. (Paras 67, 88, 110)

(C) Jurisdiction and Powers of the Court - The Company Court's powers encompass dealings with assets of a company in winding up; it was within its rights to declare trademarks null and void - Powers vested in section 446 are broad and applicable to matters arising in company liquidation. (Paras 38-46)

Table of Content
1. overview of appeals and proceeding descriptions. (Para 1 , 2 , 3)
2. background and history of the 'yezdi' trademark. (Para 4 , 5 , 6 , 7 , 8 , 9 , 10)
3. submissions made by appellants regarding trademark ownership. (Para 25 , 26 , 27 , 28)
4. arguments surrounding the abandonment of trademark rights. (Para 29 , 38 , 39 , 40)
5. determination of court's conclusion and judgments. (Para 66 , 100)
6. court observations on trademark and goodwill. (Para 70 , 73 , 80 , 81)

JUDGMENT :

(PER: HON'BLE MR. JUSTICE D K SINGH)

1. These 12 appeals have been filed against the common judgment and order dated 16.12.2022 passed by the learned Single Judge in OLR No.343/2015, C.A.No.71/2018, C.A.No.125/2020, C.A.No.126/2020, C.A.No.127/2020, C.A.No.128/2020, C.A.No.304/2021 and C.A.Nos.308-312/2021 respectively.

I. DESCRIPTION OF PROCEEDINGS:-

2. A brief description of the different proceedings filed by the parties is given hereunder:-

(i) OLR No.343/2015 was filed by the Official Liquidator (OL) seeking sanction of the Court for sale of brands, trade marks, logos, product designs know-how and associated rights of the company with all past and future goodwill attached to it with the exclusive right to the prospective buyer to exploit, restore and/or renew the registered/removed and expired trade marks, to apply for registration afresh of all these marks and to use these marks as domain names, to use in various internet and social media sites and for approval to the draft sale notices etc.

(ii) CA No.71/2018, an application was filed by the OL to declare the Trade Mark Registration Certificate issued by the Registrar of Trade Marks, Mumbai, Delhi and Ahmedabad, in favour of Mr. Boman R. Irani as null and void.

(iii) CA No.125/2020, an application was filed by the Ideal Jawa Employees' Association (for short 'Employees' Association') seeking impleadment in the proceedings.

(iv) CA No.126/2020, an application was filed by the Employees' Association to restrain Mr. Boman R. Irani or anyone acting through him from using such marks that originally belong to M/s. Ideal Jawa (India) Ltd. (for short 'Ideal Jawa/company) or to use the website 'www.yezdi.com'.

(v) CA No.127/2020, an application was filed by the Employees' Association to direct the OL to take appropriate legal steps including filing of revocation application before the Trade Mark Registry against third party whoever claiming ownership of the mark 'YEZDI' and associated marks and to file fresh trade mark applications for registration of mark 'YEZDI' and associated marks and safeguard other intangible assets of Ideal Jawa (in liquidation) and get its ownership recorded.

(vi) CA No.128/2020, an application was filed by the Employees' Association to direct the Registrar of Trade Marks to revoke the registration granted to the trade mark 'YEZDI' in favour of Mr. Boman R. Irani or any other third party and restrain from granting any further registration for any mark containing the word 'YEZDI' in favour of any third party.

(vii) CA No.304/2021 and CA Nos.308-312/2021 were filed by the Classic Legends Private Limited (for short 'Classic Legends'), a company registered under the Companies Act, 1956, seeking impleadment in the proceedings.

(viii) CA No.586/2016 was filed by Mr. Boman R. Irani to implead himself as a party, which was allowed by the learned Single Judge on 22.11.2017.

3. These applications came to be filed in Company Petition No.76/1991 c/w Company Petition Nos.5/1992 and 126/1992. The applications filed by the Employees' Association, Mr. Boman R. Irani and Classic Legends for impleadment were allowed as the learned Single Judge was of the view that both the Employees' Association, Classic Legends and Mr. Boman R. Irani were proper and necessary parties to the proceedings.

II. RELEVANT FACTS:-

4. Mr. Rustom S. Irani, the father of Mr. Boman R. Irani- appellant in OSA No.2/2023, incorporated Ideal Jawa. The father of the appellant-Mr. Boman R. Irani was a founder member, principal share

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