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2025 Supreme(Kar) 2289

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
D.K.SINGH, VENKATESH NAIK T., JJ.
 
Classic Legends Private Limited, Represented By Its Authorized Signatory, Mr. Ashish Joshi – Appellant
Versus
Tide Water Oil. Co. (INDIA) Ltd., Represented By Its Director – Respondent
Original Side Appeal No. 8 Of 2023 C/W Original Side Appeal No. 2 Of 2023, Original Side Appeal No. 3 Of 2023, Original Side Appeal No. 4 Of 2023, Original Side Appeal No. 5 Of 2023, Original Side Appeal No. 6 Of 2023, Original Side Appeal No. 7 Of 2023, Original Side Appeal No. 9 of 2023 ,Original Side Appeal No. 10 Of 2023, Original Side Appeal No. 11 Of 2023, Original Side Appeal No. 12 Of 2023, Original Side Appeal No. 13 Of 2023
Decided On : 27-11-2025
 

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

The court emphasized that registered trademarks may be deemed abandoned if not renewed or used for an extended duration, impacting their ownership in liquidation proceedings.

Headnote:(A) Companies Act, 1956 - Sections 446, 456, and 457 - Trade Marks Act, 1999 - Sections 25 and 47 - Appeals against judgment declaring Ideal Jawa as owner of 'YEZDI' trademark and nullifying registrations by Boman R. Irani - No action taken by Official Liquidator for over 15 years, leading to abandonment of the trademark - The court ruled that the trademarks cannot remain in limbo indefinitely and may be lost through non-use and failure to renew. (Paras 67-110)

(B) Jurisdiction of Court in winding up proceedings - The court has wide powers to address all matters arising in the course of winding up, including the recovery of trademark rights. (Paras 38-42)

(C) Abandonment of Trademark - Continuous use and renewal are essential for retaining trademark rights; abandonment occurs when a trademark is not actively used and maintained. (Paras 91-99)

(D) Goodwill and Trade Mark Rights - Goodwill is directly tied to business operations; mere cessation of business does not automatically destroy goodwill unless operational use ceases for an extended period without intent to resume. (Paras 85-89)

JUDGMENT :

D. K. SINGH, J.

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 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 shareholder and Managing Director of the Ideal Jawa. According to Mr. Boman R. Irani, the Ideal Jawa commenced manufacturing and launched motorcycles under the brand name 'YEZDI' and this brand 'YEZDI' was licensed to the Ideal Jawa by Mr. Rustom S. Irani. Under the licence, Mr. Rustom S. Irani permitted Ideal Jawa to use and register in its name, the brand 'YEZDI'. It is also the case of the appellant that the family of Mr. Boman R. Irani migrated from the place 'YEZDI' in Persia (now Iran) to

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