HIGH COURT OF DELHI
VIJAY KUMAR MUNJAL & ORS. – Appellant
Versus
PAWAN MUNJAL & ORS. – Respondent
ARB.P.-975/2021
ARB. P. 975/2021
Page 1 of 69
IN THE HIGH COURT OF DELHI AT NEW DELHI
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Judgment delivered on: 17.02.2022
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ARB.P. 975/2021 and IA Nos. 12836/2021 & 14638/2021
VIJAY KUMAR MUNJAL AND ORS.
..... Petitioners
versus
PAWAN MUNJAL & ORS.
..... Respondents
Advocates who appeared in this case:
For the Petitioner:
Mr Gopal Subramaniam, Senior Advocate,
Mr Parag P. Tripathi, Senior Advocate with
Mr Sanjeev Kapoor, Mr Sahil Narang, Mr
Ankur Sangal, Mr Dhritiman Roy, Ms Pragya
Mishra, Ms Ananya Bhat, Mr Madhavam
Sharma,
Mr
Ayushman
Kacker,
Mr
Vishakha, Advocates.
For the Respondents:
Dr.
Abhishek
Manu
Singhvi,
Senior
Advocate, Mr. Rajiv Nayar, Senior Advocate,
Mr. B.B. Gupta, Senior Advocate with Mr.
Mahesh Agarwal, Mr. Rishi Agrawala, Mr.
Karan Luthra, Mr. Ankit Banati, Ms. Manavi
Agarwal, Mr. Saurabh Seth, Mr. Aman
Sharma and Mr. Achal Gupta, Advocates for
Respondent Nos.1 and 3.
Mr Mukul Rohatgi, Senior Advocate Mr
Sandeep Sethi, Senior Advocate, Mr Akhil
Sibal, Senior Advocate with Mr Sidharth
Chopra, Mr Kanishk Kumar, Mr Muktesh
Maheshwari, Ms Abhiti Vachher, Ms Asavari
Jain, Ms Shriya Misra, Advocates for
Respondent No. 2.
This is a digitally signed Judgement.
NEUTRAL CITATION NO: 2022/DHC/000902
ARB. P. 975/2021
Page 2 of 69
CORAM
HON’BLE MR JUSTICE VIBHU BAKHRU
JUDGMENT
VIBHU BAKHRU, J
Introduction
1.
The petitioners have filed the present petition under Section 11
of the Arbitration and Conciliation Act, 1996 (hereafter ‘the A&C
Act’), inter alia, praying that an arbitrator be appointed, on behalf of
the respondents, to adjudicate the disputes that have arisen between the
parties in relation to the Family Settlement Agreement dated
20.05.2010 (hereafter the ‘FSA’) and Trade Marks and Name
Agreement dated 20.05.2010 (hereafter the ‘TMNA’).
2.
The Munjal Family, a well-known business family, comprises of
family members of four brothers (since deceased) – Late Shri Dayanand
Munjal, Late Shri Satyanand Munjal, Late Shri Brij Mohan Lall Munjal
and Late Shri Om Prakash Munjal (hereafter the ‘Munjal Brothers’).
3.
The petitioners state that the Munjal Brothers established the
business of bicycle spare parts in Amritsar, India in 1944. In 1956, the
Munjal Brothers commenced manufacturing key components of bicycle
and established a manufacturing plant in Ludhiana. Over a period of
time, the Munjal Group diversified its business in the automotive sector,
manufacture of bicycles and its components, and the financial sector
This is a digitally signed Judgement.
NEUTRAL CITATION NO: 2022/DHC/000902
ARB. P. 975/2021
Page 3 of 69
including other such services. The Munjal Group comprises of several
operating and investment companies (‘Munjal Group Companies’),
Hindu Undivided Families of the members of the Four Family Groups
(‘Munjal HuFs’), partnerships (‘Munjal Partnerships’), trusts
(“Munjal Trusts”) and association of persons (‘Munjal AoPs’). The
Munjal Group Companies, Munjal HuFs, Munjal Partnerships, Munjal
Trusts and Munjal AoPs are hereafter collectively referred to as the
‘Munjal Group Entities’.
4.
The petitioners state that the Munjal Group started using the
name / brand / trademark “Hero” and its variants in connection with its
businesses from 1953 onwards. On 13.06.1966, the Munjal Brothers,
through their partnership firm, M/s. Hero Cycles Industries, applied for
and obtained registration of the trademark “Hero” in Class 12 under
application no. 235780. Further, the Munjal Brothers/entities of the
Munjal Group also applied for registration of other trademarks
containing the word “Hero” and/or its variants.
5.
It is stated that on 02.03.1993, the Munjal Brothers established a
firm, named Hero Exports. The said entity is engaged in exporting
bicycles under the brand/trademark “Hero” to certain specified
territories. Thereaft