Bombay High Court stays blanket restraint on Kirloskar Proprietary’s licensing of ‘Kirloskar’ mark

A Division Bench of the Bombay High Court recently stayed a Pune trial court’s injunction that had barred Kirloskar Proprietary Limited (KPL) from creating any third‑party interest in 'Kirloskar' trademarks [Kirloaskar Propriety Limited vs. Kirloskar Brothers Limited]..The High Court allowed KPL to license the marks to its member companies in accordance with its Articles of Association but restrained it from assigning or licensing them for use in businesses that overlap with those of Kirloskar Brothers Limited (KBL). The appeal and interim application by KPL will be heard next on August 11..The order was passed by a Bench comprising Chief Justice Alok Aradhe and Justice MS Karnik. "There is no justification at the interim stage to restrain ‘Kirloskar Proprietary’ from creating licencing rights in respect of the Kirloskar mark in accordance with Articles of Association, this being the existing arrangement for the last 50 years,” the Court said..In 2018, KPL sought to replace its existing user agreements with new ones, citing evolving legal requirements. It issued fresh draft agreements to its licensees including KBL. However, KBL did not execute the revised agreement and instead filed a civil suit in the Pune District Court asserting that it held an irrevocable and exclusive right to use the Kirloskar trademark in its business domain.KPL subsequently issued a notice terminating KBL’s user rights. In response, KBL moved the Pune court seeking interim relief, which was granted in January 2025. The trial court effectively restrained KPL from granting any new licences or assigning the trademark to any other entity while the suit was pending.Challenging that order, KPL argued before the High Court that the trial court had gone beyond the permissible scope of interim relief by effectively granting KBL final relief at a preliminary stage. It submitted that the Kirloskar trademark was always intended to be shared across group companies and that it had consistently licensed the mark to different members for non-competing businesses over five decades..The High Court rejected Kirloskar Brothers' claims to exclusive trademark rights. The Court noted that even according to Kirloskar Brothers' own case, several companies within the Kirloskar Group of Companies started using the marks for different businesses."Even as per Kirloskar Brothers' own case, the use of Kirloskar marks was never intended to be nor is it exclusive to any one company," the Court noted..The High Court applied the principle that injunctions should preserve rather than alter existing arrangements. "While considering grant of injunction in terms of prayer clause (F), the trial Court ought not to have changed the status-quo by taking away the decades old existing right of Kirloskar Proprietary to grant license with respect to subject marks to any of its member companies at any time," the Court ruled.While allowing Kirloskar Proprietary to continue licensing to member companies, the court imposed a specific restriction regarding competing businesses. The judgment noted that from 1969 and till date, no license has been issued by Kirloskar Proprietary to any other group companies of Kirloskar for use in respect of overlapping business..The High Court stayed the trial court's order with modifications."Though Kirloskar Proprietary may create license in respect of Kirloskar marks in accordance with its Articles of Association in favour of its member companies, Kirloskar Proprietary are restrained from assigning the marks to other Kirloskar group of companies for use in respect of similar/overlapping business of Kirloskar Brothers," the Court said.The case will be heard again on August 11..KPL was represented by Senior Advocate Darius Khambata along with advocates Rashmin Khandekar, Tushar Ajinkya, Sukanya Sehgal, Misha Matlani, Saanchi Dhulla from law firm ThinkLaw Advocates. .KBL was represented by Senior Advocate Ravi Kadam with advocates Hiren Kamod, Nishad Nadkarni, Aasif Nauodia, Khushboo Jhunjhunwala, Jaanui Chopra and Rakshita Singh from Khaitan & Co..[Read Order]