KPL had moved the Bombay HC challenging temporary injunctions granted by the Pune District Court in favour of Kirloskar Brothers in an ongoing trademark dispute.
The Bombay High Court has upheld Kirloskar Proprietary Ltd’s (KPL) trademark rights and said it is entitled to grant licenses to its member companies in accordance with the company’s Articles of Association.
The core of the dispute revolves around the ownership and usage of the “Kirloskar” trademark, between KPL and Kirloskar Brothers, which claims the trademark was originally theirs and was transferred to KPL under a family settlement with the understanding that KBL would continue using it. KPL, on the other hand, claims the right to terminate the agreements, citing breaches by KBL.
In a recent judgement, the Pune court granted interim relief to KBL, restraining KPL from terminating trademark license and user agreements, allowing KBL to continue using the “Kirloskar” trademark.
KPL had moved the Bombay HC challenging temporary injunctions granted by the Pune District Court in favour of Kirloskar Brothers in an ongoing trademark dispute.
Longstanding role
The HC recognised KPL’s longstanding role as the custodian and registered proprietor of the “Kirloskar” trademarks.
“There is no material to support the contention of Kirloskar Brothers that it continued to be the beneficial owner of the Kirloskar trademarks even after the assignment of the marks. The assignment and user agreements state to the contrary,” a division bench comprising the Chief Justice and Justice MS Karnik said in its order and listed the matter for further hearing on August 11.
HC said there was no material to support Kirloskar Brothers’ argument that it continued to be the beneficial owner of the Kirloskar trademarks even after their assignment.
“The assignment and user agreements state to the contrary. The user agreements categorically state that ‘permitted use of the said Registered Trademark shall be the use thereof by registered proprietor and not by the permitted user and no benefit whatsoever shall accrue to the permitted user from such use. Further the user agreements categorically state that the goodwill in Kirloskar marks will be of the KPL,” said the Court.
It stated that only the registered proprietor has rights in relation to the trademark. “The user agreements categorically state that permitted use of the said Registered Trademark shall be the use thereof by registered proprietor and not by the permitted user and no benefit whatsoever shall accrue to the permitted user from such use. Further the user agreements categorically state that the goodwill in Kirloskar marks will be of the KPL,” it said.
The interim High Court direction is limited to restraining Kirloskar Proprietary from assigning Kirloskar marks to other Kirloskar group companies for use in overlapping or similar businesses. All other Relief in favour of KBL has not been disturbed at this stage as per the court order.
The Kirloskar Group is split through a family settlement specifically between Sanjay Kirloskar, who heads a major pump manufacturing company Kirloskar Brothers, and his brothers Atul and Rahul Kirloskar, who are involved with Kirloskar Industries, Kirloskar Oil Engines, Kirloskar Ferrous and Kirloskar Pneumatic Company.
The three are sons of Chandrakant Kirloskar and grandsons of renowned industrialist S L Kirloskar.
The split occurred after a restructuring of the Kirloskar Group business in 2008-09. The settlement aimed to clarify ownership and management of various Kirloskar Group companies, but it led to legal disputes, particularly regarding the interpretation of a non-compete clause in the settlement agreement.
Last year, NCLT Mumbai Bench directed the Kirloskar brothers and their entities to adhere to the family settlement agreement signed in September 2009. Currently, the case is under appeal at NCLAT.
Published on July 27, 2025