Yezdi Trademark Under Liquidator’s Realm and not with Classic Legends – Karnataka HC

Karnataka high Court has restrained Classic Legends to stop usage of Yezdi trademark as Ideal Jawa owns it

Ideal Jawa Pvt Ltd, one of Karnataka’s jewels and was an icon when Indian motorcycling history is considered. Yezdi is derived from the Czech word. Jezdi.

Since inception, Yezdi trademark has been Ideal Jawa’s property and was resurrected by Mahindra’s subsidiary, Classic Legends and absence of over 2 decades. There are three models to choose from, Scrambler, Roadster and Adventure. In November 2022, the company even registered positive growth in sales charts.

The court holds Boman Irani and Classic Legends liable to account and pay Ideal Jawa. This includes payment to Ideal Jawa for all gains accrued for using the Jawa trademark. They needs to provide all details of sales and earnings to the OL for all usage of ‘Yezdi’. The OL has been instructed to appoint a CA firm of repute to determine benefits accrued from use of Yezdi trademark. And once the trademarks are properly valued, OL is allowed to sell all trademarks, and associated rights and goodwill through auction at proper valuation. Additionally, Classic Legends and Boman Irani are fined Rs. 10 lakhs.

Yezdi Trademark Tussle

When Ideal Jawa went defunct in 1996, all assets of the company including Yezdi trademark, fell into the domain of Liquidator’s office. In that state, Yezdi trademark couldn’t have been procured by anyone unless all dues of Ideal Jawa are fully cleared. Until then, Yezdi trademark is solely under the realm of Liquidator’s office.

Ideal Jawa Employees Association took this to court. Karnataka High Court has now declared that all trademark registration certificates issued by registrar of trademarks of Delhi, Ahmedabad and Mumbai as null and void to Boman Irani as done in bad faith.
It is now directed by court to revert the trademark back to to Ideal Jawa through Official Liquidator, as they had never abandoned the trademark to begin with.

Outcome

Ideal Jawa Employee Association had filed an application to registrar of trademarks against the trademark registrations of Yezdi to Classic Legends. The Association urged to raise funds from Ideal Jawa assets (Yezdi trademark) to settle creditor dues that stood tall for decades, including employee payments.

The order is in abeyance for a period of a month. This so aggrieved parties can challenge it before the appellate forum.