Another highly interesting development has taken place in the power struggle within the Kirloskar family, as the Pune District Court has now granted interim relief to Kirloskar Brothers Ltd (KBL), headed by Sanjay Kirloskar, in respect of the trademark dispute it sold against Kirloskar Proprietary Ltd (KPL), headed up by Atul and Rahul Kirloskar. The court temporarily restrained KPL from terminating the license and user agreements with KBL, allowing KBL to use the name, ‘Kirloskar,’ pending final disposition of the matter.
The dispute centers around the ownership and use of the Kirloskar trademark. KBL contends that it is the original proprietor of the trademark and had assigned the rights of the trademark to KPL under a family arrangement in order to preserve the integrity of the brand “KPL”. As a part of this arrangement, KPL was supposed to execute registered user agreements with Kirloskar group companies so that they could use the trademark. On its part, KBL accuses KPL of breaching the arrangements by giving out termination notices in 2018 and again in 2024 on various claimed grounds, as stated by KBL.
However, KPL claims that the user agreements have a clause in regard to discontinuance. KPL reserves the right to terminate the same on the identifications of breaches. The firm cited numerous violations by KBL, including certain problems with royal payments and quality control audits.
However, the Hon’ble Court was left unconvinced by these claims, noting that KBL had offered royalty payments that KPL rejected and the other violations were more technical in nature and/or minor. Further, the granting of interim relief to KBL reaffirms that business continuity is critical for preserving the interests of stakeholders of the brand `Kirloskar’. This ruling set the stage for KBL to proceed with normal operations so long as the legal process goes on.