HC refers to arbitration dispute between Munjals over use of Hero trademark

The Delhi High Court has referred to a three-member arbitral tribunal the dispute between Vijay Kumar Munjal and Pawan Munjal of the Munjal Group concerning the latter's usage of the “Hero” trademark for his electric vehicles business.

Justice Vibhu Bakhru, while dealing with the petition filed by Vijay Kumar Munjal and Hero Electric Vehicles Pvt Ltd under the Arbitration Act for appointment of an arbitrator, stated that former Chief Justice of India Justice Dipak Mishra, former Supreme Court judge Justice Indu Malhotra and former Delhi High Court judge Justice Indermeet Kaur shall constitute the 'Arbitral Tribunal' to adjudicate the disputes related to the Munjal Family Settlement Agreement and Trade Marks and Name Agreement.

The judge, in his order passed on February 17, stated that he was “refraining from examining other issues regarding the merits of the dispute”.

He clarified that the constitution of the tribunal was subject to the members making the necessary disclosure and not being ineligible under the law.

The court said that the parties are at liberty to approach the members of the tribunal for further proceedings and that all contentions of the parties are reserved.

The petitioners, Vijay Kumar Munjal, Hero Electric Vehicles Pvt Ltd, and others, claimed before the high court that the respondents Pawan Munjal, Hero MotoCorp Limited, and related entities cannot use the trademark “Hero” or any of its variants in respect of electric vehicles.

The petitioners alleged that the respondents have violated the terms of the Family Settlement Agreement and Trade Marks and Name Agreement as they now intend to conduct the business relating to electric/eco-friendly vehicles, including their components and related infrastructure and services, under the brand or trademark “Hero”.

The respondents opposed the petition on several grounds including that the disputes are not arbitrable, the disputes are barred by limitation, and that the petitioners have waived and acquiesced in the respondents using the trademark “Hero”.