Here’s Why Karnataka HC barred Irani, Classic Legends from using ‘Yezdi’

The Karnataka High Court has ruled that Ideal Jawa (India) is the owner of the trademark Yezdi, restraining its use by entrepreneur Boman Rustom Irani and Mahindra-backed Classic Legends, The New Indian Express reported.

The court of Justice SR Krishna Kumar allowed the applications filed by the Official Liquidator and the Ideal Jawa Employees Association against the use of “Yezdi” by Irani. It observed that Irani’s conduct of obtaining registration of the trademark was in bad faith and defined it as “misappropriation” of assets by the company.

No application for registration of the “Yezdi” trademark in any form and by any third party will be permitted by the Registrar of Trademarks in any of its offices any more without the court’s consent, Justice Kumar ruled.

The court reiterated that all trademark and registration certificates issued by Registrar of Trademarks, in Mumbai, Delhi and Ahmedabad, favouring Irani are null and void. The order stays in abeyance for one month so that aggrieved parties can challenge it before the appellate forum.

Justice Kumar also directed Irani and Classic Legends to pay Rs 10 lakh each to the Official Liquidator, which will be used towards the costs and distribution to be made in process of winding up of the company.

What is the Yezdi case?

In 2018, Irani and Classic Legends relaunched the iconic Jawa motorcycle. Yezdi, which has been a part of Jawa line-up in India, found itself in legal trouble when it found “Yezdi” trademark was being used in leather goods.

The Jawa trademark belonged to a Czechoslovakian company and was marketed in India by a company named Ideal Jawa.

Ideal Jawa was owned by Rustom Irani’s family but it went into liquidation in 1996 due to labour disputes and rising debts. The Irani family won back the company’s assets, without the Yezdi trademark, in an auction in 2003.

In 2015, the liquidator’s office sought Karnataka high court’s permission to put on sale the Yezdi trademark. It then came to notice that the trademark was transferred to Rustom Irani’s son, Boman R Irani, by the office of the controller general of patents, designs and trademarks. The trademark was being used for leather products. Incidentally, this trademark for leather goods is also part of a separate ongoing case between Boman R Irani and a shoe manufacturing company called Mirza International in the Delhi high court, according to a report in The Times of India.

The official liquidator sent a letter to the Registrar of Trademarks in Delhi, Gujarat and Kolkata, highlighting the irreparable loss to company in liquidation. As Yezdi was owned by Ideal Jawa, the company under liquidation and its valuation was still pending which may help in paying off some debts.