Ideal Jawa India: Ideal Jawa owns brand Yezdi, rules Karnataka HC; asks liquidator to auction it

Justice SR Krishna Kumar, in a 90-page judgement dated December 16, permitted the official liquidator of Ideal Jawa to sell the trademark along with the associated goodwill through a public auction.

The court kept the order in abeyance for a month for allowing Irani, who had claimed ownership of the brand, and Classic Legends to file an appeal. In the interim, the trademark will remain in the custody of the court.

The court ruled all trademark and registration certificates issued by the Registrar of Trademarks in Mumbai, Delhi and Ahmedabad in favour of Irani as “null and void”. It asked the Registrar of Trademarks to cancel all related registrations in the name of Irani and transfer those to Ideal Jawa, and restrained Classic Legends and Irani from using the Yezdi brand.

A Classic Legends spokesperson said the company will be appealing the order.

The company is seeking legal advice on the matter and will be filing an appeal shortly, the spokesperson said in an emailed statement, sounding optimistic of a favourable relief. “In the interim, manufacturing and sale of motorcycles will continue, subject to orders of the appellate court,” the statement added.

Irani could not be immediately reached for comment.
Ideal Jawa, which manufactured Jawa and Yezdi motorcycles until the turn of the century in Mysuru, is under liquidation. The official liquidator as well as the employee association pursued a legal battle insisting that the trademark Yezdi was an asset of the company and cannot be taken away by others.

Irani claimed that the Jawa and Yezdi brands were owned by his father and that the senior Irani had granted the permission to Ideal Jawa to use the brands. Upon the liquidation of the company, he claimed to become the owner of the brand.

Mahindra Group-backed Classic Legends relaunched Jawa-branded motorcycles in 2018 in association with Irani. It brought back the Yezdi brand at the beginning of this year.

The court observed that the trademark belonged to the company in liquidation.

It held Irani and Classic Legends liable to account and to pay to Ideal Jawa Company for all the gains made from the use of the trademark. Both Irani and Classic Legends shall provide the official liquidator with all details of sales and earnings from the use of the trademark Yezdi in any form whatsoever, the court said.

It asked the official liquidator to appoint a reputed CA firm to determine the benefit that has accrued to Irani and Classic Legends from the use of trademarks. The court will confirm the value thus determined after hearing all parties, and the liquidator can then sell the trademark along with associated goodwill by a public auction.

The official liquidator, CV Sajeevan, told ET that his office will act as per the court orders to safeguard the interests of all stakeholders.

Irani and Classic Legends have been directed to pay Rs 10 lakh each to the liquidator towards the cost of winding up of the company.