Bombay HC Protects Bombay Group's Continued Use Of 'Vadilal' Trademark Pending Family Settlement Arbitration

The Bombay High Court has recently granted interim protection to one branch of the Gandhi family behind the Vadilal brand. It restrained Vadilal Industries Ltd., Vadilal International Pvt. Ltd. and other Ahmedabad Group entities from interfering with the Bombay Group's continued use of the "Vadilal" trademark in Maharashtra, Goa, Karnataka, Kerala, Andhra Pradesh and Telangana until arbitration over a family settlement is decided.

Justice Amit Borkar held that the Bombay Group had established a prima facie case for interim relief while deciding a petition arising from a family settlement executed in 1993.

The court observed that, at the interim stage, the dispute could not be viewed as arising only from the Registered User Agreement.

"This Court is, prima facie, of the opinion that the disputes raised by the petitioners cannot be treated as arising only out of the Registered User Agreement.", the court ruled. 

The dispute stems from a 1993 arrangement between two branches of the Gandhi family that divided the Vadilal ice cream business.

Under the Memorandum of Agreement, the Bombay Group led by Shailesh Gandhi and Bela Gandhi transferred its shareholding in Vadilal International Ltd. to the Ahmedabad Group.

In return, the Bombay Group claims it received permanent and irrevocable rights to manufacture and sell "Vadilal"-branded ice cream and juices in Maharashtra, Goa, Karnataka, Kerala and Andhra Pradesh, including Telangana.

The parties also executed a Branding Agreement, an Irrevocable Power of Attorney and a Registered User Agreement. The Bombay Group contended that these documents formed one composite family settlement.

The dispute reached the high court after Vadilal International issued a communication on May 26, 2026, purporting to terminate the Registered User Agreement and revoke the Irrevocable Power of Attorney over alleged quality violations. The Bombay Group sought interim protection pending arbitration.

Examining the material on record, the court held that the Bombay Group had made out a prima facie case. It found there was a "substantial case" that the Memorandum of Agreement, the Branding Agreement, the Registered User Agreement and the Irrevocable Power of Attorney were intended to operate together as parts of one family settlement.

The court held, "The material placed on record discloses substantial case that the Memorandum of Agreement, the Branding Agreement, the Registered User Agreement and the Irrevocable Power of Attorney have been intended to operate together as parts of one Family Settlement."

While considering irreparable injury, the court noted that the Bombay Group had carried on business under the "Vadilal" brand since 1993. It observed that disrupting that arrangement during arbitration could not be adequately compensated by damages.

The court held, "Disruption of commercial relationships results in consequences which cannot be quantified in monetary terms."

The court partly allowed the petition. The court restrained the Ahmedabad Group entities from giving effect to the May 26, 2026 communication. It also barred them from interfering with the Bombay Group's continued use of the "Vadilal" brand in the territories claimed under the family settlement.

The interim protection will remain in place throughout the arbitral proceedings. It will continue for 90 days after publication of the arbitral award, unless the arbitral tribunal passes a further order before then.

The relief comes with safeguards. The Bombay Group must comply with the Food Safety and Standards Act, maintain all statutory licences and quality records, and allow Vadilal International to inspect its facilities after giving 24 hours' notice.

The court made it clear that these are only prima facie findings made for the purpose of deciding interim relief. It left all questions on the parties' rights and the validity of the termination to be decided by the arbitral tribunal.