‘Yezdi’ Belongs to the Living, Not the Defunct: Karnataka High Court Rules in Favour of Classic Legends
‘Yezdi’ Belongs to the Living, Not the Defunct: Karnataka High Court Rules in Favour of Classic Legends
Introduction
The Karnataka High Court has restored the rights of Classic Legends Private Limited to use the historic “Yezdi” name and logos for motorcycles, holding that the trademark had long lapsed and could not be claimed by the defunct original manufacturer. The Court stated that trademark goodwill cannot survive independently after the underlying business has ceased to exist.
Factual Background
Ideal Jawa (India) Limited, the original manufacturer of Yezdi motorcycles, stopped production in 1996 and soon thereafter went into liquidation. In 2003, all assets of the company were sold through a court-supervised auction. Notably, the “Yezdi” trademark was neither included in the valuation nor mentioned in the sale notice. The trademark registrations subsequently expired between 2007 and 2008, and despite notices issued by the Trade Marks Registry to the Official Liquidator, no steps were taken to renew or protect the marks.
Classic Legends, promoted by Boman R. Irani, the son of Ideal Jawa’s founder, contended that the trademark had been abandoned and had fallen into the public domain. Beginning in 2013–2014, Irani applied for fresh registrations of the “Yezdi” marks, which were later assigned exclusively to Classic Legends in 2018. The company thereafter invested heavily in research, development, marketing, and relaunching the Yezdi motorcycle brand.
Procedural Background
A single judge of the Karnataka High Court, in 2022, had ruled that the “Yezdi” trademarks continued to vest with Ideal Jawa and were part of the liquidation estate. Aggrieved by this finding, Classic Legends and Boman R. Irani filed a batch of appeals challenging the decision.
Issues
1. Whether goodwill in the “Yezdi” trademark could survive decades after the cessation of Ideal Jawa’s business.
2. Whether the Official Liquidator retained any enforceable rights over the “Yezdi” trademarks despite non-renewal and prolonged inaction.
3. Whether Classic Legends’ fresh registrations and use of the “Yezdi” marks were valid in law.
Contentions of the Parties
Classic Legends argued that the trademark had been abandoned due to non-use, expiry of registrations, and complete inaction by the Official Liquidator for over fifteen years. It contended that goodwill cannot exist in isolation without a continuing business and that the Liquidator’s attempt to assert rights after such a prolonged lapse was legally unsustainable.
The Official Liquidator and other respondents argued that the “Yezdi” trademark formed part of the company’s intangible assets and that ownership continued notwithstanding expiry of registration. They contended that Classic Legends’ registrations were liable to be cancelled as they were derived from a mark belonging to the liquidation estate.
Reasoning and Analysis
A Division Bench comprising Justice D.K. Singh and Justice Venkatesh Naik T rejected the reasoning of the single judge and held that goodwill is inseparable from an ongoing business. The Court observed that Ideal Jawa had ceased operations in 1996, its assets were sold in 2003, and the trademark registrations expired years later without any attempt at renewal.
The Bench emphasised that goodwill cannot survive “in vacuum” for decades after the business itself has ceased to function. It noted that the Official Liquidator had not treated the “Yezdi” mark as a corporate asset, had not included it in the asset sale, and had taken no steps to protect or revive it despite having custody of the company’s records.
The Court found merit in Classic Legends’ submission that the trademark had entered the public domain and that its subsequent registration and use were lawful. It further held that the Liquidator’s belated reappearance in 2015 could not retrospectively revive rights that had already been extinguished by operation of law and prolonged abandonment.
Decision
The Karnataka High Court set aside the 2022 judgment and restored Classic Legends’ right to use the “Yezdi” name and logos for motorcycles. The Court held that the trademark no longer vested with Ideal Jawa and that Classic Legends’ registrations were valid and enforceable. As a result, Classic Legends is free to continue manufacturing, marketing, and selling motorcycles under the “Yezdi” brand.
In this case the appellant was represented by Senior Advocates Udaya Holla with Mr. Marylou Bilawala, Ms. Rubeka Himayat and Mr. P Chinnappa, Advocates.
