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Hero Electric v/s Hero MotoCorp: Delhi High Court forms an arbitral tribunal

Hero Electric v/s Hero MotoCorp: Delhi High Court forms an arbitral tribunal

The Delhi High Court has formed an arbitral tribunal of three retired judgescwhich will decide whether Hero Electric will have the exclusive rights to use the ‘Hero’ brand name for electric vehicles.

Hero Electric v/s Hero MotoCorp Hero Electric v/s Hero MotoCorp

The dispute between Hero Electric and Hero MotoCorp will now be settled through arbitration.

The Delhi High Court has formed an arbitral tribunal of three retired judges—Indu Malhotra, Deepak Mishra and Indermeet Kaur—which will decide whether Hero Electric will have the exclusive rights to use the ‘Hero’ brand name for electric vehicles.

“A petition was filed by Hero Electric to refer the disputes to arbitration which was strongly opposed by Hero MotoCorp. The Court, while rejecting all contentions of Hero MotoCorp, has referred all the disputes under the family arrangement to a three-member arbitral tribunal,” Hero Electric said in a statement.

A 2010 family settlement barred Pawan Munjal, promoter and chairman of Hero MotoCorp, from using the ‘Hero’ brand name for any electric two-, three- or four-wheelers made by his company, while the global rights for Hero’s EVs were given to Pawan’s cousin Vinay Munjal and son Naveen Munjal who run Hero Electric, India’s largest electric two-wheeler company which sold over 50,000 EVs last year. Recently, Vinay Munjal sought an injunction on Hero MotoCorp using the brand name for its upcoming electric two-wheeler product at the Delhi High Court.

“Given the reference of all disputes between the parties, we will be making a prayer for interim injunction against Hero MotoCorp before the duly constituted tribunal. Needless to add that we will also take all possible steps to thwart any challenge to the order of reference of the disputes to arbitration,” Hero Electric adds.

Hero MotoCorp is soon expected to launch a range of electric scooters and motorcycles and had also registered a new sub-brand, VIDA. But Pawan Munjal doesn’t seem to have given up on the Hero brand name just yet. 

From a legal perspective, experts say that the earlier stay plea has become null and void. 

“The dispute is far from over. The Delhi High Court formed an arbitration tribunal to adjudicate the dispute, and Hero Electric reportedly withdrew its stay plea, but it has become null and void, and they will be compelled to file a fresh application with the tribunal seeking interim relief. It will be interesting to observe how events unfold from this point forward,” said Sonam Chandwani, Managing Partner, KS Legal & Associates.

Also read: Hero MotoCorp Q3: Net profit falls 37% to Rs 686 cr; firm declares interim dividend

Also read: Hero MotoCorp to invest upto Rs 700 cr in Hero FinCorp 

 

Published on: Feb 18, 2022, 12:52 PM IST
Posted by: anwesha madhukalya, Feb 18, 2022, 12:47 PM IST