New Delhi, May 15
KIRLOSKAR Electric Co Ltd (KEC) can continue to use the `Kirloskar' logo and trademark without any fear of being stripped of the same.
The Company Law Board (CLB) has directed Kirloskar Proprietary Ltd (KPL) that the deed of assignment granting the users rights to KEC should be in perpetuity and the agreement of the users should be modified to nullify the termination clause therein so far as the petitioners (Mr Vijay R. Kiloskar and KEC) were concerned.
The Principal Bench of the Board, comprising Mr K.C. Ganjwal, Member, directed KPL to modify its article of the association accordingly. The main act of oppression related to the attempt of KPL and others to prevent KEC from exercising its rights in `Kirloskar' trademark. Without assigning any reasons, a notice of termination was issued whereby KEC was required to give up the `Kirloskar' trademark.
The petitioners submitted before the CLB that they were shareholders of KPL. KEC is part of the Kirloskar group of companies. The family at present consists of two branches namely Shantanu Kirloskar and Ravi Kirloskar branches. Various members of both the branches hold shares in each other's company.
KPL was formed for the purpose of centrally holding the trademarks and rights owned by the respective companies of the Kirloskar Group (without the goodwill) in accordance with the arrangements arrived at between the members of the Kirloskar family.
Kirloskar Electrical Company Ltd was the flagship of the group. Since the incorporation of KPL, the shares of KPL have been held only by members of the Kirloskar family or by companies controlled by them. Mr Vijay R. Kirloskar represents the Ravi Kirloskar branch and the respondents (A.C. Kirloskar, S.C. Kirloskar and others) belong to Shantanu Kirloskar branch.