Bombay HC proposes mediation in Lodha vs Lodha legal fight, seeks response by Tuesday

Justic Arif S. Doctor of the Bombay High Court proposed appointing a former Chief Justice or a retired Supreme Court judge to mediate the dispute

The Bombay High Court on January 27 proposed that the two warring brothers of the Lodha real estate empire, Abhishek Lodha and Abhinandan Lodha, sort out their differences and disagreements through a mediator, rather than through a prolonged legal fight.

A single-judge bench of Justice Arif S. Doctor said that either the court will appoint a former Chief Justice, or a retired Supreme Court judge, to hear and settle the matter as a mediator, or the two sides can agree to a name by consent. The judge gave all parties time till January 28 to inform the court if they agree with the mediation arrangement.

Macrotech, headed by its managing director and chief executive officer Abhishek Lodha, had filed a brand infringement lawsuit against his younger brother Abhinandan, who heads plotted development firm House of Abhinandan Lodha (HoABL). Macrotech markets its projects under the "Lodha" brand, as well as a number of variations in it.

In a testy, contentious hearing marred by frequent arguments between the opposing counsels, Justice Doctor said that since the "genesis" of the dispute is between two brothers, an attempt at mediation should be made to settle the matter, adding that the process can also be made time-bound. He added that without mediation, "You will be litigating for years", addressing the parties to the suit.

Senior counsel Darius Khambata, appearing for Macrotech, said that the company was the aggrieved party since it is the registered proprietor of the "Lodha" brand. Justice Doctor noted that the matter ultimately laid on a dispute between two brothers.

In a statement, Lodha Ventures, of which House of Abhinandan Lodha is a part, said that it will go by the advice of Bombay High Court in the matter. Abhinandan left the Lodha Group, now Macrotech, in 2015, to start his own ventures, with the terms of separation being agreed between the brothers in 2017, as well as through another agreement in 2023.

Abhishek, in Macrotech's October-December earnings call on Monday, addressed the legal proceedings, telling investors that the lawsuit is a "painful matter" for him, as the defendant is his own brother, and he wishes the latter luck in all businesses, including real estate. He added that the lawsuit is intended to clear up "confusion" between Macrotech (Lodha), and other businesses, be it of Abhinandan Lodha or any other third party.

In their lawsuit, Macrotech and Abhishek demanded an injunction on the opposing side from using the "Lodha" trademark, and also sought Rs 5,000 crore in damages from Abhinandan Lodha's ventures. During their arguments in court on Monday, the company's counsel argued that the company has received e-mails from consumers who are "confused" about the association of Macrotech and HoABL.

On the other hand, HoABL's counsels argued that Abhinandan, even after his exit from Macrotech, continued to provide loans to the company, and many of the instances cited by Macrotech about the usage of the Lodha brand for HoABL's projects were made by third parties.