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Kirloskar Brothers' KPL Faces Setback: Court Modifies Interim Order

Kirloskar Brothers' KPL Faces Setback: Court Modifies Interim Order

August 12, 2025 / 16:29 IST
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    Kirloskar Brothers Limited (KBL) has announced that the Hon'ble High Court has granted a limited stay on the interim order regarding the Kirloskar trademark case, modifying an earlier directive from the Pune District Court. The case involves Kirloskar Proprietary Limited (KPL) and Kirloskar Brothers Limited (KBL) concerning the use of the Kirloskar trademark.

    The Hon'ble High Court's ad-interim order, dated July 25, 2025, modifies the Order dated January 9, 2025. While KPL may create licenses for Kirloskar marks in accordance with its articles of association for its member companies, it is restrained from assigning the marks to other Kirloskar group companies for use in respect of similar or overlapping business of KBL.

    The legal proceedings began when KPL filed a commercial appeal against the order dated January 9, 2025, passed by the Pune District Court in favor of KBL. The initial order stayed the effect and operation of a communication dated July 11, 2024, and restrained KPL from terminating Trade Mark License/User Agreements until the suit's final disposal. KPL also sought a stay on the January 9, 2025, order, which KPL has now restricted in the appeal to seeking a stay on the effect and operation of prayer clause (F).

    Prayer clause (F) of the original order had restrained KPL from creating third-party interests, including granting licenses or use of the trademarks, or making any assignments in favor of any third party. The recent High Court decision modifies this by allowing KPL to issue licenses to its member companies while preventing assignments to other Kirloskar group companies for similar business activities as KBL.

    Kirloskar Brothers Limited stated that the expected financial implication of the litigation cannot be ascertained at this juncture. The company has committed to keeping the exchange informed of
    2. of any further developments in the matter.

    The case is Commercial Appeal from order No. 6/2025. The Civil Interim Application (ST) NO. is 14920/2025.

    Kirloskar Proprietary Limited had filed a commercial appeal before the Hon'ble Bombay High Court against the order dated January 9, 2025, passed by the Hon'ble Pune District Court in favor of Kirloskar Brothers Limited. The initial order stayed the effect and operation of the communication dated 11 July 2024 and restrained KPL from taking any steps to terminate the Trade Mark License/User Agreements, pending the hearing and final disposal of the above Suit. Further, KPL also filed an interim application seeking a stay on the effect, implementation and operation of the Order dated January 9, 2025. Presently, KPL sought to restrict its ad-interim application in the appeal to seeking a stay on the effect and operation of prayer clause (F) as granted by the Pune District Court vide the order dated January 9, 2025, directing that during the pendency of the suit, there would be a temporary injunction restraining KPL from creating third party interest including granting license/use of the trademarks forming subject matter of the said suit and/or making any assignment thereof in favour of any third party.

    The Hon'ble High Court has, vide its ad-interim order dated July 25, 2025, granted a limited stay of the effect, implementation and operation of prayer clause (F) as granted in the Order dated 09 January 2025, with a modification that though KPL may create license in respect of Kirloskar marks in accordance with its articles of association in favour of its member companies, KPL is restrained from assigning the said marks to other Kirloskar group companies for use in respect of similar/overlapping business of KBL.

    Expected financial implication of the aforesaid litigation cannot be ascertained at this juncture.

    We shall keep the exchange informed of any further developments in the
    3. in the matter.

    Alpha Desk
    first published: Aug 12, 2025 04:28 pm

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