The Bombay High Court has granted interim protection to the Bombay Group, restraining Vadilal Industries, Vadilal International and other Ahmedabad Group entities from interfering with the Bombay Group’s continued use of the “Vadilal” trademark in Maharashtra, Goa, Karnataka, Kerala, Andhra Pradesh and Telangana until arbitration over a family settlement has been concluded.
The order has come in a dispute arising from a 1993 family settlement between two branches of the Gandhi family, as per media reports. Justice Amit Borkar has held that the Bombay Group has established a prima facie case for interim relief while deciding a petition related to the settlement.
The dispute has stemmed from a 1993 Memorandum of Agreement under which the Bombay Group, led by Shailesh Gandhi and Bela Gandhi, transferred its shareholding in Vadilal International to the Ahmedabad Group. In return, the Bombay Group has claimed it received permanent and irrevocable rights to manufacture and sell “Vadilal”-branded ice cream and juices in Maharashtra, Goa, Karnataka, Kerala and Andhra Pradesh, including Telangana.
The parties have also executed a Branding Agreement, an Irrevocable Power of Attorney and a Registered User Agreement. The Bombay Group has contended that these documents have formed one composite family settlement.
The matter has reached the High Court after Vadilal International issued a communication on May 26, 2026, terminating the Registered User Agreement and revoking the Irrevocable Power of Attorney over alleged quality violations. The Bombay Group has sought interim protection pending arbitration.
After examining the material on record, the Court has held that there is a substantial case that the Memorandum of Agreement, Branding Agreement, Registered User Agreement and Irrevocable Power of Attorney have been intended to operate together as parts of one family settlement.
The Court has also observed that the Bombay Group has operated under the “Vadilal” brand since 1993 and that disrupting the arrangement during arbitration could result in irreparable commercial harm that cannot be adequately compensated through damages.
The petition has been partly allowed, with the Court restraining the Ahmedabad Group entities from giving effect to the May 26, 2026 communication and from interfering with the Bombay Group’s continued use of the “Vadilal” trademark in the territories claimed under the family settlement.
The interim protection has remained effective for the duration of the arbitral proceedings and will continue for 90 days after the publication of the arbitral award unless the arbitral tribunal issues a further order.
The Court has directed the Bombay Group to comply with the Food Safety and Standards Act, maintain all statutory licences and quality records, and permit Vadilal International to inspect its facilities after providing 24 hours’ notice. It has also clarified that its observations are prima facie in nature and that all issues relating to the parties’ rights and the validity of the termination will be decided by the arbitral tribunal.
