Legal Proceedings Background

The disclosure is in continuation of earlier disclosures regarding litigation initiated by Vadilal Industries (USA) Inc. and Vadilal Industries Private Limited concerning the use of the \"Vadilal\" trademarks and related rights.

Court Case Details

The Hon'ble Bombay High Court pronounced its judgment in Commercial Arbitration Petition No. 18386 of 2026 filed by the Company and its promoters under Section 9 of the Arbitration and Conciliation Act, 1996.

Dispute Origin

The dispute arises from the interpretation and implementation of the family settlement and interconnected agreements executed in 1993, including:

  • Memorandum of Agreement
  • Brand Agreement
  • Registered User Agreement
  • Irrevocable Power of Attorney

These agreements govern the parties' respective rights in relation to the \"Vadilal\" trademarks and business.

Historical Context from Board Meeting

During a Board Meeting in the presence of family members and auditors, Mr. Shailesh Gandhi informed the Board that under the Family Settlement of 1993:

  • The Bombay Group relinquished its partnership and ownership rights in the Ahmedabad Group
  • Mr. Shailesh Gandhi became the independent owner of the Bombay Group by relinquishing his shareholding in the Ahmedabad Group
  • All family agreements executed pursuant to the settlement are irrevocable and non-terminable

Court Judgment Outcome

The Hon'ble Bombay High Court has granted interim protection in favour of the Company pending adjudication of the disputes through arbitration and has passed certain interim directions governing the conduct of the parties during the pendency of the arbitral proceedings.

Business Impact

The interim order enables the Company to continue its existing business operations under the \"Vadilal\" brand, subject to compliance with the conditions and directions contained in the judgment.

Legal Status Clarification

The Hon'ble Court clarified that its observations are prima facie in nature and that the rights and contentions of all parties remain open for determination in the arbitral proceedings.

Current Operations and Future Steps

The Company continues to operate its business in the ordinary course and will take such further legal steps as may be advised.