Bombay High Court Grants Interim Relief to Vadilal Dairy in Trademark Dispute
Vadilal Dairy International Ltd (VDIL) has achieved a significant legal milestone with the Bombay High Court granting the company interim protection amidst a trademark dispute over the well-known “Vadilal” brand. This ruling, delivered by Justice Amit Borkar, ensures that the Mumbai-based faction of the Gandhi family can continue its operations without interruption.
The court's decision comes as a response to a legal battle arising from a 1993 family settlement that split the Vadilal conglomerate between two branches of the family. Under this agreement, Vadilal Dairy International relinquished its equity in Vadilal International Pvt Ltd in return for permanent rights to use the Vadilal brand in Maharashtra, Goa, Karnataka, Kerala, and undivided Andhra Pradesh (including Telangana).
The dispute escalated when the Ahmedabad faction, controlling Vadilal Industries Ltd and Vadilal International, issued a termination notice on May 26, 2026, citing alleged quality standard violations. Vadilal Dairy International contested this move, asserting that the registered user agreement was part of the family settlement and not subject to arbitrary cancellation.
Justice Borkar's ruling prevents the Ahmedabad faction from acting on its termination notice and bars them from entering the territories protected under the agreement. This interim protection will remain in place throughout the arbitration proceedings and for 90 days following the arbitral award.
The high court's order arrives at a crucial time for VDIL, which reported a net profit of ₹213.30 lakh for the quarter ending March 31, 2026, against revenues of ₹803.45 lakh. The company's statutory auditors, P V M & Co., highlighted the importance of this relief in maintaining business continuity amid ongoing legal challenges.
The court noted that its observations are preliminary and will not impact the final arbitration outcome. VDIL's management affirmed that business operations would proceed while preparing for arbitration.
