Bombay High Court Judgment Allows Vadilal Dairy International to Continue Business under "Vadilal" Brand
The Hon'ble Bombay High Court has pronounced a judgment in Commercial Arbitration Petition No. 18386 of 2026, which involves Vadilal Dairy International Ltd regarding the use and rights associated with the "Vadilal" trademarks. The proceedings were filed under Section 9 of the Arbitration and Conciliation Act, 1996, by the Company and its promoters.The dispute centers on the interpretation and implementation of various interconnected agreements executed in 1993, which include the Memorandum of Agreement, Brand Agreement, Registered User Agreement, and an Irrevocable Power of Attorney. These documents govern the respective rights of the parties concerning the "Vadilal" trademarks and related business interests.
Granting interim protection in favor of the Company pending the full adjudication of the disputes through arbitration, the High Court issued certain interim directions governing how all parties must conduct themselves during the pendency of the arbitral proceedings.
The judgment enables Vadilal Dairy International Ltd to continue its existing business operations under the "Vadilal" brand, provided that it complies with the conditions and directives established by the court's judgment. The Court also clarified that its observations are prima facie in nature, leaving all rights and contentions of the parties open for determination during the arbitral proceedings.
The Company maintains that it will continue operating its business in the ordinary course and is prepared to pursue any further legal steps as advised.
Corporate Structure and Settlement Details
During a recent Board Meeting, family members and auditors were informed by Mr. Shailesh Gandhi about the structure of the Family Settlement executed in 1993. The settlement determined that the Bombay Group relinquished its partnership and ownership rights within the Ahmedabad Group.As a result of this restructuring, Mr. Shailesh Gandhi became the independent owner of the Bombay Group after relinquishing his shareholding in the Ahmedabad Group. Management confirmed that all family agreements executed pursuant to the 1993 settlement are irrevocable and nonterminable.
Stock Price Movement
Shares in Vadilal Dairy International Ltd. completed the trading session on Friday, settling at ₹4.25 after falling 3.41%. The stock's price moved within an intraday range, reaching a high of ₹4.30 and dipping to a low of ₹4.25.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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