High Court forms arbitration tribunal in Munjal Family Dispute over ‘Hero’ trademark

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"The high court has declined relief to Hero Electric and Hero MotoCorp is free to manufacture and sell electric vehicles under the trademark Hero", said Senior Advocate Rajiv Nayar representing Hero MotoCorp to CNBC-TV18.

However, sources close to Hero Electric have said that the company has withdrawn its plea for injunction, as the dispute related to the Hero trademark will now be decided by the arbitration tribunal. "Given the reference of all disputes between the parties, we will be making a prayer for interim injunction against Hero MotoCorp before the duly constituted tribunal. Needless to add that we will also take all possible steps to thwart any challenge to the order of reference of the disputes to arbitration", said Hero Electric.

Hero Electric had claimed that as per the non-compete clause, they had the sole right to use the brand name with regard to the electric vehicle space, and not even entities controlled by the larger Munjal family shall have rights over it. This is as per the non-compete clause mentioned in the restructuring plans of the Hero Group hammered out in 2010.