The Official Liquidator of Ideal Jawa Ltd. v. Registrar of Trade Marks & Other

"No trademark without title — liquidator holds the reins of IP in winding-up"

Short Description :

This case centered on the control of trademark rights after the winding up of a company. The Official Liquidator of Ideal Jawa (India) Ltd. approached the court to prevent private parties from claiming or transferring the company’s trademarks like “Yezdi,” arguing that only the liquidator has the authority to deal with the intellectual property of a company under liquidation.

Facts :

Ideal Jawa, once the manufacturer of the iconic “Yezdi” motorcycles, was officially liquidated and placed under the authority of the Official Liquidator. Despite this, individuals and private firms began to assert ownership over the “Yezdi” trademarks and attempted to register or use them. The liquidator filed a petition against such use, stating that all intellectual property assets of a liquidated company remain under the court’s supervision and cannot be transferred or revived without legal clearance.

Findings :

The Karnataka High Court held that the trademarks of a company under liquidation are part of its assets and must be handled by the liquidator under the supervision of the company court. The court ruled that attempts by third parties to register or use the “Yezdi” mark were illegal. The Registrar of Trade Marks was directed to cancel the registrations and uphold the liquidator’s role as custodian of all residual IP of the company.

Suggestions :

This case serves as a precedent in clarifying that intellectual property rights do not lapse into public domain upon liquidation. Companies must ensure proper legal management of IP during insolvency or dissolution. Registrars must also verify ownership history thoroughly before accepting new trademark applications related to wound-up entities.

Judgment :

Date : July 2021 (Order); appeal dismissed later

The Karnataka High Court ruled in favor of the Official Liquidator, affirming that all trademarks of Ideal Jawa belong to the estate under liquidation and cannot be claimed or used by outsiders.