Delhi High Court Refers Hero Electric Dispute Between The Munjals For Arbitration
The high court has said the observations made in the judgment should not influence the arbitral tribunal.
The Delhi High Court has referred the dispute between the Munjal cousins, Vijay Kumar Munjal and Pawan Kumar Munjal, for arbitration.
The matter relates to the use of the brand ‘Hero’ for the electric vehicle business by Pawan Munjal-headed Hero MotoCorp Ltd. The Vijay Munjal side has objected to it.
Hero MotoCorp had strongly opposed the petition to refer the disputes to arbitration, Hero Electric said in a statement.
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.Hero Electric statement
Vijay Munjal, along with his son Naveen Munjal, who owns Hero Electric Vehicles Pvt. Ltd., had approached the court in October seeking arbitration, claiming ownership over the use of the 'Hero' brand for the electric vehicle business.
The issue stems from the family settlement in 2010, when the Munjals decided to go their separate ways. At the time, each faction of the family received ownership of the businesses they managed.
The group was divided among brothers:
The late Brij Mohal Lal Munjal, father of Pawan Munjal.
The late Dayanand Munjal, father of Vijay Munjal.
OP Munjal, whose son Pankaj Munjal is now managing director of Hero Cycles.
Satyanand Munjal, whose sons inherited Munjal Showa, Munjal Auto, Majestic Auto and Satyam Autotech.
The single-judge bench made it clear on Thursday that the arbitral tribunal should not be influenced by the observations made in the order.
