Naveen Munjal-led Hero Electric has withdrawn its petition seeking an injunction against Hero MotoCorp for using the brand ‘Hero’ for electric vehicles.
An arbitral tribunal has been formed by the Delhi High Court to resolve the dispute between Hero MotoCorp and Hero Electric. Three retired judges – Indu Malhotra, Deepak Mishra, and Indermeet Kaur – are part of the tribunal, sources aware of the development told ET.
Naveen Munjal (son of Vijay Munjal) who is at the helm of Hero Electric has been engaged in a legal battle with his uncle Pawan Munjal (Chairman of Hero MotoCorp) saying his family has exclusive ownership rights of the brand ‘Hero’ for eco-friendly products.
When contacted, Senior Counsel Rajiv Nayar, along with advocates Rishi Agrawala and Karan Luthra appeared for Hero Motocorp confirmed that there is no restriction on the company to use the brand ‘Hero’ with regards to its electric vehicle since Hero Electric has withdrawn its application for interim relief.
“A petition was filed by Hero Electric to refer the disputes to arbitration which was strongly opposed by Hero MotoCorp. The Court, while rejecting all contentions of Hero MotoCorp, has referred all the disputes under the family arrangement to a three member arbitral tribunal,” said Hero Electric spokesperson. “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.”
As per the 2010 agreement among the family members, which was accepted amicably by all factions, Hero group patriarch Brijmohan Lall Munjal’s family got control of flagship firm Hero MotoCorp and Hero Corporate Services among others. Hero Cycles, Hero Motors and Munjal Sales Corporation were earmarked for his brother Om Prakash Munjal, whose son Pankaj Munjal is currently the chairman of Hero Cycles.
Satyanand Munjal’s family controls Munjal Showa, Munjal Auto and other related businesses, while Dayanand Munjal (represented by his son Vijay Munjal) is the owner of Hero Exports, Hero Electric and Sunbeam Auto. Vijay Munjal’s son Naveen Munjal is the managing director of Hero Electric.
ET was the first to report, in July 2019, about Pawan Munjal’s nephew Naveen Munjal citing exclusive brand rights over green vehicles. Claims and counter-claims over brand use have begun to feature prominently in the media after Hero MotoCorp announced plans to launch an electric vehicle in the fourth quarter of the ongoing financial year.
The Pawan Munjal-led Hero MotoCorp is the market leader in ICE (Internal Combustion Engine)-enabled motorcycles and scooters, and has recently announced its foray into the EV segment. It has formed a joint venture with Taiwan-based Gogoro Inc, an EV maker and owner of the world’s largest battery swapping network.
Hero MotoCorp has plans to launch its first EV next month. The company additionally is one of the earliest investors in Bengaluru-based EV maker Ather Energy. 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, run by Naveen, has claimed that only his branch of the broader Munjal family has the right to use the term ‘Hero’ for electric products, and no other family member has that right.
“We have the exclusive ownership of the brand ‘Hero’ for non-polluting, green and electric/environmental friendly vehicles for personal or commercial use,” Naveen Munjal told ET in July 2021. “Over the past decade and half, we have worked tirelessly to further build the legacy of the brand ‘Hero’ by journeying into electric and empowering India toward a greener future.”
Naveen Munjal had said that his businesses will seek to protect its rights on the use of the ‘Hero’ brand for EVs. “We will take all appropriate measures to protect our rights in the brand and stop any violation of our rights in the electric / environment friendly vehicles segment,” Naveen Munjal had said.
For its part, Hero MotoCorp had said that the agreement was clear on its terms of reference and remains the guiding post for all actions by the company. “There is a family understanding in place, which everyone in the Munjal family is well aware of, and everything is being done within the parameters of the understanding and the Agreement,” a Hero MotoCorp spokesman had at the time said. “The brand names used on the vehicles even as on date speak for themselves. The Family Agreement is crystal clear and Hero MotoCorp is well aware of its rights, and has always acted, and will continue to act based on the best legal advice.”
Issues over brand use have surfaced between Naveen Munjal and Pankaj Munjal, too. In March 2021, the Delhi High Court directed these two factions of the Munjal family battling over a trademark to approach an arbitrator, as stipulated in the settlement agreements signed more than a decade ago when the Hero group’s businesses were divided among the family members.
Vijay Munjal-promoted Hero Electric Vehicles and Hero Exports had sought the court’s intervention to restrain Pankaj Munjal-led Lectro E-Mobility from dealing, in any manner, in electric bikes having a throttle using ‘Hero’ or any mark deceptively similar as a trademark, brand name or trade name.
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Vijay and Naveen Munjal’s Hero Electric has been in the EV business for 15 years but since EVs were not top of the mind as a business segment until now, the branding issue did not crop up before, said sources. With Hero MotoCorp getting into the EV segment in March this year, Vijay-Naveen Munjal are claiming exclusive use of the brand name in the EV space.
