The Supreme Court recently held that the National Company Law Tribunal (NCLT) cannot adjudicate or declare title over a trademark merely because the issue arises during a corporate insolvency resolution process (CIRP), unless the dispute has a direct and intrinsic nexus with insolvency. [Gloster Limited v. Gloster Cables]
A Bench of Justice JB Pardiwala and KV Viswanathan delivered the ruling while deciding cross-appeals arising from the insolvency resolution of Fort Gloster Industries Limited (FGIL), involving rival claims over the trademark “Gloster” by the successful resolution applicant Gloster Limited and Gloster Cables Limited (GCL).
The Court held,
“Adjudicating Authority could not have declared title in the trademark…