Lodha Vs Lodha: Brothers Duke It Out Over Using Family Name For Business

The Lodha brothers are the most recent entrants in the growing list of high-stakes family disputes involving listed entities in India, following the Kirloskar and Kalyani family disputes.

The can of worms has opened because of a Bombay High Court case filed by Macrotech Developers Ltd., under the leadership of Abhishek Lodha, which seeks to restrict Abhinandan’s House of Abhinandan Lodha from using the 'Lodha' brand name in any form.

In addition to this, Macrotech also seeks compensation of Rs 5,000 crore for the damages caused by HoABL in using the same brand name.

As per Tushar Kumar, practicing advocate at the Supreme Court of India, “Lodha” may qualify as a trademark if it has been widely recognised in the real estate sector due to long-term branding and investment.

However, trademark law also considers the public interest, which prevents the monopolisation of commonly used surnames unless they meet distinctiveness criteria, he said.

However, while hearing the case on Tuesday, the single-judge bench of the Bombay High Court found that the damages worth Rs 5,000 crore go beyond its pecuniary jurisdiction. That is why the case is slated to be heard next on Jan. 27 by a different bench.

The Lodha versus Lodha case has now joined a list of other such high-The Lodha versus Lodha case has now joined a list of other such high-profile cases where corporate families are jostling over control of their respective group's wealth.

Kirloskar Industries Ltd., led by brothers Atul and Rahul Kirloskar, is one such case. The firm owns 23.91% of Kirloskar Brothers, primarily owned by Sanjay Kirloskar. In addition, Atul Kirloskar has a 0.59% stake ownership, while Rahul Kirloskar holds a 0.51% stake in Kirloskar Brothers.

The conflict arose in 2017 when Atul and Rahul Kirloskar filed a petition with the NCLT, alleging instances of "oppression and mismanagement" by Sanjay Kirloskar. They also sought Sanjay's removal from the company.

On the other hand, the Kalyani dispute revolves around the control of the listed company, Hikal Ltd.

In 1993, the current chairman of Bharat Forge Ltd., Baba Kalyani, reached a family agreement with his father, Neelkanth Kalyani. The agreement mentioned that the shares of Hikal, which are controlled by the Kalyani group, would go to Baba’s sister’s family. Meanwhile, the property share of Baba Kalyani’s mother, Sulochana Kalyani, will go to the youngest son, Gaurishankar Kalyani.

The following agreement from 1994 between Baba Kalyani and his father, Neelkanth, further reiterated that the shares of Hikal would go to the Hiremaths—Baba Kalyani's sister's family. Additionally, the agreement mentioned that Baba would inherit the control of the Kalyani group.

However, the family is in dispute currently because of the alleged dishonour of the 1993 and 1994 agreements.

In 2017, a family agreement was finalised between the Lodha brothers. The responsibilities and businesses were divided among them and the major terms were that Abhishek Lodha would retain control over the core Lodha Group real estate business, while Abhinandan Lodha was to manage a separate business, as per the high court petition reviewed by NDTV Profit.

However, the issue cropped up again due to allegations of non-compliance with the terms of the 2017 agreement, and a new 2023 agreement came into being as per the filing. The 2023 agreement explicitly prohibited Abhinandan's business from using any variation of the 'Lodha' name.

Despite this, Macrotech Developers claims that HoABL has continued to use the name 'Lodha Ventures,' as well as other domain names linked to the brand, prompting the legal action.

Furthermore, the petition claims that it is important to clarify that Abhinandan was only involved with the company for 12 years out of its 40-year history. When he was asked to leave, the Lodha Group was burdened with a debt of around Rs 20,000 crore, largely due to mismanagement in the finance department, which he was responsible for at the time.

Between 2015 and 2020, the Lodha Group almost faced financial collapse because of this massive debt. The company only managed to survive due to the sharp leadership and hard work of its founder, leadership team, and professionals, the petition claims.

Macrotech believes that Abhinandan was also involved in a coordinated effort to misuse the Lodha Group's goodwill and brand strength. They are attempting to deceive the public and consumers by falsely suggesting that they have a close association with the Lodha Group, implying that they represent the brand's credibility and capabilities, the petition submits.

Abhinandan Lodha, the founder of HoABL, has also denied a claim that he received a payment of Rs 1,000 crore from Abhishek Lodha's company, Macrotech Developers, during their separation.

According to Abhinandan, an annexure from a press release circulated by a public relations agency representing Macrotech Developers contained false information. On page one, point five of the annexure claimed that Abhinandan received Rs 1,000 crore, a statement that the group categorically denied.

Meanwhile, in a media statement to NDTV Profit, HoABL has submitted that the agreement only specified that the "Lodha" name should not be used on a standalone basis in real estate. As a result, the companies were named "Lodha Ventures," "The House of Abhinandan Lodha" (which serves as the real estate arm), and "Lodha Finserv" (currently nonoperative).

The statement further reads that “House of Abhinandan Lodha” is on plotted land and as such, the product is different from what Macrotech Developers offers.

Further, HoABL is largely not present in the locations where their projects are on offer, as per its statement.