A long-running family dispute within the Vadilal group has resurfaced in the Bombay High Court, with the Mumbai branch of the Gandhi family seeking legal protection against what it alleges is interference in its ice cream and juice business operations.
The petition, filed by Shailesh Gandhi-led Vadilal Dairy International (VDIL) under the Arbitration and Conciliation Act, seeks interim relief restraining the Ahmedabad branch, Vadilal Industries and related entities from obstructing the manufacture, sale, distribution and marketing of products that the Mumbai group claims fall under its rights.
The dispute traces its origins to a family settlement reached in 1993, under which business operations and brand usage rights were divided between the Mumbai and Ahmedabad branches of the family. According to the Mumbai group, the agreement granted it perpetual rights to use the Vadilal brand for ice cream and juice products in select territories including Maharashtra, Goa, Karnataka, Kerala and undivided Andhra Pradesh.
The Mumbai branch has alleged that attempts by the Ahmedabad side to acquire its business failed to materialise, leading to multiple disputes and legal proceedings. It further claimed that several actions, including overseas trademark litigation, quality-related allegations and product recall efforts, were intended to disrupt its business operations.
The Ahmedabad branch, however, contested the allegations and argued before the court that products manufactured by VDIL had shown serious microbiological quality concerns, placing the company in breach of quality-control provisions laid down under earlier agreements governing brand usage.
The dispute also raised questions regarding jurisdiction. Counsel representing associated entities argued that agreements between family members specified Ahmedabad district courts as the designated forum for resolving disputes. Vadilal Industries further stated that it was a publicly listed company and not a direct party to agreements signed among family members.
Following failed settlement discussions, the Mumbai branch initiated arbitration proceedings under the dispute resolution mechanism outlined in the family agreement and has sought interim judicial protection until a final decision is delivered by the arbitral tribunal.
Justice Amit Borkar has reserved the order after hearing arguments from all parties, with the court’s decision expected to determine the immediate course of the latest chapter in the long-running Vadilal family dispute.