Indian Supreme Court Limits NCLT Trademark Title Powers

The Supreme Court of India has clarified the jurisdictional boundaries of the National Company Law Tribunal under the Insolvency and Bankruptcy Code. In Gloster Limited v. Gloster Cables Limited, the Court held that the NCLT exceeded its authority by declaring title to the trademark “Gloster” in favor of a successful resolution applicant.

The decision emphasized that questions of trademark ownership must have a direct nexus to the insolvency resolution process to fall within Section 60(5)(c) of the IBC. The Court found no such connection in the case, where rival claims and disputed assignment agreements existed outside the core proceedings.

The ruling sets aside the NCLT’s declaration and reinforces that complex intellectual property title disputes are to be resolved in civil courts rather than insolvency forums. It provides guidance for practitioners handling overlapping insolvency and IP matters.

Sources: https://ssrana.in/articles/ibc-is-not-an-ip-court-supreme-court-restricts-nclt-from-deciding-trademark-title/ https://lawgico.in/law-updates/nclt-cannot-decide-disputed-trademark-title-under-section-605-ibc-when-plan-recognizes-rival-claims-supreme-court-restores-nclat-view/