NCLT has No Power to Decide Trademark Ownership Without Insolvency Link: Supreme Court

The Supreme Court ruled that the National Company Law Tribunal cannot exercise jurisdiction under Section 60(5)(c) of the Insolvency and Bankruptcy Code to adjudicate trademark ownership disputes that lack a direct connection with insolvency proceedings.

The case arose from cross-appeals against the NCLT’s declaration of title over the trademark “Gloster” during a corporate insolvency resolution process.

The Court held that contested issues of title, including intellectual property, can be examined under the IBC only when they have a proximate nexus with the insolvency process and do not go beyond the approved resolution plan.

It set aside the NCLT’s finding and the NCLAT’s observations, leaving the issue to be decided by an appropriate forum.

[Gloster Ltd v. Gloster Cables Ltd & Ors.]