Chennai-based
Tractors and Farm Equipment (TAFE) and AGCO said on Tuesday that a Madras High
Court had favored them in their dispute about the Massey Ferguson tractor
brand, citing an order to maintain “status quo”.
AGCO,
of which Massey Ferguson is a US-based subsidiary, was the first one to came
out with a statement saying that the High Court had overturned its interim
injunction in favour of TAFE. Later in the day, TAFE said the High Court said
that ownership and other related issues will be decided by the single judge of
the court before whom applications in the dispute are pending.
"The
present status quo is in continuation of the status quo granted to TAFE as
early as in April 2024, and the latest of several judicial orders protecting
TAFE’s rights to the use of the Massey Ferguson brand," the company said.
According to its statement, the court said that TAFE is the registered
proprietor and owner of the Massey Ferguson trademarks in India.
TAFE
is the single largest shareholder in AGCO, the third largest farm equipment
manufacturer in the world after Deere & Company and CNH Industrial. In
September, AGCO announced terminating its agreements with TAFE, including the
brand licence for Massey Ferguson.
AGCO
made the announcement despite TAFE having legal relief in place following a
similar notice by the American company in April 2024. TAFE then approached the
High Court with a contempt petition against AGCO. In April, TAFE had argued
that the termination was executed without notice.
The
new court decision follows a series of favorable rulings for AGCO. TAFE’s claims
on jurisdiction, contempt of court, supply arrangements and brand ownership
have all been dismissed by courts, including at the Supreme Court, AGCO said.
AGCO “remains steadfast in its proud ownership” of
the 177-year-old Massey Ferguson brand and trademarks globally and will
continue to “vigorously defend” its position, it said in a statement. AGCO said
it is committed to Indian farmers “who deserve straightforward, dependable and
high-quality equipment to help them grow profitably”.
AGCO
said its terminations in September followed “inappropriate and unauthorised
actions taken by TAFE” that breached various agreements. Simultaneously, AGCO
commenced legal proceedings against TAFE in India related to the use of the
Massey Ferguson brand following delivery of these termination notices.
By
early 2024, TAFE held Massey Ferguson brand rights in India, Nepal, Sri Lanka,
Bangladesh and Bhutan. The brand is seen on more than 55 per cent of TAFE’s
180,000 tractors produced in a year, including exports. TAFE exports tractors
to more than 80 countries.