Facts & Background:

• M/s Hero Electric Vehicles Pvt. Ltd. and M/s Hero Exports were the Plaintiffs.
• M/s Lectro E-Mobility Pvt. Ltd. and Hero Cycles Ltd. were the Defendants.
• Plaintiff No. 2, Hero Exports, commenced its electric vehicle business in 2007, launching electric cycles and scooters under the "Hero" and "Hero Electric" trademarks, registered in 2008 under Class 12 of the Trade Marks Rules.
• On 20 May 2010, a Family Settlement Agreement (FSA) was executed, dividing the group's businesses among four Family Groups, designated as F-1, F-2, F-3, and F-4. Hero Exports and its business were transferred to the F-1 group.
• On the same date, 20th May 2010, a "Trade Mark and Name Agreement" (TMNA) was executed, granting the F-1 group exclusive rights to use the trademarks "Hero" and "Hero Electric" for electric vehicles, among other products, to the exclusion of the different groups.
• On 31st July 2010, the partners of Hero Exports incorporated Plaintiff No. 1 as Hero Eco Vehicles Pvt. Ltd., later renamed Hero Electric Vehicles Pvt. Ltd. (HEVPL), to conduct the business of electric vehicles.
• Hero Exports granted HEVPL a license to use the "Hero" and "Hero Electric" trademarks in relation to electric vehicles. HEVPL subsequently became the exclusive manufacturer, acquiring statutory and common law rights over the trademarks.
• In 2017, Hero Exports initiated arbitral proceedings against Hero Cycles Ltd., alleging violations of the FSA and TMNA by exhibiting and exporting products outside its allotted territories. Hero Cycles defended, asserting ownership of the monogram.
• In its final award, dated 18 December 2018, the Arbitral Tribunal permitted Hero Cycles to exhibit products in F-1's territories but prohibited sales. Additionally, it directed each family group to establish its monogram.
• Hero Exports subsequently challenged the Arbitral Tribunal's award before the Delhi High Court under Section 34 of the Arbitration and Conciliation Act, 1996, in OMP (Comm) 133/2019, which was pending.
• Hence, the defendants filed IA 3381/2020 under Section 8 of the 1996 Act, seeking to refer the dispute in the present suit to arbitration, as per Clause 19.5 of the FSA and Clause 5.6 of the TMNA.
  

Main Issue:

• Does the dispute of Intellectual property arising out of contractual rights and obligations fall within the scope of arbitration?