Introduction:

The Delhi High Court recently issued an interim injunction restraining DB Dixon Battery Private Limited, a manufacturer of lead-acid storage batteries, from using the image of former Indian cricketer Shikhar Dhawan to promote its products. This ruling came after Dhawan filed a plea under Section 9 of the Arbitration and Conciliation Act, 1996, seeking an injunction to prevent the company from continuing to use his image despite an expired endorsement agreement. The plea also sought the appointment of a sole arbitrator to resolve the ongoing disputes between the parties. Dhawan’s legal team, led by Advocate Rizwan, contended that the endorsement agreement, which was originally signed in 2020, had expired in January 2022, and the company had continued to use his image without authorization. The cricketer’s legal action stems from DB Dixon’s failure to honor the terms of their renewed agreement, including unpaid installments. The Court, after hearing the arguments, issued a notice on the matter and directed the company to immediately cease using Dhawan’s endorsement in its advertisements until further notice, setting a hearing date for February 18, 2025.

Arguments of the Petitioner (Shikhar Dhawan):

Shikhar Dhawan’s legal team argued that the endorsement agreement entered into between the cricketer and DB Dixon Battery in 2020 had expired in January 2022. They emphasized that despite the expiration of the agreement, the company continued to use Dhawan’s image for promotional purposes. This use, the petitioner contended, was unauthorized and in violation of the terms of the agreement. Dhawan’s legal counsel further pointed out that in July 2024, a new endorsement agreement was entered into between the parties. However, the remaining payments due to Dhawan were not made by the company, leading to a legal notice being sent to DB Dixon Battery. The unpaid dues formed the basis for Dhawan’s legal action, which included the termination of the endorsement agreement in November 2024. Dhawan then invoked the arbitration clause within the agreement in an attempt to resolve the dispute through arbitration. The cricketer’s legal team argued that DB Dixon’s failure to respond to the arbitration notice further justified the need for judicial intervention to protect Dhawan’s image and prevent any further unauthorized use.

Arguments of the Respondent (DB Dixon Battery):

DB Dixon Battery, the manufacturer of the lead-acid storage batteries, had continued to use Shikhar Dhawan’s image even after the expiration of the original endorsement agreement in January 2022. The company, in its defense, likely contended that the use of Dhawan’s image was within the context of the renewed agreement signed in July 2024. The company may have also argued that the promotional campaign was ongoing, and its reliance on the agreement’s provisions allowed them to continue using the cricketer’s image, even though there were disputes about the payment installments. The company’s failure to clear the remaining dues might have been attributed to various internal or external factors, and they may have hoped to resolve the payment issue outside of court. However, the non-payment of dues and failure to respond to the legal notice invoking arbitration undermined the company’s position. The continued use of Dhawan’s image without settling the financial aspects of the renewed agreement raised serious legal questions, and the Court’s decision to intervene indicated that the company’s actions were in violation of contractual obligations.

Court’s Judgment:

Justice Subramonium Prasad of the Delhi High Court issued a significant ruling by granting an interim injunction to Shikhar Dhawan. The Court directed DB Dixon Battery to immediately cease using Dhawan’s image in any promotional material until the next hearing. This interim relief was granted in light of the arguments put forth by Dhawan’s legal team, who presented a compelling case that the continued use of his image was unauthorized and amounted to a violation of the endorsement agreement. The Court’s ruling also addressed the issue of arbitration, as Dhawan had invoked the arbitration clause in the agreement to resolve the disputes regarding the non-payment of dues and unauthorized use of his image. The Court issued a notice to DB Dixon Battery, asking them to respond to Dhawan’s petition, and fixed a date for the next hearing on February 18, 2025. This ruling emphasizes the importance of adhering to contractual terms, especially in cases involving high-profile public figures and their endorsement agreements. The Court’s decision reflects a clear stance on protecting the image rights of individuals and the need for companies to honor their financial commitments to avoid legal ramifications. Additionally, the Court’s directive to appoint a sole arbitrator highlights the judiciary’s commitment to ensuring that disputes related to contractual obligations are resolved in a timely and fair manner through arbitration.