TM rights in ‘Shakti Bhog’ controversy amid insolvency proceedings Amid the ongoing criminal proceedings alleging fraud and money laundering against officers of the Shakti Bhog companies and of creditor bank employees, insolvency proceedings are underway and have been for some time. A dispute concerning ownership of intellectual property rights in a valuable trade mark is part of the insolvency process.

Indian Banking sector is going through a hard time due to various reasons including but not limited to increase in Gross Non-Performing Assets (GNPA), loan frauds/corruption in some cases, economic slowdown etc. Rise in NPAs is major concern for banks as it reduces profit of banks and restricts the loan giving ability of the banks by way of provisioning. Reasons for the rise in NPA can be attributed to aggressive lending practice by the banks and willful default by borrowers i.e., lack of willingness to repay.