Taking Orders

A Bengaluru restaurant chain mired in legal battles

Radhakrishna Adiga opened six outlets under the Vasudev Adiga’s name though he was only authorised to open one. ISHAN RATHOD FOR THE CARAVAN
01 June, 2015

AMONG THE TENS OF CASES that passed through Court Hall No 10 in the Primary Civil and Sessions Court in Bengaluru on 18 March, there was one likely to be of particular interest to the city’s food enthusiasts. Two lawyers were to make their arguments in a suit over a chain of 27 eponymous eateries operated by Vasudev Adiga, one of the litigants, who was challenging his brother, Radhakrishna, over use of the name.

The Vasudev Adiga’s outlets are among Bengaluru’s 5,000 or so “darshinis”: vegetarian, south Indian fast-food restaurants, at which customers pay first and eat on their feet, typically around metal tables. The menus include staples such as idlis, vadas and dosas, as well as plated meals; the food is fresh, tasty and affordable. The first of these restaurants was Café Darshini, opened in 1983 in Jayanagar in south Bengaluru. Though that establishment has since closed, the model it pioneered spread across the city.

Among the most successful of these were the Vasudev Adiga’s restaurants, which have their origins in the Brahmin’s Coffee Bar in Basavanagudi, in south Bengaluru, a wildly popular establishment founded in 1965 that still offers a spare menu of four dishes. Vasudev Adiga built on the expertise of its founder, his father KV Nageshwar Adiga, to launch his chain in 1992. The new restaurants stood out for their efficient service and consistently high-quality food. Though, by virtue of their spread they lack the almost cult appeal of the older establishment, they draw a varied clientele and impressive revenues. Today, the Vasudev Adiga’s chain is estimated to be worth over Rs 100 crore.

In 2006, Vasudev permitted his younger brother Radhakrishna to open one outlet bearing his name, in the Malleswaram area of north-west Bengaluru. Radhakrishna went on to set up Vasudev Adiga’s establishments over the next six years, which Vasudev argued violated their agreement. Vasudev went to court in 2012 and sought an injunction against the use of his brand. Radhakrishna filed appeals and demanded that the matter be resolved through arbitration rather than a court trial—but a High Court ruling last year directed that the case proceed in court, and imposed costs on Radhakrishna. The case then returned to the trial court.

The isn’t the only litigation that Vasudev Adiga’s has been involved in. In 2006, Vasudev won a temporary injunction in a trial court against a darshini that was to be christened Adiga’s Abhiruchi. This order was challenged in the High Court of Karnataka, where the counsel for Adiga’s Abhiruchi contended that “Adiga” was a common name, and that since it was also the surname of the proprietor of the proposed darshini he should be allowed to use it. The High Court found the challenge “devoid of merit” and upheld the trial court’s verdict.

Another prominent dispute pertains to efforts to scale up the chain. In 2012, South Asia Gastronomy Enterprises, a partner of the multinational private equity firm New Silk Route, bought a controlling stake in Vasudev Adiga’s, which then had 11 restaurants in Bengaluru. The company announced expansion plans backed by Rs 165 crore of investment. Two years later, however, Vasudev filed a case at the Company Law Board in Chennai, alleging that NSR had “deliberately sidelined, humiliated and illegally removed him as the Managing Director” of the company.

Jacob Kurian, a partner with NSR and the new CEO of Vasudev Adiga’s Fast Food, painted a different picture. “The professional team we had hired quit,” he told me, “because they could not work in a place where their authority was constantly being undermined by Mr Adiga.” Kurian said the investors and Vasudev agreed at a conceptual level, but  not on how to run the company. “We were thinking of 200 stores and a pan-India presence from the beginning—which cannot be handled by a family,” he said. “Mr Adiga told me when we invested that he was personally travelling around 300 kilometres a day to oversee operations in the outlets across the city. We decided to hire a professional team for the day-to-day handling of the business.” As for Vasudev’s lawsuit, he said that, as the chain’s founder, “I think it was very difficult for him to hand over charge of the company to someone else.” The two Adiga brothers declined to comment.

At the trial court in March, the case number was called around noon. As the first order of business, Radhakrishna’s lawyer handed over five cheques worth Rs 5,000 each to Vasudev’s lawyer—the costs imposed by the High Court. Then, he asked the judge for an extension to prepare his arguments. His opponent countered that both sides’ arguments would remain the same even if an extension was granted. Amused, the judge smiled and declared that the arguments would be heard after lunch. When the time came, however, the court was occupied with another case, involving an international chocolate chain. The Adiga’s fraternal war would be resumed another day.


Vikram Gopal is a freelance journalist based in Bengaluru.