Delhi High Court favours Nuziveedu seeds in Monsanto’s case
NEW DELHI: The Delhi High Court on Tuesday ruled in favour of Nuziveedu Seeds Ltd. on a plea filed by Monsanto Technology LLC over an alleged infringement of its bollgard I and II technology.
Monsanto was seeking an injunction on the use of its technology after the termination of its agreement with Nuziveedu Seeds.
The Delhi High Court has held that the termination was invalid and illegal, and has also given a direction that the agreement of 2015 shall prevail. It has also said that the trait (technology) value as fixed by the central government from 2015-16 shall come into place, and that the agreement should be modified.
In the 96-page order, Justice R. K. Gauba of Delhi High Court said: “The parties shall remain bound by their respective obligations under the terms and conditions of the 2015 sub-licence agreements for the period stipulated therein, or till the same are lawfully terminated, the post contractual obligations continuing to be effective even beyond, as mutually agreed.” Monsanto had sued Nuziveedu and group companies Prabhati Agri Biotech Ltd and Pravardhan Seeds Pvt Ltd for selling cotton seeds with bollgard technology in 2015, citing non-payment of Rs 165 crore in dues.
“Mahyco-Monsanto Biotech has heard about the order by Hon’ble Delhi High Court. We are yet to receive a copy of the order and will only be able to comment once we study the same in its entirety,” said the spokesperson for Mahyco-Monsanto Biotech (India) Private Ltd.
The court directed that Monsanto should inform Nuziveedu on modification of the terms on the rate of the trait fee payable by the sub- licencees, bringing them in accord with the prevalent local laws.
Meanwhile, Prabhakar Rao, chairman of Nuziveedu Seeds, said the company will now be able to sell Bt cotton seeds.
“We will wait for Monsanto to restore the agreement as directed by the court. We also expect the refund of excess payment made by us to Monsanto to the tune of Rs 800 crore as the court has held that trait value cannot be higher than what has been fixed by the state or central government,” he said.
Monsanto was seeking an injunction on the use of its technology after the termination of its agreement with Nuziveedu Seeds.
The Delhi High Court has held that the termination was invalid and illegal, and has also given a direction that the agreement of 2015 shall prevail. It has also said that the trait (technology) value as fixed by the central government from 2015-16 shall come into place, and that the agreement should be modified.
In the 96-page order, Justice R. K. Gauba of Delhi High Court said: “The parties shall remain bound by their respective obligations under the terms and conditions of the 2015 sub-licence agreements for the period stipulated therein, or till the same are lawfully terminated, the post contractual obligations continuing to be effective even beyond, as mutually agreed.” Monsanto had sued Nuziveedu and group companies Prabhati Agri Biotech Ltd and Pravardhan Seeds Pvt Ltd for selling cotton seeds with bollgard technology in 2015, citing non-payment of Rs 165 crore in dues.
“Mahyco-Monsanto Biotech has heard about the order by Hon’ble Delhi High Court. We are yet to receive a copy of the order and will only be able to comment once we study the same in its entirety,” said the spokesperson for Mahyco-Monsanto Biotech (India) Private Ltd.
The court directed that Monsanto should inform Nuziveedu on modification of the terms on the rate of the trait fee payable by the sub- licencees, bringing them in accord with the prevalent local laws.
Meanwhile, Prabhakar Rao, chairman of Nuziveedu Seeds, said the company will now be able to sell Bt cotton seeds.
“We will wait for Monsanto to restore the agreement as directed by the court. We also expect the refund of excess payment made by us to Monsanto to the tune of Rs 800 crore as the court has held that trait value cannot be higher than what has been fixed by the state or central government,” he said.
