High Court stays restoration of Monsanto agreements with Nuziveedu Seeds

Order grants interim relief to Monsanto; both parties told to file submissions supporting their case

Sayan Ghosal  |  New Delhi 

Monsanto threatens to re-evaluate India biz over Bt cotton row

The on Monday stayed a single-judge order restoring the sub-license agreements between Technology LLC and Limited for use of the American biotechnology major’s patented technology by the Indian seed manufacturer.

A division bench of Justice S Ravindra Bhat and Justice Yogesh Khanna passed the interim order in favour of on an appeal against a March 28 order, which had held that the termination of its sub-license agreements with Nuziveedu was illegal and arbitrary in nature. In support of Monsanto’s claim, senior advocate on Monday said that the single judge could not pass a direction to restore inter-party contracts that had been terminated by one of the



Siding with Sibal’s submissions, the court allowed the initial relief and stayed the operation of the earlier order. The bench has asked both parties to file written submissions in support of their case, so that the matter can be heard in a timely manner.

“Today’s interim order by the division bench of the Hon’ble validates our position that the sub-license agreements of and its group stand terminated and cannot be restored or modified. In November 2015, was forced to terminate the license agreements of Nuziveedu and its group due to their repeated refusal to pay contractually agreed upon amounts,” a India spokesperson said.

had earlier sued Nuziveedu (and its subsidiaries) for continuing to sell cotton seeds using the company’s patented Bt technology, even after the termination of the sub-licensing agreements in 2015. Rejecting the claim, the single judge had held that the sub-licensing agreements allowing to use Monsanto’s genetically modified hybrid cotton seed technology still continued to be in force and binding on both parties.

The decision allowed Nuziveedu to continue to use Monsanto’s and II trademarks and had directed the sub-licensing agreements between the two to be modified as per the GM Technology Licensing Agreement found in the Licensing and Formats for GM Technology Agreement Guidelines, 2016.

The court had also held that all future royalty payments for the use of Monsanto’s patents were to be made as per the cotton seed price control order issued by the central government. The 2015 price control order reduces the cost of cotton seeds by 74 per cent, from Rs 163 to Rs 43 per packet (exclusive of taxes), which has been challenged by in a separate case. The government has maintaining the same prices for the 2017-2018 cropping season as well.

High Court stays restoration of Monsanto agreements with Nuziveedu Seeds

Order grants interim relief to Monsanto; both parties told to file submissions supporting their case

Order grants interim relief to Monsanto; both parties told to file submissions supporting their case The on Monday stayed a single-judge order restoring the sub-license agreements between Technology LLC and Limited for use of the American biotechnology major’s patented technology by the Indian seed manufacturer.

A division bench of Justice S Ravindra Bhat and Justice Yogesh Khanna passed the interim order in favour of on an appeal against a March 28 order, which had held that the termination of its sub-license agreements with Nuziveedu was illegal and arbitrary in nature. In support of Monsanto’s claim, senior advocate on Monday said that the single judge could not pass a direction to restore inter-party contracts that had been terminated by one of the

Siding with Sibal’s submissions, the court allowed the initial relief and stayed the operation of the earlier order. The bench has asked both parties to file written submissions in support of their case, so that the matter can be heard in a timely manner.

“Today’s interim order by the division bench of the Hon’ble validates our position that the sub-license agreements of and its group stand terminated and cannot be restored or modified. In November 2015, was forced to terminate the license agreements of Nuziveedu and its group due to their repeated refusal to pay contractually agreed upon amounts,” a India spokesperson said.

had earlier sued Nuziveedu (and its subsidiaries) for continuing to sell cotton seeds using the company’s patented Bt technology, even after the termination of the sub-licensing agreements in 2015. Rejecting the claim, the single judge had held that the sub-licensing agreements allowing to use Monsanto’s genetically modified hybrid cotton seed technology still continued to be in force and binding on both parties.

The decision allowed Nuziveedu to continue to use Monsanto’s and II trademarks and had directed the sub-licensing agreements between the two to be modified as per the GM Technology Licensing Agreement found in the Licensing and Formats for GM Technology Agreement Guidelines, 2016.

The court had also held that all future royalty payments for the use of Monsanto’s patents were to be made as per the cotton seed price control order issued by the central government. The 2015 price control order reduces the cost of cotton seeds by 74 per cent, from Rs 163 to Rs 43 per packet (exclusive of taxes), which has been challenged by in a separate case. The government has maintaining the same prices for the 2017-2018 cropping season as well.
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