According to a statement released by MMBL, Nuziveedu Seeds Ltd (NSL) and several other seed makers stopped payment of trait fee on the technology to the biotech company in 2015, arguing the technology had turned ineffective and so, they need not pay royalty.
Mumbai: The Bombay High Court has directed Hyderabad-based Nuziveedu Seeds Ltd (NSL) to deposit Rs 138 crore in the court towards payment of its dues to biotechnology company Mahyco Monsanto Biotech Ltd (MMBL). MMBL sells Bt technology to cotton seed companies under sub-licence agreements.
According to a statement released by MMBL, NSL and several other seed makers stopped payment of trait fee on the technology to the biotech company in 2015, arguing the technology had turned ineffective and so, they need not pay royalty.
As per the statement, around 15 seed companies, including NSL, owed Rs 450 crore to MMBL. Of these, all but NSL group companies agreed to settle the issue and pay up.
MMBL and NSL subsequently took the matter for arbitration and in January this year, the arbitration tribunal directed NSL to pay around Rs 117 crore to MMBL towards trait value for all sales in 2015.
MMBL then filed a petition in the high court seeking to enforce the tribunal’s order.
On Wednesday, a single bench presided over by Justice G S Kulkarni passed an order holding that prima facie, the tribunal order was valid.
Justice Kulkarni directed NSL to deposit in the high court the amount ordered by the tribunal and the interest accrued upon the same within two weeks. The sum comes to around Rs 138 crore.
The bench asked NSL to deposit the amount either in cash or through bank guarantees.
The court also asked NSL not to dispose any of its assets till it deposits Rs 138 crore towards payment of dues.