Delhi High Court vacates ex-parte injunction against HFCL

HFCL said that the High Court of Delhi vide its order passed on 14 September 2022 has vacated the ex-parte injunction order dated 12 January 2022, which was passed by it in the matter of Sterlite Technologies.

On January 20 this year, Sterlite Technologies had announced that it had secured an ex‐parte ad‐interim injunction against Himachal Futuristic Communications (HFCL) in a patent infringement litigation filed in Delhi High Court.

The Court has restrained HFCL, its subsidiaries, directors, servants, agents, licensee or any related/ parent companies, dealers, stockists and distributors and/or anyone claiming any right through any of them, restraining them, jointly and severally, in any manner, from making, manufacturing, using, offering for sale, selling, exporting and importing the optical fibre cables covered under the STL's patent in India, as it may amount to infringement of the said Patent that is related to STL's multitube micro cable technology.

Responding to the same, in a statement issued to the bourses on the same day, HFCL had announced that the sale of optical fiber cable covered under alleged patent is insignificant to the company's total sales of optical fiber cables.

"The company hereby inform all its stakeholders that the Company has already initiated required legal actions to get the said restrain Order vacated and also for the cancellation of the subject patent," HFCL said in a statement.

On the same matter, HFCL's spokesperson was quoted by media saying that the stay has been obtained by giving misleading information to the court. This product has reportedly been produced by HFCL since 2014 against the specifications of customers. In fact, STL's application on a similar patent was reportedly rejected by the European Union.

HFCL is a technology enterprise engaged in manufacturing of high-end transmission and access equipment, optical fiber, optical fiber cables (OFC). It is specialized in setting up modern communication network for telecom service providers, railways and defense.

The company's consolidated net profit (from continuing operations) tumbled 41.45% to Rs 53.10 crore on 12.9% decline in net sales to Rs 1,051.02 crore in Q1 FY23 over Q1 FY22.

The scrip fell 1.77% to currently trade at Rs 77.75 on the BSE.

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