HC stays reinstatement of Monsanto-Nuziveedu contract

The Delhi High Court today stayed its single judge's order reinstating a sub-licence between US-based agro major Monsanto Technology and three Indian seed companies, which the foreign entity had terminated.
A bench of Justices S Ravindra Bhat and Yogesh Khanna issued the interim direction on Monsanto's appeal against the single judge's order of March 28.
The March 28 order had held as "prima facie illegal" the US company's decision to terminate its sub-licence with Nuziveedu Seeds Ltd, Prabhat Agri Biotech Ltd and Pravardhan Seeds Private Ltd.
Appearing for Monsanto, senior advocates Kapil Sibal, Pratibha Singh and Sandeep Sethi argued that the court cannot restore a contract terminated by either of the parties.

Monsanto had terminated the agreement in November 2015 with the three Indian companies over the issue of payment of 'trait fee' under the sub-licence.
The single judge had said that the US company "was duty- bound" to consider the seed companies' request to modify the terms of the sub-licence with regard to the trait fee.
The judge had said that since Monsanto had not adhered to its obligation, its demand for a fee which was higher than what was permitted by law, was "not lawful".
In his March 28 order, the single judge had also made it clear that any trait fee chargeable would have to abide by the Cotton Seeds Price (Control) Order, 2015 and the Licencing and Formats for GM Technology Agreement Guidelines of 2016.