Sc Declines Stay On Verdict In Lg Fuzzy Logic Case

The Supreme Court yesterday declined to stay the Delhi High Court judgement allowing LG Electronics to enter the Indian market with fully automatic washing machines with fuzzy logic technology but agreed to hear the appeal of Onida Savak Ltd two weeks later.

A division bench of the high court comprising Justice Mahinder Narain and Justice S K Mahajan had set aside an earlier stay order of a single judge, which barred LG Electronics from coming to India with their washing machines.

According to Onida, the South Korean company had signed a contract with it giving exclusive right to the fuzzy logic technology for five years. On that basis it had invested Rs 30 crore and paid Rs 12 crore to LG electronics.

The South Korean companys case is that the exclusive right of Onida was confined only to a particular model (no. Wf-1095a) and it could not get an order restraining LG Electronics from importing goods other than this model. According to it, fuzzy logic was not a technology, but only a controlling device.

Senior counsel Kapil Sibal, arguing for Onida before a bench consisting of Justice G T Nanavati and Justice S P Kurdukar, asked the judges to stop the import of the South Korean machines as it would ruin Onidas business.

The high court was shown that parts of the South Korean machines could be replaced by the Onida machines and therefore they were the same for all practical purposes.

He wanted to go through the evidence once again in the Supreme Court. He had in fact brought the fuzzy logic panel to the court to show the judges.

K Parasaran, representing the South Korean company, submitted that what was agreed to be given to Onida was only technical information and not technology.

The judges wanted to examine the dispute further and therefore set November 18 as the date for final hearing.