Seagram Restrained From Food Product Joint Ventures

A Calcutta High Court division bench yesterday restrained The Seagram Company, the Canadian multinational, from concluding any agreement with any third party for a joint venture project to manufacture food products as well as to assign the Dole trademarks.

The company, however, has been allowed to open negotiations with any third party in India.

Seagram moved the division bench against an ad-interim order of the trial court made on the basis of a petition filed by Keventer Agro Ltd, a Calcutta-based company.

The division bench, consisting of Justice Ruma Pal and Justice Devendra Jain, said that no final agreement could be reached by Seagram before disposal of the case by the trial court in Calcutta.

 

The division bench also observed that Seagram has a prima facie case but as the trial court fixed the matter for hearing on May 19, no further order is required to be passed by the division bench.

At the same time, the division bench of the court observed that the trial court should not grant further adjournment of the case which is slated to be heard on May 19.

Seagram had also moved the trial court, seeking dismissal of the suit filed by Keventer Agro. The trial court had restrained the Canadian multinational from entering into any agreement with any Indian company for manufacturing food products and assigning the Dole trademark.

Keventer Agro had earlier reached an agreement with the Seagram and set up a joint venture, Keventer Tropicana Private Ltd, in October 1996, with 51 per cent of the equity vested with the Seagram and 49 per cent with Keventer Agro.

But when Seagram wanted to change the equity arrangement with 75:25 ratio in its favour, Keventer resisted and ultimately moved the court. The ad-interim order was granted in favour of Keventer Agro.