38.6c New Delhi, India, Thursday, May 30, 2024
Judiciary

Arbitral Award against Nuziveedu Seeds Ltd. Awarded to Mahyco Monsanto Biotech [Read Judgement]

By Harshil Jain      31 July, 2020 04:09 PM      0 Comments
Arbitral Award against Nuziveedu Seeds Ltd. Awarded to Mahyco Monsanto Biotech [Read Judgement]

The Bombay High Court, on 23 July 2020, held in the case Nuziveedu Seeds Ltd. V. Mahyco Monsanto Biotech (India) Pvt. Ltd that the Competition Commission of India (CCI) and the Arbitral Tribunal Act, 1996, are not the same and are very different and distinct in nature. The judgment was held by Justice R.D. Dhanuka. 

The facts of the case: 

Commercial Arbitration Petition No. 737 of 2019 was brought before the Arbitral Tribunal. The petitioner was of the opinion that the respondent had grown cotton seeds with Bt. genes that generated endotoxin, which is virulent to cotton bollworms. The petitioner and the respondent signed a Sub-License Agreement (SLA) on 20 January 2004. Under this agreement, the Respondent provided 50 cotton seeds of a transgenic variety with Bt. traits to the petitioner enabling the production of new varieties of cotton seeds, granting the right to market hybrid cotton seeds for 10 years. 

The agreement was extended to 10 March 2015, under the name of the Bollgard Technology license agreement, and both parties agreed to continue the rights under the SLA, 2004. 

Judgment: 

The Court noted that the Arbitral Tribunal permitted only the monetary claims made by the respondent. The Judgement stated, “The tribunal rightly held that the adjudication by the tribunal shall be in the nature of the right and liability of the parties to the agreement and would relate to right in personam and not right in rem. In the proceedings before the CCI, whatever may be the outcome, the respondent would not be able to get any effective relief or decree or award directing the petitioner herein to pay the particular amount to the respondent. It was rightly held by the Arbitral Tribunal that the respondent had certain rights under the 2015 SLA and thus it must also have a remedy for enforcement of such rights.” 

The court ruled that the jurisdictions of the CCI and the Arbitral Tribunal are of a different nature. Since the CCI does not have the power to grant monetary claims under the SLA in 2015, the Civil Court or the Arbitral Tribunal had the jurisdiction to consider the claims of the respondent. 

The Court stated, “In so far as the reliance placed by the learned senior counsel on Section- 61 of the Competition Act in support of the submission that the powers of the Civil Court or the Arbitral Tribunal, as the case may be, are excluded under the said provision to determine any matter which the CCI or the Appellate Tribunal is empowered to determine under the provision of the Competition Act is concerned, in my view, reliance placed on the said provision to exclude the powers of the arbitral tribunal to decide the monetary claim, in this case, is totally misplaced. The arbitral tribunal cannot decide the issue whether the said 2015 SLA was anti-competitive or was in violation of Section- 3 of the Competition Act or not and deserves to be declared as void or required modification but has the power to award monetary claim under such agreement.” 

 

 [Read Judgement]



Share this article:



Leave a feedback about this
TRENDING NEWS

aap-minister-atishi-summoned-by-delhi-court-in-bjp-defamation-case-to-appear-on-jun-29
Trending Judiciary
AAP Minister Atishi summoned by Delhi Court in BJP defamation case, to appear on Jun 29

A Delhi Court has summoned Aam Aadmi Party (AAP) Minister Atishi in a defamation case by Bharatiya Janata Party (BJP) spokesperson Praveen Shankar Kapoor.

29 May, 2024 12:44 PM
sikkim-high-court-announces-menstrual-leave-for-female-employees
Trending Judiciary
Sikkim High Court Announces Menstrual Leave for Female Employees [Read Order]

Sikkim High Court grants 2-3 days of menstrual leave monthly to female employees, requiring Medical Officer approval, without deducting from regular leave accounts.

29 May, 2024 01:15 PM

TOP STORIES

live-coverage-in-depth-exploration-of-bhartiya-sakshya-adhiniyam-bsa-at-dhcba-lecture-series
Trending Events & Opportunity
LIVE Coverage: In-Depth Exploration of Bhartiya Sakshya Adhiniyam (BSA) at DHCBA Lecture Series [Watch Live]

LIVE Coverage: DHCBA Lecture Series explores the Bhartiya Sakshya Adhiniyam (BSA), 2023 with Justice Bhambhani & Senior Advocate Jayant Mehta. Tune in at 5pm on LawStreet Journal!

24 May, 2024 11:30 AM
bjp-moves-supreme-court-against-calcutta-high-courts-ban-on-derogatory-ads-targeting-tmc
Trending Judiciary
BJP Moves Supreme Court Against Calcutta High Court's Ban on "Derogatory" Ads Targeting TMC

BJP moves Supreme Court against Calcutta High Court order banning "derogatory" ads targeting TMC during Lok Sabha elections, seeks urgent hearing.

24 May, 2024 12:12 PM
demand-notice-via-courier-valid-in-cheque-bounce-cases-allahabad-high-court
Trending Judiciary
Demand Notice via courier valid in cheque bounce cases: Allahabad High Court [Read Order]

Allahabad HC rules demand notices via courier valid for cheque bounce cases under Section 138 NI Act, but service presumption needs registered post amendment.

24 May, 2024 01:44 PM
cant-interrupt-in-between-polls-sc-declines-to-consider-plea-for-uploading-voters-turnout-data
Trending Judiciary
'Can't interrupt in between polls,' SC declines to consider plea for uploading voters turnout data

SC declines plea to upload voter turnout data during ongoing polls, citing the need to avoid interruptions and uphold electoral integrity, pending further examination.

24 May, 2024 02:06 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email