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2023 Supreme(Del) 4970

IN THE HIGH COURT OF DELHI AT NEW DELHI
Navin Chawla, J.
Pepsico India Holdings Pvt. Ltd. – Appellant
Versus
Kavitha Kuruganti – Respondent
C.A.(COMM.IPD-PV) 2 of 2022 & IAs 7898 of 2022 & 7900 of 2022
Decided On : 05-07-2023

Advocates appeared:
Mr. Dayan Krishnan, Senior Advocate with Mr. Dheeraj Nair, Mr. Kumar Kislay, Ms. Anjali Anchayil, Ms. Shruti Dass, Ms. Aishna Jain, Mr. Sanjeevi Shesasdri & Mr. Vikarsh Gupta, Advocates, for the Appellant.
Mr. Colin Gonsalves, Senior Advocate with Ms. Hetvi Patel & Mr. Rohit Saini, Advocates, for the Respondent.

Headnote:(A) Protection of Plant Varieties and Farmers' Rights Act, 2001 - Sections 34(a), (b), (c), and (h); Section 56 - Revocation of registration - The Authority revoked the appellant's registration for FL 2027 potato variety on grounds of incorrect information and ineligibility, impacting public interest. (Paras 10, 29, 34, 39, 40, 49, 92)

(B)Revocation - Scope of authority - The Authority justifiably revoked the registration due to deficiencies in the application process and failure to comply with statutory requirements. (Paras 42, 76)

(C) Procedural fairness - Right to a fair hearing was not breached as the Authority acted upon grounds before it that were substantiated by the appellant's own submissions. (Paras 87, 90)

Facts of the case:
The appellant challenged the Authority's revocation of its registration for the FL 2027 potato variety based on claims of providing incorrect and inadequate information regarding registration. The Authority's decision involved re-evaluating the application and found the initial registration granted in error.

Findings of Court:
The registration was rightfully revoked based on substantial errors and the Authority’s proper jurisdiction to uphold public interest, including failure in providing requisite documentation for registration.

Issues: The main issues included whether revocation of registration was justified based on incorrect information and if due process was maintained throughout the proceedings.

Ratio Decidendi: The court held that the Authority correctly utilized its statutory powers to revoke registration based on the appellant's failure to meet documented requirements and that the errors did not justify retaining registration.

Result: Appeal dismissed.

Table of Content
1. appeal regarding registration and revocation of plant variety (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 10)
2. arguments against the revocation by appellant (Para 12 , 13 , 14 , 15 , 16 , 18 , 19 , 22)
3. respondent's arguments supporting revocation (Para 28 , 29 , 30 , 31 , 32 , 33)
4. analysis of legal frameworks and precedents (Para 35 , 36 , 37 , 38 , 39 , 40 , 41)
5. application and significance of section 34 (Para 42 , 43)
6. dismissal of appeal (Para 97)

JUDGMENT

1. The present appeal has been preferred by the appellant under Section 56 of the Protection of Plant Varieties and Farmers. Rights Act, 2001 (hereinafter referred to as the "Act") challenging the order dated 3rd December, 2021 (in short, `Impugned Order') passed by the Protection of Plant Varieties and Farmers Rights Authority (hereinafter referred to as the "Authority"), revoking the appellant's registration with respect to plant variety-FL 2027 potato variety, on the grounds provided under Section 34(a), (b), (c) and (h) of the Act. The appellant further challenges the Authority's letter dated 11.02.2022, rejecting the appellant's application for renewal of its registration.

BACKGROUND FACTS

2. The appellant, a company incorporated under the Companies Act, 1956, is a subsidiary of PepsiCo Inc. The appellant-company is engaged in the business of manufacturing, distribution, and sale of various products including non-alcoholic beverages sold under the brand names/trade marks `Pepsi', `Mirinda', `7UP', etc., packaged drinking water sold under the brand name/trademark `AQUAFINA', caffeinated beverages, fruit juices, and salted snacks and foods such as potato chips sold under the brand name/trade mark `LAY.S' and `Uncle Chipps'.

3. The appellant claims that FL 2027 is a chipping potato variety with low external defects, high dry matter/high solids content and stable sugars, all of which make it highly suitable for the manufacture of chips. Because of these qualities, however, it requires more time and energy in the cooking process, making it unsuitable for use as a table potato or for everyday cooking in households. The appellant uses it for the manufacture of potato chips under the Lay's brand.

4. It is the case of the appellant that the potato variety FL 2027 (commercial name-FC-5) was developed in USA by Dr. Robert W. Hoopes, a plant breeder and a former employee of Frito-Lay Agricultural Research, a division of PepsiCo Inc., which is the parent company of the appellant. It is asserted that the appellant and its predecessors-in-interest have carried out extensive studies, trials, research and development, and have spent huge amounts of money towards the development of the registered variety.

5. The appellant asserts that Dr. Robert W. Hoopes assigned his rights in FL 2027 to Recot Inc., a group Company of PepsiCo Inc. and a Delaware Corporation, by a Deed of Assignment dated 26.09.2003. Recot Inc. subsequently changed its name to Frito-Lay North America, Inc. (hereinafter referred to as FLNA) on 20.01.2004. The appellant asserts that FLNA and the appellant are both group companies of PepsiCo Inc., and by virtue of their corporate relationship and the fact that the appellant is incorporated in India and carries on its business in India, FLNA permitted the appellant to develop and use FL 2027 and seek registration for FL 2027 under the Act.

6. The appellant applied for registration of FL 2027 variety under the Act on 18.02.2011. The Registrar, vide letter dated 02.06.2011, raised certain queries on the application. The appellant clarified the same vide its letter dated 09.06.2011. The appellant thereafter filed a revised application on 16.02.2012, giving details of the application made for seeking registration of FL 2027 in the United States of America (USA) patent office on 10.06.2003, however, the appellant due to a bona fide mistake ticked the box in the form depicting FL 2027 as a `New Variety', with the date of commercialisation as 17.12.2009 in I

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