Kavitha Kuruganti v. PepsiCo India Holdings Pvt. Ltd.
Background
PepsiCo India Holdings had registered a potato variety, "FL 2027," under the Protection of Plant Varieties and Farmers' Rights Act, 2001. The petitioner, an activist advocating for farmers' rights, sought revocation of this registration under Section 34 of the Act, partly on the ground that PepsiCo had filed infringement suits against individual farmers, which she characterised as an abuse aimed at intimidating them. The revocation authority partly allowed revocation; on cross-appeals, the High Court's Division Bench sustained the revocation on some grounds but rejected the argument that PepsiCo's infringement suits were vexatious or predatory.
Decision Breakdown
The Supreme Court agreed with the High Court that merely filing suits to protect a registered variety, without more, cannot by itself be treated as intimidatory or vexatious conduct justifying revocation under Section 34(h) of the Act: any specific allegation of a vexatious suit would need to be proved in the appropriate forum at the appropriate stage. The Court declined to interfere with the High Court's judgment on this point. However, since the petitioner was pursuing the farmers' collective interest rather than a personal claim, the Court clarified that any individual farmer facing a suit from PepsiCo remains free to invoke the statutory protection under Section 39(1)(iv) of the Act (the right to save, use, sow, exchange or sell farm produce including seed (other than branded seed)) and prove they fall within its protection in that very proceeding.
Lesson Learnt
A company holding a registered plant variety can sue farmers for infringement, and simply filing such suits is not, by itself, illegal harassment, but individual farmers retain a distinct statutory right under Section 39(1)(iv) of the Act to save, use, and exchange (non-branded) seed, which they can raise as a defence whenever such a suit is brought against them.