Yesterday, the Delhi High Court overturned a decision made by a single judge that had previously supported the Protection of Plant Varieties and Farmers Rights Authority's revocation of Pepsico India's registration for a potato variety crucial in producing Lay's chips.

Justices Yashwant Varma and Dharmesh Sharma of the division bench nullified both the single judge's ruling from July 5 last year and the decisions made by the Authority, including its letter dated February 11, 2022, which dismissed PepsiCo's request for the renewal of patent registration.

“The renewal application as made by PepsiCo shall stand restored on the file of the Registrar, who shall dispose of the same in accordance with law and in light of the findings recorded hereinabove,” the court said.

PepsiCo and Kavitha Kurungati, a farmers' rights activist, had filed cross-appeals against the single judge's ruling. The initial judgment had rejected PepsiCo's appeal against the Authority's decision dated December 3, 2022, prompted by Kurungati's application.

PepsiCo, in its appeal, was dissatisfied with the affirmation of the revocation order that canceled the previously granted registration for the plant variety FL 2027.

Meanwhile, Kurungati argued that the revocation of the patent registration should be maintained due to non-compliance with the provisions outlined in the Protection of Plant Varieties and Farmers' Rights Act of 2001. She cited Section 34(f) of the act, which considers this non-compliance as a valid reason for revocation.

The court ruled in favor of PepsiCo's appeal and dismissed Kuruganti's cross appeal, stating the following observation:

“We however find ourselves unable to uphold the view taken by the learned Single Judge insofar as it holds against PepsiCo and pertaining to an incorrect mentioning of the date of first sale as well as the conclusions ultimately rendered in the context of the eligibility of PepsiCo to apply for registration and non-submission of relevant documentation.”

The Authority had declined to grant relief to PepsiCo based on several grounds outlined in Section 34 of the Plant Varieties and Farmers' Rights Act of 2001. This provision specifies that the protection afforded to a breeder regarding a plant variety can be revoked by the Authority upon the application of any concerned individual, citing specific grounds.

The Authority noted that the certificate of registration was issued based on inaccurate information provided by PepsiCo. Specifically, there were discrepancies related to the date of the initial sale of the potato variety and its classification, which was stated as "new" instead of "extant."

It was further noted that the certificate of registration was not deemed to be in the public interest and was granted to an ineligible entity as per the statute's requirements. The single judge had reasoned that there were no grounds to challenge the contested order by PepsiCo.

Moreover, the application for registration was deficient due to the lack of necessary documents as required by Section 16 in conjunction with Section 18(3) of the Act and Rule 27. PepsiCo emphasized to the court that FL 2027 is a potato variety specifically suited for chip production, possessing qualities such as low external defects, high dry matter content, and stable sugars, all of which render it highly suitable for chip manufacturing.

“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," the court was told.

The argument also highlighted that the potato variety FL 2027, commercially known as FC-5, was developed in the USA by Dr. Robert W. Hoopes, a plant breeder who was previously associated with Frito-Lay Agricultural Research, a division of PepsiCo Inc.

Case Title: PEPSICO INDIA HOLDINGS PVT. LTD. v. KAVITHA KURUGANTI and other connected matter