Apex court allows TVS to sell Flame

This, however, is not the final verdict and the legal battle will continue, as the bench headed by Justice Markandey Katju referred the larger issue of patent back to a single judge of Madras High Court for day-to-day hearing. It also ordered that the matter be decided before November 30.

The apex court ordered the high court to appoint a receiver, who will keep a record of Flame sales across India.

The bench also said that the single judge should not be influenced by any observations made by the Supreme Court or the division bench of the High Court.

However, sources in TVS said that the company is unlikely to manufacture the twin-spark bikes before the final verdict is pronounced by the Chennai High Court.

The genesis of the case goes back to August 2007 when TVS launched the bike. Bajaj Auto, the country?s second largest two-wheeler producer, then moved the court, alleging that TVS had infringed its patent for the twin-spark plug engine technology. Bajaj said it is the grantee of the Indian patent for its invention titled ?an improved internal combustion engine working on four stroke principle? since July 16, 2002.

TVS then voluntarily ceased production of 125-cc Flame with the twin-spark technology. Two months later, it launched 125-cc Flame bikes with a single-spark technology.

On May 18, 2009, the Chennai High Court gave TVS the go-ahead to manufacture the twin-spark bikes. Soon, Bajaj Auto moved the Supreme Court, challenging the high court decision. The Supreme Court said TVS can manufacture the bikes but cannot sell them.

TVS had argued that it should be allowed to make the bike as the patent itself was under challenge before the Intellectual Property Appellate Board and there cannot be any blanket ban.

On Wednesday, the apex court allowed the company to manufacture and sell the product, but the larger issue of patent is yet to be resolved.