The court order came on a number of petitions filed by Standipack seeking interim injunction restraining major oil companies and two leading pouch makers -- Rollatainers Ltd and Flex Engineering -- from manufacturing and using "the patented pouches of the petitioner". Castrol India through its counsel Manmohan Singh also filed a petition before the court for revocation of the patent to Standipack saying that the pouches were in use with many oil companies prior to the grant ofpatent by controller of patents and designs.

The court accepted the contentions of leading public sector oil companies, Castrol, Rollatainers and Flex Engineering, and said it was crystal clear that the making of pouches was already known prior to the date of patent. Citing a Supreme Court judgement which held that a patentable product must involve invention-producing new result, the high court said the pouches made by Standipack did not satisfy the conditions for an invention. The judge further said Standipack had failed to make any prima facie case for the grant of temporary injunction in its favour.

"The injunction as sought for is also refused on the ground that Standipack did not act with clean hands rather suppressed material facts from the court at Ambala, where a suit was instituted by the petitioner against Castrol," the court said. While these proceedings were pending before the Delhi high court, Standipack filed a suit against Castrol in Ambala district court and obtained an injunction againstrollatainers, the manufacturer of pouches used by Castrol.

Standipack concealed from the Ambala court the fact that a suit for patent infringement had already been filed by it against Rollatainers before the Delhi high court which refused to grant any interim injunction. Following the Ambala court order, Castrol and Rollatainers moved the Supreme Court, under special provision, against the district court order. The Supreme Court, while staying the Ambala court order, directed all petitions filed in this regard to be transferred to the Delhi high court. The Delhi high court also vacated the stay granted by the Ambala court in favour of Standipack.