Delhi High Court Upholds Revocation Of PepsiCo India’s Registration For Potato Variety Used In Lay’s Chips

The Delhi High Court has upheld an order passed by the Protection of Plant Varieties and Farmers Rights Authority revoking Pepsico India’s registration with respect to a potato variety used for making Lay’s chips.

Justice Navin Chawla dismissed the appeal moved by PepsiCo India Holdings Private Limited challenging the Authority’s order passed on December 03 last year on an application filed by Kavitha Kurungati, a farmers’ rights activist.

The court also upheld the Authority’s letter dated February 11, 2022, rejecting PepsiCo’s application for renewal of its registration.

The Authority had denied the relief to PepsiCo on various grounds mentioned under section 34 of Plant Varieties and Farmers’ Rights Act, 2001. The provision states that the protection granted to a breeder in respect of a plant variety may, on an application of any person interested, be revoked by the Authority on certain grounds.

The Authority had observed that the grant of the certificate of registration was “based on incorrect information” furnished by PepsiCo regarding the date of the first sale of the potato variety and its category being “new” instead of “extant‟.

It was also observed that the certificate of registration was not in public interest and was not granted to a person who was not eligible for protection under the statute.

Justice Chawla said that no ground for interference with the impugned order was made out by PepsiCo, as even otherwise, the application for registration was deficient for its failure to provide necessary documents required under Section 16 read with Section 18(3) of the Act and Rule 27.

The court said that an applicant seeking registration must be put to strict and vigilant compliance with the requirements of the Act, Rules, and Regulations, failing which it opens itself up to revocation of the registration granted.

"The application filed by the appellant was deficiencies and the Authority, under Section 34(b) and (c) of the Act, was justified in revoking the registration granted", the Court stated.

However, the Court held that the invocation of the ground of "public interest" as per Section 34(h) of the Act was not warranted.

"Mere filing of the litigations by the appellant against the farmers, even presuming the same to be completely frivolous, cannot be construed as satisfying the test of grant of registration itself not being in public interest. The Authority has, therefore, erred in revoking the registration granted in favour of the appellant,” the court said.

PepsiCo in the petition earlier told the court 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," the court was told.

It was also argued 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. 

Title: PEPSICO INDIA HOLDINGS PVT. LTD. v. KAVITHA KURUGANTI

Citation: 2023 LiveLaw (Del) 570

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