A bench of Justices S Ravindra Bhat and Yogesh Khanna heard arguments on behalf of the two companies and listed it for further hearing tomorrow.
During the hearing, the court observed that if Nuziveedu wants to use the technology of Monsanto it has to pay it for the same.
"If you want to stand on someone's head, you have to pay him rent. If you do not pay rent, then he can deny you access," the bench.
It has also contended that it cannot be stopped from creating plant varieties.
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A single judge of the high court had on March 28 held as prima facie illegal Monsanto's decision to terminate its sub- licence given to three Indian seed companies, including Nuziveedu, for making and selling BT cotton seeds a genetically modified variant which resists bollworms.
The judge, however, had rejected the stand of the three companies that Monsanto was incorrectly granted the patent for its BT cotton seeds.
Monsanto had terminated the agreement in November 2015 with the three Indian companies over the issue of payment of 'trait fee' under the sub-licence.
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