Both the companies submitted the terms of settlement before Justice K J Sengupta of Calcutta high court.
HLL had earlier filed a suit against CavinKare challenging the patent of the manufacturing composition of the cream. CavinKare had sought dismissal of the suit. All the cases were filed in the Calcutta and in the Madras high courts.
The settlement terms were signed by executives of both the companies.
Accepting the terms, Justice K J Sengupta allowed to withdraw all the proceedings pending before the court.
In the terms of settlement, CavinKare through its company secretary gave an undertaking to the court that the company shall not "manufacture and/or market either by themselves or by their servants, agents or assigns any fairness cream by using silicone compound in combination with other ingredients covered in patent no 169917 of the plaintiff (HLL) namely Niacinamide, Parsol MCX, Parsol 1789 with effect from September 15, 2000".
CavinKare has also given another undertaking to exhaust all finished and semi-finished Fairever fairness cream tubes available with them at present and those which may be manufactured till September 14, 2000 on or before September 30, 2000.
HLL has given an undertaking in the terms of settlement that it will not interfere with the sale of the cream manufactured on or before September 15, 2000, lying with wholesalers, re-distribution stockists and retailers.
Both the companies will file the same terms of settlement before the Madras high court as well.