The Supreme Court on Wednesday allowed the country’s third largest two-wheeler firm, TVS Motor Company, to manufacture and sell its 125-cc ‘Flame’ motorbike with twin-spark plugs, the technology for which Bajaj Auto claims to hold a patent.

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 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 SC or the division bench of the HC. However, sources in TVS said that the company is unlikely to manufacture the bikes before the final verdict is pronounced by the Chennai HC.

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 HC gave TVS the go-ahead to manufacture the bikes. Soon, Bajaj moved the SC, challenging the HC decision. The SC said TVS can manufacture the bikes but cannot sell them.