Thermax,Purolite settle dispute over ion exchange

Thermax chairperson Meher Pudumjee said,“As part of the settlement,both the companies will have the right to keep the technical know-how and use it in respective business areas,be it in India or abroad.”

While the agreement terms are confidential,Thermax said it is following all norms of corporate disclosure and has promptly informed the stock exchanges where it is listed. “There will only be a one-time impact on the balance sheet,” said Unnikrishnan.

Thermax had been regularly reporting the lawsuit in its Annual Reports,but decided not to make any further public statement as the matter was sub judice. On the basis of the facts of the case,report from a renowned technical expert in the US and feedback from its US attorneys,the company did not expect any serious liability from this case. The case,involving a series of inter-related claims and counterclaims,was to be judged at a jury trial in March in a US district court.

However,the US district court last month passed an order that three disputed production processes (for certain kinds of ion exchange resins for applications in water treatment) constituted Purolite’s trade secrets. “The board of directors chose to go for an out-of-court settlement after taking a long-term view of potential risks of significantly higher liabilities,given the uncertainties associated with jury trials,as well as the costs and time involved in protracted litigation,” the company said.