The Supreme Court has allowed two-wheeler maker TVS Motor Company Ltd to manufacture the controversial `TVS Flame', a 125-cc bike sporting twin-spark plugs, the technology for which Bajaj Auto claims to hold the patent rights.

A bench of the Supreme Court headed by Justice B Sudershan Reddy allowed Chennai-based TVS Motor to manufacture the bike, but it sought an undertaking from the company that it won't move the finished product (motorcycle) from its warehouse.

The court, while issuing notice to the Chennai-based company and allowing it to manufacture TVS Flame, said "no finished product would leave the respondent's warehouse."

The SC posted the matter for the next hearing in the first week in August and warned both TVS and Bajaj Auto against using the order or part thereof for any other purpose, including publicity.

"Both parties are restrained from using this order for any other purposes including publicity," the bench said.

The SC order came on a petition filed by Bajaj Auto challenging a Madras High Court's ruling that permitted TVS Motor to use twin-spark plugs in its motorcycles.

The single bench of the high court had earlier restrained TVS from manufacturing, marketing and selling the TVS Flame after Bajaj Auto alleged that the bike illegally used its patented twin-spark plugs combustion technology.

Bajaj submitted that its patent on twin spark plug engines had been infringed by TVS and that it is the ''grantee'' of the Indian patent in respect of its invention titled `An improved internal combustion engine working on four stroke principle" since 16 July 2002.

The SC, however, granted permission to TVS to manufacture the `TVS Flame' after its counsel Abhishek Singhvi said that the company should be allowed to manufacture the product as it is willing to give an undertaking that during the interim period its finished products would not leave its warehouse.
 
TVS Motor, meanwhile, reported a  5-per cent growth in May 2009, with two wheeler sales of 118,574 units against 112,770 units in the corresponding period of the previous year.