Cadila Healthcare had, in April 1998, filed a suit against Zydus Cadila for infringment of copyright pertaining to the former's cardio-vascular drug `Envas'. The order was passed by the second extra assistant judge DV Jhale. The judge, however, allowed Zydus-Cadila to prefer an appeal before the high court within three weeks.

The interim injunction will come into effect only if the matter is not placed before the high court. Sources said that Zydus-Cadila is certain to go on appeal against the lower court injunction since the contention of identical design is `contestable' and `can be disputed'. There are also instances to thecontrary when Cadila Pharmaceuticals has introduced drugs in generic names like `Dexamethasone' already manufactured by Zydus Group in the brand name of `Dexona', the sources added.

This was for the first time since Cadila Laboratories was vertically split into Cadila Pharmaceuticals Ltd and Cadila Healthcare Ltd also refered to as as Zydus-Cadila in 1995, that one of them have decided to go to court to settle an issue.

Cadila Laboratories, which was founded in 1951 by Ramanbhai B Patel, ranked the third largest pharmaceutical company in the country in 1993, according to an ORG market resarch survey. After the split in 1995, the group headed by Patel and re-christened as Cadila Healhtcare (CHL) under the aegis of Zydus Group slumped to the 16th position.