However, it did not permit TVS to move its "finished product (motorcycle) from its warehouse" after the company gave an undertaking in this regard.
A Bench headed by Justice B Sudershan Reddy, while issuing notice to the Chennai company and allowing it to manufacture TVS Flame, said that "no finished product would leave the respondent's (TVS) warehouse".
"Both parties are restrained from using this order for any other purposes including publicity," the Bench said while posting the matter for the next hearing in the first week in August.
The order came on a petition filed by Bajaj Auto Ltd challenging the Madras High Court's ruling that permitted the Chennai-based two-wheeler company to use twin-spark plugs in its motorcycles.
The single Bench of the High Court had earlier restrained TVS from manufacturing, marketing and selling its 125cc motorcycle TVS Flame after Bajaj Auto alleged that the bike used twin-spark plugs for combustion, which is its patented technology.