Business Daily from THE HINDU group of publications
Saturday, Aug 19, 2006
Business Daily from THE HINDU group of publications Saturday, Aug 19, 2006 |
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Corporate
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Corporate Disputes Swaraj Mazda for arbitration to solve PTL, Sumitomo legal dispute Our Bureau
New Delhi , Aug. 18 Swaraj Mazda on Friday suggested that its promoters Punjab Tractors Ltd (PTL) and Japan-based Sumitomo Corporation, which are locked in a legal tussle at the Company Law Board, resolve the issue through "arbitration". "Conflicting claims are being made by PTL and Sumitomo. Our view is that promoters should resolve their dispute through arbitration, following the provisions of their Joint Venture Agreement (JVA)," Swaraj Mazda's counsel said on Friday at a hearing at the Company Law Board (CLB). Sumitomo Corporation's counsel also said the dispute between the parties could be solved through arbitration.
Arbitration
In response to PTL's petition at the CLB, the counsel said that the petition was not maintainable under the provisions of the JVA, since as per the articles of association any dispute between the promoters should be solved amicably within a time-frame of six months and if not then the matter would be referred for arbitration. Stressing on the JVA, Sumitomo contended that CLB would have to first decide on whether the matter would go first for arbitration or not before commencing the case.
Next hearing
The next hearing for the matter, in which PTL will put forward its argument, is now scheduled for August 30. PTL had earlier this month submitted a petition to the CLB seeking the removal of current the Swaraj Mazda Managing Director, Mr Mahajan, and Director Mr Tuteja, stating that the SML board had rejected the appeal for their removal despite withdrawal of their nomination by PTL.
More Stories on : Corporate Disputes | HCV/LCV/Tractors
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