Resolution of dispute with Swaraj Mazda
Swaraj Mazdacounsel had, earlier this month, asked PTL and Sumitomo to resolve the issue through arbitration.
The matterwill come up for hearing next on September 4.
New Delhi, Aug. 30
Punjab Tractors Ltd (PTL) on Wednesday contended before the Company Law Board that its joint venture partner Sumitomo Corp cannot refer the issue of appointment of directors in Swaraj Mazda for arbitration.
"We are not bound for arbitration by Articles of Association of Swaraj Mazda," PTL's counsel said adding that the joint venture agreement was only with Mazda group (earlier joint venture partner in Swaraj Mazda) and not with Sumitomo Corporation.
The counsel said that issues between PTL and Sumitomo could be covered only under the joint venture agreement (JVA).
The Swaraj Mazda (SML) counsel had, earlier this month, asked PTL and Sumitomo to resolve the issue through arbitration. The matter will come up for hearing next on September 4.
PTL had approached CLB seeking removal of Mr Yash Mahajan and Mr S. Tuteja from the Swaraj Mazda Board stating that the SML board had rejected the appeal for their removal despite withdrawal of their nomination by PTL.
The PTL counsel said that as per the agreement, Swaraj Mazda could not appoint any director without PTL's consent, adding that the appointment of Mr Mahajan as Managing Director was in violation of the agreement.
Further, PTL was entitled to appoint four directors on the Swaraj Mazda Board as per the joint venture agreement.