Mahindra claims victory over Global Vehicles
Auto major Mahindra & Mahindra has claimed victory in legal proceedings in England over its estranged US distributor Global Vehicles.
New Delhi: Auto major Mahindra & Mahindra has claimed victory in legal proceedings in England over its estranged US distributor Global Vehicles.
"Mahindra can now report that it has prevailed in all aspects of the English proceedings...All of GV's attempts to attack the arbitration award have failed. In addition GV now faces substantial costs liabilities," the company said in a statement on its website.
"The arbitration award may now be enforced as a Judgment of the English Court and in over 130 jurisdictions worldwide, including the United States," it added.
Comments from GV could not be obtained as emailed queries to the company remained unanswered.
Stating that the English proceedings "are at an end", M&M further said: "...At a hearing on September 5 the English Court dismissed GV's request that arbitration award not be converted into a court judgment."
The company also said at a hearing on July 27, the English Court had asked GV to pay security in respect of its challenge to the arbitration award by August 13 2012.
"GV failed to do so and its challenge was therefore dismissed," M&M claimed.
Earlier in an order on July 9, the English Court concluded that the appeal was "wholly without merit" and awarded costs in Mahindra?s favour, it added.
M&M said over the past four months various proceedings have been pending in England as to the correctness and finality of the arbitration award.
In March this year, M&M had said an international arbitration panel in London ruled in its favour, which included an award of costs of over USD2 million against GV.
M&M and GV had entered into an agreement on September 28, 2006, according to which the latter became the sole distributor of the Indian company's motor vehicles in the US.
The auto major had planned to enter the utility vehicles market in the US around 2008-09 but ran into problems GV dragging it to court over delay in launch of pick-up truck based on the Scorpio platform. The case was then referred to the arbitration panel in London.
In June this year, a group of automobile dealers in the US had filed a lawsuit against M&M, accusing fraud, misrepresentation and conspiracy that the Indian firm denied.