PTL withdraws suit against Sumitomo Corp

Punjab Tractors (PTL) today withdrew its suit against Japanese firm Sumitomo Corporation at Company Law Board (CLB) alleging mismanagement in commercial vehicle manufacturer Swaraj Mazda.

The development comes after PTL parent Mahindra and Mahindra sold its 14.04 per cent share to the Japanese firm in December.

During the proceedings of the CLB, counsel appearing for PTL informed the Chairman that the facts of the suit has been changed after Sumitomo bought its share in Swaraj Mazda and requested to withdraw the charges made by it "unconditionally". They also asked the CLB to delete its name from the petition filed in August, 2005.

Admitting it, the CLB Chairman directed to delete the name of PTL from the petition. "Noting that it (PTL) has withdrawn all allegations unilaterally, its application is allowed," said CLB Chairman.

Meanwhile, the CLB would wait for the response four other Mauritius-based investors, including CDC Financial Services and Actis Agri Business, which had filed petition against Swaraj Mazda and Sumitomo.

CLB Chairman S Balasubramanian also directed PTL to inform the other petitioners about today's development and to send a copy of order of the board.

The matter, which was listed for final hearing tomorrow was adjourned to February 5 by the CLB.

In its petition to the CLB, PTL had named Swaraj Mazda executives Y P Mahajan and S K Tuteja, along with T Yoshimoto, Director of Sumitomo Corporation, as respondents and had requested to restrain them from functioning as Director and Managing Director from the commercial vehicle manufacturer's board.