Triveni Engineering and Industries arm Triveni Turbines has taken US-based General Electric (GE) to the National Company Law Tribunal (NCLT) alleging misconduct by the latter in the Joint Venture (JV) between the two. The Bengaluru bench of NCLT has admitted the petition and will next hear the matter on July 9. In the interim, the NCLT has also barred GE from selling its stake in the JV to any third party until the matter is heard and disposed-off.
Triveni Turbines had entered into an equal partnership JV with GE to form GE Triveni, which would engage in the business of manufacturing of steam turbines for power generation in industrial and utility projects. Triveni Turbines had, while entering into the JV, said that it would look to enter the 30- 100 MW steam turbine engine range with help from GE’s technology.
In its petition before the NCLT, Triveni Turbines has alleged that GE did not transfer the said technology to Triveni, which caused loss to the company. GE and its nominee directors on the board of the JV GE-Triveni acted in a manner that was “harsh, burdensome and wrongful” to Triveni Turbines. Citing a McCoy report of 2018, Triveni Turbine further alleges that sold steam turbine engines in the 30-100 MW range without the JV’s knowledge.
Other than not sharing the technology, Triveni alleged that GE had also acquired another company named Alstom, which was a direct competition. GE also transferred business opportunities that should have ideally come to the JV GE-Triveni to its other companies and arms which caused harm to the latter, Triveni Turbines has alleged in its petition before the NCLT.
Citing one such instance, Triveni Turbines has said that when there was an enquiry from the Union Flacq Power Plant of Mauritius, GE, instead of redirecting the business towards the JV it had with Triveni, chose to bid for the projects itself.
“The petitioner (Triveni Turbines) was shocked to learn that the policy provided for allocation of various enquiries (falling within the output range of the company) GE Power Steam Power Systems GE Oil and Gas Downstream Products and Services,” the company has said in its petition.