Meltron Threatens Legal Action Against Japanese Collaborator

The wholly-owned Maharashtra government company has sent a legal notice to Nitsuko asking it to withdraw the contract with Enkay or face the consequences, according to a senior Meltron official.

Nitsuko is Meltron's technical collaborator. Under the terms of their agreement, Meltron made key telephone systems using the Nitsuko technology. For maintenance work and distribution of the products, Meltron had entered into an agreement with Enkay in 1984. The agreement lapsed in June 1996. But the technical tie-up with Nitsuko still continues.

Now, Meltron is questioning Nitsuko's authority in awarding the maintenance contract to Enkay. It has also asked how Enkay can service Meltron telephone systems when the agreement between them has lapsed.

 

Meltron has in the notice also contended that Nitsuko has no right to authorise anybody to use the word Meltron in any form.. Unless, this authority is withdrawn it will initiate legal action.

The entire episode is a sequel to Meltron's privatisation programme initiated by the Maharashtra government. Bids were invited in July, to acquire 51 per cent of its stake. Thirty -eight companies purchased the bid documents including BPL-Sanyo.

Apprehending rival Sanyo would acquire a stake, Nitsuko wrote to Meltron in early August that it would terminate its agreement when 51 per cent of the equity was divested. Eventually only two groups, the Natelco-Glenayre consortium and Zenith Computer bid for the stake.

Meltron officials concede that there is a review clause which can be invoked when the ownership of the company changes hands. Subsequently, Nitsuko, in another letter in mid-August, assured that it would continue to supply components to the AX (V6) and AX (V4) range of systems manufactured by Meltron till the agreement lapsed in November, 1997.