Suzuki Should Resolve Dispute Through Clb Not Ica, Says Govt

The government has stated that its dispute with Suzuki Motor of Japan is a matter under the Companies Act and should be resolved at the Company Law Board instead of at the International Court of Arbitration.

This submission which has been challenged by Suzuki Motors has been made by the government in its communication to the International Court of Arbitration on the terms of reference of the case.

Suzuki has contended that the matter has to be resolved by the international court of arbitration as per the joint venture agreement.

The international courts ruling on this issue will decide whether the dispute between the two shareholders will be heard in India or at Paris where the international court is located.

 

The international court, which has fixed a two-month time-frame to decide on the terms of reference of the case, is expected to give its ruling on the issue by next month.

The hearings of the court will begin after government of India counsel attorney general Ashok Desai who is currently busy with the Indian electoral process for the formation of a new government is able to make himself available in Paris.

Suzuki had filed an arbitration case last year where it had challenged the right of the government to appoint its nominee RSSLN Bhaskarudu as the managing director of the company without the concurrence of the Japanese company, thus violating the spirit of the joint venture agreement.