The Hindu Business Line : Punjab Tractors moves CLB on Sumitomo issue

Punjab Tractors Ltd has moved a petition in the Company Law Board alleging that its Japanese partner Sumitomo Corporation has breached the joint venture agreement pertaining to Swaraj Mazda.

According to legal sources, Punjab Tractors has alleged that there were professional breaches of contract in the 22-year-old agreement between the company and Sumitomo. These include mismanagement and suppression of facts in the joint venture. Further, the sources pointed out that the company's contention is that it is within its rights to nominate the Chairman of Swaraj Mazda.

Punjab Tractors has also sought that Mr Yash Mahajan, Vice-Chairman and Managing Director of Swaraj Mazda, and Mr S.K. Tuteja, a Director in Swaraj Mazda, be restrained from functioning as Managing Director and Director and to withdraw them from the board, agency reports said quoting from the petition.

Punjab Tractors has also said that Swaraj Mazda and Sumitomo should be restrained from appointing any new director on the board of Swaraj Mazda without its consent and the company be restrained from taking any such decision relating to operation and affairs without its approval.

Swaraj Mazda had informed the BSE on Thursday that Mr P.K. Nanda and Mr Pankaj Bajaj have been appointed as Additional Directors of the company.

Punjab Tractors had nominated Mr R.C. Bhargava and its own Chief Operating Officer, Mr P. Sivaram, as its representatives on the Swaraj Mazda board, which does not seem to have been accepted by majority shareholders, of Sumitomo.

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