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M&M Wins Arbitration Award Against US Firm

The Mumbai-based automobile manufacturer Mahindra & Mahindra Ltd., or M&M, announced that it had won two significant legal victories -one an arbitration award and the other a class suit against it.

In a filing with the Bombay Stock Exchange, the company said the International Arbitration Panel had rejected the claims of Global Vehicles USA, Inc. that M&M had violated the Distribution Agreement between them and also violated the Federal and State dealer laws in the USA.

The arbitrators held that the DA with Global Vehicles had terminated according to its own terms and M&M did not violate the agreement or any laws in the US in its dealings with Global Vehicles. The arbitrators, while rejecting the claims of Global Vehicles for damages, awarded to M&M costs of arbitration including M&M's legal fee and expenses, it said.

However, the statement did not mention the value of claims made by the US company or cost of arbitration, including the legal fee and expenses, that M&M had been awarded by the arbitration panel.

In the putative class action suit against Global Vehicles and M&M filed in the US District Court for the Eastern District of Missouri, the Court dismissed all claims against M&M. The Court ruled that in its dealing with potential dealers Global Vehicles was not the agent of M&M and, therefore, M&M could not be liable for any actions of Global Vehicles, the company added.

At the BSE, Mahindra & Mahindra closed Friday's trading at Rs.676.25, up by 0.37 percent from the previous close.

by RTTNews Staff Writer

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