 "Madras HC gives lower court 2 weeks to resolve Ashok Leyland, Nissan dispute")
The court has also asked both the parties to maintain status quo till the district court issues the order.
The order comes in response to an application filed by Renault Nissan Automotive against Ashok Leyland Nissan, the joint venture company, seeking stay of all proceedings at the district court pending constitution of arbitration.
When the matter came up for hearing today, Justice K Ravichandra Baabu, without going into the merits of it, issued the order directing that the district court has to hear the matter and issue an order including on maintainability of the petition, in two weeks from receiving the order.
Nissan official said the company does not want to respond since the matter is subjudice.
It may be noted that the business relationship between Ashok Leyland and its joint venture partner Japanese auto major Nissan has turned sour of late, and the Chennai-based commercial vehicle major levelled a series of allegations against its Japanese partner, subsequently moving court for a legal remedy.
In 2007, Ashok Leyland and Nissan announced a JV to develop and manufacture LCVs under both the Ashok Leyland and Nissan brands, in the 2.5-7.5 tonne segment. The JV was named as Ashok Leyland Nissan Vehicles, in which Ashok Leyland held 51%. However the JV had a rough ride in the Indian market.
The partners have formed three companies including Ashok Leyland Nissan Vehicles Pvt Ltd, the vehicle manufacturing company in which Ashok Leyland has 51% Nissan has 49% stake in, Nissan Ashok Leyland Powertrain Pvt Ltd, the powertrain manufacturing company owned 51% by Nissan and 49% by Ashok Leyland and Nissan Ashok Leyland Technologies Pvt Ltd, the technology development company owned 50:50 by the two partners.