CLB rejects Sumitomo plea over Swaraj Mazda

The Company Law Board (CLB) has rejected an arbitration petition filed by Japan-based Sumitomo Corporation, which is engaged in a battle with Punjab Tractors (PTL) for control of management of vehicle manufacturer Swaraj Mazda.

"Considering all aspects I am of the view that this application deserves to be dismissed on the main ground that the company, in the affairs of which this application has been filed is not a party to the arbitration agreement in the Joint Venture Agreement (JVA)," N Balasubramanian chairman of CLB, said dismissing the application. 

However, the CLB did not pass any interim order on PTL's plea for restraining Swaraj Mazda from exercising any right in respect of 15% shares acquired from PTL and to stop Swaraj Mazda's MD Yash Mahajan and girector S K Tuteja from functioning.

"Since I have already passed a modified order on September7, 2006 that all decisions regarding the appointment of directors in the AGM held on September 9, 2006 shall be subject to further orders. 

"I do not consider it is necessary to pass any interim order especially when PTL has two of its nominees on the board of the company," Balasubramanian said, asking both parties to file their rejoinders by November 20, 2006.