M&M wins arbitration award, class action suit in US
09 Mar 2012
The International Arbitration Panel (IAP) has rejected claims of damages by Global Vehicles USA Inc for alleged violation of distribution agreement by Mahindra & Mahindra, as the panel found no violation of state or federal rules by the global vehicle manufacturer.
The sports-utility vehicle maker also won a class action suit filed by a group of dealers in the United States district court for the eastern district of Missouri against the company and its proposed US distributor, Global Vehicles.
The arbitrators while rejecting the claims of Global Vehicles for damages have also awarded M&M the costs of arbitration, including legal fees and expenses, the company said in a filing with the Bombay Stock Exchange.
The arbitrators held that the distribution agreement 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, the company said in its filings with the Bombay Stock Exchange.
Rejecting the class action suit by a group of dealers against M&M, the arbitration panel said its dealings with potential dealers, Global Vehicles was not the agent of M&M and, therefore, it could not be liable for any actions of Global Vehicles.