Arbitration Panel, London pronounces win for Mahindra and Mahindra over Global Vehicles
Mahindra and Mahindra Limited (M&M), the country's leading Utility Vehicle (UV) maker, came out victorious, after the final verdict on the company's legal disputes with its US distributor Global Vehicles came through in London.
Commenting about the victory in legal proceedings on its official website, the company said, “Mahindra can now report that it has prevailed in all aspects of the English proceedings...All of Global Vehicles' attempts to attack the arbitration award have failed. In addition Global Vehicles' now faces substantial costs liabilities. The arbitration award may now be enforced as a Judgement of the English Court and in over 130 jurisdictions worldwide, including the United States.” However, the company refrained from commenting on the Global Vehicles, as no such statement appeared on their website.
Reportedly, during the hearing on July 27, 2012, the English Court had ordered Global Vehicles to pay a security sum to M&M, because of its protest against the arbitration award by August 12, 2012. The Indian firm has affirmed that the legal proceedings have ended and said, “At a hearing on September 5 the English Court dismissed Global Vehicles' request that arbitration award not be converted into a court judgement. Global Vehicles failed to do so and its challenge was therefore dismissed.”
Earlier on July 9, 2012 the English Court accorded with the argument of M&M and affirmed that the appeal by its US based distributor Global vehicles was baseless and futile. According to the website of the Indian company, the final decision was awaited for more than four months regarding the arbitration award. Further, in March 2012, an international arbitration panel in London had ordered the Global Vehicles to award M&M with $ 2 million in securities.
Evidently, M&M partnered with Global Vehicles as its one and only distributor of automotives for the US market on September 28, 2006. The Indian UV manufacturer forayed into the US market in 2008-09 but ran into some trouble with Global Vehicles over the launch of its pick-up truck based on the platform of Scorpio UV. M&M then sought the assistance of court to sort out problems with Global Vehicles and the case was later transferred to the arbitration panel in London.
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