SMC moves ICA on MUL chairmanship

This is the second time that Suzuki has approached ICA. Sources disclosed that the petition was filed last week. Suzuki has argued in the petition that government’s right to appoint its nominee as chairman expired in 1997, and it was Suzuki’s turn to have a chairman of its choice as per the joint venture agreement between the two partners. Though the government has exercised its turn to appoint a managing director, it has not allowed the Japanese partner to nominate the chairman, the petition has argued, sources said. The government had extended the term of Probir Sengupta as the company’s chairman for another term in September 1997. The petition, however, does not directly seek the ouster ofSengupta.

SMC representatives have been objecting to the fact that the government cannot hold both the top slots in violation of the agreement. It is believed that the SMC representatives — Y Saito executive VP, K Saito director, MUL and J Sugimori, director SMC have been holding negotiations with the industry ministry officials for over three months now, although they have not withdrawn the petition against Bhaskarudu.