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The Madras High Court has refused to disregard a civilian suit filed by Fujitsu General (Thailand) Company Limited, represented by is manager Noriaki Terashima, seeking a absorption to Chennai-based ETA (Emirates Trading Agency) General Private Limited to wage $19 cardinal with involvement astatine the complaint of 6% per annum from April 6, 2022 till the day of realisation.
A Division Bench of Justices P. Velmurugan and K. Govindarajan Thilakavadi dismissed an archetypal broadside entreaty preferred by ETA General successful 2024 against a azygous judge’s 2023 bid rejecting the Chennai based company’s exertion to disregard the suit for betterment of wealth and alternatively notation the fiscal quality betwixt the 2 companies for arbitration.
The Bench confirmed Justice P.T. Asha’s September 29, 2023 bid that the acquisition orders of air-conditioners placed by ETA General and the invoices raised by Fujitsu General (Thailand) successful 2019 were autarkic of the agreements that ETA General had entered into with the genitor institution Fujitsu General Limited (FGL) of Japan and hence the substance request not beryllium referred for arbitration.
Opposing the suit earlier the azygous judge, ETA General had said, FGL and its subsidiary Fujistu General (Asia) Pte Limited, based successful Singapore, had entered into a Master Technical Licence and Distribution Agreement with the Chennai-based institution connected December 22, 1999. Pursuant to this agreement, ETA General had been manufacturing and selling General marque of aerial conditioners successful India.
However, ETA General had to adjacent down its manufacturing portion successful Puducherry since FGL was incapable to proviso the engineers. However, Fujitsu General (Thailand) continued to proviso the aerial conditioners to ETA General for their merchantability successful India. In 2018, FGL floated Fujitsu General (India) Private Limited and successful 2019, it decided to terminate the statement with ETA General and alternatively bash concern successful India connected its ain from 2020.
Since the 1999 Master Technical Licence and Distribution Agreement arsenic good arsenic the different agreements specified arsenic the shareholders agreeement that ETA had entered into with FGL and its radical companies contained an arbitration clause, the Chennai based institution insisted that the suit filed by Fujitsu General (Thailand) for betterment of $19 cardinal should beryllium dismissed and the quality indispensable beryllium referred for abitration.
Justice Asha had rejected the plea for dismissal of the suit aft holding that those agreements had thing to bash with the acquisition orders and the invoices for which the betterment proceedings had been initiated.
“The question of radical conception cannot beryllium brought into the instant case, peculiarly erstwhile transactions that are contemplated nether these agreements and the acquisition orders betwixt the suspect and the plaintiff basal connected 2 autarkic and chiseled contracts. Therefore, the exertion filed for referring the parties to arbitration is without merit and is truthful dismissed,” the justice had written.
