The National Company Law Appellate Tribunal (NCLAT) has referred the General Electric (GE)-Triveni Turbine dispute to the National Company Law Tribunal (NCLT), Bengaluru bench, The Economic Times reported.
Meanwhile, an interim order by the NCLAT on the companies’ disputed joint venture (JV) will stay in effect till NCLT rules on the matter, the paper said.
Moneycontrol could not independently verify the report.
Triveni Turbines has disputed GE’s stake sale in subsidiary Baker Hughes, alleging that GE was internally diverting business away from the GE Triveni JV. It also stated fears that the stake sale would de-link Baker Hughes from obligations to the JV.
The appellate court’s interim order has allowed the stake sale as long as it does not impact the GE Triveni business and GE and Baker’s obligations towards the JV remain unchanged. It added that the stake sale would be subject to the tribunal’s decision, the paper noted.
The appellate authority declined independent investigation or audit into GE Triveni’s operations to verify Triveni’s allegations of unfair competition, stating that “allegations and counter-allegations” could be looked at by the tribunal. GE had argued that NCLAT did not have jurisdiction on a stake sale between two foreign entities.