Monday, November 28, 2011
By Pranjal Gera
Apex court appoints sole arbitrator in the long standing dispute between Reva and Green Mobil
In order to decide dispute between the country’s only electric car maker Reva Electric Car (now known as Mahindra Reva Electric Vehicles) and Green Mobil (a Brussels-based distributor), the Supreme Court of India has appointed a sole arbitrator.
The dispute between these two firms pertains to their obligations for marketing of Reva i, one of the largest selling electric cars by Bangalore based Reva Electric. The plea of Reva Electric, the petitioner, was allowed by the Supreme Court along with appointment of Justice RV Raveendran for sorting out the long standing dispute.
As per the Reva Electric, Green Mobil didn’t have adequate infrastructure to build its brand, as it has sold mere 15 cars in only Belgium region, during the term of this contract. It has been claimed by Reva Electric that it had sent a e-mail to the Brussels-based company on September 25 (2009) to cease the sales of its cars immediately, along with asking it to stop all marketing activities. The Bangalore based electric car maker is also claiming that it had requested Green Mobil to take all necessary steps to provide all after sales services to existing car owners of the firm, till it finds a new distributor for the same.
Reva Electric was entered into a memorandum of understanding with Green Mobil in December 2007. The partnership couldn’t last for more than 22 months, as a dispute arose between these two firms in September 2009.
It is to be mentioned here that India’s leading utility vehicle maker Mahindra & Mahindra had acquired 55.2% stake in Reva Electric about a year back.