Madras High Court shut down ETA General Private Limited's bid to dismiss a civil suit from Fujitsu General (Thailand) Company Limited. Now Fujitsu General can chase $19 million,plus interest,from Chennai-based ETA General.
Justices P. Velmurugan and K. Govindarajan Thilakavadi rejected ETA General's appeal against Justice P.T . Asha's 2023 ruling . That ruling had denied ETA General's move to toss the suit,steering it instead toward arbitration.
Dispute revolves around 2019 air conditioner purchase orders,which Fujitsu General (Thailand) says are unpaid. Court confirmed these deals are separate from earlier pacts with ETA General's Japanese parent,Fujitsu General Limited. No arbitration here, court decided.
ETA General claimed their dealings with Fujitsu General were under a 1999 Master Technical Licence and Distribution Agreement. This allowed them to make and sell air conditioners under the General brand in India . But problems hit when their Puducherry plant closed — no engineers from Fujitsu General Limited.
Despite closure, Fujitsu General (Thailand) kept supplying air conditioners to ETA General for India. Then in 2018,Fujitsu General Limited launched Fujitsu General (India) Private Limited,ending the 1999 agreement with ETA General by 2019 . The new company started operating solo in 2020.
ETA General argued arbitration clause from 1999 deal should apply now,wanting suit dismissed, sent to arbitration. But Justice Asha found that agreements didn't cover specific orders and invoices in this case.
“The question of group concept cannot be brought into the instant case,particularly when transactions that are contemplated under these agreements and the purchase orders between defendant and the plaintiff stand on two independent and distinct contracts,” Justice Asha stated,emphasizing lack of merit in ETA General's arbitration plea.
Ruling lets Fujitsu General (Thailand) push forward with claim for unpaid sum, marking another chapter in this legal saga . Complex web of contracts in international trade — especially with many agreements,entities involved…
