This is to bring to your notice that a petition under Sections 210, 212, 213, 219, 228, 241, 242 of Companies Act 2013 has been filed against General Electric Company (GE) and others in respect of its Joint Venture Company – GE Triveni Ltd. (GETL) before the National Company Law Tribunal, Bangalore. The grounds on which the Company has been constrained to file this petition are acts of oppression of GE and its group companies in the conduct of GETL’s business, their acting in a manner that is prejudicial to the interest of GETL, lack of probity and good faith in the conduct of its business and the overall joint venture understanding.
In April 2010, the global giant General Electric (GE) signed a joint venture agreement with Triveni Turbine Limited for creating a joint venture company which was named GE Triveni Limited (JVCo.). The JVCo was along-term partnership in which 50% plus 1 share is held by TTL and 50% minus 1 share is held by GE.
Petition filed in National Company Law Tribunal (NCLT) against General Electric Company on acts of oppression
The petitioner, TTL, is one of the leaders in global steam turbines market in the 0-30 MW output range in terms of market share. Whereas, GE is an American multinational conglomerate which claimed that it was adept in the over 30MW steam turbine space globally.
The intent of the parties in creating the JVCo was to make it a world leader in the above 30 MW to 100 MW steam turbine range. The proposed contract was for a package of Technology and Effective Marketing for JV’s products globally.
However, over the years, GE and its affiliates including Baker Hughes, a GE Company never delivered what they had promised to the JVCo and TTL, as a partner. On the contrary, it made active efforts to block sales opportunities that could in fact be fulfilled by the JVCo. It diverted potential sales opportunities towards its own interests and passed on sales inquiries to its group companies knowing fully sell that these inquiries were well suited for JVCo. The contract was a ‘subordination of general interest to individual interest’, which resulted into a complete malicious stunt.
The outcome of GE’s manipulative tactics resulted into false identity and behaviour. Triveni even after the turmoil showed willingness to continue the business, as it has invested over 200 crores to set – up a factory. The most important reason is Triveni’s role in promoting the ‘Make in India’ initiative and the company believes in doing the business rightly with set goals and given conditions.