The row between Nissan Motor India Private Ltd. and Hover Automotive India Pvt. Ltd. has escalated into full-fledged public spat.
Hover has said that it has exercised legal options available to it against Nissan. Also, it has warned its (Hover’s) associates of legal consequence if they act on Nissan’s ‘purported termination’ order.
A few days ago, Nissan terminated its sales, marketing and distribution agreement with Hover. Coming as it does ahead of the Datsun Go vehicle launch, the Nissan action has elicited sharp reaction from Hover, which threatened to take all appropriate actions against Nissan.
Hover has now come out with a public notice, terming the ‘purported termination’ of the distribution agreement with it by Nissan as ‘invalid and ineffective’. Asserting that “Hover has already exercised the legal options available to it to have the purported termination established as invalid and wrongful,’’ Hover has cautioned all those who have a relationship with it “against acting on the basis of the public notice issued by Nissan on February 16 regarding the alleged termination of the distribution agreement.’’
Hover also warned them (those having tie-up with Hover) that “they will need to consider the cost, damages, consequences and legal proceedings that they would expose themselves if they do act on the basis such notice or action of Nissan.’’
The public notice issued by Hover, however, has no mention of the court where it has initiated legal action against Nissan.
