State not for arbitration with Nissan

When the matter came up before Justice Anita Sumanth on Wednesday, after she adjourned it last Friday, seeking to know the stand of the state on the issue, Advocate General Vijay Narayan, said the state was ready to proceed with the case and sought the Court to refrain from differing the hearing. “We are aggrieved by the international arbitration and hence there is some urgency on our side,” he said.

To this, Justice Anita Sumanth said, “What is the urgency when Tamil Nadu is not even a party to the arbitration. In such an event, how can the state’s plea be maintainable.” 

While Narayan responded saying that the state and Nissan have arbitration agreement between them and therefore, the application is maintainable, senior counsel PS Raman appearing for Nissan sought the court to post the hearing to June, after the summer vacation, as there is no urgency. 

Raman pointed out that even the next hearing of the arbitration proceeding is scheduled only on November 6. Recording the submission, the judge posted the plea to April 5 to decide on the maintainability of the application at the first place. 

In December 2017, the Tamil Nadu government moved the High Court seeking an interim injunction against Nissan from proceeding with its international arbitration. The state alleged that Nissan has invoked the international arbitration contained under the Comprehensive Economic Partnership Agreement (CEPA) between India and Japan to “coerce Tamil Nadu government.” 

However, the Union government filed an affidavit saying that the state government does not have locus standi to challenge the international arbitration proceedings initiated by the automaker against India.