CHENNAI: THE interlocutory application moved by Nissan, the Japanese auto-making company, seeking a direction to the Madras High Court not to proceed with the suit moved by the Tamil Nadu government, has been closed by the international tribunal.
A submission to this effect was made by Nissan’s senior advocate PS Raman, when the suit from the State government came up before Justice Anita Sumanth on Tuesday.
The judge said that the maintainability of the suit against the international arbitration proceeding moved by Nissan would be decided on March 6.
“The tribunal has not passed any orders against the proceeding on its plea,” Raman added.
However, the Centre has filed an elaborate affidavit before the tribunal against the maintainability of the arbitrational proceedings initiated by Nissan. The company has sought time before the tribunal to file their counter affidavit. This apart, the tribunal has agreed to decide on its jurisdiction on the grounds pointed out by the Central government, he added.
Recording the submissions, the judge said that when there was no bar for this court to decide on the plea moved by the government, he would decide the matter on merits. The issue pertains to the arbitration notice issued by Nissan to the Prime Minister on July 7, 2016 to find an amicable resolution to a dispute it had with the Tamil Nadu government over non-payment of incentives worth $770 million with respect to a manufacturing unit established by it at Oragadam near Chennai.