Tractors and Farm Equipment Limited (TAFE) on Monday said it has filed a contempt petition against US-based AGCO Corporation alleging disobedience of orders of a Commercial Court in Chennai. TAFE also asserted its claims over the ownership of the Massey Ferguson brand.
TAFE, the second largest producer of tractors in India and the third largest globally, acquired shareholding in AGCO in 2012 to become its single largest shareholder and strategic long-term investor.
In U.S. Securities and Exchange Commission filings, TAFE expressed concerns over ongoing governance, capital allocation, operational and strategic shortcomings at AGCO.
Despite its efforts to engage with AGCO to resolve its concerns, the latter continued to disregard TAFE’s suggestions aimed at improving operational performance, strategic execution, capital allocation policies and corporate governance, it said.
AGCO has sought to stifle TAFE’s ability to seek changes through ill-advised moves with respect to brand usage that has for over six decades been an uncontested area, TAFE alleged in a statement.
The Commercial Court in Chennai has ruled in favour of TAFE with an interim status quo order with respect to the Massey Ferguson brand. It is therefore impermissible to disturb the position as on 29 April, and any attempt to do so will be violation of court orders, TAFE said.
TAFE said with a totalannual production of more than 180,000 tractors, over 100,000 Massey Ferguson are produced by the companyin India with over three million satisfied customers in its fold. TAFE and Massey Ferguson are synonymous in India.
Published – September 30, 2024 10:04 pm IST
