Ultra Motors barred from selling e-bikes

  • 03/05/2008

  • Tribune (New Delhi)

As separation pangs hit the electric vehicle joint venture between Hero Group and Ultra Motors, the Delhi High Court has restrained the UK-based firm from selling competing electric two-wheelers for a period of 180 days starting April 23. Responding to a petition filed by Hero Cycles, which sought to restrain Ultra Motors India Ltd (UMIL) from selling electric vehicles and kits in India, a high court Bench restrained UMIL "from offering for sale or attempting to market any products defined in the agreement' for the period. As per the agreement between Hero and Ultra Motors, the company is supposed to source electric vehicle kits exclusively from Ultra, while the UK firm is bound not to offer its E-bike, E-Moto or E-Scooty to any entity other than Hero in India. While Hero had produced a letter dated April 1, which proposed to terminate the agreement, the judge observed "since during the hearing it was admitted that a notice of termination dated April 23, 2008, was served on the petitioner, in the circumstances, since the termination would take effect upon expiry of a period of 180 days of April 23, 2008, the parties would be bound by stipulations" in various clauses of their agreement.