HC restrains US major Guardian from setting up glass company

New Delhi, Mar 28 (UNI) While restraining the United States glass manufacturer Guardian from setting up a 100 per cent subsidiary in India, the Delhi High Court today ruled that the foreign companies would have to establish their units in collaboration with Indian companies.

While allowing the petition of the Modi Rubber Ltd(MRL), Justice Gita Mittal restrained the US major-Guardian and its associates from establishing its manufacturing units of float glass or related products in India.

The MRL had challenged the order of the Foreign Investment Promotion Board (FIPB) order allowing the US Company to set up a fully-owned subisdiary in India to manufacture, sell, export float glass products.

The MRL and Guardian had set up an unit in collaboration to manufature float glass products in Gujarat.

The U S Company could not set up a fully-owned subsidiary as the joint venture was not sick and making profit, argued the Indian company.

Refuting allegations, Guardian submitted that it would not hurt the interests of Gujarat Guardian Ltd, as it held a substantial 50 per cent stake in the joint venture.

Modi Rubber and Gujarat state government owned 21 per cent and 9.5 per cent stakes in the Gujarat Guardian Ltd.

UNI