Abstract

The case focuses on the break up of the joint venture agreement between LML Ltd., and the Italian automobile major, Piaggio. The case deals with the various developments that led to the break-up, and claims and counter-claims made by LML and Piaggio. After a yearlong bitter dispute with petitions pending in the ICA, CLB, and the Kanpur Civil Court, the companies finally opted for a 'good-faith out of court' settlement in November 1999. The case is intended for MBA/PGDBM level students as part of the Business Environment curriculum. At the end of the discussion, the students are expected to give their opinion on whether Singhania did right to break up the joint venture. They are also expected to discuss the future of both the companies after the break up.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Influence of external and internal environments in the Joint venture
• Personal relationships influence on the venture.

Keywords

Joint venture, LML Ltd., Italian automobile, Piaggio, break-up, yearlong, petitions, ICA, CLB, Kanpur Civil Court, good-faith out of court, November 1999, Business Environment, Singhania