India's High Court restrains US based Nobel Fiber Technologies from any business dealings in India
October 11, 2005 Business News(PRLEAP.COM) Noble Fiber Technologies Inc., the leading US manufacturer and marketer of X-static, a silver fiber that is used in manufacturing textiles, home fashions, tile, military boots and apparel, and a variety of other consumer products, has been restrained from pursuing any further business dealings in India by the Hon’ble High Court over a petition filed by Noble’s aggrieved Indian associate, Cogent Silver Fiber Pte. Ltd. because of breach of contract. The MoU between the two companies was signed on April 28, 2005, which empowered Cogent to exclusively market X-static based products in India.
Noble breached the contract by simultaneously pursuing business deals with another associate, Indore based Flexituff International Ltd., for supply contracts within the defence forces domain. A suit was filed by Cogent in the Hon’ble High Court over the issue against Noble Fiber Technologies Inc., Mr. N.S. Prasad, Country Manager – India, Noble Fiber Technologies Inc. and Flexituff International Ltd. as Cogent was already in advanced stages of talks with the purchase department of the defence forces for a substantial order of X-static based military uniforms and several other items.
Said Mr. Prashant Kumar, President (Commercial), Cogent silver Fiber Pte. Ltd., “It is indeed extremely unfortunate that a responsible corporate citizen of US origin should resort to such under-handed business practices. Besides a substantial amount of money, we have invested a lot of time and effort building awareness regarding X-static based products in the Indian market, which has now come to a naught. We have immense faith in the judiciary system of our country and are confident that the culprits will be brought to book.”
Cogent has, incidentally, invested Rs. 1.4 crore to build infrastructure and deployed a professional marketing and strategy team that approached over 400 business houses across the country to build awareness about X-static based products. Cogent has also helped Noble Fiber Technologies in maturing orders for X-static products from companies like Provogue, Wellspun, VIP Industries and Bombay Dyeing. Amongst other organisations that expressed their definitive interest in the X-static products were companies like Arvind Mills, Malwa Spinning Mills, Nahar Spinnings etc. Cogent brought these opportunities to the notice of the Noble officials and got suspicious of their intentions in absence of any proper response.
“We have sought damages for the lost time and opportunities because of the unethical business practices of Noble Fiber Technologies. It has not only cost us dearly in terms of money but also has hurt our reputation,” added Mr. Kumar.
Finally, when Cogent secured a letter of interest from the purchase department of the defence forces for a substantial order of supply of X-static based military uniforms and several other items, the company officials were shocked to know from the Noble officials that they are to pull back from the opportunity as Flexituff International Ltd. was also pursuing the deal. Cogent, therefore, filed its petition in the Hon’ble High Court and has secured an interim order in its favour restraining Noble and Flexituff from any business dealings in India till the matter is resolved.