Delhi firm files case against Hero MotoCorp

New Delhi: By and large, the work place in the 21st century, according to available statistics, supports the view that it makes good business sense to promote values, ethics, integrity and responsibility to make a positive economic impact in terms of performance year-in and year-out.

Research has shown that business and ethics go hand-in-hand, and over the passage of time, there is an increased emphasis on sustaining these four core values for the benefit of society overall, and more specifically, for consumers of products.

Simply defined, corporate social responsibility (CSR) means that apart from pursuing their stated economic agendas and goals, organizations have ethical and societal responsibilities, and have to expand their understanding of CSR to include other stakeholders like employees, customers, suppliers, local communities, state governments and international organizations.

There can, however, be exceptions to this well practiced and accepted norm, as is revealed in an ongoing court dispute between Delhi-based warehouse operations management and related services firm Brains Logistics Private Limited and Hero Motocorp Limited, the world's largest manufacturer of two-wheelers, motorcycles and scooters, and two of its officials - the CEO, and the HR Head, Smarajit Banerjee.

The dispute between the two parties relates to alleged wrongful and abrupt termination of Brains Logistics Private Limited's 2001 contract for providing labour to Hero MotoCorp's plant in Gurgaon, Haryana in 2010. The legal tussle has been on for a little over four years.

As per documents already released in the public domain, including media, by the former, Hero MotoCorp is being accused of cheating, forgery and criminal conspiracy in various courts, a charge it rejects.

In December 2013, the two-wheeler manufacturer filed a petition in the Delhi High Court, presenting documents to support its arguments in relation to the case.

In 2014, however, a Delhi magistrate's court had in its order passed last year, said that "prima facie" there are grounds for filing of a case of cheating, forgery and criminal conspiracy against Hero Motocorp and its senior officials, and for allegedly colluding with each other to wrongfully terminate Brains Logistics Private Limited's contract for providing labour to the two-wheeler manufacturer.

It further said, "prima facie, the offences appear to be made out against 11 persons, including the company's Managing Director and CEO Pawan Munjal."

Since then, legal representatives of Hero MotoCorp and Roopdarshan Pandey, the owner of Brains Logistics Private Limited, have approached the Delhi High Court again with their respective petitions contesting each other's claims.

Pandey maintains that not only did Hero MotoCorp Limited continue to utilize his firm's trained manpower till March 31, 2010, but released ad-hoc payment as wages only for the work men from April 2009 to February, 2010.

Pandey maintains he is yet to receive statutory amounts, taxes and service charges etc. from Hero MotoCorp, and claims his business has incurred heavy losses.

His lawyer, Sumesh Dhawan of the Delhi-based advocate and solicitor firm Dhawan and Co, confirmed that since then a second FIR (First Information Report) has been registered with the Tilak Marg Police Station on December 1, 2014, in which Hero MotoCorp while contesting their first FIR (First Information Report) before the Delhi High Court is allegedly accused of producing a PF document purportedly provided duly stamped by PF office, Noida to Hero MotoCorp.

Dhawan said, "My client (Brains Logistics Private Limited) inquired from the office of the Assistant Provident Fund Commissioner A-2C, Sector 24, Noida, regarding the veracity of the PF document submitted by Hero MotoCorp in the Delhi High Court in 2013, and he has categorically denied providing the said PF document to Hero MotoCorp and he further stated that PF seal/stamp affixed in the said PF document is not that of the provident fund office, Noida, but it is some other stamp."

"We are accusing Hero MotoCorp of wrongful gain and causing wrongful loss to my client (Brains Logistics Private Limited) and its workmen through a falsely created, forged and fabricated PF document. We maintain that there has been a criminal breach of trust, cheating, forgery etc. and the issue regarding the offences mentioned need to be looked into and investigated by the police station where the FIRs has been lodged, so that the accused persons can be dealt with in accordance with the law under relevant sections so that justice is done to all," he added.

Dhawan said if Hero MotoCorp fails to respond to the new FIR, he will file another petition in the High Court to demand an immediate investigation against the latter.

Several attempts have been made to get a response from top officials of Hero MotoCorp who are based at its corporate office in Delhi, but all in vain.