Hindustan Antibiotics has moved a criminal petition in the Pune District Court against the Chandigarh based Max GB, the 50 per cent joint venture partner in Hindustan Max GB (HMGB) in a material theft case. The PSU has sued MAX GB, which is a joint venture between Max India and the Netherlands based penicillin major Gist Brockade (GB), and the directors of both Max India and GB in the criminal case.

According to HAL sources the criminal case has been filed on the ground that Max GB failed to act upon an earlier order of the Pune Court to return a stock worth Rs.3.5 crore of Penicillin G, which was illegally shifted from the Pune factory of HMGB by Max GB.

Earlier, following a petition from Hindustan Antibiotics, Max GB was asked to return the complete stock of penicillin G, alleged to have been taken away by Max GB from the Pune plant at the time of suspending production in the HMGB plant in December 2003. Max-GB had allegedly consigned the entire finished stock to Chandigarh before they took a unilateral decision to stop the manufacturing function in the joint venture company.

However, Max India sources while talking to Pharmabiz said that, since it is a legal matter the company can officially respond to it only after a legal consultation.

The joint venture company, HMGB, was formed in 1995 to undertake production of Penicillin-G by hiving off the Pen-G division of HAL. According to HAL sources, the company has also claimed compensation from Max GB for taking such a unilateral decision, which is in violation of joint venture agreement, and also for the loss the company has incurred by suspending production at the plant. HMGB, the joint venture company, had been producing penicillin G in the plant leased out from HAL and it has also engaged around 400 employees of HAL.