Max GB, the joint venture partner in Hindustan Max GB (HMGB) has been asked to return the complete stock of penicillin G, alleged to have been taken away by Max GB from the Pune plant while suspending production in December 2003.

The Pune district court in an interim order issued after hearing a petition filed by Hindustan Antibiotics, asked Max GB to return the complete final stock of penicillin-G estimated to be more than 100 mmu worth Rs.3.5 crore, to HAL. Max-GB had shifted the entire stock to Chandigarh before they took a unilateral decision to stop the manufacturing function in the joint venture company.

Max GB, the 50 per cent JV partner in HMGB, a joint venture between the Chandigarh-based Max GB and the public sector pharmaceutical company Hindustan Antibiotics. 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 the joint venture agreement, and also for the loss, the company has incurred by suspending production at the plant. HMGB had been producing penicillin G in the plant leased out from HAL and it also engaged around 400 employees of HAL.

HMGB had suspended production in its Pimpri plant from December 16 2003. Following this, the company has now served a notice to its employees stating that all the employees seconded by Hindustan Antibiotics to HMGB as part of the JV agreement, have been de-seconded and repatriated. The notice addressed to individual employees, signed by the general manger of HMGB, stated "as your services are not required to be utilized by HMGB for the present, you have been de-seconded and repatriated to your employer, HAL, with effect from December 16."