It is understood that the company's business plan went awry several times as thelaunch of various products like scooterettes and scooters got delayed substantially. In other instances, the equipment supplied was faulty. Since the technology was not supplied on time, "a lot of opportunities for the company were lost". According to the company, Piaggio has, in the past, admitted to delays, defaults and non-performance on the licence and engineering agreements, and sought a waiver from LML on more than one occasion. In the ICC case filed by Piaggio in Singapore last month, the company has charged LML with breach of various agreements, though no details of these have been given. In the chamber, LML has also sought details of these breaches.

According to the company, these allegations are baseless and made only with an object to provide an excuse and a cover-up for Piaggio's defaults. LML's domestic promoters had filed a case against Piaggio in Kanpur in July seeking the 23.6 per cent shares of the Italian company after the death of its owner Giovanni Agnelli in December last year.

Boththe Singhanias and Piaggio hold 23.6 per cent stake in LML. The Singhanias' stake is held through their holding companies - Suryodaya Investment Trading Company and Goldrock Ltd. While 9 per cent is with financial institutions, 7 per cent is with foreign institutional investors. The balance is held by the public.