Conflict resolved, thanks to AKITDA

The long tussle between Lenovo and Positive Systems got amicably resolved this week. Following the intervention of AKITDA, Lenovo has agreed to settle the bill amount of Rs 50,00,000 by the end of November.

Positive Systems, Lenovo's exclusive Kerala distributor was suddenly terminated from their agreement two years ago. Sources told The DQ Week that officials from Lenovo visited Positive System's office on November 4, 2011 and gave them verbal termination order. However, the reason for such step was not intimated by Lenovo. Positive System was not only asked to stop their billing but also ordered not to sell any of Lenovo's stock lying with them. In its place Lenovo appointed Forerun Systems & Matrix Calicut as their new RD. As Positive Systems was blocked from billing to Lenovo, it took matters to Neoteric, Lenovo's national distributor.

The DQ Week got access to emails exchanged between Positive Systems, Lenovo and AKITDA over this issue.

In the email Sampath Kumar, CEO Positive Systems wrote, "We immediately informed Neoteric about the same and told them that our payments are blocked.We had an outstanding amount of Rs 50 lacs from Lenovo. (claim amount of Rs. 26 lacs + stock). We got no proper response from Neoteric and Lenovo."

The termination letter reached Positive Systems office on November 18th, 2011, stating the discontinuation of their relationship from November 17. But Sampath Kumar wrote, that "our billing was stopped from November 4, 2011 and they had started billing to the new RDs. The content of the termination letter are no where related to what they told and executed". Following this Positive Systems received a mail from Paras H. Shah, CEO, Neoteric, that the entire amount pending from Lenovo will be taken care of . Sampath Kumar adds, "Since he confirmed us that we will get our payment, we didn't move legally against Lenovo". Even as one year passed away Positive Systems did not get its dues from Lenovo. It is alleged that Neoteric not only blocked the billing but also put an embargo on Positive Systems. Sampath Kumar states, "We got information from the market that Neoteric is passing information to the distributor's forum that we are not paying money to them and that no billing should be done to Positive Systems." This made Positive Systems lodge a complaint with Inspector General of Police, Ernakulam on 5th October, 2013.

After AKITDA's intervention both the parties were brought to the table. Raj Kuttalam, head, sales, Lenovo ( South India and Sri Lanka) appreciated the help extended by AKITDA in solving the issue. He mailed AKITDA writing, "I am sure this will help the entire IT ecosystem to have confidence in Kerala business".Toshy P Mathhews of AKITDA brought the issue to the notice of AKITDA members in Kerala. Instead of blocking the billing of some dealers without a valid reason and putting on an embargo on a single dealer, he urged the national distributors to approach AKITDA if they have any complaints or issues with regional distributors.

Toshy Mathhews said that after Lenovo settles the money it owes to Positive Systems within November, AKITDA would publicly announce the settlement.