MUMBAI and ALPHARETTA, Ga. -

More fuel was added to the dispute between India-based vehicle manufacturer Mahindra and Mahindra and Global Vehicles USA on Tuesday when Mahindra denied the Georgia-based distributor’s order for pickup trucks, claiming the order is “invalid.”

“Mahindra views this order as another example of Global Vehicles’ policy of engaging in PR theatrics while pursuing an unnecessary lawsuit,” Mahindra management claimed in a statement released Tuesday. “This is Global Vehicles’ continued attempt to manipulate the press to damage Mahindra’s reputation. Mahindra also believes that this is an attempt by Global Vehicles to distract Mahindra from pursuing other plans to bring its vehicle to the U.S. market.”

Mahindra and Global Vehicles are embroiled in contentious disagreement regarding a distribution contract for Mahindra pickups in the U.S., one that has spilled over into the legal arena as Global Vehicles has taken civil action in an attempt to make the contract  in question be upheld.

Global Vehicles announced Friday that it was putting a $35 million order with Mahindra for the TR20 and TR40 pickup trucks to distribute to dealers in the U.S. Mahindra is looking to launch these models in the U.S.

But Mahindra contends that the contract it had with Global Vehicles expired and is no longer legitimate. The two companies’ views vary greatly as to what exactly happened with the contract.

In a statement with Thursday’s date on its website, Mahindra argued: “We worked closely with GV to preserve our relationship through multiple extensions to the distribution agreement. Then, as now our ultimate objective was to bring a fine vehicle to the market, to the benefit of all parties.

“Despite our best efforts, GV chose to let the agreement expire rather than ask Mahindra for an extension as it had done in the past,” officials claimed. “Then, for reasons best known to it, chose to initiate litigation. It has also conducted a highly questionable campaign in the press to impugn the Mahindra Group’s reputation.”

Mahindra further argued in the statement that the contract it had with Global Vehicles was “clear and unambiguous.” The company contended the Global Vehicles knew of the contract’s automatic expiration on June 11.

“Mahindra’s attention has been drawn to several media reports, quoting the CEO of GV John Perez implying that Mahindra was seeking to evade its contractual responsibilities,” Mahindra said in its release. “These statements are misleading. They also lack credibility when viewed against Mahindra Group’s six decades of responsible business practice.”

Global Vehicles argues a different story. 

GV suggested that Mahindra told it in August that sales of the trucks would begin in December, as the models had cleared by U.S. Environmental Protection Agency.

But this was after what Global Vehicles argued was a deliberate delay by Mahindra.

“Global Vehicles believes that Mahindra purposely delayed the EPA certification process so it could invoke a contract clause that would allow it to walk away if the truck could not be certified for sale in the United States,” Global Vehicles contended in a statement out Friday.

According to Global Vehicles, there were three extensions on the certification deadline.

The final extension pushed the due date back to June 11, Global Vehicles stated.

“Mahindra submitted its certification paperwork to the EPA about 10 days after the June 11 deadline, and announced in an Aug. 20 press release that its vehicles were certified for sale,” Global Vehicles argued. “At the same time, Mahindra posted a two-sentence statement on its website stating that its relationship with Global Vehicles had ended.”

Global Vehicles alleges that when the companies were just about to sign the deal in 2006, Mahindra “demanded” at the last minute that the "expiration" clause be included “because it expressly wanted to limit its losses if the trucks could be not certified for sale here.”

Global Vehicles stated that it requested the clause be taken out earlier in 2010 — “well before the June deadline”— as the company felt it was not needed anymore, but it said Mahindra refused.

“Global Vehicles later asked Mahindra for another extension but was refused,” Global Vehicles officials contend.

Perez claimed: "We trusted Mahindra when they said they wanted to cap their losses if the vehicle couldn’t be sold here. We patiently waited and accommodated Mahindra through years of delays and kept an extremely powerful distribution network intact while the factory worked through the complicated task of meeting U.S. emissions standards.

“We did this because we believed we were all working toward the same goals,” Perez continued. “Now Mahindra is trying to change the rules. We delivered our end of the contract, and we’re ready to get down to business.”

Global Vehicles contends that the investment it and almost 350 dealer recruits have poured into rolling out Mahindra vehicles here has totaled close to $100 million.

“As stated in Mahindra’s Sept. 24 statement, the contract with Global Vehicles has expired. In light of this fact, Mahindra will be contacting U.S. dealers to make other arrangements for distribution,” Mahindra said in a statement.

P. N. Shah, Mahindra’s chief executive of the international division, automotive and farm equipment sector, added: “Mahindra’s goal remains to bring its vehicles to the U.S. market, satisfying the desires of U.S. consumers and dealers alike.”

Explaining its history, Mahindra officials said the company goes back 65 years when it built the Willys Jeep. The $7.1 billion multinational company now has employees throughout the world. Officials contend Mahindra is a leader in utility vehicles, tractor and information technology and is expanding its “significant” footprint in the financial services, tourism, infrastructure development, trade and logistics arenas.

Its automotive lineup includes a wide variety of products in assorted segments like two-wheelers, CVs, UVs, SUVs and sedans.

Moreover, the company has also grown stronger in the electric-vehicle market as it bought majority ownership of REVA Electric Car Co. Ltd., which has been renamed Mahindra REVA.