In a letter to the National Stock Exchange (NSE) and stock exchanges of Delhi, Mumbai, Ahmedabad and Kanpur, the company has said that it received a faxed notice from Piaggio Vespa BV and group company Piaggio SpA on May 31 on the issue, informed sources said.

The company has also written that ``persuant to Clause 36 of the listing agreement, we hereby notify that Piaggio has filed before the Company Law Board (CLB) on May 28 a petition under sections 397, 398 and 402 of the Companies Act 1956 against the company, its director and Indian promoters.''

The termination of joint venture agreement would mean that LML would not be able to access the technology of Italian two-wheeler major Piaggio and be forced to scout for other partners for technology transfer, sources said.

LML has alreadycollaborated with Daelim Company of South Korea to foray into the motorcycle segment.

Piaggio and Singhania family hold 23.6 per cent each of the equity of LML Ltd, rest being held by the public and financial institutions. The management control of the company rests with Singhanias, according to the joint venture agreement.

Meanwhile, Piaggio has approached the CLB seeking removal of Deepak Singhania as managing director of LML Ltd. Piaggio has accused Singhania of mismanagement of the joint venture.

The principal bench of CLB has reserved the order after hearing both the parties recently.

Piaggio has also sought appointment of an independent chairman and administrator to look into the affairs of LML.

However, LML counsel had argued before CLB that the allegations made in the petition by Piaggio were baseless and frivolous.

The Italian multinational through its company Piaggio Vespa BV of Holland had alleged that Singhanias, who are the Indian promoters of the joint venture, were responsible formismanagement of the company affairs.

It has also alleged that the Indian joint-venture partner which holds the management control was not giving the details of the shareholding pattern in LML.

Piaggio petition has further alleged that Singhanias have been buying the shares of LML from the open market in order to increase their the stake in the company.

LML is consulting experts about the legal fallout of the entire development including ongoing case in the International Chambers of Commerce (ICC), Singapore and case pending before the court, LML sources said.

The two partners are already involved in a bitter legal battle after Singhanias took Piaggio to the court for acquiring the Italian company's 23.6 per cent stake in LML following the death of Giovanni Agnelli of Piaggio who owned this stake.

Singhania's had cited a clause in the joint-venture agreement based on which the Indian partners enjoyed the right to acquire Agnelli's stake in LML following his death.

Later Piaggio moved the ICC,Singapore, for arbitration as per the clause which was opposed by Singhanias.

They had pleaded in the court that the matter should not be reffered to ICC as Piaggio Vespa BV was not a party to signing the joint venture.

Piaggio in its petition has also asked CLB to debar the company from disposing its assets and venturing into any new business activity.

It has also sought reimbursement of the entire amount invested by the Italian company in its Indian venture.