Case Note & Summary
The dispute arose from a Share Holders Agreement (SHA) dated 27 December 2012 and subsequent amendments between the Claimants (investors) and the Respondents (promoters and companies). The Claimants invested approximately Rs.190 Crores in Respondent No.3, Maharana Infrastructure and Professional Services Ltd, acquiring 41.37% equity. They alleged that their rights under the SHA were violated, particularly the unconditional exit right triggered by the non-fructification of an Initial Public Offering (IPO) by the 31 March 2013 deadline under Clause 8.1. The Claimants valued their shares at approximately Rs.590 Crores based on a valuation report. They filed a Section 9 petition for interim relief, which was later converted into a Section 17 application before the Arbitral Tribunal. The Claimants contended that the Respondents siphoned funds from Respondent No.3 to affiliated societies and the promoters, and that their investments were unsafe. The Arbitral Tribunal passed an interim order on 4 July 2018 directing the Respondents to jointly and severally deposit Rs.190 Crores or provide a bank guarantee within four weeks and restrained them from alienating their properties. Aggrieved by this order, the Petitioners (original Respondents before the Tribunal) filed two Commercial Arbitration Petitions under Section 37 of the Arbitration and Conciliation Act, 1996, challenging the interim order. The matters were heard together, and the court reserved judgment on 7 December 2018.
Issue of Consideration
COMMERCIAL ARBITRATION PETITION NO. 913 OF 2018
