HARENDRA H MEHTA Vs. MUKESH H MEHTA

JUDGEMENT

(1.) The Appellants (Harendra H. Mehta and others) are challenging the judgment dated February 24, 1995 of the Bombay High Court enforcing the 'foreign award' dated October 31, 1990 on a petition filed by the respondents (Mukesh H Mehta and others). It was, however, directed that the enforcement of the same or execution of the decree shall be subject to the respondents' obtaining the necessary permission under Foreign Exchange Regulations Act, 1973 ('FERA', for short) as regards the enforcement part in India is concerned. The matter came to this Court on a certificate granted by the High Court under Article 134A read with Article 134(1)(c) of the Constitution. The impugned judgment had been rendered by a single Judge. There was some controversy if a single Judge could grant such a certificate. However, considering the importance of the issue involved, this Court admitted the appeal. The controversy, therefore, does not survive in the present appeal.

(2.) For convenience, we refer to the appellant as 'Harendra' and respondents as 'Mukesh'. Both the Harendra and Mukesh are brothers. Harendra is elder to Mukesh. They appointed their older brother Lalit Mehta as arbitrator to divide their business and properties both in the United States of America (USA) and India. Lalit Mohan gave his award in New York. Some proceedings arising out of the arbitration agreement and the award were held there in the Courts. Arbitration agreement was entered into at New York where arbitration proceedings held and award given. Mukesh applied to the Bombay High Court here under the provisions of the Foreign Awards (Recognition and Enforcement) Act, 1961 (for short, the 'Foreign Awards Act') for enforcing the award. High Court after contest ordered the award to be filed and pronounced judgment according to the award as required under Section 6 of the Foreign Awards Act. Harendra finds himself aggrieved by the judgment. That is how the matter before us.

(3.) We may now consider the controversy between the brothers in detail. Harendra and Mukesh were having vast businesses in the USA and India. They also acquired properties in both the countries. Disputes having arisen, they decided to divide and distribute their jointly held assets. Both have equal share in all the properties and businesses. On October 25, 1989, they entered into an agreement to refer their disputes to their elder brother Lalit Mohan. Their submission to the arbitrator is in the following terms: