MALLANAGOUDA B PATIL Vs. A SRINIVASAN

JUDGEMENT

(1.) The petitioner filed the present civil miscellaneous petition under the provisions of Section 11(5) and (6) of Arbitration and Conciliation Act 1996 (hereinafter referred to as the Act for brevity) to appoint Arbitral Tribunal to adjudicate the dispute in terms of clause 13 of the Share Subscription and Shareholders Agreement dated 14.9.2010 entered into between the parties.

(2.) It is the case of the petitioner that he is a share holder and promoter of respondent No.2-Company. Respondent No.1 is presently one of the directors of the Company. The Company has been incorporated, inter alia, for the business of manufacture and distribution of sugar and related products. The petitioner represented himself and other share holders in the Company and they are collectively referred to as 'promoter group'. Respondent No.1 and his associates are collectively referred to as 'investor group'.

(3.) It is further contended that the investor group represented by respondent No.1 were desirous of investing in the share capital of the Company and for subscribing to the equity shares of the company. Therefore, the investor group represented by respondent No.1 herein and the promoter group represented by the petitioner entered into a Share Subscription and Shareholders Agreement (hereinafter referred to as the 'agreement') dated 14.9.2010 for transfer of shares from the promoter group to the investor group as per the terms and conditions of the agreement.