SANJIV PRAKASH Vs. SEEMA KUKREJA

JUDGEMENT

(1.) The present petition has been filed under Section 11(5) of the Arbitration and Conciliation Act, 1996 ('Act', for short) with the following prayers:

(2.) It is the case, as stated by the petitioner that a Company was incorporated on December 09, 1971, under the name of Asian Films Laboratories Pvt. Ltd. by the respondent No.3 and the entire amount of the paid-up capital from incorporation onwards was paid by him from his personal funds. He then distributed the shares to his family members who did not pay any consideration for the shares. Subsequently, the name of the Company was altered to its present name - ANI Media Private Limited ('ANI'/ 'Company', for short) on March 06, 1997. Petitioner is the son of respondent No. 3 and respondent No. 2 being his mother and respondent No.1 his sister and he holds 15.30% shares and serves as the Managing Director of ANI. Owing to the extensive efforts of the petitioner at global level bolstered the Company's business relationship with Reuters Television Mauritius Limited, now Thomson Reuters Corporation Pte. Ltd. ('Reuters', for short). In 1996 Reuters approached the Petitioner for a long-term equity investment and collaboration in respect of the Company on the condition that the Petitioner would play an active role in the management of the Company.

(3.) It is stated by the petitioner that since Reuters was willing to buy into ANI under the condition that the management of the Company would be in the hands of the petitioner and also the Prakash family members being very keen on Reuters acquiring equity in the Company, which in tum would lead to substantial gains from Reuters' acquisition of shares and also a resultant increase in flow of business, in order to secure the future position of the petitioner in the Company, prior to the execution of the agreements with Reuters in 1996, a Memorandum of Understanding ('MoU', for short) (undated) was entered into between the Prakash Family Members, i.e. the petitioner and the respondent Nos. 1-3.