BHARTI TELEVENTURES LIMITED Vs. DSS ENTERPRISES PRIVATE LIMITED

JUDGEMENT

(1.) Through these applications moved under Section 45 of the Arbitration & Conciliation Act, 1996 (hereinafter referred to as 'the Act'), the defendants 1 to 3 namely, DSS Enterprises Limited (hereinafter referred to as the DSS), Bell South International Inc. (hereinafter referred to as the 'BellSouth') and Millicom International Cellular S.A. (hereinafter referred to as 'Millicom') have questioned the maintainability of the instant suit filed by the plaintiff-Bharti Televenture Limited (hereinafter referred to as 'Bharti') being barred by the provision of Section 45 of the Arbitration & Conciliation Act, 1996 and have sought reference of the disputes raised by it to arbitration. The defendants Bell South and Millicom are foreign shareholders holding 40.5% equity together while DSS, an Indian Partner holds 10.8% equity. The defendant No. 4Crompton Greaves Limited (hereinafter referred to as 'CGL') alone held 40.5% equity before it was purchased by the plaintiff. They all are partners/co-promoters of defendant No. 5 company Skycell Communication Limited (hereinafter referred to as Skycell).

(2.) The plaintiff through this suit has sought a decree for declaration and permanent injunction as its claim of having acquired the status of a partner in the defendant No. 5-Skycell by virtue of having purchased the equity held by its erstwhile partner defendant No. 4-CGL and its rights accruing from the Joint Venture Agreement (hereinafter referred to as the JVA) to which all the five defendants including CGL were parties is being resisted jointly by defendants 1 to 3. .

(3.) The main ground of challenge is that the plaintiff, as per its own claims and pleadings has stepped into the shoes of the CGL as successor-in-interest and has given the undertaking to observe the terms of the JVA and is, therefore, refrained from seeking any remedy by way of a suit as Article 21 of the JVA provides that any and all disputes arising out of or in connection with the negotiations, execution, interpretation, performance and non-performance of this agreement shall be solely and finally settled by a Board of three Arbitrators in accordance with the Rules and Conciliation and Arbitration of the International Chamber of Commerce (hereinafter referred to as the ICC Rules).