AITREYA LIMITED Vs. DANS ENERGY PVT LTD

JUDGEMENT

(1.) The Petitioner, Aitreya Limited, a limited company incorporated under the laws of the British Virgin Island, has filed this petition under Section 9 of the Arbitration & Conciliation Act, 1996 ('Act') seeking interim reliefs against Respondent No. 1 Dans Energy Private Limited ('DEPL'), Respondent No. 2 Energy Innovations Limited, Dubai, UAE ('EIL') and Respondent No. 3 Mr. T. Nagendra Rao.

(2.) Under an Investment Agreement dated 7 th March 2008 the Petitioner invested a sum of US$ 2.5 million dollars in EIL with an understanding that EIL shall then re-invest the same in the DEPL which would entitle the Petitioner to a 50% stake in DEPL indirectly through investment in EIL. Under the Investment Agreement, the Petitioner along with its affiliates and/or funds under its direct or indirect management and/or control is collectively referred to as the 'Investor'. EIL is referred to as the 'Company', DEPL as the 'Project Company'. DEPL, EIL and Respondent No. 3 Mr. T. Nagendra Rao & Affiliates ('TNRA') are collectively referred to as 'parties'. The recitals of the Investment Agreement state that TNRA owns 100% of the share capital of DEPL which is currently developing the 96 MW Jorethang Loop Hydroelectric Project ('JLHP') in the State of Sikkim in India. Further it was stated that the Investor and its affiliates were currently raising the 'Fund' through one of its Affiliates.

(3.) Under the Investment Agreement the amount of US$ 2.5 million dollars was to be treated as a loan until the Petitioner was satisfied with the due diligence and until further negotiations were confirmed. Under the 'Definitions and Interpretation' part of the Investment Agreement, the following terms, which are relevant for the purposes of the present petition, were defined: