INDIABULLS FINANCIAL SERVICES LIMITED Vs. AMAPROP LIMITED

JUDGEMENT

(1.) Indiabulls Financial Services Limited (India) ('IFSL') has filed this petition under Section 34 of the Arbitration and Conciliation Act, 1996 ('Act'), challenging an Award dated 21 st March 2011 of the International Arbitral Tribunal ('Tribunal') under the International Centre for Dispute Resolution in the dispute between IFSL and Respondent No. 1 Amaprop Limited (Cayman Islands) ('Amaprop').

(2.) The disputes between IFSL and Amaprop arose out of a Share Subscription and Shareholders Agreement dated 31 st May 2005 ('Agreement') entered into by them in terms of which Amaranth LLC, a company incorporated under the Laws of Cayman Islands, the predecessorin-interest of Amaprop, acquired 47.5% shareholding in Indiabulls Finance Company Private Limited (India) ('IFCPL') an unlisted company registered under the Indian Companies Act, 1956. The agreement gave a right to Amaprop to cause IFSL to purchase the aforementioned stake of Amaprop in IFCPL (the 'Put Right') at the price to be calculated in terms of the Agreement (the 'Put Price') subject to mandatory approvals under the Indian laws.

(3.) According to IFSL, both IFCPL and IFSL are subject to foreign exchange regulatory controls, and any transfer of their respective shares is subject to Indian laws. In the present proceedings, IFCPL has been arrayed as proforma Respondent No. 2.