HARENDER SINGH Vs. STATE OF DELHI

JUDGEMENT

(1.) The petitioner has filed the present petition under Sec. 9 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the "Act") seeking interim measures of protection to restrain the respondents from breaching the non -compete obligations contained in the Business Transfer Agreement dated 1st June, 2011 (hereinafter referred to as "Business Transfer Agreement") between the petitioner, respondent No. 1, Mr. Jugal Kishore Arora, Mr. Satnam Arora and Mr. Gurnam Arora (hereinafter collectively referred to as "Promoters") who are respondents No. 2, 3 and 4 and Non -Compete and Non -Solicitation Agreement dated 1st June, 2011 between the petitioner and the Promoters (hereinafter referred to as "Non -Compete Agreement").

(2.) Kohinoor Speciality Foods India Private Limited, the petitioner is a company incorporated under the Indian Companies Act, 1956, by the respondent No. 1 on 25th May, 2011 to carry on the business of inter alia the marketing, trading, selling and distributing of rice products including broken rice in India. By virtue of a Shareholders and Investment Agreement dated 1st June, 2011 (hereinafter referred to as "Shareholders Agreement") between respondent No. 1, petitioner and McCormick Ingredients Southeast Asia Private Limited (hereinafter referred to as "McCormick"), McCormick subscribed to 85% of total issued and paid up capital of the petitioner.

(3.) As the petitioner had apprehended that the respondents may be contemplating actions in breach of their non -compete obligations, therefore the present petition was filed. The petitioner has sought the interim order to restrain the respondents from breaching the non -compete provisions specified under Clause 8 of the Business Transfer Agreement and Clause 4 of the Non -compete Agreement respectively, whether directly or indirectly, through themselves or any third parties; or launching any product that is similar to or in competition with the products of the petitioner, in violation of the Business Transfer Agreement and the Non -Compete Agreement.