UNION OF INDIA Vs. KHAITAN HOLDINGS (MAURITIUS)

JUDGEMENT

(1.) I.As. 1235/2019 (u/Order XXXIX Rule 1 & 2)

(2.) The Union of India seeks an anti-arbitration injunction against the arbitral proceedings initiated by Defendant No.1 - M/s Khaitan Holdings (Mauritius) Ltd. (hereinafter, "Defendant no.1"/Khaitan Holdings), a Mauritius based company, under the Agreement entered into between the Republic of India and the Republic of Mauritius for the Promotion and Protection of Investments (hereinafter "BIT agreement"). The suit was initially listed on 25th January 2019 on which date summons and notices were issued. It is submitted by learned counsel for the Plaintiff that all Defendants have been served by email. Defendant No.1 has appeared before the Court yesterday under protest. Defendant Nos.2 to 5 are not before the Court. The Ld. ASG presses for urgent interim relief in view of the hearing fixed by the Arbitral Tribunal constituted under the BIT, which is fixed for 28th January 2019. Submissions were heard on the grant of ad-interim relief, as pleadings are yet to be completed in the application. However, considering the nature of submissions addressed and the voluminous documents/material placed before the Court, that required consideration, Defendant no.1 was directed to seek postponement of the hearing in its application before the Arbitral Tribunal on 28th January 2019, until pronouncement of orders today.

(3.) Plaintiff in the present suit is the Union of India / Republic of India (hereinafter "Republic of India") which has entered into an agreement with the Government of Republic of Mauritius for the Promotion and Protection of Investments (hereinafter "BIT agreement"), which was executed in 1998 with effect from 20th June, 2000. Khaitan Holdings is a company based in Mauritius. Its predecessors in interest are Kaif Investment Limited (hereinafter "Kaif Investment") and Capital Global Limited (hereinafter "CGL"). Defendant No.2 - Loop Telecom and Trading Limited is an Indian company earlier known as Loop Telecom Limited (hereinafter "Loop Telecom"). Defendant No.3 - Shri Ishwari Prasad Khaitan (hereinafter, "Ishwari Prasad Khaitan") and Defendant No.4 - Smt. Kiran Khaitan (hereinafter, "Kiran Khaitan") are Indian citizens, who are alleged to be the beneficial shareholders of Khaitan Holdings. Defendant No.5 - Shri Ravikant Ruia (hereinafter, "Ravikant Ruia") is a promoter of the ESSAR Group of Companies, including Hutchison ESSAR Limited.