IVRCL INFRASTRUCTURE AND PROJECTS LIMITED Vs. BEFESA AGUA

JUDGEMENT

(1.) THIS Intra Court Appeal is filed challenging the order of exparte interim injunction granted in O.A.No.679 of 2011 (18.8.2011) under Section 9 of the Arbitration and Conciliation Act. With consent of the learned counsel appearing for the appellants and the respondent, the main appeal itself was taken up for final disposal.

(2.) THE 1st appellant and respondent Company having its Head Office at Spain have entered into a joint venture for the purpose of construction, start up maintenance during operation period of 25 years of Desalination Plant. After award of International Tender by Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB), pursuant to the joint venture, the shareholders agreement was entered into between the 1st appellant and the respondent Company on 31.8.2005. The Respondent is a shareholder holding a total of 4,32,45,804 equity shares of value of Rs.10 each representing the total value of Rs.43,24,58,040/-. Appellants 1 and 2 are joint venture partners together holding 75 percent share in the 3rd appellant Company. To implement the project, parties have entered into various agreements on 5.1.2007 and as per these agreements, 3rd appellant has to produce 100,000 cubic metres of potable water in accordance with the requirements of the Bulk Water Purchase Agreement that was entered into by the 1st appellant with CMWSSB. Due to various reasons, the target of the project could not be achieved and on extension by CMWSSB, the target was later achieved on 25.07.2010. Certain disputes have arisen between the 3rd appellant and CMWSSB, which were referred to Dispute Resolution Board and it is stated that the disputes are now pending arbitration.

(3.) THE respondent is also said to have filed Company Appeal No.14 of 2011 before the High Court seeking stay of the order of the Company Law Board dated 5.7.2011 allegedly on the basis that the respondent should not be required to file counter and the said Company Appeal No.14 of 2011 is pending. The appellants have filed a detailed counter pointing out that the said Company Appeal was not maintainable. It is stated that thereafter the respondent chose to withdraw the appeal after filing and obtaining orders in O.A.No.679 of 2011.