MAHADEVAN VENKATACHALAM Vs. S MURUGABHARTI

JUDGEMENT

(1.) The instant Original petition has been filed under Sec. 34 of the Arbitration and Conciliation Act, 1996 against the arbitral award dated 10.05.2017 passed against the petitioner.

(2.) The petitioner was a promoter of a company called Primex Scans and Labs Private Limited. According to the respondent, believing the representations made by the petitioner, the respondent invested a sum of Rs.1.5 crores in the year 2011 in the company Primex Scans and Labs Private Limited. The respondent was alloted 1798 shares in Primex Scans and Labs Private Limited, for the said investment of Rs.1.5 crores made by him. The respondent after sometime wanted to quit the company and take back his investments. After deliberations and negotiations with the petitioner, the petitioner agreed to buy-back the shares from the respondent.

(3.) According to the respondent, settlement was arrived at between the petitioner and the respondent and accordingly, the Share Purchase Agreement dated 15.07.2015 was entered into between them, by which, the petitioner agreed to buy-back the shares held by the respondent for a consideration of Rs.1.5 crores which was the amount invested by the respondent together with a sum of Rs.50,00,000.00 being the return on the said investment. The respondent made a demand on the petitioner for the payment of the balance sale consideration, under the Share Purchase Agreement dated 15.07.2015, for which, the petitioner denied his liability. The respondent filed an application No.2185 of 2016 before this Court under Sec. 9 of the Arbitration and Conciliation Act, 1996 seeking for a direction to the petitioner to furnish security to the value of Rs.1,60,00,000.00, failing which, direct attachment of one half of undivided share owned by the petitioner in the property bearing door No.AH 241/18, AH Block, 1st Street, Anna Nagar, Chennai - 600 040 bearing Plot No.3159 comprised in R.S.No.40 (part) as per extract from Town Survey Land Register T.S.No.356, Block No.1-D of Naduvakkarai Village, previously Egmore-Nungambakkam Taluk, presently Aminjikarai Taluk, Chennai District.