BG STRATEGIC ADVISORS, LLC Vs. ARSHIYA INTERNATIONAL LTD

JUDGEMENT

(1.) By this petition filed under Section 9 of the Arbitration and Conciliation Act, 1996 (for short 'Arbitration Act, 1996'), the petitioner seeks an order and direction against the respondent to deposit in this court an amount of US $ 442,666.84 and for various interim measures. The learned counsel appearing for the respondent has raised a preliminary objection about maintainability of this petition in this court. In view of such preliminary objection, though both the learned counsel have addressed on several other issues raised in the petition, I will decide the preliminary issue raised by the respondent. Some of the relevant facts which are relevant for the purpose of deciding the said issues are as under :-

(2.) It is the case of the petitioner that in or about May, 2008, the respondent approached the petitioner to provide their expertise in advising them in financial aspects of identifying potential companies as targets for making investments, acquisitions, mergers or other transactions. On 8 th May, 2009, the petitioner and the respondent entered into an Engagement Letter i.e. 'Financial Advisor Agreement'. It is the case of the petitioner that respondent failed to satisfy its obligation to pay US $ 403,032.34 towards retainer fees and expenses.

(3.) On 16 th January, 2009, the petitioner issued a notice of dispute to the respondent calling upon the respondent to pay US $ 303,060.53 towards outstanding fees and expenses. It was stated that if a good faith resolution could not be reached within 30 days of the said notice, the petitioner would submit the matter to the arbitration in West Palm Beach, Florida as stipulated in the said agreement. It is the case of the petitioner that a dispute could not be resolved amicably. On 3 rd March, 2009, the representative of the respondent informed the petitioner that it was seeking to terminate the contract early. The petitioner thereafter forwarded monthly invoice and account statement to the respondent with a request to clear the same at the earliest.