RATNAM SUDESH IYER Vs. JACKIE K. SHROFF

JUDGEMENT

(1.) By this arbitration petition filed under Section 9 of the Arbitration and Conciliation Act, 1996, the petitioner seeks an order and direction against the respondent to deposit the sum of Rs.8.49 crores with this court or with arbitral Tribunal or with an escrow agent and for an unconditional and irrevocable bank guarantee in favour of the petitioner to secure the said sum and for an injunction restraining the respondent from utilizing/spending or creating any third party right over the said sum from the proceeds of approximately Rs.54 crores the respondent has to receive from the sale of his shares in Multi Screen Media Pvt. Ltd.

(2.) By consent of both parties, matter was heard finally and is being disposed of by this order. Some of the facts for the purposes of deciding this petition are as under:

(3.) Mr. Madan, the learned Senior Counsel appearing on behalf of the petitioner submits that though the respondent had agreed not to make any complaint under clause 3 of the deed of settlement, wife of the respondent has described the petitioner as forger in her email which was sent to several persons. It submitted that by the said email, the respondent had made a complaint to various parties about the subject matter of the present deed. The learned Senior Counsel submits that under the deed of settlement, the respondent in clause (J) of the recital admitted that the placement dated 15.11.2005 contained the signature of the respondent in his capacity as a shareholder of the Atlas Equifin Pvt. Ltd. along with signatures of other shareholders of Atlas Equifin Pvt. Ltd., Grandway Global Holdings and Waygrand Holdings Limited, which the respondent had claimed to be not his signature. The learned Senior Counsel submits that by addressing such email the respondent had committed gross violation of the said obligation recorded in clause-3 read with recital (J) thereof and as a result thereof, the petitioner is not only entitled to recover the amount of US$ 1,500,000 (One Million Five Hundred Thousand) paid to the respondent but is also entitled to injunction in respect of the balance consideration of USD 2 Million. The petitioner is also entitled to claim damages against the respondent for such breach. It is submitted that this court in application filed under Section 9 of the Act by the petitioner was pleased to grant interim relief insofar as cheque held by the escrow agent is concerned.