PALMVIEW INVESTMENTS OVERSEAS LIMITED Vs. RAVI ARYA

JUDGEMENT

(1.) This appeal has been filed under Sec. 37 of the Arbitration and Conciliation Act 1996 (the Arbitration Act), impugning an order dtd. 1/11/2022 passed by a Learned Single Judge of this court in an arbitration petition filed under Sec. 34 of the Arbitration Act. The Learned Single Judge set aside the award dated 16 th June 2022 passed by the Arbitral Tribunal in international commercial arbitration proceedings on separate applications filed by respondent nos.1 and 2 and respondent nos.3 and 5 under Sec. 31(6) read with Sec. 32 of the Arbitration Act that the person who signed the notice invoking arbitration and signed the statement of claim on behalf of Claimant, i.e., appellant herein had no valid authority to do so, nevertheless granted liberty to cure the defect.

(2.) The facts in brief are as under:

(3.) Appellant is a company incorporated under the relevant laws of British Virgin Islands (BVI). Appellant is an investment company. Respondent nos.1 to 5 (RA Group) and 7 to 11 (PA Group) together with respondent nos.12 and 13 are promoters of respondent no.6. It is appellant's case that in view of a Shareholder's Agreement dated 25 th March 2009, appellant holds 49% shares in respondent no.6 and the balance is held by respondent nos.1 to 5 (RA Group) and 7 to 13 (PA Group). Respondent nos.12 and 13 are closely owned and controlled by RA Group and PA Group, i.e., respondent nos.1 to 5 and 7 to 11, respectively. 4 It is appellant's case that it was asked by other respondents to join as shareholder and to infuse funds in respondent no.6. Appellant and respondents entered into a Shareholder's Agreement as well as Share Purchase and Share Subscription Agreement all dated 25 th March 2009. Appellant invested about Rs.80.00 crores in respondent no.6. Appellant was made 49% shareholder and the remaining 51% was with respondent nos.1 to 5 (PA Group) and 7 to 11 (RA Group).