SHEKHAR K.SHAH Vs. PANASONIC LIGHTING EUROPE GMBH

JUDGEMENT

(1.) The question that arises for consideration in the present petition is, as to whether this petition filed under Sec. 34 of the Arbitration and Conciliation Act, 1996, is maintainable before this Court, considering the preliminary objection in that regard, raised on behalf of the respondents. It is specifically contended on behalf of the respondents that the impugned award, being a foreign award, where the seat/place of arbitration was Singapore, Part-I of the said Act is not applicable and that therefore, the present petition deserves to be dismissed as not maintainable. According to the respondents, the impugned award could have been challenged on merits, only before the Courts having jurisdiction over the seat of arbitration.

(2.) Brief facts leading to the filing of the present petition are that an arbitration proceeding was initiated at the behest of the petitioners at Singapore, where the International Chamber of Commerce (ICC) Rules, Paris, were made applicable to the arbitration proceeding. The said proceeding was initiated on the basis of an arbitration clause contained in a Termination Agreement executed between the parties.

(3.) On 26/4/1997, a Memorandum of Understanding was executed between the petitioner No. 1 and Vossloh Elektro GmbH for promotion of a joint venture company, engaged in the business of marketing and sales of ballasts and other equipment for lighting systems in the Indian market. The petitioner No. 4 was to take up the manufacturing of the product. It was already registered as a small scale industry unit. A Shareholders Agreement was executed on 10/3/1999, whereby 24% equity-holding of petitioner No. 4 was allotted to the respondent No. 1, while the balance 76% equity was held by petitioner Nos. 1 to 3. Subsequently, the said Vossloh Elektro Gmbh was taken over by Matsushita Electric Works GMBH. A Shareholders Agreement was executed in the year 2003, wherein, the shareholding pattern was revised and the original Vossloh Elektro Gmbh, taken over by Matsushita Electric Works GMBH, held 75% of the shareholding and SKS Group held balance 25% of the shareholding.