ELSTER INSTROMET B. V. Vs. MRUNAL GANDHI

JUDGEMENT

(1.) Commercial Arbitration Petition No.25 of 2021 fled by Elster Instromet B.V. (hereinafter referred to as, "Instromet") raises a challenge to an order dtd. 09/10/2020, passed by the Arbitral Tribunal, on an application under Sec. 17 of the Arbitration and Conciliation Act, 1996 by the Claimant- Mr.Mrunal Gandhi, the Respondent in the present Petition, which restrained the Petitioner- Elster Instromet BV from carrying on business in Gas Flow Meters in India, directly or indirectly or through subsidiaries, except through the Joint Venture Company ("JVC") formed through the Joint Venture Agreement ("JVA") entered between the two. The order is assailed on various counts, the preliminary ground being the Arbitrator has ignored settled law and erroneously enforced a 'non-compete' clause beyond the terms of Contract and in holding that the JVC is akin to a Partnership.

(2.) In order to appreciate the rival claims, as set out in the pleadings and the arguments advanced by the respective senior counsel in support thereof, it would be necessary to set out the necessary background facts.

(3.) The discord featuring in the Arbitration Petition has it's genesis in this document and it's distinct clauses, the document being captioned as, "Joint Venture And Shareholders Agreement".