COMEDY STORE, A COMPANY REGISTERED UNDER LAWS OF UNITED KINGDOM Vs. HORSESHOE ENTERTAINMENT & HOSPITALITY PVT LTD

JUDGEMENT

(1.) By these petitions filed under Sections 14 and 15 of the Arbitration and Conciliation Act, 1996 (for short "the Arbitration Act"), the petitioner has impugned the orders dated 12th April 2016 and 14th May 2016 terminating the arbitration proceedings and seeks appointment of a sole arbitrator in substitution of erstwhile arbitral tribunal.

(2.) There is no dispute that the parties had entered into a Share Subscription and Shareholder's Agreement dated 13th November 2008 and a Trademark License Agreement dated 25th November 2008. The dispute arose between the parties. The petitioner invoked the arbitration agreements recorded in both the aforesaid agreements. On 26th September 2013, the erstwhile tribunal was constituted. The tribunal directed for an advance payment from the parties towards their fees and other administrative charges to the tune of USD 25000 each under both the agreements respectively.

(3.) On 30th May 2014, the respondent filed an application under Section 38 of the Arbitration Act contending that due to its bad financial condition, it was unable to pay its share of the fees and therefore, ought to be exempted from paying its share of the erstwhile tribunal's fees. The erstwhile tribunal rejected the application on 10th July 2014. The tribunal, thereafter, directed the petitioner to pay share of advance of the respondent in the sum of USD 25000 each under both the agreements totalling to USD 50000. The petitioner accordingly paid the contribution of their share in the sum of USD 50000 as advance to the arbitral tribunal.