2012 Supreme(Bom) 1901
High Court of Judicature at Bombay
R.M. SAVANT, J.
Enercon (India) Ltd. & Others
Versus
Enercon GmbH & Another
Writ Petition No. 7804 of 2009 With Writ Petition No. 7636 of 2009
Decided on : 05-10-2012
For the Petitioners:Dr. Veerendra Tulzapurkar, Senior Advocate, with Virag Tulzapurkar, Senior Advocate, with Nikhil Sakhardande, Ms. Sonali Mathur & Ms. Swagata Naik i/by M/s. AZB & Partners, Advocates.
For the Respondents:S.U. Kamdar, Senior Advocate with Zubin Behramkamdin, Ms. Naira Variava-Jejeebhoy, Rohan Cama, Vivek Vashi, Ms. Anusha Jegadeesh, Ms. Devika Deshmukh, and Ms.Kanika Sharma i/by Bharucha & Partners, Navroze Seervai, Senior Advocate with Zubin Behramkamdin, Ms. Naira VariavaJe-jeebhoy, Rohan Cama, Vivek Vashi, Ms. Anusha Jegadeesh, Ms. Devika Deshmukh & Ms. Kanika Sharma i/by Bharucha & Partners, Advocates.
1. The above Writ Petitions have been filed invoking the Writ Jurisdiction of this Court under Article 227 of the Constitution of India challenging the order dated 27th August 2009 passed by the learned District Judge, Daman by which order the Appeals being Misc. Civil Appeal Nos.1/2009, 2/2009, 3/2009 and 4/2009 came to be allowed and resultantly the order passed by the Trial Court dated 9th January 2009 came to be set aside, resulting in the Application filed under Section 45 of the Arbitration and Conciliation Act, 1996 being allowed in terms of prayer clause 28(a) thereof, and the Injunction Application of the Petitioners above-named, who are the original Plaintiffs, came to be rejected.
2. The issue that arises in the above Petitions is therefore in two parts viz. Whether the parties are to be referred to arbitration, and Whether the Petitioners are entitled to an anti-suit injunction in the facts and circumstances of the present case. The impugned order is therefore also in two parts; first part deals with the aspect of whether the parties are to be referred to arbitration, and second part is, whether the Petitioners are entitled to an anti-suit injunction. Since both the Petitions involve common facts and are interconnected, the same are, therefore, heard together. For the sake of brevity the Arbitration and Conciliation Act, 1996 of India and, the Arbitration and Conciliation Act, 1996 of England would be referred to as the “Indian Arbitration Act” and “English Arbitration Act”.
FACTUAL MATRIX:
3. The Petitioner No.1 herein carries on business of manufacturing and marketing of the Wind Turbine Generators (WTG's) and components in India, and is also in the business of setting up wind power projects on turnkey basis. The Petitioner Nos.2 and 3 herein are the Directors of the Petitioner No.1 and are arrayed as the Plaintiff Nos.1 to 3 in the Suit in question. The Respondent No.1-Enercon GmbH is a Company incorporated under the laws of Germany and is having its registered office at Aurich, Germany. One Dr. Alloys Wobben is a Director of the Respondent No.1. The Respondent No.2 – Wobben Properties GmbH is a Company incorporated under the laws of Germany and is also having its registered office at Aurich, Germany. The Respondent No.1 is engaged in mechanical engineering and possesses technical knowledge and equipment for manufacturing and marketing the Wind Turbine Generators and components. The Respondent No.1 carries on the said business all over the world. The Respondent Nos.1 and 2 are arrayed as the Defendant Nos.1 and 2 to the Suit in question. The Petitioners and the Respondents are running the joint venture business through the Petitioner No.1-Company at Daman in India. Accordingly the parties have entered into various Agreements in furtherance of the said business. The Petitioner Nos.2 and 3, on 12/01/1994 entered into a Shareholding Agreement. In terms of the said Agreement the Respondent No.1 was holding 51% shares of the Petitioner No.1-Company, and the Petitioner Nos.2 and 3 were holding 49% shares. The said Shareholding Agreement was subsequently amended by two Supplementary Shareholding Agreements dated 19/05/1998 and 19/05/2000. Pursuant to the said Supplementary Shareholding Agreements, the Respondent No.1 became a 56% shareholder in the Petitioner No.1-Company whilst the shareholding of the Petitioner Nos.2 and 3 was reduced to 44%. On the same day i.e. on 12/01/1994, the Petitioner No.1 and the Respondent No.1 entered into a Technical Know-How Agreement by which the Respondent No.1 had agreed to transfer to the Petitioner No.1 the right and the technology to use the technical know how for the manufacture of E-26 Wind Turbine Generators specified therein and their components. A Supplementary Technical Know-How Agreement amending the earlier Technical Know-How Agreement was executed on 19/05/2000 by which a further licence to manufacture the E-30 and E-40 Wind Turbine Generators was conferred by