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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SOMASEKHAR SUNDARESAN, J
Manmohan Kapani – Appellant
Versus
Kapani Resorts Pvt. Ltd. – Respondent
JUDGMENT :
Context and Factual Background:
1. This is a Petition under Section 9 of the Arbitration and Conciliation Act, 1996 (“the Act”). The Petitioner Mr. Manmohan Kapani (“Manmohan”) is a resident of Virginia, United States of America aged over 90 years. Manmohan infused a sum of USD 1 million into Respondent No. 1, Kapani Resorts Pvt. Ltd. (“Kapani Resorts”) pursuant to the Share Subscription Agreement and Shareholders Agreement dated February 11, 2022 (“Agreement”). The Agreement has an arbitration clause, and its existence is not disputed.
2. Under the Agreement, the investment of USD 1 million would increase Manmohan’s equity shareholding in Kapani Resorts from 13% to 51%. The end-use of the funds invested by Manmohan was to enable Kapani Resorts to service its debt obligations under a One-Time Settlement (“OTS”) with Small Industries Development Bank of India (“SIDBI”) and stave off a default. Respondent No.2, Mr. Virendra Kapani (“Virendra”) and Respondent No. 3, Vaibhav Kapani (“Vaibhav”) were guarantors of the amounts owed by Kapani Resorts to SIDBI. Using the funds invested by Manmohan, Kapani Resorts discharged the dues owed to SIDBI, resulting in Virendra and Vaibhav g
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