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High Court Of Delhi
HINDUSTAN TIMES LIMITED - Appellant
Versus
COMPAGNIE INTERNATIONAL POUR LE RADIOTELEPHONE - Respondent
Interim Application 9163 of 1995
Decided On : 07/17/1998
The plaintiff filed a suit claiming the following reliefs: (i) a declaration that the Amendment dated 3.6.1995 to the JVA dated 5.5.1995 is illegal, ineffective in law, and void ab-initio; (ii) a declaration that the plaintiffs, not being a party to the JVA dated 5.5.1995, are not bound by the terms thereof, including the arbitral agreement contained in Clause 12 thereof; (iii) an order and decree of this Hon'ble Court against the Defendants 1 to 3, restraining these Defendants by themselves, their servants and agents from proceeding with the said Arbitration against the Plaintiffs before the I or at all; (iv) an order and decree of this Hon'ble Court directing and commanding Defendants 1 to 3, by themselves, their servants and agents to forthwith deliver up to this Hon'ble Court the amendment agreement dated 3.6.95. Annex. T hereto) so that the same may be cancelled by this Hon'ble Court; (v) a permanent order and injunction of this Hon'ble Court against Defendant Nos. 1 to 3 restraining these Defendants by themselves, their servants and agents from proceeding with the said Arbitration against the Plaintiffs before the I or at all; (vi) that pending the hearing and final disposal of this suit: (a) a for the following declarations of this Hon'ble Court: (i) that the Amendment dated 3.6.1995 to the JVA dated 5.5.1995 is illegal, ineffective in law, and void ab-initio; (ii) that the plaintiffs, not being a party to the JVA dated 5.5.1995, are not bound by the terms thereof, including the arbitral agreement contained in Clause 12 thereof; (iii) that the 5th defendant had no power or authority in fact or in law to make the plaintiffs a party to the JVA, as illegally, deceitfully and unauthorisedly sought to be done by the 5th Defendant on 3.6.1995 acting in concert with Defendants 1 to 3; (iv) that Defendant Nos. 1 to 3 are not entitled in law to initiate arbitration proceedings against the plaintiffs or processed with the same before the I or at all.
Fact of the Case:
The plaintiff, Hindustan Times Ltd., filed a suit against the defendants, Compagnie Internationale Pour Le Radio telephone SA (defendant No. 1), Fidelity Communications International, Inc. (defendant No. 2), U. S. Telecom East, INC. (defendant No. 3), and Vipin Malik (defendant No. 5), seeking various reliefs, including declarations, injunctions, and orders related to an alleged amendment to a joint venture agreement (JVA) and an arbitration proceeding.
Finding of the Court:
The court found that the plaintiff was not a party to the JVA dated 5.5.1995 and that the 5th defendant, Vipin Malik, had no authority to execute an amendment to the JVA on behalf of the plaintiff. The court also found that the defendants had not established the existence of a valid arbitration agreement between the parties.
Issues: The main issues in the case were whether the plaintiff was bound by the amendment to the JVA and the arbitration clause contained therein, and whether the defendants were entitled to initiate arbitration proceedings against the plaintiff.
Ratio Decidendi: The court held that the plaintiff was not bound by the amendment to the JVA and the arbitration clause because the plaintiff was not a party to the original JVA and the 5th defendant had no authority to act on behalf of the plaintiff. The court also held that the defendants were not entitled to initiate arbitration proceedings against the plaintiff because there was no valid arbitration agreement between the parties.
Final Decision: The court granted the plaintiff's application for an injunction restraining the defendants from proceeding with the arbitration and dismissed the defendants' application for a stay of the suit. The court also directed the parties to appear for appropriate directions along with another related suit on a specified date.
( 1 ). The plaintiff has filed the suit claiming the following reliefs :-
"a for the following declarations of this Hon ble Court: (i) that the Amendment dated 3. 6. 1995 to the JVA dated 5. 5. 1995 is illegals ineffective in law, and void ab-initio (ii)that the plaintiffs, not being, a party to the JVA dated 5:5. 1995, are not bound by the terms thereof, including the arbitral agreement contained in Clause 12 there of (iii) That the 5th defendant had no power or authority in fact or in law to make the plaintiffs a party to the JVA, as illegally, deceitfully and unauthorisedly sought to be done by the 5th Defendant on 3. 6. 1995 acting in concert with Defendants 1 to 3; (iv) that Defendant Nos. 1 to 3 are not entitled in law to initiate arbitration proceedings against the plaintiffs or processed with the same before the I or at all.
B For an order and decree of this Hon ble Court against the Defendants 1 to 3, ordering and directing Defendants 1 to 3, by themselves, their servants and agents to forthwith deliver up to this Hon ble Court the amendment agreement dated 3. 6. 95. Annex. T hereto) so that the same may be cancelled by this Hon ble Court.
C for a permanent order and injunction of this Hon ble Court against Defendant Nos. 1 to 3 restraining these Defendants by themselves, their servants and agents from proceeding with the said Arbitration against the Plaintiffs before the I or at all;
D that pending the hearing and final disposal of this suit:
E This Hon ble Court be pleased to pass an order and injunction against Defendant Nos. 1 to 3 restraining these Defendant Nos. 1 to 3 restraining these Defendants by themselves, their servants and agents from proceeding with the said Arbitration against the Plaintiffs before the I or at all; (
F for ad-interim reliefs in terms of prayer".
( 2 ) THE plaintiff has filed 1. A. 9163/95 for injunction claiming the following relief :-
"a that pending the hearing and final disposal of the suit this Hon ble Court be pleased to pass an order and injunction against Defendant Nos. 1 to 3 restraining Defendants 1 to 3 by themselves, their servants and agents from proceeding with the said arbitration against the Plaintiffs before the I or at all
B for ex parte ad interim reliefs in termns of prayer (a) above. "
( 3 ). The defendants 1 to 3 filed C. M. 2972/96 for stay of the suit under Section 3 of the Foreign Awards (Recognition and Enforcement) Act, 1961
( 4 ). PLAINTIFF has filed I. A. 1942/97 under Order 16 Rule 6 of the Code of Civil Procedure praying for the following relief :-
"a issue summons to the ABN Amro Bank having its Delhi Office at DLF Centre,ground Floor, Sansad Marg, New Delhi and direct them to produce a copy of the letter written by them or by their Head Office dated 2. 6. 1995 to the Telecom Commission, Ministry of Telecommunication, Sanchar Bhawan at New Delhi
B issue summons to the ABN Amro Bank having its Delhi office at DLF Centre, Ground Floor, Sansad Marg, New Delhi and direct them to produce a copy of the Hindustan Times Limited Vs. Compagnie International Pour Le Radiotelephone 245 letter written by them or by their Head Office dated 9 8. 1995 to the Defendant Nos. 1,2 and 3 and Defendant No. 5 mentioned herein above in Para 4 (ii);
C issue summons to the Telecom Commission, Ministry of Communication, Sanchar Bhawan, New Delhi and direct them to produce a copy of the letter received by them from the ABN Amro Bank dated 2. 6. 1995 mentioned hereinabove in para 4
D issue summons to the Secretariat for Industrial Approvals, Ministry of Industry and direct them to produce a copy of the Application made by Defendant No. 6 dated 1st June, 1995 for approval for Foreign Investment and Technology" of the Joint Venture for providing Cellular Mobile Telephone Service in India; E issue summons to the Department of Communications for Cellular Mobile Telephone Service at Sanchar Bhawan, Ashok Road, New Delhi who floated the Tender and direct them to produce the receipt give
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