VIPIN SANGHI, J.

1. The present three petitions have been preferred by the petitioners KSL and Industries Ltd. (KSL), Jay Bharat Textile and Real Estate Ltd. (Jay Bharat) and Eskay K n’it (India) Ltd. (Eskay) under section 9 of the Arbitration and Conciliation Act, 1996 to seek the following reliefs:

(a) Stay of the letter dated September 14, 2010 issued by respondent, terminating the MOU dated November 14, 2008 entered into between each of the three petitioners and the respondent National Textile Corporation Ltd. (NTCL).

(b) A direction to NTCL not to create any third party right/interest in, and not to dispose off any land machinery and/or any fixed assets of the 11 Textile Mills covered by each of the MOUs (5 covered by the MOU with KSL, 4 covered by the MOU with Eskay and 2 covered by the MOU with Jay Bharat)

(c) Direct the NTCL to take all such steps that are necessary to preserve the value of the 11 textile Mills and to furnish a full and complete discharge of all its obligations under the MOU.

2. Since the facts of the three cases are identical; the respondent is common, and common arguments have been advanced in respect of them, I am disposing of these petitions by this common order. For the sake of convenience, I am dealing with, and would refer to the facts of KSL. The position, on facts, of the other two petitioners is no different. Case of the petitioner as pleaded

3. KSL, the petitioner claims to be a company engaged in the business of textiles and real estate. The respondent NTCL is a Central Public Sector Enterprise under the Ministry of Textiles, which was incorporated for managing the affairs of sick textile undertakings in the private sector, taken over by the Government. NTCL owned several textile mills for which proceedings before the Board for Industrial and Financial Reconstruction (BIFR) were pending. BIFR approved the restructuring scheme filed by NTCL, wherein BIFR had also, in principle, approved the revival of certain existing textile mills of NTCL through the joint venture route.

4. Pursuant to the mandate approved by the Government of India, a Request For Proposal (RFP) was issued by the NTCL on May 13, 2008 inviting bids for private participation to form a joint venture along with NTCL for reviving several textile mills located across India, wherein, NTCL was to hold 51% of the issued, subscribed and paid up equity share capital of such joint venture company. KSL along with other participants participated in the technical and financial bidding process held during June-July 2008. KSL along with two of its group companies, namely Eskay and Jay Bharat were declared as successful bidders for forming the joint ventures with NTCL for owning, operating and running of 11 textile mills. Out of these 11 textile mills, KSL was declared successful in respect of five textile mills. NTCL agreed to incorporate a joint venture company with KSL for revival of the said five mills. The details of the mills, in respect whereof each of the petitioners came out successful are as follows:

i) KSL – RBBA Spinning & Weaving Mills, Savatram Ramprasad Mills, Chalisgaon Textile Mills, Dhule Textile Mills and Nanded Textile Mills;

ii) Eskay – Swadeshi Cotton Mills, Laxminarayan Cotton Mills, Sodepur Cotton Mills, Orissa Cotton Mills;

iii) Jaybharat – Parvathi Mills and Sri Sarda Mills.

5. Considering the formalities to be completed before the execution of the Definitive Agreement for handing over the Textile Mills to the said Joint Venture Company, KSL and NTCL entered into a Memorandum of Understanding (MOU) dated 14th November, 2008, broadly setting out the respective obligations of the parties, along with the necessary steps to be taken by each of them to complete the transaction. Similar MOUs were executed by Eskay and Jay Bharat with NTCL. The relevant extracts of MOU are as follows:

“WHEREAS:

A. The Board for Industrial and Financial Reconstruction (BIFR) has approved the restructuring scheme filed by NTC, where