The genuine and valid execution of agreements is crucial in seeking relief under Section 9 of the Arbitration and Conciliation Act, and a party's conduct in asserting its rights may impact its entitlement to interim relief.

NAVIN CHAWLA, J.

1. This petition under Section 9 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the Act) has been filed by the petitioner inter-alia seeking the following reliefs:

“(a) Pending the appointment of the Ld. Sole Arbitrator, the commencement of the arbitration proceedings and final disposal of the arbitration proceedings including execution of the order passed therein, an Order be passed restraining the Respondent from granting any rights (including but not limited to) the right to set up, organize, manage, market and operate the Indian Men's, Women's and Beach Volleyball (both Men and Women) Leagues in India to any third party apart from the Petitioner;

(b) Pending the appointment of the Ld. Sole Arbitrator, the commencement of the arbitration proceedings and final disposal of the arbitration proceedings including execution of the order passed therein, an Order be passed staying the operation of any rights which may have already been granted by the Respondent in relation to the Indian Men's, Women's and Beach Volleyball (both Men and Women) Leagues in India to any third party apart from the Petitioner;

(c) Pending the appointment of the Ld. Sole Arbitrator, the commencement of the arbitration proceedings and final disposal of the arbitration proceedings including execution of the order passed therein, an Order be passed staying the operation of any agreements which may have already been executed by the Respondent in relation to the Indian Men's, Women's and Beach Volleyball (both Men and Women) Leagues in India with any third party apart from the Petitioner;

(d) Pending the appointment of the Ld. Sole Arbitration, commencement of the Arbitration proceedings and final disposal of the arbitration proceedings including execution of the order passed therein, an Order be passed directing the Respondent to maintain status quo in relation to the rights of Indian Men's, Women's and Beach Volleyball (both Men and Women) Leagues in India qua the Petitioner and the sole and exclusive rights of the Petitioner in relation to the Leagues.”

2. It is the case of the petitioner that the respondent had entered into three Agreements all dated 02.01.2016 with the petitioner through its President Chaudhary Avadhesh Kumar inter-alia assigning the exclusive rights to setup, arrange, manage, market, monetize and operate the Indian Men’s Volleyball League, Women’s Volleyball League and Indian Beach Volleyball League (both men and women) respectively. As the consideration for these Agreements, the petitioner had paid a sum of Rs.9.54 crores to the respondent by way of demand drafts, all dated 29.12.2015. A sum of Rs.54 lacs out of this 9.54 crores rupees is stated to have been transferred by way of RTGS transfer in favour of the respondent on 10.06.2016. The receipt of this last payment of Rs.54 lacs is denied by the respondent.

3. Relying upon the Clause 1.1, 1.2 and 1.3 of the Agreements, learned counsel for the petitioner submits that in terms of these Agreements, the petitioner has been assigned the sole and exclusive rights with respect to the Volleyball League and the Agreements further provide that the respondent shall not grant any approval, consent, permission or right relating to the establishment or operation of such League to any third person. Learned counsel for the petitioner submits that in view of such negative covenant, the petitioner is entitled to relief of an injunction restraining the respondent from entering into any agreement with a third party with respect to holding of or conducting such Volleyball League in India.

4. Relying upon the judgment of Supreme Court in Adhunik Steels Ltd. v. Orissa Manganese and Mineral Pvt. Ltd., AIR 2007 SC 2563, learned counsel for the petitioner submits that the grant of relief under Section 9 of the Act is governed by the well known rules with respect to the grant of injunction that is the concept of balance of convenience, prima facie case, irreparable