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NAJMI WAZIRI, SUDHIR KUMAR JAIN
Morgan Securities And Credits Pvt. Ltd. – Appellant
Versus
Ganesh Benzoplast Limited – Respondent
JUDGMENT
Najmi Waziri, J. The present appeal under section 37(1)(b) of the Arbitration & Conciliation Act, 1996 (`the Act') read with Section 13 of the Commercial Courts Act, 2013 seeks to set aside the impugned interim order dated 21.01.2021 passed this section 9 petition by the learned Single Judge of this Hon'ble Court in OMP (I) (COMM) No. 363 of 2020.
2. The reliefs sought by the appellant were as under:
"A. Restraining the Respondent Company from acting in furtherance to the Resolutions passed in the Board meeting dtd. 07.10.2020 and the special resolutions passed by way of Postal ballot on 06.1 1.2020, with respect to the preferential allotment of shares of Respondent Company pursuant to proposed Share Sale and purchase Agreement (SSPA) with Stolt Rail Logistic Systems Limited, in any manner, whatsoever; directly or indirectly.
B. Direct the Respondent Company to make a Full and complete Disclosure of the terms of the proposed Share Sale and purchase Agreement (SSPA) with Stolt Rail Logistic Systems Limited by the Respondent Company to the Claimant, by way of Affidavit.
C. Pass any other orders that this Hon'ble Court may deem fit in the facts of the present case;
D. Pass ex-par
Once an Arbitral Tribunal is constituted, Section 9 of the Arbitration Act prohibits further applications for interim relief unless the party shows that the remedy under Section 17 is ineffective.
The court established that while Section 9 allows for court intervention in arbitration matters, it can only do so if the remedy under Section 17 is found to be ineffective, particularly when third p....
Sub-section (3) of Section 9 provides for restriction of exercise of powers by the Court and it has to decide whether the remedy provided under section 17 is efficacious or not.
The court emphasized the need to balance equities between the parties and highlighted the importance of following contractual provisions for submission of the final bill and processing thereof.
The court may exercise jurisdiction under Section 9 of the Arbitration and Conciliation Act if the remedy under Section 17 is found to be inefficacious, particularly regarding third parties not party....
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