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IN THE HIGH COURT OF GUJARAT
Harsha Devani, J.
Montblanc Simplo GMBH & Others - Appellants
Versus
Entrack International Trading Pvt. Ltd. & others - Defendants
First Appeal No. 3842 of 2014
Decided On : 23-01-2015
Arbitration and Conciliation Act, 1996 - Sections 45 and 50 - Application for reference of dispute to arbitration - Sustainability of alleged fraud in original suit linked with terms sheet of which specific performance is sought question to be considered as to whether there is breach of conditions of Term Sheet is clearly matter of arbitration - Contention of plaintiffs that defendants have fraudulently backed out from conditions of Term Sheet- Held, Merely because plaintiff combined different causes of action against different parties in one suit, would not be bar against referring disputes to arbitration in terms of arbitration clauses contained in different agreements regarding which reliefs have been claimed in suit i.e. plaintiffs combined various causes of action against different parties in one suit - Only because of fact that allowing application under S. 45 would result in multiple arbitrations would also not bar reference of disputes to arbitration in such case - Contract for specific performance is capable of settlement by arbitration as observed by Supreme Court - Once pre-requisites of section 45 of Act have been satisfied and court does not hold that arbitration agreement is null and void, inoperative or incapable of being performed, there is no option for court but to refer matter to arbitration - Impugned order passed by the Senior Civil Judge, in Special Civil Suit is hereby quashed and set aside - Appeal Allowed.
JUDGMENT :
Harsha Devani, J.
This appeal under section 50 of the Arbitration and Conciliation Act, 1996 is directed against the order dated 19th November, 2014 passed by the learned 13th Additional Senior Civil Judge, Rajkot below Exhibit-16 in Special Civil Suit No.188/2014 whereby the application filed by the appellants under section 45 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as "the Act") has been rejected.
2. The present appeal arises in the backdrop of the following facts. The respondents No.1 to 6 herein instituted a suit in the court of the learned 13th Additional Senior Civil Judge at Rajkot being Special Civil Suit No.188/2014 seeking the following reliefs:-
(B) That this Hon'ble Court be pleased to Order and Direct the Defendants, jointly and severally, to return to the Plaintiffs the Confidential Information supplied by the Plaintiffs to the Defendants as per the Confidentiality Agreement annexed at Mark 4/12 to the Plaint and Confidentiality Clause contained in the Term Sheet dated 1st February 2011 including but not limited to business strategies, operational and purchasing policies, corporate, financial, accounting data and activities, details of wholesalers, retailers, customers and suppliers of the Plaintiffs;
(C) That this Hon'ble Court be pleased to issue a Permanent Order and injunction restraining the Defendants, their Officers, servants, agents or any person claiming through or under them from in any manner using or utilising the Confidential Information supplied by the Plaintiffs to the Defendants as per the Confidentiality Agreement annexed at Mark 4/12 to the Plaint and Confidentiality Agreement contained in the Term Sheet dated 1st February 2011 including but not limited to business strategies, operational and purchasing policies, corporate, financial, accounting data and activities, details of wholesalers, retailers, customers and suppliers of the Plaintiffs;
(D) That this Hon'ble Court be pleased to issue a Permanent Order and Injunction restraining the Defendants, their servants, agents or any person claiming through or under them from in any manner communicating with or contacting or dealing with or enticing any of the Wholesalers or Retailers or Shop in Shop of the Plaintiffs a list whereof is being separately handed over to the Hon'ble Court;
(E) That this Hon'ble Court be pleased to issue a Permanent Order and Injunction restraining the Defendants, their servants, agents or any person claiming through or under them from in any manner communicating with or contacting or dealing with or enticing or offering employment to the Employees of the Plaintiffs a list whereof is being separately handed over to the Hon'ble Court;
(F) That this Hon'ble Court be pleased to issue a Permanent Order and Injunction restraining the Defendants, their servants, agents or any person claiming through or under them from in any manner obstructing or interfering with the business being carried out by the Plaintiffs of Distribution, Wholesale and Retail of Montblanc products either directly or through the Boutiques or Wholesalers or Retailers or Shop-in Shops established by the Plaintiffs in any manner whatsoever;
(G) That this Hon'ble Court be pleased to Order and Decree Defendants No.1 to 5, 7 and 8 to specifically perform the Term Sheet dated 1st February 2011, inter alia, by drawing up the Definitive Documents in terms of the Term Sheet dated 1st February 2011 and pay to Plaintiffs No.2 to 6 or such of them as may be directed by this Hon'ble Court an amount of Euro 7,500,000/- and to Plaintiff No.1 an amount of Euro 2,500,000/- and by directing Defendant No.9 to join in such specific performance;
(H) That this Hon'ble Court be pleased
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