CS(COMM) 286/2020

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IN THE HIGH COURT OF DELHI AT NEW DELHI

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Reserved on: 18^th November, 2020

Decided on: 24th November, 2020

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CS(COMM) 286/2020

DHOLI SPINTEX PVT. LTD.

..... Plaintiff

Represented by:

Mr.Nakul Dewan and Mr.Devang

Nanavati, Sr. Advocates with

Mr.Rishi Agrawala, Mr.Karan Luthra,

Ms.Prachiti Shah, Ms.Aarushi Tiku,

Ms.Anushka Shah, Mr.Sambit Nanda

and Mr.Dev Shah, Advocates.

versus

LOUIS DREYFUS COMPANY INDIA PVT. LTD...... Defendant

Represented by:

Mr.Jayant K. Mehta, Mr.Rakesh K.

Ojha, Mr.Sanjeev Sarawast,

Mr.Achintya Dwivedi, Mr.Surya

Kapoor, Mr.Pranay Chitale,

Mr.Ankush Chattopadhyay and

Mr.Arjun Parashar, Advocates.

CORAM:

HON'BLE MS. JUSTICE MUKTA GUPTA

I.A. 8685/2020 (under Order XXXIX Rule 1 and 2 CPC-By plaintiff)

1.

In the above noted suit arguments were concluded by the parties on

24^th September, 2020 when the suit was reserved for orders, whereafter the

plaintiff-Dholi Spintex Pvt. Ltd. (in short „Dholi Spintex‟) filed this

application seeking interim injunction inter-alia on the ground that the

defendant-Louis Dreyfus Company India Pvt. Ltd (in short „Louis Dreyfus‟)

in utter disregard to the undertakings before this Court has been

clandestinely participating in the proceedings before the ICA despite having

made a statement before this Court that it is not required any further to

participate in the same and has virtually rendered the suit infructuous.

Digitally Signed By:JUSTICE

MUKTA GUPTA

Signing Date:24.11.2020

15:15:52

Signature Not Verified

CS(COMM) 286/2020

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Therefore, Dholi Spintex prays for a temporary injunction restraining the

defendant-Louis Dreyfus from proceeding with and/or continuing with

and/or participating in any manner whatsoever in the proceedings referred to

as ICA Reference No.LOU005.0004/AO1 2020 24 initiated before the

International Cotton Association (in short „ICA‟) including making any

payments pursuant to the directions of the ICA in its email dated 24^th

September, 2020.

2.

When this application came up before this Court on 28^th September,

2020 this Court besides issuing notice in the application, passed the

following order issuing show cause notice to the Managing Director of the

defendant as to why proceedings under the Contempt of Court Act be not

initiated against him:

2020. However in the wake of a communication dated 24^th

Digitally Signed By:JUSTICE

MUKTA GUPTA

Signing Date:24.11.2020

15:15:52

Signature Not Verified

CS(COMM) 286/2020

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take no further action in the arbitration proceedings, till 9^th

Digitally Signed By:JUSTICE

MUKTA GUPTA

Signing Date:24.11.2020

15:15:52

Signature Not Verified

CS(COMM) 286/2020

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abide by the same.‖

the Arbitral Tribunal on 9^th September, 2020. Thus, on 9^th

order of this Court dated 1^stSeptember, 2020.‖

Digitally Signed By:JUSTICE

MUKTA GUPTA

Signing Date:24.11.2020

15:15:52

Signature Not Verified

CS(COMM) 286/2020

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Order be uploaded on the website of this Court.‖

3.

Before proceeding to deal with the prayers in the present application

as also the show cause notice issued to the Managing Director of the

defendant, a brief background of the case is that pursuant to a contract dated

30^th May, 2019 which provided in Clause-6 of the agreement that in case of

any dispute arising out of this contract, the same will be resolved through

arbitration in accordance with the ICA Rules and ICA procedure, venue of

the arbitration being London, Louis Dreyfus invoked the technical

arbitration before the ICA on 13^th April, 2020 and appointed its nominee

arbitrator. On 29^th April, 2020 ICA wrote to Dholi Spintex informing the

request for arbitration and asking Dholi Spintex to nominate its arbitrator in

14 days. Since Dholi Spintex failed to nominate its arbitrator, on 2^nd June,

2020 ICA appointed the nominee arbitrator for Dholi Spintex being

Mr.David Adcroft. On 11^th June, 2020 Louis Dreyfus fi