Bombay High Court Injuncts Owner Of Kapani Resorts From Alienating Any Interest In Properties Until Conclusion Of Arbitral Proceedings
Live LawThe Bombay High Court bench of Justice Somasekhar Sundaresan has injuncted the owner of Kapani Resorts and Greater Kailash Property from alienating any interest in the Resorts and the property under section 9 of the Arbitration and Conciliation Act, 1996, until the conclusion of arbitral proceedings Brief Facts: Under the Agreement executed between Mr. Manmohan Kapani and the Respondents, the petitioner will infuse USD 1 million in the Kapani Resorts to meet its debt obligations under a One Time Settlement With the Small Industries Development Bank of India and avoid default. Using the funds invested by Manmohan, Kapani Resorts discharged the dues owed to SIDBI, resulting in Virendra and Vaibhav getting relieved of their guarantee obligations. Therefore, Virendra and Vaibhav got Kapani Resorts to use the funds infused by Manmohan to get the Greater Kailash Property released, as indeed their guarantee obligations were discharged, but they refused to issue the shares that were required to be allotted to Manmohan. It also found unacceptable their reliance on Kapani Resorts not owning the Greater Kailash Property to claim that no reliefs could be granted over the property under section 9 of the Arbitration Act.
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