Karnataka High Court
M/S Buoyant Technology vs Asset Reconstruction Comapny on 11 August, 2023
Author: G.Narendar
Bench: G.Narendar
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NC: 2023:KHC:28586-DB
WP No. 16534 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 11TH DAY OF AUGUST, 2023
PRESENT
THE HON'BLE MR JUSTICE G.NARENDAR
AND
THE HON'BLE MR JUSTICE VIJAYKUMAR A. PATIL
WRIT PETITION NO. 16534 OF 2023 (GM-RES)
BETWEEN:
M/S BUOYANT TECHNOLOGY
CONSTELLATIONS PVT. LTD.
A COMPANY INCORPORATED UNDER
Digitally signed
by YAMUNA K L THE COMPANIES ACT, 1956,
Location: High (FORMERLY KNOWN AS MANTRI TECHNOLOGY
Court of CONSTELLATIONS PVT. LTD.,),
Karnataka HAVING ITS REGISTERED OFFICE AT,
MANTRI HOUSE, 41, VITTAL MALLYA ROAD,
BENGALURU-560001,
REPRESENTED BY ITS
AUTHORISED SIGNATORY,
GIRISH GUPTA.
...PETITIONER
(BY SRI. DHANANJAY JOSHI, SR. ADV. FOR
SRI. SRINANDAN K., ADV.)
AND:
1. ASSET RECONSTRUCTION COMAPNY
(INDIA) LIMITED (ARCIL),
A COMPANY INCORPORATED UNDER
THE COMPANIES ACT, 1956, AND
EXISTING UNDER
THE COMPANIES ACT 2013,
(ACTING IN ITS CAPACITY AS
TRUSTEE OF THE
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WP No. 16534 of 2023
ARCIL-CPS-065-I-TRUST)
HAVING ITS REGISTERED OFFICE AT
THE RUBY, 10TH FLOOR,
29, SENAPATI BAPAT MARG,
DADAR (WEST),
MUMBAI-400028.
REPRESENTED BY ITS CHIEF MANAGER
MR. AJAY KUMAR K B
2. M/S L & T FINANCE LIMITED,
A COMPANY INCORPORATED UNDER
THE COMPANIES ACT, 1956, AND
EXISTING UNDER
THE COMPANIES ACT, 2013,
HAVING ITS REGISTERED OFFICE AT
15TH FLOOR, PS SRIJAN TECH PARK,
PLOT NO.52, BLOCK DN, SECTOR-V,
SALT LAKE CITY, KOLKATA-700091,
DISTRICT 24 PARAGANAS NORTH,
HAVING ITS CORPORATE OFFICE AT:
4TH FLOOR, BRINDAVAN,
PLOT NO.177, VIDYANAGARI MARG,
CST ROAD, KALINA, SANTACRUZ(E),
MUMBAI-400098.
HAVING ITS ZONAL OFFICE AT:
Z SQUARE 2ND FLOOR WJM7+4RW,
JYOTI NIVAS COLLEGE ROAD,
KORAMANGALA INDUSTRIAL LAYOUT,
KORAMANGALA, BENGALURU-560095.
REPRESENTED BY ITS
AUTHORISED REPRESENTATIVE,
MR. NITESH GAUTAM,
S/O MR. SURENDRA SINGH,
AGED ABOUT 37 YEARS.
3. M/S MANTRI DEVELOPERS
PRIVATE LIMITED,
A COMPANY INCORPORATED
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NC: 2023:KHC:28586-DB
WP No. 16534 of 2023
UNDER THE COMPANIES ACT, 1956, AND
EXISTING UNDER THE COMPANIES ACT, 2013,
HAVING ITS REGISTERED OFFICE AT:
MANTRI HOUSE, 41, VITTAL MALLYA ROAD,
BENGALURU-560001.
REPRESENTED BY ITS
AUTHORISED SIGNATORY.
...RESPONDENTS
(BY SRI. SHASHIKIRAN SHETTY, SR. ADV. FOR
SMT. H.PAVITHRA, ADV. FOR R1,
SMT. VISHALI SRILAXMI, ADV. FOR R2,
SRI. NAMAN JABARH, ADV. FOR R3.)
THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF
CERTIORARI QUASHING THE ORDER DATED 30.03.2023
PASSED BY THE HON'BLE ARBITRAL TRIBUNAL IN THE MATTER
OF ARBITRATION DISPUTE ARISING BETWEEN M/s. ASSET
RECONSTRUCTION COMPANY (INDIA) Ltd., Vs M/s BUOYANT
TECHNOLOGY CONSTELLATIONS PVT. Ltd AND ANOTHER AT
ANNEXURE-A ETC.
THIS PETITION, COMING ON FOR PRELIMINARY
HEARING, THIS DAY, G.NARENDAR J., MADE THE FOLLOWING:
ORDER
Heard the learned senior counsel Sri Dhananjay Joshi along with the counsel Sri Srinandan K for the petitioner and the learned senior counsel Sri K. Shashi Kiran Shetty along with the counsels Smt. H Pavithra for respondent No.1, Smt. Vishali Srilaxmi for respondents No.2 and Smt. Naman Jabarh for the respondent No.3. -4-
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2. The petitioner is before this Court being aggrieved by the order impugned herein dated 30.03.2023 and marked as Annexure-A whereby, the Arbitral Tribunal has been pleased to allow the application dated 24.02.2023 and thereby permitted the Asset Reconstruction Company the first respondent herein to come on record and to continue and prosecute the proceedings.
3. The learned senior counsel would take us through Covenants of the agreement. More particularly, Covenant No.2.1.1 and would contend that as per the Covenant, the Asset Reconstruction Company can only initiate proceedings before the Competent Civil Court and cannot be permitted to be substituted in an Arbitral Tribunal.
4. Per contra, the learned senior counsel would submit that such a defence were never canvassed before the Tribunal and that on a complete reading of the said -5- NC: 2023:KHC:28586-DB WP No. 16534 of 2023 Covenant, it would clearly demonstrate that the order of the Tribunal is fully justifiable. The learned senior counsel would fairly admit that the said objections have not been canvassed before the Arbitral Tribunal.
5. In that view of the matter, we are of the considered opinion that it would be appropriate to permit the petitioner to withdraw the instant writ petition and approach the Arbitral Tribunal by way of an appropriate application and thereafter, it shall be open for the Tribunal to consider and pass appropriate orders on the grounds that may be canvassed by the petitioner herein.
6. We leave all contentions open. We also request the Tribunal to consider the application expeditiously.
7. Writ petition stands disposed off accordingly.
8. There shall be no order as to costs. -6-
NC: 2023:KHC:28586-DB WP No. 16534 of 2023 In view of disposal of the petition, I.As if any, do not survive for consideration. Hence, disposed of.
Sd/-
JUDGE Sd/-
JUDGE CHS List No.: 1 Sl No.: 3