Asad Mueed & Anr vs Hammad Ahmed & Ors on 20 September, 2022

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Delhi High Court - Orders

Asad Mueed & Anr vs Hammad Ahmed & Ors on 20 September, 2022

1. The present petition under Section 9 of the Arbitration and Signature Not Verified Digitally signed O.M.P.(I) 7/2022 Page 1 of 7 By:SHITU NAGPAL Signing Date:21.09.2022 17:27:42 Conciliation Act, 1996 ["the Act"] has been filed for interim measures of protection in anticipation of arbitral proceedings under a document dated 22.10.2019 entitled "Deed of Family Settlement" ["FSD"]. The FSD is signed by petitioner Nos. 1 and 2 on the one hand [described therein as the "HLT Group"], and respondent Nos. 1 to 3 on the other hand [described therein as the "HFI Group"]. Petitioners are the sons of the deceased brother of respondent No. 1. Respondent Nos. 2 and 3 are the sons of respondent No. 1. An amendment to the FSD was signed by the parties thereto on 21.02.2020 which inter alia sought to make provisions for the manner in which the FSD was to be implemented.

2. The FSD deals with various businesses, properties, and institutions run by the family including a charitable society called the Hamdard National Foundation (India) ["HNF"], which is the sponsoring body of the respondent No. 4- Jamia Hamdard (Deemed University) ["the University"]. Under the aegis of the University, the family runs a medical college by the name of Hamdard Institute of Medical Sciences & Research ["HIMSR"] as a "constituent institution".

3. The FSD deals elaborately with the division of businesses and institutions amongst the HLT Group and the HFI Group. For the present purposes, it is not necessary to set out the arrangements in detail, except to state that the FSD contemplates setting up of two committees for the management of HNF and its institutions. One committee namely the Hamdard Education and Cultural Aid Committee ["HECA"] is placed under the control of the HFI Group and the other committee, Medical Relief and Education Committee ["MREC"] is under the control of the HLT group. Very broadly speaking, the University was to be run as an Signature Not Verified Digitally signed O.M.P.(I) 7/2022 Page 2 of 7 By:SHITU NAGPAL Signing Date:21.09.2022 17:27:42 autonomous institution funded by HECA whereas HIMSR was to be run as an institution under the MREC.

4. These arrangements have been implemented in part since the signing of the FSD, including by way of a resolution passed by the Board of Management of the University on 03.07.2021. As required by the FSD, the University inter alia resolved to transfer HIMSR to the Hamdard Education Society ["HES"]- which is under the control of MREC- subject to HES obtaining necessary approvals for transfer from the Delhi Development Authority and other concerned authorities.

5. A writ petition was also filed by petitioner No. 1 herein challenging a notification issued by the University which, according to petitioner No. 1, was not in terms of the arrangements contemplated by the FSD [WP(C) 5685/2019]. The FSD was signed owing the pendency of the writ petition. By an order of this Court dated 12.09.2022, the writ petitioner was allowed to withdraw the petition with liberty to take steps to enforce the rights of petitioners herein under the FSD. Certain interim orders were passed by the Single Judge and the Division Bench during the pendency of the writ petition. The learned Single Judge passed an interim order dated 22.05.2019, which was carried to the Division Bench in an appeal filed by petitioner No. 1 herein [L.P.A. No. 374/2019]. By an order dated 27.05.2019, the Division Bench disposed of the appeal on certain agreed terms. This order was clarified by the Division Bench on 22.11.2019, recording a statement on behalf of the University that it would facilitate the implementation of the settlement arrived at between the petitioner No. 1 and the respondent Nos. 1 to 3 herein, to the extent that the same is legal and permissible under law, including the University Signature Not Verified Digitally signed O.M.P.(I) 7/2022 Page 3 of 7 By:SHITU NAGPAL Signing Date:21.09.2022 17:27:42 Grants Commission (deemed to be University) Guidelines, 2019 ["the UGC guidelines"].

6. The present petition under Section 9 of the Act has been filed on an allegation that, after the withdrawal of the writ petition, the respondents have taken certain steps to disturb the independent status of the HIMSR and to interfere with its functioning.

7. I have heard Dr. Abhishek Manu Singhvi, learned Senior Counsel for petitioners, Mr. Sudhir Nandrajog, learned Senior Counsel for respondent Nos. 1 to 3, and Mr. Kailash Vasdev, learned Senior Counsel, for the respondent No. 4.

8. In the course of hearing, it appears that the petitioners and respondent Nos. 1 to 3 are ad idem that the FSD requires to be fully implemented in letter and spirit. There is, however, some dispute between them as to the modalities for the implementation of the settlement. As far as the respondent No. 4 is concerned, Mr. Vasdev reiterates that the University remains bound by its resolution dated 03.07.2021 and the observations of the Division Bench in the order dated 22.11.2019 and will continue to cooperate with the other parties in the implementation of the FSD.

9. Learned Senior Counsel for the parties also submit that the petitioners and respondent Nos. 1 to 3 may, at this stage, be referred to arbitration in these proceedings itself, with liberty to seek interim measures of protection from the learned arbitrator. As far as the respondent No. 4 is concerned, it is not a party to the FSD but has, as noted above, assured the Court that it would facilitate its implementation in accordance with law and subject to the regulations by which it is Signature Not Verified Digitally signed O.M.P.(I) 7/2022 Page 4 of 7 By:SHITU NAGPAL Signing Date:21.09.2022 17:27:42 bound.

10. Learned Senior Counsel for the parties also submit that in accordance with this intention, and towards the immediate implementation of the FSD, to the extent that it requires HIMSR to be controlled by the MREC through HES, certain documents are required to be executed. The documents include a No Objection Certificate and a Deed of Assurance from the University. The petitioners also seek execution of a User Agreement in terms of the FSD and the resolution passed by the University on 03.07.2021. Mr. Vasdev reiterates that all the documents required to enable HIMSR to establish itself independently of the control of HECA and under the control of the MREC will be issued by the University as required by the petitioners, consistent with the UGC regulations.

11. Mr. Nandrajog has raised a concern with regard to the division of funds contemplated by Clause 25 of the FSD read with Annexure V thereto, under which the corpus of the HNF was to be divided in the ratio of 75:25 to HECA and MREC respectively. He submits that this division has not been implemented. Dr. Singhvi assures the Court that this aspect of the FSD will also be implemented simultaneously on issuance of the required documents by the University in terms of the statement of Mr. Vasdev recorded hereinabove.

12. Until HIMSR remains a constituent institution of the University, Dr. Singhvi states that quarterly accounts of the HIMSR will be furnished to the University as required by the applicable regulations of the UGC.

13. In view of the aforesaid submissions of the parties, the petition is disposed of with the following directions: -

Signature Not Verified Digitally signed O.M.P.(I) 7/2022 Page 5 of 7 By:SHITU NAGPAL Signing Date:21.09.2022 17:27:42

a. With the consent of learned counsel for the petitioners and the respondent Nos. 1, 2 and 3, the disputes between them under the FSD are referred to the arbitration of Hon'ble Mr. Justice Badar Durrez Ahmed,, former Chief Justice of the High Court of Jammu and Kashmir [Tel:-7042205786]. At Mr. Vasdev's request, at this stage the University is not made a party to the arbitral proceedings. However, it is open to the parties to make an application before the learned arbitrator in this regard, if so advised. b. It is expected that the parties will cooperate with each other in the spirit of the FSD and the resolution of the University. Although the University is not being referred to the arbitration at this stage, Mr. Vasdev states that the University will facilitate the implementation of the directions given by the learned arbitrator in this regard.

c. With this objective, it is further directed as follows: -

i. The computation of the amounts due from the petitioners' group to respondent Nos. 1 to 3 in terms of Clause 25 of the FSD, read with Annexure V thereof, will be placed before the learned arbitrator within two weeks. The parties may seek necessary direction in this regard from the learned arbitrator, including for the amounts to be deposited with him in escrow.

ii. Mr. Vasdev states that the documents required to be issued by the University will be issued simultaneously upon deposit of the amount contemplated by Clause 25 of the FSD read with Annexure V therein by the petitioners.

Signature Not Verified Digitally signed O.M.P.(I) 7/2022 Page 6 of 7 By:SHITU NAGPAL Signing Date:21.09.2022 17:27:42

iii. The petitioners will furnish quarterly accounts as directed in paragraph 12 above.

iv. Mr. Nandrajog states that the respondent Nos. 1 to 3 have not interfered, at any stage, in the independent functioning of HIMSR under the MREC. He assures the Court that they will continue to cooperate with the petitioners in maintaining the independent status of HIMSR under the MREC and will not take any steps inconsistent therein.

d. The parties may make their respective claims under the FSD before the learned arbitrator. It is made clear that the parties may also approach the learned arbitrator for further directions under Section 17 of the Act. The directions given in this order are only intended to hold the field until the learned arbitrator has the opportunity to consider the matter and pass further directions, as may be required from time to time. The parties are at liberty to seek modification, variation, or vacation of the orders passed by this Court before the learned arbitrator.

e. Learned Senior Counsel for the parties state that the learned arbitrator may be requested to fix his own remuneration in accordance with law.

14. The petition stands disposed of in these terms.

PRATEEK JALAN, J SEPTEMBER 20, 2022 'Bhupi'/ Click here to check corrigendum, if any Signature Not Verified Digitally signed O.M.P.(I) 7/2022 Page 7 of 7 By:SHITU NAGPAL Signing Date:21.09.2022 17:27:42

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Delhi High Court - Orders