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3) The facts, which are necessary for the disposal of this appeal, are as under:

On 20.10.1999, Appellant-Company and respondent No.1- Satyam Computer Services Limited (in short SCSL), a registered company having its office at Mayfair Centre, S.P. Road, Secunderabad entered into a Joint Venture Agreement to constitute a company named Satyam Venture Engineering Services Ltd. respondent No.2 herein (in short SVES) in which both the appellant and respondent No.1 have 50 per cent equity shareholding. Another agreement was also executed between the parties on the same day being the Shareholders Agreement (in short SHA) which provides that disputes have to be resolved amicably between the parties and failing such resolution, the disputes are to be referred to arbitration. Section 11.05 of the SHA provides for certain terms and conditions as regards the resolution of the disputes. In February, 2005, disputes arose between the parties. Respondent No.1 alleged that the appellant had committed an event of default under the SHA owing to several venture companies becoming insolvent and they had exercised its option to purchase the appellant-companys shares in SVES at its book value. On 25.07.2005, respondent No.1 filed a request for arbitration with the London Court of International Arbitration which appointed Mr. Paul B Hannon as sole arbitrator on 10.9.2005. The sole Arbitrator on 3.4.2006 passed an award directing the appellant  VGE to transfer the shares to respondent No.1. On 14.4.2006, respondent No.1 filed a petition to recognize and enforce the award before the United States District Court, Eastern District Court of Michigan (US Court). The appellant entered appearance to defend this proceeding before the US Court by filing a cross petition. In the said petition, it objected to the enforcement of the Award which ordered transfer of shares which was in violation of Indian Laws and Regulations specifically the Foreign Exchange Management Act, 1999 (in short FEMA) and its notifications. The appellant filed a suit being O.S. No. 80 of 2006 before the Ist Additional Chief Judge, City Civil Court, Secunderabad on 28.4.2006 seeking declaration to set aside the award and permanent injunction on the transfer of shares under the Award. On 15.6.2006, the District Court passed an ad-interim ex parte order of injunction, inter alia, restraining respondent No.1 from seeking or effecting the transfer of shares either under the terms of the Award or otherwise. Challenging the said order, respondent No.1 filed an appeal before the High Court of Andhra Pradesh. The High Court admitted respondents appeal and directed interim suspension of the order of the District Court but made it clear that respondent No.1 would not effect the transfer of shares until further orders. On 13.07.2006, in response to the summons served upon the respondents, respondent No.1 appeared in the Court and filed a petition under Order VII Rule 11 C.P.C. for rejection of the plaint. The appellant filed objection to the application. The trial Court, by its order dated 28.12.2006, allowed the said application and rejected the plaint of the appellant. Challenging the said order, the appellant filed an appeal before the High Court. On 27.2.2007, the High Court dismissed the appeal holding that the award cannot be challenged even if it is against the public policy and in contravention of statutory provisions. Against the said order, the appellant preferred the above appeal by way of special leave petition.
(i) The claim that Part I of the Arbitration and Conciliation Act, 1996 (in short the Act) applies to foreign awards is covered by the judgment of this Court in Bhatia International vs. Bulk Trading S.A. & Anr., (2002) 4 SCC 105.
ii) The first respondent - Satyam Computer Services Ltd.

could not have pursued the enforcement proceedings in the District Court in Michigan, USA in the teeth of the injunction granted by the Courts in India which also, on the basis of the Comity of Courts should have been respected by the District Court in Michigan.

iii) The overriding Section 11.5 (c) of the SHA would exclude respondent No.1- Satyam Computer Services Ltd. approaching the US Court in regard to the enforcement of the Award.

6) On the other hand, Mr. R.F. Nariman, learned senior counsel, appearing for the first respondent, submitted that,

(i) In view of Section 44 of the Act and the terms of the agreement, no suit would lie in India to set aside the Award, which is a foreign Award.

(ii) No application under Section 34 of the Act would lie to set aside the Award.

25) Learned senior counsel for the appellant submitted that the first respondent - Satyam Computer Services Ltd. could not have pursued the enforcement proceedings in the District Court in Michigan, USA in the teeth of the injunction granted by the Courts in India which also, on the basis of the Comity of Courts, should have been respected by the District Courts in Michigan, USA. Elaborating the same, he further submitted that the injunction of the trial court restraining the respondents from seeking or effecting the transfer of shares either under the terms of the Award or otherwise was in force between 15.06.2006 and 27.06.2006. The injunction of the High Court in the following terms appellant (i.e. respondent No.1) shall not effect the transfer of shares of the respondents pending further orders was in effect from 27.06.2006 till 28.12.2006. The judgment of the US District Court was on 13.07.2006 and 31.07.2006 when the Award was directed to be enforced as sought by respondent No.1, notwithstanding the injunction to the effect that the appellant (respondent No.1 herein) shall not effect the transfer of shares of the respondents pending further orders. The first respondent pursued his enforcement suit in Michigan District Courts to have a decree passed directing   VGE shall deliver to Satyam or its designee, share certificates in a form suitable for immediate transfer to Satyam evidencing all of the appellants ownership interest in Satyam Ventures Engineering Services (SVES), the partys joint venture company. Further, the VGE (appellant herein) shall do all that may otherwise be necessary to effect the transfer of its ownership interest in SVES to Satyam (or its designee). It is pointed out that obtaining this order by pursuing the case in the US District Courts, in the teeth of the prohibition contained in the order of the High Court, would not only be a contempt of the High Court but would render all proceedings before the US courts a brutum fulmen, and liable to be ignored. Though Mr. R.F.Nariman has pointed out that the High Court only restrained the respondent from effecting transfer of the shares pending further orders by the City Civil Court, Secunderabad, after the orders of the trial Court as well as limited order of the High Court, the first respondent ought not to have proceeded the issue before the District Court, Michigan without getting the interim orders/directions vacated.