MUDHIT MADANLAL GUPTA vs EMGEE ENCLAVE LLP

Judgment text excerpt

31-CARAP-155-2024-F.docx IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION IN ITS COMMERCIAL DIVISION COMM. ARBITRATION APPLICATION NO.155 OF 2024 Mudhit Madanlal Gupta ...Petitioner Versus Emgee Enclave LLP and Ors. ...Respondents Mr. Rohan Cama a/w. Ms. Minal Chandnani, Annie Cardoz i/b Minal Chandnani for the Petitioner. Mr. Dharam Jumani a/w. Mr. Mihir Nerurkar, Mr. Rickin Dang i/b M/s. Ganesh & Co. for Respondent No.2. Mr. Nirav Shah i/b Little & Co for Respondent No.3. CORAM: SOMASEKHAR SUNDARESAN, J. DATE : JANUARY 23, 2025 ORAL JUDGEMENT (Per. Somasekhar Sundaresan J.) Context and Background: 1. This is an Application under Section 11 of the Arbitration and Conciliation Act, 1996 (“the Act”) seeking appointment of an arbitrator to refer the disputes and differences being raised by the Applicant which essentially relate to a Loan Agreement dated April 2, 2018, which admittedly contains an arbitration agreement. Page 1 of 14 JANUARY 23, 2025 rsk 31-CARAP-155-2024-F.docx 2. The facts of the case present a unique situation inasmuch as none of the Respondents contest the existence of an arbitration agreement, but one of them asserts an element of constructive res judicata, and also invokes the Fifth Schedule of the Act, while others submit that the application for a reference to arbitration is premature. 3. Learned Counsel on behalf of Respondent No.2 submits that disputes and differences between the parties relate to very same Loan Agreement that had already been referred by a Learned Single Judge of this Court to arbitration, by an order dated March 15, 2022, which culminated in an Arbitral Award dated March 2, 2023. The Arbitral Award, essentially rejected the declaratory relief sought by Respondent No. 2 (the Claimant in that arbitrat