PAUL DEEPAK RAJARATNAM & ORS. vs SURGEPORT LOGISTICS PVT. LTD. & ANR.

Judgment text excerpt

$~J * IN THE HIGH COURT OF DELHI AT NEW DELHI Judgment reserved on: 09.05.2025 Judgment pronounced on: 28.07.2025 + ARB. A. (COMM.) 5/2025, I.A. 1730/2025 & I.A. 1731/2025 PAUL DEEPAK RAJARATNAM & ORS. .....Appellants Through: Mr. Vivek Kohli, Sr. Adv. with Mr. S. Santanam Swaminadhan, Mr. Anindit Mandal, Mr. Kartik Malhotra, Ms. Vasudha Chadha, Advs. versus SURGEPORT LOGISTICS PRIVATE LIMITED & ANR. .....Respondents Through: Ms. Rimali Batra, Mr. Abhishek Lalwani, Mr. K. Kumar, Advs. CORAM: HON’BLE MR. JUSTICE JASMEET SINGH JUDGMENT Digitally Signed ARB. A. (COMM.) 5/2025 Page 1 of 54 By:MAYANK Signing Date:28.07.2025 14:11:15 FACTUAL MATRIX ............................................................................ 3 SUBMISSIONS ON BEHALF OF THE APPELLANTS ................ 11 SUBMISSIONS ON BEHALF OF THE RESPONDENTS ............ 14 ANALYSIS AND FINDINGS ............................................................ 21 Scope of Interference under Section 37(2)(b) of the Act. .................. 21 Ambit of Section 17 of the Act. ........................................................... 25 Whether the Shareholders’ Agreement was Validly Terminated. ..... 27 A. Conduct of the Appellants Inconsistent with Termination. ....... 31 B. Separation from Management ≠ Termination of Contractual Obligations. .......................................................................................... 36 Non-Applicability of Section 27 of the Indian Contract Act, 1882. .. 39 The Impugned Interim Award Satisfies the Triple Test of Granting an Interim Relief. ...................................................................................... 43 A. Prima Facie Case Exists. ............................................................. 46 B. Irreparable Injury Exists. ..................