MANMOHAN KAPANI vs KAPANI RESORTS PVT. LTD.

Judgment text excerpt

ARBP-119-2024-17-3-2025.docx IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION ARBITRATION PETITION NO. 119 OF 2024 WITH Digitally INTERIM APPLICATION (L.) NO. 20487 OF 2023 signed by SHRADDHA SHRADDHA KAMLESH IN KAMLESH TALEKAR ARBITRATION PETITION NO. 119 OF 2024 TALEKAR Date: 2025.03.18 14:09:12 +0530 Manmohan Kapani Through Special Power of Attorney Chandani Sood ...Petitioner Versus 1. Kapani Resorts Pvt. Ltd. 2. Virendra Kapani/Promoter 3. Vaibhav Kapani/Promoter ...Respondents Mr. Rohan Rajadhyaksha a/w. Shlok Chandra, Ms. Pallavi Singh, Mr. Sankalp Sharma, for Petitioner. Mr. Farhan Dubash i/b Adv. Mithila Damle, for Respondent Nos. 1 to 3. CORAM : SOMASEKHAR SUNDARESAN, J. Reserved on : February 17, 2025 Pronounced on : March 18, 2025 JUDGEMENT : Context and Factual Background: 1. This is a Petition under Section 9 of the Arbitration and Conciliation Act, 1996 (“the Act”). The Petitioner Mr. Manmohan Kapani (“Manmohan”) is a resident of Virginia, United States of America aged over 90 years. Manmohan infused a sum of USD 1 Page 1 of 21 March 18, 2025 Shraddha ARBP-119-2024-17-3-2025.docx million into Respondent No. 1, Kapani Resorts Pvt. Ltd. (“ Kapani Resorts”) pursuant to the Share Subscription Agreement and Shareholders Agreement dated February 11, 2022 (“Agreement”). The Agreement has an arbitration clause, and its existence is not disputed. 2. Under the Agreement, the investment of USD 1 million would increase Manmohan’s equity shareholding in Kapani Resorts from 13% to 51%. The end-use of the funds invested by Manmohan was to enable Kapani Resorts to service its debt obligations under a One-Time Settlement (“OTS”) with Small Industries Development Bank of India (“SIDBI”) and stave off a default. Respondent No.2, Mr. Virendra Ka