SC relief to Jackie Shroff, sets aside seven years old Arbitral Award of $3.5m

In a relief to actor Jackie Shroff, the Apex Court upheld a Bombay High Court order which set aside a seven- year-old arbitral award that would have required him to pay US $ 3.5 million to his former business partner.

The SC said the HC, both, a division bench and single-judge bench, cannot be faulted in setting aside the sole arbitrator’s decision.

A bench comprising of Justice SK Kaul and Justice MM Sundresh on Nov 10 dismissed with costs, an appeal filed by Ratnam Iyer—Shroff’s former business associate-- against the HC division bench decision which had also dismissed his appeal against an order of a single Judge bench. Iyer is a resident of Singapore.

The SC bench said, “Business associations can sour and that is what has happened in the present case. That the association was across the seas is another aspect.’’

“We find that the arbitrator’s conclusions are not in accordance with the fundamental policy of Indian law, and can thus be set aside…’’ said the SC. The arbitrator had relied on a clause in an agreement between Iyer and Shroff, the consequences of which “are so inappropriate’’ that the award would not stand, the apex court held. 

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