Compuage Infocom Limited vs Epimoney Private Limited
2023 Latest Caselaw 4871 Bom

2023:BHC-OS:4301-DB


                                                                   10-ial14426-23.doc

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                   IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                       ORDINARY ORIGINAL CIVIL JURISDICTION
                                   IN ITS COMMERCIAL DIVISION


                 INTERIM APPLICATION (LDG.) NO.14426 OF 2023
                                    IN
            COMMERCIAL ARBITRATION APPEAL (LDG.) NO.14425 OF 2023


           Compuage Infocom Limited & Ors.                 ...Applicants

           IN THE MATTER BETWEEN :

           Compuage Infocom Limited & Ors.                 ...Appellants

                V/s.
           Epimoney Private Limited                        ...Respondent

                                  WITH
            COMMERCIAL ARBITRATION APPEAL (LDG.) NO.14425 OF 2023


           Compuage Infocom Limited & Ors.                 ...Appellants

                V/s.
           Epimoney Private Limited                        ...Respondent


           Mr.Harrinder Toor with Mr.Rajiv Sheti i/b M/s.Interjuris for the
           Applicants / Appellants.

           Mr.Nirman Sharma with Mr.Akshay Doctor, Mr.Manish Gala, Mr.Minil
           Shah i/b Mr.Nilesh Gala for the Respondent.

                                        CORAM : R.D. DHANUKA, CJ &
                                                G.S. KULKARNI, J.

DATE : 30TH MAY, 2023.

(VACATION COURT)

10-ial14426-23.doc

P.C. :-

1. By this Interim Application the Applicants seek stay of the

effect and/or operation and/or implementation and/or execution of the

impugned judgment and order dated 25 May, 2023 passed by the

Vacation Judge in Arbitration Petition (Lodging) No.13882 of 2023.

2. By the said impugned order, learned Vacation Judge has

granted ad-interim relief in terms of prayer clauses (g), (h) and (i)

against all the Appellants.

3. Yesterday this matter was argued by Mr.Kapadia, learned

senior counsel for the Appellants. Insofar as the ad-interim relief

granted by the impugned order in terms of prayer clauses (g) and (h)

are concerned, it is a direction against the Appellants to disclose all

the assets encumbered/unencumbered moveable/immovable along

with documents thereof including disclosure of the past 5 years of

Bank Statements and Income Tax Returns of the Appellant as well as

affidavit in respect of the properties is concerned. Learned senior

counsel for the Appellants fairly makes a statement that at this stage

his clients do not propose to seek any relief in regard to the ad-

interim reliefs granted in terms of the prayer clauses (g) and (h).

4. Insofar as relief as granted by the impugned order in terms of

prayer clause (i) is concerned, the matter was argued at length

yesterday and also today. By the said ad-interim relief, the learned

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Vacation Judge has directed to freeze appellants bank accounts in

Indian Bank - No. 732280053, IDBI Bank - No. 0386655100000514,

HDFC Bank - No. 00010120000031 and other undisclosed bank

accounts.

5. It is vehemently urged by the learned counsel for the

Appellants that the arbitration proceedings are not invoked, affidavit in

reply was also not filed and in such circumstances such drastic order

as impugned could not have been passed, by the learned Single

Judge.

6. A perusal of prayer clause (i) would indicate that the

learned Vacation Judge has freezed the bank accounts of the

Appellants in regard to the respondent's claim for an outstanding

amount payable by the appellants, which is stated to be an amount of

Rs.5,27,49,065/- as on the date of filing of the Section 9 proceedings.

In pursuance of the oral directions given yesterday, Mr.Toor, learned

counsel for the Appellants tenders a statement showing the details of

the immovable properties of the Appellants and the details of the

balances in the bank accounts. He states that an amount of

Rs.2,470.98 lakhs is lying in the Indian Bank are sanctioned by Indian

Bank (Tra Account).

7. On a query, learned counsel for the Appellants on

instructions states that his clients have no objection if an amount of

10-ial14426-23.doc

Rs.6 crores is earmarked and freezed in the said account, without

prejudice to the rights and contentions of the Appellants till the

learned Single Judge passes further orders on the arbitration

proceedings filed by the Respondent under section 9 of the

Arbitration and Conciliation Act.

8. Having heard learned Counsel for the parties and having

perused the impugned order on record, we are of the clear opinion

that the proceedings before the learned Single Judge are at the ad-

interim stage when the impugned order was passed. The appellants

were yet to file their reply affidavits contesting the respondent's

proceedings before the learned Single Judge on its merit. In these

circumstances and considering such stage of the proceedings, in our

opinion, the stand taken by the appellants is fair and acceptable. We

accordingly accept the statement made on behalf of the appellants.

We accordingly pass the following order :-

(a) In view of the statement made by Mr.Kapadia, learned senior

counsel for the Appellants insofar as prayer clauses (g) and (h)

granted by the learned Vacation Judge is concerned, we leave the

appellant to agitate its concerns in the proceedings pending before

the learned Single Judge, including to seek vacating / modification of

the order after reply affidavit is filed by the Appellants.

(b) In so far as the relief granted in terms of prayer clause (i) is

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concerned, we accept the statement as made on behalf of the

appellants that the appellants would maintain an amount of Rs.6

crores in its account in the Indian Bank and shall not in any manner

whatsoever deal with the said amount and such amount shall remain

freezed till further orders to be passed by the learned Single Judge

on the Section 9 proceedings. We clarify that the appellants are

accordingly permitted to utilize the amount over and above the

amount of Rs.6 crores.

(c) The Appellants are directed to communicate this order to the

Banks, to the consortium of fund.

(d) The Respondent to file affidavit in reply to the petition under

section 9 of the Arbitration and Conciliation Act within two weeks from

today with a copy to be served upon the Appellants' advocate.

Rejoinder, if any, shall be filed within one week thereafter.

(e) All contentions of the parties are kept open.

(f) Interim Application as well as Commercial Arbitration Appeal

are disposed off in aforesaid terms.

(g) There shall be no order as to costs.

(h) The parties to act on the authenticated copy of this order.

(G.S. KULKARNI, J.)                                     (CHIEF JUSTICE)