Kee Pharma Ltd v. Cbz Chemicals Ltd

O R D E R %

06.11.2017

We had heard the counsel for the parties at some length and thereafter, the learned senior counsel appearing for the appellant had prayed for some time to obtain instructions.

¶2On the matter being called out after recess on the second occasion, learned senior counsel has stated that the appellant would deposit $3,50,000, along with interest @ 8% per annum with effect from 26th May, 2012, when the statutory notice was served. The deposit would be made in Indian Rupees, with the conversion rate applicable as on 26th May, 2012.

¶3He submits that in case deposit is not made within three months, the appellant would suffer consequences in terms of the directions given in paragraphs 20 to 22 of the order dated 15th September, 2017.

¶4We take the statement on record and clarify that no further extension of time would be granted and in case of non-compliance, directions given in paragraphs 20 to 22 would come into effect immediately.

¶5The aforesaid deposit would be made with the Registrar General of this Court and on the deposit being made, it would be converted into an FDR for a period of six months. The appellant and respondent have agreed that the respondent would be entitled to withdraw the said amount on furnishing security to the satisfaction of the Registrar General.

¶6We have passed the aforesaid order as counsel for the appellant has stated that they would be invoking the arbitration clause in terms of the agreement dated 18th May, 2009. We would also record that the counsel for the respondent has submitted that as there is no dispute, arbitration is not required. On this aspect, we do not make any comment either in favour of the appellant or the respondent. The security would lapse if arbitration proceedings are not initiated, and if initiated would be taken into consideration by the Arbitrator.

¶7We clarify that that the deposit to be made and the statement made by the counsel for the appellant as also the counsel for the respondent are without prejudice to their rights and contentions.

¶8The appeal is disposed of.

SANJIV KHANNA, J.

PRATHIBA M. SINGH, J. NOVEMBER 06, 2017 NA/VKR

* IN THE HIGH COURT OF DELHI AT NEW DELHI + CO.APP. 12/2017 KEE PHARMA LTD. ..... Appellant Through Mr. Anil K. Kher, Senior Advocate with Ms. Harsha, Advocate. versus CBZ CHEMICALS LTD. ..... Respondent Through Mr. Ashish Dholakia and Ms. Gayathri Nagendra, Advocates. CORAM: HON'BLE MR. JUSTICE SANJIV KHANNA HON'BLE MS. JUSTICE PRATHIBA M. SINGH