Unitech files caveat against Telenor in Delhi High Court

HomeNewsDelhi High CourtUnitech files caveat against Telenor in Delhi High CourtPrint 'Unitech files caveat against Telenor in Delhi High Court'Print4/18/2012

New Delhi, Delhi [India]

Unitech has filed a caveat before the Delhi High Court, a move to pre-empt a possible appeal by its JV partner Telenor against last week's CLB order...

Unitech has filed a caveat before the Delhi High Court, a move to pre-empt a possible appeal by its JV partner Telenor against last week's CLB order that asked the realty major to resolve dispute in Uninor by foreign arbitration.

By filing the caveat, Unitech wants to be heard before an order is passed on Telenor's plea.

In its recent judgement, the CLB had last week allowed the plea of Unitech for settling dispute over control and transfer of assets of Uninor through arbitration at Singapore.

The CLB had observed that an arbitrator alone can decide if 'Share Subscription Agreement' and 'Share Holders Agreement' had been vitiated or not due to fraud.

The order had drew sharp reactions with Telenor saying it will challenge the CLB judgement in higher courts while realty firm Unitech said the order uphold the right of minority shareholder.

Telenor owns 67.25% in Uninor which has over four crore subscribers. Realty firm Unitech holds the remaining 32.75% in the JV.

"Telenor by claiming relief identical to relief claimed ... in its counter claim before the Arbitral Tribunal has left no room for any doubt that adjudication of the dispute arising ... must be left to the forum for resolution of dispute agreed by the parties i.e foreign arbitration," CLB had said in its 38-page long order.

"Parties (Telenor and Unitech) are referred to arbitration in accordance with the arbitration rules of Singapore International Arbitration Centre as contemplated under article 13 of the Share Subscription Agreement entered into between the parties," it added.

Over the question of violation of Shareholders Agreement (SHA) and Share Subscription Agreement (SSA), the CLB said it should be decided by arbitration only.

"The question whether SSA and SHA are vitiated by fraud is a complicated question of law and fact and ought not to be tried by the CLB in a summary jurisdiction under section 397 and 398 of the Companies Act and must be left to be adjudicated by the Arbitral Tribunal especially when the contracting parties have not only agreed to a dispute resolution and have taken steps in furtherance," said CLB.

The CLB order came over cross petitions filed by Unitech and Telenor against each other.

 

Related Tags Unitech, Delhi High Court, JV Partner Telenor, CLB Order, Uninor by Foreign Arbitration, Share Subscription Agreement, Share Holders Agreement, CLB Judgement in Higher Courts, Arbitral Tribunal, Singapore International Arbitration Centre, Companies Act

 

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