Summary: Manjeet Singh T. Anand successfully enforced a decision made by an arbitrator against Nishant Enterprises HUF, facing challenges over the court's authority and personal responsibilities of the manager.
On November 30, 2023, a decision made by an arbitrator favored Manjeet Singh T. Anand, granting him INR 12,52,53,938 along with 10% interest per year from the date of the decision. The decision also included costs of INR 22,25,000 against Nishant Enterprises HUF.
Nishant Enterprises HUF, represented by its manager, challenged the decision under Section 34 of the Arbitration Act. They argued that the Bombay High Court did not have the authority since the assets were located in Thane, not Mumbai.
"The assets disclosed by Nishant Enterprises HUF are situated in District Thane, outside this Court's authority."
Justice R.I. Chagla ruled on January 8, 2026, that the Bombay High Court, being the 'Seat' Court, retained the authority to enforce the decision. The court emphasized that the person who won the arbitration could choose to enforce the decision where the arbitration took place, not just where the assets are located.
"The Seat Court cannot lose its authority regardless of where the assets are located."
The court addressed whether the manager of the HUF was personally responsible. It was determined that since the HUF carried on business, the manager's responsibility was personal and unlimited.
"The manager’s responsibility for unpaid debts or dues of the HUF is 'personal' and 'unlimited'."
The court appointed a receiver to take possession of properties deposited as security. Additionally, the respondents were ordered to disclose all assets and were restrained from disposing of any property.
"The Court Receiver shall take physical possession of the properties... and shall file a report within four weeks."
The court ruled in favor of Manjeet Singh, allowing the enforcement of the arbitration decision and confirming the personal responsibility of the manager for the debts of the HUF.
