Summary: The Bombay High Court has ordered a formal resolution process in a disagreement between Prabodh Jamnadas Kothari and Vikram Jamnadas Kothari, collectively referred to as the Kotharis, and the Dosti Group over a Rs. 10 crore payment. The case revolves around a special agreement and a deal to buy shares that went wrong.
Back in August 2010, the Kotharis and the Dosti Group entered into a Share Purchase Agreement (SPA) where the Dosti Group was supposed to buy a company from the Kotharis. The deal was worth Rs. 59 crores, and part of it involved a special agreement with Barclays Wealth Trustees to make sure payments were secured.
The Dosti Group paid the first two installments but held back Rs. 10 crores, claiming they hadn't received enough tenant consents. The Kotharis argued that the consents were received in 2017, but they weren't informed until 2021.
Things got complicated when the Dosti Group filed a criminal complaint alleging fraud, which was eventually closed. The Kotharis then pushed for arbitration in March 2022, but the Dosti Group filed a suit claiming they owed nothing more.
Judge Somasekhar Sundaresan ruled that the disputes should go to arbitration, rejecting the Dosti Group's claim that the Kotharis had given up their right to arbitrate. The judge emphasized that the arbitration agreement was still valid.
The court referred the case to the Mumbai Centre for International Arbitration to appoint an arbitrator. This decision aims to resolve the ongoing dispute and determine if the Kotharis are owed the Rs. 10 crores.
The court also imposed costs of Rs. 2.5 lakhs on the Dosti Group for delaying arbitration, highlighting the importance of sticking to agreed arbitration clauses.
The court has decided that the disagreement should be resolved through arbitration, and an arbitrator will be appointed to see if the Kotharis should be paid the Rs. 10 crores.
