Quick Summary: Ningbo Aux, a Chinese company, is in a legal conflict with Amstrad Consumer India and Vijay Sales over unpaid bills for air conditioners. The court in Bombay is dealing with the complicated issue of whether temporary actions can be taken against Vijay Sales, who was not part of the original legal agreement.
Ningbo Aux Imp & Exp Co. Ltd.
- A Chinese company that exports air conditioners.
Amstrad Consumer India Pvt. Ltd.
- An Indian company, previously known as OVOT Pvt. Ltd., that buys AC units from Ningbo.
Vijay Sales (India) Pvt. Ltd.
- Connected to Amstrad, promised to make sure payments were made.
October 23, 2020
- Amstrad orders AC units from Ningbo, which includes a legal agreement for resolving disputes.
February 2021
- Problems arise over unpaid bills from February 8-12, 2021.
April 24, 2021
- Ningbo asks Vijay Sales to keep its promise to pay, but Vijay Sales says all bills were settled.
September 26, 2021
- Ningbo starts a legal process in Shanghai against Amstrad and Vijay Sales, but later removes Vijay Sales from the case.
November 30, 2023
- The legal panel awards Ningbo $1,448,940.91 plus fees, but only against Amstrad.
March 12, 2025
- Bombay High Court orders Amstrad to reveal its assets.
July 4, 2025
- Court removes Vijay Sales from the enforcement process, ruling the award cannot be applied to them.
January 28, 2026
- The court rejects Ningbo's request for temporary actions against Vijay Sales, stating it cannot be enforced.
Ningbo's Stand
- Argues for temporary actions against Vijay Sales, due to their close relationship with Amstrad.
Court's Decision
- The court, led by Justice Sandeep V. Marne, rejects Ningbo's request for temporary actions against Vijay Sales, as the award cannot be applied to them.
"The remedy for temporary actions under Section 9 of the Arbitration Act is not a separate remedy and supports some main legal proceedings."
The court decided that since the award cannot be applied to Vijay Sales, no temporary actions can be directed against them. This decision shows the difficulties of enforcing foreign legal decisions in India, especially involving third parties not directly part of the original legal agreement.
