Days after Retirement, former SC Judge Justice MR Shah appointed as sole arbitrator in Delhi High Court case

Days after Retirement, former SC Judge Justice MR Shah appointed as sole arbitrator in Delhi High Court case

Days after his Retirement, former Supreme Court Judge Justice MR Shah was appointed as sole arbitrator in the Delhi High Court case. 

The case involves disputes between Vistra ITCL India Limited and Ansal Properties & Infrastructure Limited (APIL).

The single bench of Justice V Kameswar Rao passed the decision in response to two pleas filed by Vistra ITCL. The court said that, as per the law, the parties involved should be referred to arbitration for resolution. 

The dispute revolves around a project undertaken by Ansal Properties & Infrastructure Limited involving the development of a group housing project across 41.16 acres of land in Ghaziabad, Uttar Pradesh. The project was implemented by Ansal Urban Condominiums Private Limited (AUCPL), the Principal Borrower.

Back in 2015, Indostar Capital Finance Limited agreed to invest Rs 150 crore in AUCPL through a Debenture Subscription Agreement. This agreement entailed the subscription of 1,50,00,000 secured, unlisted, redeemable, non-convertible debentures at a face value of Rs 100 each. AUCPL agreed to repay the amounts due, including the subscription amount, interest, and default interest on the specified dates.

As part of the Debenture Subscription Agreement, a Debenture Trust Deed was executed, appointing Vistra as the trustee of the Debentures. Vistra was authorised to act on behalf of the Debenture Holders, which included Indostar.

However, when AUCPL failed to make the required payments, Vistra invoked the Debenture Payment Guarantee by issuing a letter on February 12, 2018, as per the instructions given by Debenture Holders. Subsequently, Vistra, along with Pranav Ansal and Gaurav Dalmia (the personal guarantors), initiated arbitration proceedings. The Sole Arbitrator directed the personal guarantors to make the outstanding payments.

Only Rs 22.5 crore was deposited with Debenture Holders and aggrieved by the non-payment of dues, Vistra approached HC seeking relief.

 

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