HC Upholds Ruling On Gaja Trustee

Gaja Trustee is a trustee of Gaja Capital India Fund-I, a Sebi-registered venture capital fund.

The high court has allowed enforcement of arbitration award worth ₹195 crore plus interest at 7.24% per annum from July 2017.

A bench led by Senthilkumar Ramamoorthy said, “The respondents failed to establish any ground on which the recognition of the Foreign Award should be refused."

The bench further added," Consequently, subject to the requirement of obtaining RBI approval before initiating further proceedings for enforcement, the Foreign Award is recognized and held to be enforceable as a decree of this court."

As per the order, Gaja Trustee began the arbitration proceedings against Shriram EPC arising out of a share purchase agreement (SPA) of 2015.

Under the SPA, Shriram EPC was required to purchase certain preference shares of Haldia Coke and Chemicals held by Gaja for ₹200 crore, in the manner set out in the SPA.

In 2017, Shriram EPC failed to comply with the obligations, having paid just one tranche of ₹5 crore.

Gaja then initiated arbitration proceedings against the company, claiming damages.

After the award was passed by SIAC in favour of Gaja in 2021, Shriram EPC moved the High Court of Singapore for setting aside the arbitral award.

On July 6, 2021, the Singapore High Court directed that the set-aside application be transferred to the Singapore International Commercial Court.