Photo of Gathi Prakash Karrah

Partner in the Dispute Resolution Practice at the Mumbai office of Cyril Amarchand Mangaldas. Gathi focuses on arbitration and corporate, commercial and regulatory litigation involving media rights, promoter/shareholder disputes, FEMA violations, offshore construction projects, healthcare and banking. She can be reached at gathi.prakash@cyrilshroff.com.

Time spent in contractually mandated pre-arbitral negotiations not excluded

On 18th May 2023, a two-judge bench of the Supreme Court in B&T AG v. Ministry of Defence[1](“B&T”) ruled that mere negotiations, as in the case of a civil suit, will not postpone the cause of action for the purpose of computing limitation for initiation of arbitration[2].

This decision, although consistent with a long line of judgments in the context of computation of period of limitation for arbitral claims, waters down the progressive view taken by the Supreme Court in the case of Geo Miller & Co. Pvt. Ltd. v. Rajasthan Vidyut Utpadan Nigam Ltd.[3] (“Geo Miller”).Continue Reading Time spent in contractually mandated pre-arbitral negotiations not excluded – SC in B&T AG v Ministry of Defence

Invesco v Zee

In a recent judgment pronounced in Invesco Developing Markets Fund v. Zee Entertainment Enterprises Limited[1] (“Judgment”), on March 22, 2022, a Division Bench of the Bombay High Court (“BHC”) allowed Invesco’s appeal against a judgment dated October 26, 2021[2]. The October 26 judgment was passed by a Single Judge of the BHC (referred to hereinafter as the “Impugned Order”), which had granted an injunction restraining Invesco from calling for and holding an extraordinary general meeting (“EGM”) of Zee.Continue Reading Bombay High Court’s Judgment in Invesco v Zee– A major boost for shareholders’ rights in India

Company Law

Introduction

For a company or a large corporate group, the outcome of a single litigation can be life changing, and may severely impact the interests of the promoters, the management, investors, and other stakeholders. Given the impact that even a single litigation can have on the life of a company, the lawmakers have been conscious of the fact that time is of the utmost essence in adjudicating company disputes.Continue Reading Zee v Invesco – Has Bombay High Court created parallel jurisdiction in company law matters?

Supreme Court to have its say on legality of Fantasy Sports

Introduction

Online gaming, particularly fantasy sports, has witnessed a surge in the Indian market primarily due to easy internet access and increase in digital usage. The number of fantasy sports operators increased seven-fold between 2016 and 2018, whereas the user base grew over 25 times between June 2016 and February 2019[1].  Investments upto USD 166 million (approx.) were made in fantasy sports operations during 2018 -2019.[2] While no valuation of the industry as a whole is readily available, Dream11, the largest fantasy sports operator in India was estimated to be valued at approximately USD 1-1.5 billion in April 2019.[3]

The growth of fantasy sports has raised questions on its legitimacy and legality in India. Fantasy sports are legally recognised in the United Kingdom, Spain, Italy, Canada, France and in most states in USA. In India, the High Courts of Punjab & Haryana, Rajasthan and Bombay have clarified that fantasy sports are games of “skill” rather than “chance” and, therefore, do not amount to gambling. These decisions have encouraged participation in such sports and led to its growth in India.
Continue Reading Supreme Court to have its say on legality of Fantasy Sports

The Pursuit of Enforcement – Can the Corporate Cloaks be Unravelled

Introduction

It is trite that a company is a separate legal entity, and is distinct from its members.[1] As Lord Sumption observed in Prest v Petrodel Resources Ltd.[2], “The separate personality and property of a company is sometimes described as a fiction, and in a sense it is. But the fiction is the whole foundation of English company and insolvency law.” Equally sacrosanct is the principle that arbitration proceeds on the basis of an agreement between parties. After all, “like consummated romance, arbitration rests on consent”.[3] However, practical considerations have led to the marginal dilution of these otherwise fundamental principles.

There are instances where a company and its members are not treated as separate legal entities (i.e. where the corporate ‘veil’ is pierced). Similarly, there are cases where arbitral proceedings enjoin non-signatories.[4] A unique amalgam of these exceptions is found in cases where an arbitral award is sought to be executed against an entity that was never a party to the arbitral proceedings. For example, in Cheran Properties Limited v. Kasturi and Sons Limited and Ors.[5] (“Cheran Properties”), applying the ‘group of companies’ doctrine expounded in Chloro Controls,[6] and analysing Section 35 of the Arbitration and Conciliation Act, 1996 (“Act”) to ascertain who “persons claiming under them” would be for the purpose of binding such persons to the arbitral award, the Supreme Court permitted enforcement of an arbitral award against a third party/non-signatory. In this post, however, our focus is on whether Indian courts have pierced the corporate veil to execute an arbitral award against a third party to the arbitral proceedings when such third party’s unique relationship with the award debtor has been exploited to fraudulently circumvent or frustrate execution of the arbitral award.
Continue Reading The Pursuit of Enforcement – Can the Corporate Cloaks be Unravelled?

Arbitrator Fees in India

The Law Commission of India, in its 246th report, noted that one of the problems associated with arbitration in India (especially ad hoc arbitrations) is the high quantum of fees charged by arbitrators.[1] The Report went so far as to call the fees “arbitrary, unilateral and disproportionate”. The Commission recommended the adoption of a model schedule of fees for Courts to consider while framing rules for fixing of the fees of arbitrators appointed in accordance with Section 11 of the Arbitration and Conciliation Act, 1996 (the Act). The Commission restricted its suggestions to ad hoc domestic arbitrations, noting that different standards may apply in institutional arbitrations and in international commercial arbitrations (where the Commission recommended greater deference to party autonomy).
Continue Reading Arbitrator Fees in India: In a Fix?