Delhi High Court on the award debtor has raised a preliminary issue as to the jurisdiction of this Court to entertain the enforcement proceedings
Delhi High Court on the award debtor has raised a preliminary issue as to the jurisdiction of this Court to entertain the enforcement proceedings.
Title : TAQA INDIA POWER VENTURES PRIVATE LIMITED & ANR v. NCC INFRASTRUCTURE HOLDINGS LIMITED
Case No. : O.M.P.(EFA)(COMM.) 1/2018
Decided on : 09.11.2023
CORAM : HON’BLE MR. JUSTICE PRATEEK JALAN
Introduction
The present enforcement proceedings have been filed for enforcement of a foreign award dated 24.01.2018, rendered by a three-member Arbitral Tribunal in an arbitration arising out of a Securities Purchase Agreement dated 19.09.2012 [“the SPA”]. The arbitration was held under the aegis of the Singapore International Arbitration Centre and the seat of the arbitration was in Singapore
Fact of the Case
The award debtor has raised a preliminary issue as to the jurisdiction of this Court to entertain the enforcement proceedings. Learned counsel for the parties have been heard on this issue, and this judgment will dispose of the preliminary objections, as well as four applications which turn only on this issue (I.As. 5648-50/2018 and I.A. 5652/2018).
The primary contention of the award debtor on the question of jurisdiction is that the award debtor is neither resident, nor does it possess assets within the jurisdiction of this Court, so as to attract the enforcement jurisdiction of this Court.
Case Analysis and Judgment
For the aforesaid reasons, the view that HGEPL’s debt remains an asset in the hands of its creditor – in the present case, the award debtor – and can legitimately form the basis of jurisdiction in enforcement proceedings against the award debtor. Whether the award holder is ultimately able to realise its dues through the aforesaid asset is a question which would arise subsequently but cannot inform the Court’s decision on jurisdiction. Consequently, this Court has jurisdiction to entertain the enforcement proceedings and determine the award debtor’s objections on merits.
The preliminary objection of the award debtor is, therefore, rejected and I.As. 5648-50/2018 and I.A. 5652/2018 stand dismissed.
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Written by Nimisha Sunny