Cases against anril & bgtl

CASES AGAINST ANRIL & BGTL

1. 
   On 14.08.2008,a coal sale- purchase cum master Agreement was executed between Vitol S.A. as seller and Asian Natural Resources (India) Limited (earlier known as ANRI) as purchase to purchase 1 Million Ton of South African Coal in each quarter of 2009 ;
   

a total of 4 Million Ton between January and December 2009 at a floating prince. By

clause-6, ANRL had an option to convert the floating price for any specified feature Cargo price into a fixed price and by the third paragraph it also had option to require Vitol to buy back the coal in respect of which the price had not been fixed. Between April 2008 and January 2009 ANRL exercised its option under clause 6 and fixed the price of more than half the tonnage due for delivery in 2009. It also exercise its option to require Vitol to buy back 1.1m Tonnes of floating price Cargo which Vitol duly exercised. ANRL demanded payment of its dues accrued under buy back option, from Vitol. In view of Vitol’s failure to pay buyback sum, ANRI exercised its rights to terminate the master agreement on the ground of repudiatory breach by Vitol. This led to dispute and hence Arbitration proceedings were commenced at London, at the instance of ANRI in which ANRI claimed for the reliefs i.e. ordering Vitol to ANRI a sum US$ 9,002,500 in respect of sums due and payable by Vitol to ANRI with interest, declaring that the Master Agreement was validly terminated with costs.

The Vitol filed a counter claim, claiming damages.

The Arbitral Tribunal after giving credit to the ANRI for an amount of US$9,002,500

4 Sep.2008 buy back, held that ,a net amount of US$68,435,250 is due from the ANRL to Vitol, accordingly the tribunal passed the award.

On 17.01.2011 Final Award was passed, awarding to Vitol a net amount of US$ 68,435,250 along with compound interest with cost. ANRI was given credit for an amount of US$ 9,002,500 for the month of January ,February

and March 2009 washout sums and US$ 15,462,500 for September 2008 buy back.

Thereafter, ANRL filed objection U/s. 48 of Arb. Act, in Execution case no. 240/2011. The objection of ANRL were dismissed by the Bombay High Court vide order dtd. 15.09.2014 and it was held that the said award in favour of the Vitol S.A. is executable against the ANRL.

Against the said order an Special leave petition being SLP(civil) No.813/2015 is filed before Hon’ble Supreme Court which is pending adjudication

Vitol, in the execution proceeding before the Hon’ble Bombay High Court, moved various chamber summons for issuance of precept for attaching the material belonging to the Bhatia Global Trading Limited (BGTL) .After finally hearing the parties by orders dated 05.10.2015 the Hon’ble Single Judge of the Bombay High Court held that material belonging to the other group Companies of Bhatia Group can also be attached in execution of the foreign award and hence issued and also extended the precept.The Hon’ble Single Judge of Bombay High Court went on lifting the corporate Veil of the Companies and held that ANRIL, BGTL are one entity

That being aggrieved by the said orders the Companies viz., BGTL filed appeal being No.797/2015 before the division beach of the Hon’ble High Court of Bombay .

That, on 29.09.2016 the Hon’ble High Court of Bombay decided the Appeal No.797/2015 of BGTL and held that finding of the Hon’ble Single Judge are correct and that it was justified in lifting the corporate veil between the Companies. It also held that the BGTL has all the rights to raise objections under Order 21 Rule 58 of CPC before the learned court to which the decree is transferred for execution.

Hence, We have an open question of law regarding lifting of corporate veil and attachement of properties of group companies in execution of award which still needs to be adjudicated

2 Vitol has filed transfer decree in Indore Court bearing case no.05/2015 for recovery of award amount .Similarly the transfer decree was also filed in Rajkot District Court which now has been transferred to Gujarat High Court bearing Arb. Petition 19/2017.

Vitol has also application against ANRIL for Garnishee order before High Court of Delhi no.58/2015 &Jabalpur High Court EX. ARB/05/00/273/2015.

3. Bank of Baroda has filed Original application against BGTL bearing OA608/2016 before DRT Jabalpur .

4.AXIS Bank & OBC has also filed Original Application against before DRT Jabalpur but so far the copies of the same has not been served.

5. Bank of Baroda has filed Original Application against BGTL bearing OA 608/2016 before DRT Jabalpur