MODI RUBBER LTD Vs. GUARDIAN INTERNATIONAL CORP
HIGH COURT OF DELHI
MODI RUBBER LTD.
GUARDIAN INTERNATIONAL CORP.
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GITA MITTAL, J. -
(1.) This petition raises two very interesting questions which are required to be answered. The first question raised is whether a party can seek interim relief on the ground that the other side has raised a dispute before the Arbitral Tribunal. The second question which has been raised by the respondent is to the effect that on account of sickness of its partner in a joint venture under the Sick Industrial Companies (Special Provisions) Act, the underlying shareholders agreement between the parties is rendered frustrated and incapable of implementation. Consequently, the petitioner cannot base a petition for prohibitory relief based on a clause in this agreement which prohibited the parties thereto from undertaking any business similar to that of the joint venture during its currency.
(2.) So far as the basic facts are concerned, there is no material dispute and to the extent necessary, they are noticed hereinafter. The petitioner M/s Modi Rubber Ltd., (hereinafter referred to as 'MRL' for brevity) entered into a Memorandum of Understanding ('MOU') dated 1st July, 1988 with M/s Guardian International Corporation arrayed as respondent before this court, (hereinafter referred to as 'Guardian').
(3.) Guardian is stated to be a leader in manufacturing float glass and the agreement between the parties states that it has acquired unique and valuable engineering skills and expertise for designing, constructing and operating plants for the manufacture of float glass by the float process. The agreement between the parties also notices that the MRL is a renowned industrial establishment of India with extensive expertise in the manufacturing and marketing of high quality industrial products in India and other countries.;
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