MANKASTU IMPEX PRIVATE LIMITED Vs. AIRVISUAL LIMITED
LAWS(SC)-2020-3-38
SUPREME COURT OF INDIA
Decided on March 05,2020

Mankastu Impex Private Limited Appellant
VERSUS
Airvisual Limited Respondents







JUDGEMENT

R.BANUMATHI,J. - (1.)This petition has been filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 read with Arbitration and Conciliation (Amendment) Act, 2015 read with the Appointment of Arbitrator by the Chief Justice of India Scheme, 1996 seeking appointment of a sole arbitrator under Clause 17.2 of the Memorandum of Understanding dated 12.09.2016 between petitioner-Company incorporated in India and respondent- incorporated under the laws of Hong Kong.
(2.)Brief facts of the case relevant for the purposes of this petition are as under:-
The petitioner-company incorporated in India conducts business under the brand name "Atlanta Healthcare" and is in the business of air quality management and supply of air purifiers, car purifiers, anti-pollution masks and air quality monitors. The respondent is a company incorporated under the laws of Hong Kong and is in the business of manufacture and sale of air quality monitors as well as air quality information. A Memorandum of Understanding (MoU) dated 12.09.2016 was entered into between the parties under which the respondent agreed to sell to the petitioner the complete line of the respondent's air quality monitors products for onward sale. As per the terms of the agreement, the petitioner was appointed as an exclusive distributor for the products for sale within India. Additionally, non-exclusive rights were given to the petitioner qua distribution for sales in Sri Lanka, Bangladesh and Nepal. This agreement was to continue for a period of five years from the starting date, which date was to commence from the date of delivery of the first lot of Air Quality monitors in India, i.e. 03.10.2016 or 01.11.2016, whichever was later. As per the petitioner, it has spent approximately Rs.17,00,000/- in promoting and creating a brand value for the products in India. Further the petitioner spent Rs.9,00,000/- towards promoting the products at over fifteen business events such as Indo-German Natural Health Fair, India International Trade Fair, etc.

(3.)On 14.10.2017, the petitioner received an e-mail from one Mr. Charl Cater of IQAir AG (Proposed respondent No.2) informing the petitioner that the respondent is a part of IQAir AG. Attached to the e-mail was a letter dated 13.10.2017 by the CEO of IQAir AG stating that IQAir AG has acquired all technology and the associated assets of the respondent. Further, the product of AirVisual Node has been discontinued and the IQAir AG is in the process of relaunching a new and improved version which will be rebranded as IQAir AirVisual Pro. The letter also stated that IQAir AG will not assume any contracts or legal obligations of the respondent and will work on a case to case basis with resellers to negotiate new contracts and that the IQAir AirVisual products will be made available under separate dealer agreements.
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