- (1.) This special leave petition seeks to challenge the judgment and order dated 13th July, 2012 passed by the learned Single Judge of the Delhi High Court in Execution Petition No. 372 of 2010.
(2.) The short facts leading to this petition are this wise: The Respondent herein and Escorts Agri Machinery Inc., ("Escorts AMI") which was a subsidiary of the Petitioner, were holding following percentage of shares in another company, by name, Beever Creek Holdings ("BCH"). The Respondent held 49% of shares and Escorts AMI held 51%. There was an agreement between the two parties whereby the Respondent sold its shareholding in BCH for a price of Rs. 1.2 Million Dollars which was to be paid in four installments. The Escorts AMI paid the first two installments but defaulted in the payment of the other two. This led to a suit being filed by the Respondent in the Wake Country Superior Court in the State of North Carolina, USA. A consent order was passed therein on 19th June, 2009, wherein both the parties agreed to refer the matter to arbitration. The arbitration was followed by an award in favour of the Respondent herein. The Respondent sought the execution of that award by filing the aforesaid execution petition in India, since the Escorts AMI has subsequently merged with the Petitioner herein. The execution was objected to by the Petitioner, and those objections have been rejected by the impugned order. Therefore, this special leave petition has been preferred by Escorts Limited.
(3.) The main submission of Mr. Parag Tripathi, learned senior counsel appearing for the Petitioner is that under the terms of agreement, it was necessary for the Respondent to go for confirmation of the award in the concerned Court in United States. He relied upon paragraphs 2 and 8 of the consent order dated 19th June, 2009. These two paragraphs read as under: 2. The case will be stayed from the date and time of entry of this Order until completion of arbitration between Plaintiff and EAMI. Upon the issuance of a decision by the arbitrators, this Court may confirm and enter judgment upon such decision in accordance with the Federal Arbitration Act and may conduct such further proceedings as are necessary to resolve Plaintiff's claims against Escorts Limited. 8. The Plaintiff agree that entry of this order resolves Defendants motion to dismiss. The Court shall retain jurisdiction for the purposes of entering an order confirming the arbitration decision pursuant to the Federal Arbitration Act.;