Madras HC upholds Singapore arbitration award against Shriram Group firm

Court permits enforcement of award of about Rs 195 crore plus interest

The Madras High Court on Thursday upheld an award passed by Singapore International Arbitration Centre (SIAC) against a listed Shriram Group Company, Shriram EPC (SEPC now), in favour of private equity firm Gaja Capital.

The court permitted enforcement of the arbitral award of about Rs 195 crore plus interest (over Rs 250 crore now) against the Shriram Group. The award was earlier upheld on appeal by the Singapore International Commercial Court.

Arbitration proceedings were initiated by Gaja against Shriram Group arising out of three share purchase agreements (SPAs) dated September 2015. Pursuant to the SPAs, the Shriram Group was required to purchase certain preference shares of Halida Coke and Chemicals held by Gaja in the manner set out in the SPAs. In view of an alleged failure of the Shriram Group to comply with their obligations, Gaja initiated arbitration proceedings before SIAC in December 2017, claiming damages against the Shriram Group.

An arbitral tribunal appointed by SIAC passed the final arbitral award dated January 7, 2021 in favour of Gaja. On April 6, 2021, the Shriram Group had filed an application before the High Court of Singapore for setting aside the arbitral award. On July 6, 2021, the Singapore High Court directed that the set-aside Application be transferred to the Singapore International Commercial Court.

The court dismissed in entirety the set-aside application filed by the Shriram Group challenging the arbitral award. Gaja, in February 2022, initiated proceedings for enforcement of the arbitral award before the Madras High Court against the Shriram Group.