Real estate developer Unitech today told Company Law Board (CLB) that its dispute with Norwegian firm Telenor over their joint venture Uninor was fit case for arbitration.
Unitech counsels during argument told CLB that Telenor, which holds majority stake in Uninor, had invoked arbitration under Share Subscription Agreement to seek damages and indemnity, but was rescinding Share Holders Agreement.
"They [Telenor] for indemnity clause have invoked Arbitration under SSA [Share Subscription Agreement]... But they are rescinding SHA [Share Holders Agreement]. These two agreements are completely intervened and they can not accept one and rescind other," Unitech Counsel said.
Telenor which holds about 67.25% stake in Uninor has held Unitech responsible for the breach of warranties related to the cancellation of JV firm licences by Supreme Court and wants to the realty from Uninor after the verdict. It has served notice to Unitech for indemnity claim.
Unitech Counsel said that notice served for indemnity claim by Telenor to the company accusing it of fraud and misrepresentation has frequently referred to SHA.
Unitech has approached CLB seeking status quo in Uninor, and not allowing transfer of its assets to any other company without its consent, and moved a petition in the CLB under provisions of 'Arbitration and Conciliation Act' seeking arbitration on the ongoing dispute with Telenor.
Unitech's move to seek arbitration has been opposed by Telenor and Uninor. Telenor Counsel in CLB has earlier argued that Unitech has no right to seek arbitration as they have filed petition before the CLB.
Citing various judgements and court cases, Telenor counsel has said once plaintiff files a suit, it has no right to refer the case for arbitration.
Unitech counsel today contested some of the judgements that were cited by Telenor and said that the situation in cases cited by Norwegian firm are not similar to that of ongoing case between Unitech and Telenor at CLB.
The counsel further argued that the arbitration application made by Unitech is indication that company has willingness to seek arbitration and depends on the decision of court.
He added that arbitration has been invoked after filing of petition and before filing petition before CLB by both the parties.
Unitech argument could not be concluded today and the hearing will resume tomorrow at CLB.
