Section 17 – Arbitration Act – Interim relief for FDR of claim amount
s 17 and 37 of Arbitration Act – Interim Relief for fixed deposit and disclosure
On 10.3.2021, there was Production Agreement between Innovative and Endemol to create, produce, edit, post-production and deliver episodes of cookery TV show “Masterchef”. Innovative is One Person Company.
There were outstanding dues of Rs.10.40 crores. However, the disputes of the said dues led to the arbitral proceedings.
By an interim order under Section 17 of the AA, the Arbitral Tribunal directed the Respondent – Innovative and shareholder Prasad to deposit the claimed sum of Rs.10.40 crores in fixed deposit in nationalized bank pending disposal of arbitration and to make various disclosures of all assets, all bank accounts, companies, IT returns, profit & loss account, etc.
HELD that the impugned order against Prasad to make deposit and disclosure of his ownership of any and every asset is unsustainable.
The Arbitral Tribunal has considered the liability arising out of four invoices, the relevance of confirmation letter and has taken care to balance the direction to deposit in fixed deposit. Therefore, no fault can be found with the impugned order directing the Company to make fixed deposit.
Judgment dated 3.7.2025 of the High Court of Bombay in Commercial Arbitration Petition (L) No.22714 of 2024 of Saravana Prasad Vs. Endemol India Pvt Ltd and another with connected matter
