Section 9 -Arbitration Act – Court has wide powers to grant wide range of interim measures
The Respondent Manmohan invested USD 1 Million in Kapani Resorts. The appellants utilized the said funds to repay their debt of SIDBI and to release their property.
Manmohan was not allotted shares for his investment.
There is prima facie clear misappropriation of the funds as the share application money should not be used for anything other than adjustment against share capital.
HELD that the learned Single Judge was justified in granting interim measures of protection that until completion of the arbitration proceedings to the respondents jointly and severally deposit amount equivalent to USD 1 million with 12% interest in the High Court, they are prohibited from directly or indirectly selling or alienating or creating third party interest over any and every property of Kapani resorts; respondent nos.2 and 3 are prohibited from alienating Greater Kailash property.
Judgment dated 25.4.2025 of the Division Bench of the High Court of Bombay in Arbitration Appeal [L] No.9542 of 2025 (OS) of Kapani Resorts Private Limited and others Vs. Manmohan Kapani.
