from August 2010, was illegal and contrary to the IFS. The MKJ Group also sought an amount of INR 30,82,04,954/- being the amounts due from August 2010 till March 2011. The BLS Group filed an application under Section 8 of the Arbitration and Conciliation Act, 1996, seeking to dismiss the MKJ Suit as not maintainable in view of the arbitration agreement contained in Clause 27 of the IFS. The aforesaid Section 8 Application was initially dismissed by the Civil Judge by an Order dated 13.05.2011, which was subsequently reversed by the Hon’ble Bombay High Court by an Order dated 28.07.2011. In the meantime, and in view of MKJ Group continuously breaching the IFS, the BLS Group was constrained to invoke arbitration under Clause 27 of the IFS. On June 20, 2011, the BLS Group filed an application under Section 11 of the Arbitration Act, before the Hon’ble Bombay High Court, for appointment of an arbitrator. On 12.08.2011, the Hon’ble Bombay High Court appointed Justice V.C. Daga (Retd.) and the BLS Group filed its Statement of Claim before the Sole Arbitrator wherein it claimed a sum of IN 831.81 Crores (inclusive of interest till October 31, 2014) towards various claims including expenses, assumed returns, refunds of monies and TDS, term deposit returns, etc., arising due to the MKJ Group’s delay in completion of demerger of the Division.
