The appellant having its principal office in USA entered into an agreement with the first respondent for establishing a company (second respondent). Dispute 8 arose between them and the matter was referred to arbitration. An arbitration award was passed on 3rd April, 2006 whereby the appellant was required to transfer its entire shareholding in the second respondent to the first respondent. The first respondent filed a petition for enforcement of award before the U.S. District Court. On 28th April, 2006, the appellant filed a suit for declaration in the civil court to set aside the award and also prayed for a permanent injunction against the transfer of shares under the arbitral award. On 7th January, 2009, the chairman and founder of the first respondent confessed D that the balance sheets of the first respondent were fraudulently inflated. As a result, the auditors of the first respondent, declared that the financial statements could no longer be considered accurate or reliable. In the light of these developments, the appellant filed an interim application before the trial court to bring certain facts on record and also filed additional pleadings in respect of the same under Order 8 Rule 9, CPC. The trial court allowed the application of the appellant. The High Court allowed the revision petition filed by the first respondent and held that an application under Order 8 Rule 9, CPC for bringing additional pleadings on record was not maintainable. The. judgment of High Court was challenged by filing the instant appeal.
