{"id":217407,"date":"2008-11-19T00:00:00","date_gmt":"2008-11-18T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/jeby-jebin-k-j-vs-aruldas-on-19-november-2008"},"modified":"2018-08-21T17:18:25","modified_gmt":"2018-08-21T11:48:25","slug":"jeby-jebin-k-j-vs-aruldas-on-19-november-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/jeby-jebin-k-j-vs-aruldas-on-19-november-2008","title":{"rendered":"Jeby @ Jebin. K.J. vs Aruldas on 19 November, 2008"},"content":{"rendered":"<div class=\"docsource_main\">Kerala High Court<\/div>\n<div class=\"doc_title\">Jeby @ Jebin. K.J. vs Aruldas on 19 November, 2008<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nMACA.No. 737 of 2005()\n\n\n1. JEBY @ JEBIN. K.J., S\/O. JOY,\n                      ...  Petitioner\n\n                        Vs\n\n\n\n1. ARULDAS, RESIDING AT NANDILATH\n                       ...       Respondent\n\n2. SHAJI, S\/O. BHASKARAN, RESIDING AT\n\n3. THE ORIENTAL INSURANCE COMPANY,\n\n                For Petitioner  :SRI.V.CHITAMBARESH\n\n                For Respondent  :SRI.A.R.GEORGE\n\nThe Hon'ble SHRI K. Justice J.THOMAS STANLEY(RETD.ADDL.DIST.JUDGE)\n\n Dated :19\/11\/2008\n\n O R D E R\n          BARRISTER SRI.M.P.RAMACHANDRAN NAIR\n        (SENIOR ADVOCATE, HIGH COURT OF KERALA)\n                                 AND\n                    SRI.K.J.THOMAS STANLEY\n                     (RETD.DISTRICT JUDGE)\n       ================================\n                      M.A.C.A.No.737 of 2005\n        ===============================\n             Dated this the 19th day of November, 2008\n\n                               AWARD\n\n\n     This case was settled between the parties in the Adalat on\n\n29.09.2008 and is posted today for passing final Award. The\n\nfollowing final Award is passed:\n\n     The Insurance Company is directed to deposit an additional\n\ncompensation of Rs.25,000\/-(Rupees twenty five thousand only)\n\nbefore the Motor Accidents Claims Tribunal, Thrissur, for\n\npayment to the appellant within 60 days from the date of the\n\nAward. Non-payment of the amount within the stipulated period\n\nwill attract interest at the rate of 9% per annum.\n\n     The M.A.C.A is disposed of as settled between the parties.\n\n\n\n\n                                M.P.RAMACHANDRAN NAIR\n                  (SENIOR ADVOCATE, HIGH COURT OF KERALA)\n\n\n\n\n                                 K.J.THOMAS STANLEY\n                                (RETD.DISTRICT JUDGE)\n\ndvs\n\n\n? IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\n+Arb.A.No. 37 of 2008()\n\n\n#1. SRI.B.NARAYANA MURTHY,\n                      ...  Petitioner\n2. SRI.G.VENKATESWARA RAO, BEHIND\n3. SRI.G.S.RAMACHANDRA RAO, MIG 25\/668,\n4. M\/S.VIJAYA SHRIMP FARM EXPORTS LIMITED,\n\n                        Vs\n\n\n\n$1. THE MARINE PRODUCTS EXPORT DEVELOPMENT\n                       ...       Respondent\n\n!                For Petitioner  :SRI.A.V.THOMAS\n\n^                For Respondent  : No Appearance\n\n*Coram\n The Hon'ble MR. Justice J.B.KOSHY\n The Hon'ble MR. Justice K.P.BALACHANDRAN\n\n% Dated :29\/10\/2008\n\n: O R D E R\n<\/pre>\n<p>                J.B.KOSHY &amp; K.P.BALACHANDRAN, JJ.\n<\/p>\n<p>                        &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8211;<br \/>\n                           Arb.A.No.37 of 2008\n<\/p>\n<p>                        &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-\n<\/p>\n<p>                        Dated 29th October, 2008<\/p>\n<p>                                 JUDGMENT<\/p>\n<p>Koshy,J.\n<\/p>\n<p>           The appellants herein approached the court below for setting<\/p>\n<p>aside the arbitration award passed against them under section 34 of the<\/p>\n<p>Arbitration and Conciliation Act, 1996. The respondent is a statutory<\/p>\n<p>authority incorporated for development of marine product industry under<\/p>\n<p>the control of the Union of India. As a part of its functions, it formulated<\/p>\n<p>a scheme to render promotional support and financial assistance for the<\/p>\n<p>establishment of project for seafood processing etc. At the request of<\/p>\n<p>the appellants, the respondent agreed to subscribe equity shares of the<\/p>\n<p>fourth appellant company. Appellants 1 to 3 are its promoters. The<\/p>\n<p>financial agreement is dated 25.10.1993. As per the agreement, the<\/p>\n<p>Marine Products Export Development Authority was allotted with<\/p>\n<p>2,50,000 equity shares of Rs.10\/= each and paid share value of<\/p>\n<p>Rs.25,00,000\/=.    Appellants were bound to buy the said shares upon<\/p>\n<p>expiry of five years from the date of commencement of commercial<\/p>\n<p>production by the company for the price to be calculated in the manner<\/p>\n<p>provided in the agreement. The company started commercial production<\/p>\n<p>on 1.10.1994. The appellants failed to purchase the shares as per the<\/p>\n<p><span class=\"hidden_text\">Arb.A.37\/2008                     2<\/span><\/p>\n<p>agreement inspite of repeated letters and reminders. On 9.12.1999<\/p>\n<p>the appellants expressed their inability to buy back the shares at that<\/p>\n<p>time. The reason stated is that because of various loss, supreme court<\/p>\n<p>orders on environmental protection, financial difficulties etc., they<\/p>\n<p>were running on a huge loss. Subsequently, the industry was also<\/p>\n<p>closed. They were unable to function the factory with profit and the<\/p>\n<p>factory was ultimately closed. But, the Arbitrator held that as per the<\/p>\n<p>agreement, they were bound to buy back the shares on the terms of<\/p>\n<p>the agreement and award was passed strictly in terms of the<\/p>\n<p>agreement. The award was challenged before the District Court. The<\/p>\n<p>District court found that no grounds are made out to set aside the<\/p>\n<p>award. The award of the Arbitrator cannot be set aside on mere<\/p>\n<p>asking unless specific grounds mentioned under the Act are<\/p>\n<p>established. It is true that there was financial difficulties, but, the<\/p>\n<p>amount taken as advance has to be repaid and in any event, no<\/p>\n<p>grounds are made out for interfering in the said award. Therefore, we<\/p>\n<p>refuse to set aside the award passed or the well reasoned order of the<\/p>\n<p>District Court.   We make it clear that this will not preclude the<\/p>\n<p>appellants from applying to the statutory authorities to grant them<\/p>\n<p>time or some indulgence regarding payment of the amount. It is also<\/p>\n<p>prayed by the counsel for the appellants that assets of the company<\/p>\n<p>should be proceeded first as substantial amount can be realised from<\/p>\n<p><span class=\"hidden_text\">Arb.A.37\/2008                       3<\/span><\/p>\n<p>the assets. In fact, the respondent authority wants the money back.<\/p>\n<p>It is for the respondent to proceed against the assets of the company<\/p>\n<p>first and if it is not realised only steps need be taken for personal<\/p>\n<p>execution unless unnecessary obstructions are created by the<\/p>\n<p>appellants in proceeding against the company assets.<\/p>\n<p>            The appeal is dismissed.\n<\/p>\n<\/p>\n<p>                                                  J.B.KOSHY<br \/>\n                                                     JUDGE<\/p>\n<p>                                             K.P.BALACHANDRAN<br \/>\n                                                    JUDGE<\/p>\n<p>tks<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kerala High Court Jeby @ Jebin. K.J. vs Aruldas on 19 November, 2008 IN THE HIGH COURT OF KERALA AT ERNAKULAM MACA.No. 737 of 2005() 1. JEBY @ JEBIN. K.J., S\/O. JOY, &#8230; Petitioner Vs 1. ARULDAS, RESIDING AT NANDILATH &#8230; Respondent 2. SHAJI, S\/O. BHASKARAN, RESIDING AT 3. THE ORIENTAL INSURANCE COMPANY, For Petitioner [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,21],"tags":[],"class_list":["post-217407","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Jeby @ Jebin. 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