A. Background
Picture the following scenario:
a) A (a foreign company) enters into an agreement with B (an Indian company) for development of certain infrastructure.
b) A proceeds with the contract.
c) Disputes arise between the parties.
d) A initiates arbitration for recovery of monies against B. The seat of arbitration is in India.
e) Arbitration proceedings are on. A’s witnesses are to be cross examined.
f) B files a criminal complaint with the police, alleging offenses under the Indian Penal Code on the facts/issues to be determined in arbitration. First Information Report (FIR) is registered. Police calls A’s Directors for investigation. These Directors are foreign nationals.
g) A concerned Director seeks legal advise. He is told that (i) he could be arrested; (ii) that if arrested, he would need to apply for bail; (iii) if granted bail, he could be told to deposit his passport and/or will be prevented from leaving the country till the trial is concluded; and (iv) anticipatory bail, even if granted, could lead to the imposition of terms similar to (iii) above.
h) The Director decides to leave India.
i) The cross-examinations are derailed at least for the time being. The lawyers of A are now receiving instructions via conference calls at an important stage of the arbitration.
j) The Directors of A file quashing petitions before the concerned High Court. The High Court issues notice and then there is a long gap of several years before the matter is taken up and decided.
k) In the meantime, A decides it has had enough. It settles the dispute with B and the criminal proceedings are withdrawn.
The above scenario is not a self-created one. It was a reality. And this is not the only one.
B. You Get What You Want
هذه القصة مأخوذة من طبعة December 2019 من Legal Era.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة December 2019 من Legal Era.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
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