Interim Relief And Emergency Arbitration: Ebix Cash World Money Ltd v Ashok Kumar Goel & Ors*

A Division Bench of the Bombay High Court reaffirmed the significance and persuasive value of an emergency arbitration award by upholding the interim relief granted by a single Judge and reiterating that appellate courts should only interfere when such orders are arbitrary, perverse or capricious.

Background

Disputes arose under a Shareholders' Agreement (SHA) between Ebix and its shareholders, which led to an arbitration before the Singapore International Arbitration Centre (SIAC). A Partial Award was handed down upholding the termination of the SHA and directing Ebix to buy back shares based on a new valuation.

When Ebix refused to pay the enhanced call price, the shareholders sought emergency interim relief from SIAC. The Emergency Arbitrator ordered Ebix to furnish a bank guarantee of USD 16.74 million. Ebix failed to comply thus prompting the shareholders to file a petition under §9 of the Arbitration & Conciliation Act 1996 before the Bombay High Court