Lucent Technologies Arbi DelHC

8/13/2019 Lucent Technologies Arbi DelHC

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IN THE HIGH COURT OF DELHI

IA Nos. 2758 and 3134/2005 and 5838/2006 in CS(OS) No. 386/2005

Decided On: 13.10.2009

Ae!!an"s: Lucent Technologies Inc.Vs.

#esonden": ICICI Bank Limite an O!s.

Hon"#le $uges%$i"a %i""a!& '.

Counsels%o Ae!!an"/*e"i"ione/!ain"i++: A,n 'ai"!e-& #ai Na--a& S. Ads.& Daan ada and#aa" Se"i& Ads

o #esonden"s/De+endan": #aes Diedi& S. Ad. and Nandini $idane-& Ad. +oDe+endan" No. 1 and Sandee Se"i& S. Ad. and S,aoni, *asad& Ad. +o De+endan"

Nos. 2 "o 6

&cts'Rules'O!e!s%Indian e!ea Ac"& 1885 Sec"ion 4 Ai"a"ion and Conci!ia"ion Ac"& 1996 Sec"ions 2& 4&5& 7& 7(3)& 8& 8(1)& 8(2)& 8(3)& 9& 11& 13(4)& 14(2)& 16& 16(2)& 16(3)& 16(5)& 21& 27& 34& 37&37(2)& 44 and 45 #ecoe- o+ De"s d,e "o ans and inancia! Ins"i","ions Ac"& 1993 Sec"ions 17& 18& 19& 19(7)& 19(22)& 31& 34 and 34(2) Indian Con"ac" Ac"& 1872 Sec"ions28& 126& 127& 128 and 230 Cii! *oced,e Code (C*C) (Aenden") Ac"& 1999 Ai"a"ionAc"& 1940 Sec"ions 24& 34 and 34(2) ;ii"a"ion Ac" Co.(S,a Co.) . an!ades S,a Ind,s"ies ;ii"ed 1986 (1) ;!o-d?s #e. 378 Dae andSc,!! = . De D,"" *andi" (1999)7 SCC 339 Sa!e %. Adoca"e a Associa"ion& N . Fnion o+ India (2003) 1 SCC 49i!!in"on Associa"es ;"d. . =ii" %ea AI# 2000 SC 1379 . $oa! Das . =o"a S"aoad AI# 1971 #aas"an 258 oo!+ . Co!!is #eoa! Seice G1947H 2 A!!


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2002 SC 404 : (2002) 1 SCC 2003 CDC inancia! Seices (%a,i"i,s) . *; Co,nica"ion;"d. and Os. (2003) 12 SCC 140 =isna in+o!d *". ;"d. . Si"aa CS(OS) No. 30/2005*a, #ice %i!!s . *,na S"a"e Cooea"ie S,!- > %ae"in edea"ion AI# 2004 *>@276 Fni"ed India Ins,ance Co. . S,ndaa inance ;"d. 2003 A.;.#. 470 $adeninance ;"d. . *aas Ind,s"ies ;"d. AI# 2002 o. 8 S,an-a @o!dins *". ;"d. .'a-es @. *and-a and An. (2003) 5 SCC 531 Asa- =a, and Os. . #isa =ao andOs. 105 (2003) D; 467 *. Anand $aaa"i #a, and Os. . *..$. #a, (died) and Os.G2000H 2 SC# 684 a"i e!een",es ;"d. . DSS Associa"es and An. . ides Sanca Nia ;ii"ed and Os.2004 (2) A. ;.#. 614 *an Na" *anan . S"a"e o+ 'a, > =asi AI# 1972 ' > = 11S,dasan Coa and Os. . Coan- ;a oad and Os. 2004(2) A. ;.#. 241 (*>@)$!oa! %ae"in Diec" ;ii"ed . $; ;ii"ed and An. 2004(3) A. ;.#. 56 oodCooa"ion o+ India and An. . Eada


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ins"on . %edia+ae Co. . Deec"o %en"ioned

Desse #and S.A. . inda! Ao Ce ;ii"ed %en"ionedS"a"e o+ ' > = . De D,"" *andi" Disc,ssedSa!e %. Adoca"e a Associa"ion& N . Fnion o+ India Disc,ssedi!!in"on Associa"es ;"d. . =ii" %ea Disc,ssed. $oa! Das . =o"a S"a oad %en"ionedoo!+ . Co!!is #eoa! Seice %en"ioned*i""a!is . See+e"in %en"ioned%essiniai een case %en"ioneda"ia C,"!e @ae ;"d. . AN ,es ;"d. %en"ionedaon . S,nde!and Cooa"ion A!!


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Cen"a!


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3.2 S,ec" "o "e aeeen" on a ,",a!!- acce"a!e "e see" and "e condi"ionseceden" con"ained "eein& i+ e,ied& ;; "o, "ei sonsos i!! oide a cedi"enanceen" s,o" "o s",c",e and e++ec" "e de" +o "e oec".

5. *,s,an" "o "e aoe& "e de+endan" No. 2 eein and ;,cen" @ind,s"an ecno!oies *".;"d. en"eed in"o +o, con"ac"s on 14" Decee& 1999. ese e!a"ed "o s,!- +oindieno,s e,ien" s,!- +o io"ed e,ien" a seices con"ac" and an o,"side!an" cons",c"ion con"ac" (eeina+"e e+eed "o as ?s,!- con"ac"). ese con"ac"scon"ained sii!a "es and condi"ions.

6. So +a as "e ,es"ions aised e+oe "is co," ae concened& one s,c s,!- con"ac"a- e consideed as a "-ica! con"ac". I" is c!ea!- indica"ed "a" "e con"ac" as eenen"eed in"o and eec,"ed e"een %/s S-a e!e!in ;ii"ed (de+endan" No. 2 eeine+eed "o as ?e!e!in?) and %/s a"a ;,cen" ecno!oies ;ii"ed (e+eed "o as "eJs,!ieJ).

7. C!a,se 4.1 o+ "is s,!- con"ac" s"i,!a"es "a" "e s,!ie a!on i" +inancia!ins"i","ions and ans sa!! e! "e de+endan" No. 2 "o s",c",e and e++ec" a "o"a! +inancinso!,"ion +o "e oec"& and "a" "e s,!ie "o, "ei sonsos o,!d oide a cedi"enanceen" s,o" "o s",c",e and e++ec" "e de" +o "e oec".

8. C!a,se 7.1 descied ?;,cen"J "o ean ?;,cen" ecno!oies In"ena"iona! Inc?& a coan-incooa"ed ,nde "e !as o+ "e S"a"e o+ De!aae. I" as a!so c!ai+ied "a" ;,cen" is ana++i!ia"e o+ "e s,!ie.

9. In C!a,se 5.6& i" as eesen"ed "o "e de+endan" No. 2 "a" ;,cen" ad aeed "o oide+,!! s,o" and ac , "o "e s,!ie "o ena!e "e s,!ie "o +,!+i! i"s o!ia"ions ,nde"is con"ac" and "a" "e s,!ie o,!d oide "o "e de+endan" No. 2 s,cdoc,en"a"ion/con+ia"ion +o ;,cen" as a- e easona!- e,ied.

10. e de+endan"s s,i" "a" "e condi"ions +o con"ac" +inancin aeed "o ,nde "e!e""e o+ in"en" da"ed 30" A,,s"& 1999 ee +,ndaen"a! "o "e +o, con"ac"s en"eed in"oe"een "e a"ies.

e s,ission is "a" +o "is eason& ,nde C!a,se 5 o+ "e s,!- con"ac"s& ;,cen"@ind,s"an ecno!oies *". ;"d. es"ic"ed "e ,casin o"ions - "e de+endan" No. 2+o o"e s,!ies in !ie, o+ "e on,s "aen - ;,cen" +o oidin a co!e"e +inancia!so!,"ion.

11. I" is e"inen" "o no"e& "a" a"a ;,cen" ecno!oies ;"d.& no ;,cen" @ind,s"anecno!oies *". ;"d.& as no" een i!eaded as a a"-/de+endan" "o "e esen" s,i".

12. e o"e aeeen" ic e,ies "o e consideed is da"ed 5" Oc"oe& 2001 and is"i"!ed as a Jaan" Aeeen"J en"eed in"o e"een %/s S-a e!eco ;ii"ed %/sS-a In"ena"iona! *ia"e ;ii"ed %/s S-a e!e!in *ia"e ;ii"ed and esons o aenaed and ci"ed as "e Joo"esJ co!!ec"ie!- e+eed "o as "e KS-a $o,?& as a"ies

o+ "e +is" a" and %/s ;,cen" ecno!oies @ind,s"an *ia"e ;ii"ed as "e a"ies o+ "esecond a".

13. is aeeen" as en"eed in"o in "es o+ C!a,se 4 o+ "e a+oeno"iced con"ac"s.

14. e de+endan" No. 2 aeas "o ae aoaced "e ICICI an +o +inancia! +aci!i"-.

15. - "e !e""e da"ed 13" Se"ee& 2000& addessed - "e ICICI an "o %/s S-ae!e!in ;ii"edde+endan" No. 2 and coied "o "e !ain"i++ eein& "e ICICI ;ii"ed cone-ed"a" i" as Jaeea!e in inci!eJ "o ac" as an ec!,sie oide/,ndei"e o+ "e de"e,ieen" o+ #s. 4840.0 i!!ion +o "e asic "e!eon- oec"& - a- o+ ,ee !oans&deen",es& !ease& onds o an- o"e ins",en"J. I" as s"a"ed "a" "is +inancia! +aci!i"-as s,ec" "o "e secia! "es and condi"ions se" o," in "e enc!osed "e see" and ase

case ,siness !an.


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So +a as "e enc!osed "e see" as concened& "e ICICI ;ii"ed s"a"ed "a" "e sae asee!- Jindica"ieJ and o,!d e +ina!iBed a+"e "e co!e"ion o+ d,e di!ience and a" "e"ie o+ doc,en" +ina!iBa"ion. e ICICI ;ii"ed e"ained "e i" "o seci+- s,c o"e "esand condi"ions as a- e e,ied a" "e "ie o+ de+ini"ie doc,en"a"ion.

e ICICI ;ii"ed a!so c!ea!- indica"ed "a" i"s coi"en" and aeeen" "o oide "eseices descied "eein& ee s,ec" "o "e aeeen" in "e ecedin aaa and "esa"is+ac"ion o+ eac o+ "e condi"ions eceden"& en"ioned in "e a""aced "e see"& in aanne acce"a!e "o i".

16. e !e""e "a" i"s con"en"s as e!! as "ose o+ "e "e see" and an- o"e in+oa"ion inconnec"ion "eei" o an- "ansac"ion con"e!a"ed o,!d e consideed con+iden"ia! and"a" anin+oa"ion ien - o on ea!+ o+ "e ICICI o S; o ;,cen" ecno!oies Inco,!d no" e disc!osed "o an- "id a"ies i"o," "e eess i""en aoa! o+ "e a"iesoidin "e in+oa"ion. ee as a!so a oii"ion on assinen" o+ "e !e""e and i" is,ed "a" "e sae as in"ended so!e!- +o "e ene+i" o+ "e a"ies "ee"o. e "es o+"e !e""e e,ied "e !ain"i++ "o co,nica"e i"s acce"ance o+ "e "es and condi"ions se"o," in "e !e""e i"in 30 da-s +o "e ecei" "eeo+.

e de+endan"s a!so !ace e!iance on "e s"i,!a"ions ade - "e ICICI ande+endan" No.1 eein& in "e "e see" enc!osed i" "e !e""e da"ed 13" Se"ee& 2000. isdoc,en" as "o e consideed in i"s en"ie"- and an- sin!e "e canno" e ead in iso!a"ion.

17. I" is no"eo"-& "a" "e "e see" enc!osed i" "e ICICI !e""e da"ed 13"Se"ee& 2000 oosed a "i"!e $oenin ;a and ',isdic"ion in "e +inancin aeeen"&s"i,!a"in "a" i" o,!d e oened - Indian !a i!e co,"s a" De!i o,!d ae

,isdic"ion in esec" o+ a!! a""es e!a"in "ee"o. ICICI eseed a ,ni!a"ea! i" "oaoac an- o"e a!"ena"e dis,"e eso!,"ion +o, i" i"s en,e a" De!i and a!! o"ea"ies ee e,ied "o s,i" "o s,c +o,.

18. On 27" Se"ee& 2000& "e !ain"i++ o"e a !e""e "o de+endan" No. 1 s"a"in "a" i"o,!d iss,e "e oosed ,aan"ee and acce"ed "e "es and condi"ions se" o," in "e"e see" ee- ;,cen" o,!d oide ,aan"ee ,"o 65L o+ "e +aci!i"- s,ec" "o "ese""!een" o+ "e s,a- o+ "es and condi"ions o+ "e "e see" and neo"ia"ion o+sa"is+ac"o- doc,en"a"ion.

19. In "e ean"ie& i!e neo"ia"ions ee oin on +o "e #s. 484 coe +inancin +aci!i"-&on 27" Se"ee& 2000 "e ICICI and "e S; (de+endan" Nos. 1 > 2) en"eed in"o anin"ei ide !oan aeeen" +o an ao,n" o+ #s. 50 coes. e !ain"i++ as no" a a"- "o"is aeeen". is !oan o+ #s. 50 coes as sec,ed - S; - a n,e o+ sec,i"ies s,cas deosi" o+ "i"!e deeds& o"aes - i"s diec"o e"c.

20. On "e sae da"e& a" "e e,es" o+ S;& "e !ain"i++ oided a !e""e o+ co+o" da"ed27" Se"ee& 2000 "o "e de+endan" No. 1 ICICI ;"d. con+iin "e acce"ance o+ "e"es and condi"ions o+ "e "e see" and& s,ec" "o sa"is+ac"o- eso!,"ion o+ ,aan"ee"es and "e ,aan"ee s",c",e and ,aan"ee e!ease ecanis& coi""ed iss,ance o+an ,ncondi"iona! and ieoca!e ,aan"ee as oided in "e "e see". In "is !e""e& "e!ain"i++ a!so acce"ed "a" "e de+endan" No. 1 as en"ein in"o an in"ei ide !oan+inancin aeeen" i" "e de+endan" No. 2 ei""in "e "o aai! cedi" "o "e ai,e"en" o+ #s. 500 i!!ion aains" sec,i"- en"ioned in "e ide !oan aeeen". @oee&"e !ain"i++ c!ea!- s"a"ed "a" "e con+ia"ion on "e s,ec" "o sa"is+ac"o- neo"ia"ion andeso!,"ion o+ "e "es o+ "e +inancin aeeen"s and sec,i"- doc,en"s as en"ioned in"e "e see" and "e !ain"i++ o,!d oceed "o "e eec,"ion o+ "e ,aan"ee and o"edoc,en" as o,!d e e,ied.

21. Aain a" "e e,es" o+ S;& on 30" Noee& 2000 !ain"i++ o"e a +,"e !e""e o+co+o" "o de+endan" No. 1 s"a"in "ei acce"ance "o ICICI en"ein in"o a ide !oan+inancin aeeen" i" S; s,ec" "o sa"is+ac"o- neo"ia"ion and eso!,"ion o+ "e+inancin "es o+ "e aeeen"& "e sec,i"- doc,en"s& "e ,aan"ee "es& "e,aan"ee s",c",e and "e ,aan"ee e!ease ecanis as oided in "e "e see". I"

as +,"e s"a"ed "a" "e !ain"i++ o,!d oceed i" "e eec,"ion o+ "e ,aan"ee ando"e doc,en"s as e,ied +o co!e"in "e con"e!a"ed "ansac"ion on "e "esaeed ,on.


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22. ased on s,c !e""e o+ co+o" ien - "e !ain"i++ da"ed 30" Noee& 2000& "eICICI en"eed in"o a second in"ei ide !oan +inancin aeeen" i" "e de+endan" No. 2+o cedi" ,"o addi"iona! #s. 50 coes on 12" Decee& 2000.

23. e a"ies con"in,ed "ei neo"ia"ions and disc,ssions. Since "e !ain"i++ is a +oeincoan-& i" e,ied aoa! +o "e $oenen" o+ India e+oe i" co,!d oide "eoosed ,aan"ee. I" is no"eo"- "a" on "e da"es o+ "e e!ease o+ "ese ao,n"s& "eeas no s"a","o- o e,!a"o- aoa! +o ,aan"eein "e sae "o "e !ain"i++.

24. I" is oin"ed o," "eea+"e "a" - "e !e""e da"ed 30" 'an,a-& 2000 - de+endan" No.2 and 12" 'an,a-& 2001 +o "e !ain"i++ "o "e Dea"en" o+ ;,cen" ecno!oies @ind,s"an (*".) ;"d.& s"a"in "a" no,aan"ee ad ee een eec,"ed - an- o+ "e ;,cen" en"i"ies and s"a"in "a" "e !e""es o+


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27" Se"ee& 2000 and 30" Noee& 2000 did no" cea"e an- ,aan"ee o!ia"ions onan- ;,cen" en"i"- i" esec" "o "e ide !oans as a!!eed.

30. On 12" Ai!& 2002& "e ICICI o"e "o "e !ain"i++ no seein a-en" o+ #s. 100coes o a!"ena"ie!- "o oide a an ,aan"ee +o "e assinen" o+ "e +aci!i"- icas "o "e ",ne o+ #s. 484 coes +o a ?AAA? a"ed an.

31. A oss!- e!a"ed esonse as sen" - "e ICICI on 27" Decee& 2002 in anse "o"e de+endan" No. 2?s !e""e o+ 4" Ai!& 2002 ee- "e de+endan" No. 1 deandedcoensa"ion a-en" o+ #s. 300 i!!ion +o "e !ain"i++. e de+endan" No. 2 as ,ed"a" "e ICICI an ad a!so in+oed i" "a" "e !ain"i++ ad aoaced "e an i" "ein"en" "o disc,ss a oosa! ee- "e ICICI an as "o discae ;,cen" Inc o+ an- andee- ,aan"ee o!ia"ion e"ainin "o "e "e !oan "o "e de+endan" No. 2 and "osanc"ion/dis,se "e "e !oan "o S-a e!e!in i"o," an- eco,se "o "e !ain"i++.

32. e de+endan" No. 2 a!!ees "a" ;,cen" @ind,s"an *". ;"d. ad +ai!ed "o discae i"s+inancia! o!ia"ion and esonsii!i"- +o oidin "e +aci!i"ies ,nde "e aan" aeeen"and ad a!so coi""ed eac o+ "e o"e seice and s,!- con"ac"s da"ed 14"Decee& 1999.

33. In "e ean"ie& - a co,nica"ion da"ed 20" e,a-& 2003 "e de+endan" No. 2no"i+ied ;,cen" ecno!oies @ind,s"an *". ;"d.& "a" dis,"es ain aisen e"een "eand on +ai!,e o+ "e a""e"s "o se""!e "e a""e i"in 30 da-s& i" eseed i"s i" "onae i"s ai"a"o. is !e""e as coied "o "e !ain"i++ as e!! as "e ;,cen" ecno!oiesAsia *aci+ic ;"d.

e de+endan" No. 2 ad no"i+ied ;,cen" ecno!oies @ind,s"an *". ;"d. "a" "isco,nica"ion as a +oa! no"ice ,nde "e +o!!oin con"ac"s:

M Fnde C!a,se 55.2 o+ "e Seice Con"ac" da"ed Decee 14& 1999

M Fnde C!a,se 58.2 o+ "e S,!- con"ac" (io"ed e,ien") da"ed Decee 14& 1999

M Fnde C!a,se 55.2 o+ "e S,!- con"ac" (indieno,s e,ien") da"ed Decee 14& 1999

M Fnde C!a,se 52.2 o+ "e O,"side *!an" Cons",c"ion Con"ac" da"ed Decee 14& 1999 and

M Fnde C!a,se 9.4 o+ "e aan" Aeeen".

34. is as +o!!oed , - a no"ice da"ed 24" %ac& 2003 +o "e de+endan" No. 2& "is"ie addessed "o ;,cen" @ind,s"an ecno!oies *". ;"d. as e!! as "e !ain"i++& con"endin"a" as "e dis,"es eained ,neso!ed oe "e !as" 30 da-s& i" as noina"in %. ',s"ice$.. *a"nai (#e"d. Cie+ ',s"ice o+ India) as i"s ai"a"o "o "e oosed ai"a! "i,na!and ca!!ed ,on "e addessees "o noina"e "ei ai"a"o as e!! so "a" "e "o ai"a"osco,!d ee" and se!ec" "e "id ai"a"o.

e osi"ion "aen in "e !e""e o+ 20" e,a-& 2003 as ei"ea"ed and "e de"ai!seadin "e ai"a"ion ee en"ioned.

35. I" as een oin"ed o," "a" in Se"ee& 2003& an ai"a! "i,na! as cons"i","ed -S-a e!e!in ;"d. and ;,cen" ecno!oies @ind,s"an *". ;"d. coisin o+ ',s"ice $..*a"nai& a noinee o+ S-a e!e!in ;"d. ',s"ice A.=. Sias"aa& a noinee o+ ;,cen"@ind,s"an and ',s"ice $.. Nanaa"i o as aoin"ed as "e esidin ai"a"o.

36. e !ain"i++ as con"ended "a" i" ad no" noina"ed an- noinee as i" dis,"ed "e+ac", o+ an- conc!,ded con"ac" i" "e a"ies.

37. A" "is s"ae "e ICICI an addessed a !e""e da"ed 26" %ac& 2004 "o "e !ain"i++

and "e de+endan" No. 2& con"endin "a" "e !ain"i++ as aoidin i"s o!ia"ions ,nde "e"e see" and as dis,"in "e sae coe!!in i" "o inoe ai"a! oceedins aains""e !ain"i++. In "is !e""e i" as s"a"ed "a" "e de+endan" No. 1 ad aeed "o +inance "eoec" as "e !ain"i++ ad ass,ed and eesen"ed "a" i" o,!d ,aan"ee "e d,e


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ea-en" o+ "e +,nds dis,sed and "a" i" o,!d eec,"e a ,aan"ee as e,ied ,nde"e con"ac". e !ae +o noneec,"ion o+ "e +aci!i"- doc,en"s as "o"a!!- ao"ioned "o"e !ain"i++. I" as s"a"ed "a" desi"e eea"ed ass,ances& "e !ain"i++ ad +ai!ed "oseci+ica!!- sec,e and ,aan"ee "e ide !oan aea"in "o #s. 100 coes adanced -"e ICICI an ;"d. and ",s ad +ai!ed "o discae i"s !ea!!- a!id and indin o!ia"ions,nde "e con"ac" "a" i" as con"ac",a!!- e,ied "o "ae eco,se "o ai"a"ionoceedins and i" ad decided "o ini"ia"e ai"a"ion oceedins aains" "e !ain"i++. ede+endan" No. 1 ad s"a"ed "a" i" as aoacin "e a+oesaid ai"a! "i,na! "o

ad,dica"e "e dis,"es/c!ais e"een ICICI an ;"d.& ;,cen" ecno!oies Inc. and S-ae!e!in ;"d. I" as s"a"ed "a" "e !ain"i++ and S-a e!e!in ;"d. ?can ae no oec"ion "oai"a"ion o+ "e dis,"es - "is +o, as "e sae as cons"i","ed a" "e ees" o+ S-ae!e!in ;"d.& ;,cen" ecno!oies @ind,s"an *". ;"d. and ;,cen" ecno!oies Inc.?

38. - a co,nica"ion o+ "e sae da"e& i.e. 26" %ac& 2004& "e ICICI an ;"d. so,""e consen" o+ "e said "ee ai"a"os ?"o en"e e+eence and ad,dica"e c!ais o+ "ec!aian"? and "e dis,"es/c!ais e"een "e c!aian" and "e esonden"s?.

e ICICI an ;ii"ed a!so o"e "a" i" ad "e ?i" "o aoac an- a!"ena"e dis,"e+o,? in De!i and "a" "is ai"a! "i,na! as one s,c +o, ic as a!ead- eaindis,"es +o e!a"ed "ansac"ions e"een S-a e!e!in ;"d. and "e ;,cen" ecno!oies@ind,s"an *". ;ii"ed. A co- o+ "is !e""e as a!so sen" "o ;,cen" ecno!oies ;"d.& FSA >

S-a e!e!in ;"d.

39. In "is !e""e o+ 26" %ac& 2004& "e ICICI an s"a"ed "a" desi"e "e eea"edass,ances& "e !ain"i++ ad +ai!ed "o sa"is+ac"oi!- sec,e and ,aan"ee "e ide !oansaea"in "o #s. 100 coes adanced - "e an and ae ",s +ai!ed "o discae "ei!ea!!- a!id and indin o!ia"ions ,nde "e con"ac".

40. e !ain"i++ ad esonded - a !e""e da"ed 21s" %a-& 2004 "o "e de+endan" No. 1s"a"in o," "a" "e ?$oenin ;a and ',isdic"ion? C!a,se in "e "e see" ic ase!ied ,on - "e de+endan" No. 1 as "e ai"a"ion aeeen"& on!- seci+ied a dis,"eeso!,"ion ecanis +o a oosed +inancin aeeen" ic "e !ain"i++ ad no" en"eedin"o. e !ain"i++ conse,en"!- so," a co- o+ s,c +inancin aeeen" as as e!ied ,on- "e de+endan" No. 1 "o ic i" as a!!eed!- a a"- ic con"ained "e dis,"e

eso!,"ion/ai"a"ion c!a,se. I" as s"a"ed "a" on!- "eea+"e o,!d "e !ain"i++ esond "o"e de+endan"?s asse"ions in "e !e""e o+ 26" %ac& 2004. A sii!a !e""e o+ "e sae da"eas a!so sen" "o "e "ee ees o+ "e "i,na! ca!!in ,on "e no" "o "ae an- s"es,s,an" "o "e an?s e,es" ,n"i! a co- o+ "e +inancin aeeen" i" "e ai"a"ionC!a,se as a!!eed is oided - "e an. is !e""e as addessed "o "e "i,na! i"o,"e,dice "o "e !ain"i++?s i" "o con"end in"e a!ia "a" "e "i,na! as no ,isdic"ion "o ac"on "e !e""e o+ "e ICICI an ;"d. e !ain"i++ a!so einded "e ai"a! "i,na! "a" - i"s!e""e o+ 9" e,a-& 2004& an oec"ion ad een aised "o "e "i,na!?s ass,in

,isdic"ion oe "e !ain"i++ in oceedins endin e+oe i" ino!in S-a e!e!in ;"d.and "e ;,cen" ecno!oies @ind,s"an *". ;"d. "o ic "e !ain"i++ as no" a a"-. - a!e""e da"ed 15" o+ ',!-& 2004& ;,cen" sen" a einde "o "e ai"a! "i,na! in "is ea!+.

41. e !ain"i++ a!so +i!ed +oa! oec"ions da"ed 30" A,,s"& 2004 e+oe "e Ai"a!

"i,na!& ,nde Sec"ion 16 o+ "e Ai"a"ion > Conci!ia"ion Ac" 1996& oec"in "o "e a""e"o+ "e ICICI an "o coence ai"a"ion oceedins aains" i" con"endin "a" "ee asno aeeen" !e" a!one an ai"a"ion aeeen" e"een "e a"ies. I" as s"a"ed "a" "e+oa! oec"ion as ein +i!ed Ji"o," e,dice "o i"s con"en"ion i" esec" "os,ission "o ,isdic"ion o+ "e on?!e "i,na!J. e !ain"i++ assai!ed "e de+endan" No. 1?ss,ission "a" "e "e see" cea"ed an- indin i"s o o!ia"ions s,i""in "a" "eoosed +inancin aeeen" as nee eec,"ed and "a" "e ICICI an ;"d. ad +ai!ed "ood,ce s,c aeeen" desi"e no"ice. e !ain"i++?s +,"e con"en"ion as "a" "eJa!"ena"ie dis,"e eso!,"ion +o,J and "e C!a,se e!ied ,on - "e ICICI an co,!d econs",ed as e+ein "o "e on!- a!"ena"ie +o, aai!a!e "o i"& ein "e De" #ecoe-i,na!& and "a" e+eence "o s,c +o, co,!d no" e cons",ed as one "o an- eis"inai"a! "i,na! in India. I" as s"a"ed "a" in an- case& "e "i,na! s"ood cons"i","ed - "ida"ies i" ead "o dis,"es e"een "ose a"ies and "a" "e !ain"i++ ad noa"icia"ion een in "e cons"i","ion o+ "e "i,na!. e !ain"i++ s,i""ed "a" i" ad neeconsen"ed& ei"e eess!- o i!ied!-& "o "e cons"i","ion o+ "e ai"a! "i,na!. e!ain"i++ a!so oin"ed o," "a" - i"s !e""es o+ 9" e,a-& 2004& 1s" Ai!& 2004 and 15"',!-& 2004& i" ad oec"ed "o "e ,isdic"ion o+ "e "i,na! and e,es"ed i" "o ad,dica"e


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(iii) no ,aan"ee as een oided - "e !ain"i++ "o de+endan" No. 1 as a!!eed -de+endan" No. 1 in esec" o+ "e a""es seci+ied in "e ;e""e o+ No"ice and/o "e e,es"!e""e

(i) "e !ain"i++?s !e""es da"ed Se"ee 27& 2000 and Noee 30& 2000 do no" cea"ean- ,aan"ee o!ia"ions o an- o"e o!ia"ions i" esec" "o "e !ain"i++

() "e !ain"i++ is no" a a"- "o "e ide !oan aeeen"s da"ed Se"ee 27& 2000 andDecee 12& 2000 and

(i) "e !oan& ,aan"ee and sec,i"- doc,en"s in connec"ion i" "e "e see" a""aced"o de+endan" No. 1?s !e""e da"ed Se"ee 13& 2000 ae nee een +ina!!- neo"ia"ed oeec,"ed.

() a decee o+ eanen" in,nc"ion oii"in and es"ainin "e de+endan"s and "eiesec"ie aen"s& o++ices and e!o-ees +o:

(i) c!aiin in an- oceedins "a" "e !ain"i++?s !e""e da"ed Se"ee 27& 2000 andNoee 30& 2000 cons"i","e a ,aan"ee o+ "e !ain"i++ o cea"e an- !ea! o!ia"ions o+an- na",e a"soee i" esec" "o "e !ain"i++

(ii) seein coenceen" o+& ac"in ,on o con"in,in an- oceedins aains" "e !ain"i++,s,an" "o de+endan" No. 1?s !e""e o+ no"ice da"ed %ac 26& 2004 and/o e,es" !e""eda"ed %ac 26& 2004 and

(iii) coencin& ac"in ,on o con"in,in an- o"e oceedins aains" "e !ain"i++ i"esec" "o "e a""es seci+ied in De+endan" No. 1?s !e""e o+ no"ice da"ed %ac 26& 2004and/o e,es" !e""e da"ed %ac 26& 2004

(C) a decee o+ daaes o+ an ao,n" o+ #s. 21&00&00 (#,ees en"- One ;as) o s,co"e s, as "is @on?!e Co," a- dee +i" aains" "e de+endan"s

A!oni" "e !ain"& an a!ica"ion as +i!ed ein IA No. 2288 o+ 2005 seein in"eie!ie+s inc!,din a oii"ion +o oceedin on "e co,nica"ion da"ed 22nd o+ %ac&2004. o "e eason "a" oceedins e+oe "e Ai"a! i,na! ee no" iinen"& "ieas an"ed "o "e de+endan"s "o +i!e "ei !eadins.

46. In "e ean"ie& i" is oin"ed o," "a" ',s"ice A.=. Sias"aa& "e noinee ai"a"o o+;,cen" @ind,s"an ecno!oies *". ;ii"ed esined on 31s" %ac& 2005 +o "e ai"a!"i,na!.

47. e !ain"i++ aes a ieance "a" "eea+"e& i"o," an- consen" +o an- a"-& on11" Ai!& 2005& "e ICICI an ,ni!a"ea!!- cons"i","ed a ne ai"a! "i,na! "o ea "ea!!eed dis,"es e"een "e !ain"i++ and ICICI an consis"in o+ ',s"ice $.. Nanaa"i&',s"ice $.. *a"nai and ',s"ice A.*. Coda-.

e !ain"i++?s s,ission is "a" "e de+endan" No. 1?s e+eence "o "e de+endan" No. 2;,cen" ecno!oies @ind,s"an *ia"e ;"d. "i,na! ",s s"ood aandoned and "a" "is"i,na! is no" in con"in,a"ion o+ "e oceedins e+oe "e ea!ie ai"a! "i,na! "a" "e"i,na! con"ains no noinee o+ "e !ain"i++ o een o+ ;,cen" ecno!oies @ind,s"an *ia"e;"d. and i"s aoin"en" is a ,ni!a"ea! ac" o+ "e de+endan" No. 1 i"o," "e consen" o+ an-o+ "e dis,"in a"ies.

48. On "ese +ac"s& "e !ain"i++ +i!ed IA No. 3134/2005 ,nde Ode 39 #,!e 1 > 2 o+ "e C*Con 23d Ai!& 2005 seein in"ei odes con"endin "a" "e de+endan"s ee "-in "oa,se "e ocess and oe eac "is co,". As "e a""e co,!d no" e conc!,ded e+oe "ecoenceen" o+ "e s,e aca"ion& !ie"- as ien "o "e !ain"i++ "o aoac "eco," +o in"ei odes i+ "e ai"a"ion oceedins ee coenced in "e eani!e.

eea+"e& ac"in on "e e,es" o+ ICICI& "e ai"a! "i,na! and "e ICICI an e" +o "e+is" "ie on 13" %a-& 2006 and +ied a sced,!e +o "e ai"a"ion oceedins.


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49. In "is aco,nd& on 17" %a-& 2006& "e !ain"i++ +i!ed IA No. 5838/2006 seein anin"ei in,nc"ion aains" "e de+endan"s +o seein coenceen" o+ ac"in ,on ocon"in,in anai"a"ion oceedins aains" "e !ain"i++ as a-ed +o in "e ea!iea!ica"ion. e ICICI an?s Co,nse! ade a s"a"een" on 17" ',!-& 2006 e+oe "is co,""a" no +,"e s"es o,!d e "aen in "e ai"a"ion oceedins ,n"i! eain e+oe "eco," is conc!,ded. is s"a"een" as een con"in,ed& aai"in +,"e odes o+ "e co,".

50. I" is no"eo"-& "a" "e aio,s iss,es ic ae een aised e+oe "is co," ad no"aisen +o considea"ion e+oe "e Ai"a! i,na! and "e odes da"ed 28" Decee&2004 and 24" e,a-& 2005 ee no" e,ied "o o in"o "e aio,s iss,es ic aeeen aised eein.

51. e !ain"i++s and de+endan"s ae a" aiance i" ead "o "e cons",c"ion o+ "e een"sic "ansied a+"e "e !e""e da"ed 13" Se"ee& 2000 sen" - "e de+endan" No. 1.

52. e s,issions ade - o" sides aise soe io"an" iss,es ic +o conenience&ae s,ed , as +o!!os:

(I) e"e a conc!,ded con"ac" o+ ,aan"ee e"een "e !ain"i++ and "e de+endan" No. 1ad coe in"o eis"ence indin "e !ain"i++ "o ,aan"ee and sec,in "e oosed !oan o+

#s. 484 coes and/o "e "o ide !oans GDisc,ssion +o aa 53H.

(II) e"e "e C!a,se s"i,!a"in "e J$oenin ;a and ',isdic"ionJ in "e "e see" oan- o"e s"i,!a"ion in "e doc,en"s cons"i","ed an ai"a"ion aeeen" e"een "e!ain"i++ and "e de+endan" No. 1 GDisc,ssion +o aa 115H.

(III) Ass,in "a" "ee is a a!id ai"a"ion aeeen" e"een "e a"ies& e"eSec"ion 5& 8(3) > 16(5) o+ "e Ai"a"ion > Conci!ia"ion Ac"& 1996 cons"i","e a !ea! a "o "eain"ainai!i"- o+ "e cii! s,i" and "e !ain" is !ia!e "o e eec"ed ,nde Ode 7 #,!e 11 o+"e Code o+ Cii! *oced,e GDisc,ssion +o aa 160H.

(I) e"e "e ac"ion o+ "e !ain"i++ in +i!in an oec"ion e+oe "e Ai"a! i,na!ca!!enin "e eis"ence o+ an ai"a"ion aeeen" and eecise o+ ,isdic"ion - i"&

i"o," e,dice "o i"s i"s and con"en"ions& ao,n"s "o ac,iescin in "e ai"a"ion andes"os "e !ain"i++ +o assai!in "e eec,"ion a!idi"- and indinness o+ an ai"a"ionaeeen" and "e ai"a! oceedins GDisc,ssion +o aa 209H.

() e"e "e !ain"i++ is en"i"!ed "o an in"ei in,nc"ion oii"in +,"e oceedins -"e ai"a! "i,na! in "e e+eence coenced on "e e,es" o+ "e de+endan" No. 1GDisc,ssion +o aa 230H. >

(I) e"e "e oisions o+ "e #ecoe- o+ De"s d,e "o ans > inancia! Ins"i","ions Ac"o,!d oeide "e oisions o+ "e Ai"a"ion > Conci!ia"ion Ac"& 1996 and an ec!,sieeed- "o ans is oided "ee,nde GDisc,ssion +o aa 264H.

I

53. e +is" iss,e +o considea"ion "ee+oe is e"e a con"ac" o+ ,aan"ee ad coein"o eis"ence indin "e !ain"i++ "o ,aan"ee and sec,e "e oosed !oan o+ #s. 484coes o "e adanceen" o+ "e "o ide !oans o+ #s. 50 coes eac "o"a!!in "o #s.100.00 coes.

54. e !ain"i++ as ,ed a" soe !en"& "a" "e "e see" ee!- indica"ed soe "es+o "e oosa! o+ "e an" o+ #s. 484 coes +inancia! +aci!i"-& ," "e sae ee no" +ina!and did no" cea"e an- indin i"s and o!ia"ions. I" is con"ended& "a" "e !ain"i++ did no"eec,"e an- doc,en"s a" a!! and "a" "e "e see" seci+ica!!- s"i,!a"ed ?+aci!i"-doc,en"s? "o e eec,"ed ic os",!a"ed "a" a +inancin aeeen" "o e a!so en"eedin"o. I" as een con"ended - %. A,n 'ai"!e-& !eaned senio Co,nse! aeain +o "e!ain"i++& "a" "ee as no eso!,"ion o+ "e "es on ic "e !ain"i++ as "o eec,"e "e

,aan"ee& and "a" "e !ain"i++ did no" eec,"e an- doc,en"s o ,aan"ee an- +inancia!+aci!i"- ic ee an"ed - "e de+endan" No. 1. ee as no sa"is+ac"ion o+ "edoc,en"s as s"i,!a"ed in "e "e see"& so ,c so& "a" een "e condi"ions eceden" "oeec,"ion o+ +inancin aeeen"s - "e de+endan" No. 2 ee no" eec,"ed.


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On "e e,es" o+ S-a e!e!in& "e !ain"i++ oided a ?!e""e o+ co+o"? ee!- s"a"in"a" "e !ain"i++ o,!d iss,e "e oosed ,aan"ee in +,",e a" "e "ie o+ "e oosed+aci!i"- o+ #s. 484 coes ein +ina!ised ?s,ec" "o "e "es and condi"ions s"a"ed in "e"e see" and sa"is+ac"o- doc,en"a"ion.?

55. I" is a,ed "a" in "e !e""e da"ed 27" Se"ee& 2000& i" as c!ea!- s"a"ed "a" "e!ain"i++ o,!d iss,e "e oosed ,ncondi"iona! and ieoca!e ,aan"ee s,ec" "osa"is+ac"o- eso!,"ion o+ "e ,aan"ee "es and "e ,aan"ee s",c",e and "e ,aan"eee!ease ecanis as oided in "e "e see". e s,ission is "a" "e !ain"i++ aeed"o "e oosa! s,ec" "o "e neo"ia"ions and en"ein in"o an aeeen" "o "e sa"is+ac"iono+ "e !ain"i++ ic een" nee occ,ed.

56. So +a as "e ide !oan is concened& i!e "e neo"ia"ions +o #s. 484 coes +inancia!+aci!i"- ee oin on& "e ICICI an and S-a e!e!in en"eed in"o an in"ei ide !oanaeeen" +o an ao,n" o+ #s. 50 coes. e !ain"i++ denies "a" i" as a a"- "o "isaeeen" and s,i"s "a" "is is ani+es"ed - "e +ac" "a" "e #s. 50 coes +aci!i"-ide !oan as sec,ed - "e S-a e!e!in - o"e sec,i"ies inc!,din deosi" o+ "i"!edeeds e"c as e!! as esona! ,aan"ees ien - de+endan" Nos. 3 "o 6.

57. e !ain"i++ as s,i""ed "a" +o "e eason "a" i" ad no" oided an- ,aan"ee +o"e ide !oan& "e ICICI an caed addi"iona! in"ees" +o "is ide !oan.

I" is a,ed "a" "e !e""e o+ co+o" da"ed 30" Noee& 2000 as iss,ed aaincon+iin "a" s,ec" "o sa"is+ac"o- neo"ia"ions and eso!,"ion o+ "e +inancin "es o+"e aeeen"& "e sec,i"- doc,en"s& "e ,aan"ee "es& "e ,aan"ee s",c",e and"e ,aan"ee e!ease ecanis as oided in "e "e see"& "e- o,!d oceed "oeec,"e "e ,aan"ee and o"e doc,en"s as e,ied +o co!e"in "e con"e!a"ed"ansac"ion.

I" is con"ended "a" "e ide !oan aeeen" da"ed 12" Decee& 2000 as "e sae as"e ea!ie one as an"ed on iden"ica! sec,i"ies +o "e oo"es and a++i!ia"es o+ "ede+endan" No. 2 and "a" "e !ain"i++ as no" a a"- "o "is aeeen" as e!!. e !ain"i++as s,i""ed "a" i" did no" oide an- ,aan"ee +o "is ide !oan.

58. In "e ins"an" case& no +ina! "es and condi"ions ic ee aeed ,on - "e a"iesas os",!a"ed in ICICI?s !e""e da"ed 13" Se"ee& 2000 ae aai!a!e on ecod. No +oa!doc,en"a"ion as een eec,"ed een "o, "e sae as s"i,!a"ed. e !ain"i++ as,ed "a" "e sae as essen"ia! and en" "o "e oo" o+ "e a""e and conse,en"!-& noconc!,ded con"ac" co,!d e e!d "o ae coe in"o eis"ence.

59. e !ain"i++ as con"ended "a" conse,en"!-& no !iai!i"- co,!d e +as"ened on i" i"ead "o "e dis,"es ic ae aisen i" %/s S-a e!e!in ;ii"ed o i" ead "oan- o"e a""e i"o," eec,"ion o+ "e +inancia! aeeen"s and "e o"e +oa!doc,en"s.

I" as een ,ed "a" +o "is eason as e!!& "e s"i,!a"ion con"ained in J$oenin ;a and

',isdic"ion c!a,seJ in "e "e see" o,!d no" oen an- dis,"e e!a"in "o "e ide !oanic s"ood a!one on indeenden" "es and condi"ions.

60. e de+endan"s ae ,ed "o "e con"a- "a" "e eec,"ion o+ "e +oa! doc,en" asa ee +oa!i"- and no"in oe. e de+endan"s o,!d con"end "a" "e cond,c" o+ "e!ain"i++ and i"s co,nica"ions "eea+"e ao,n"ed "o an ,ne,ioca! acce"ance o+ "e"es and condi"ions se" o," in "e "e see" - "e ICICI as e!! as coi"en" "o,ncondi"iona!!- and ieoca!- ,aan"ee +inancia! +aci!i"ies - "e de+endan" No. 1.

*!acin e!iance on seea! ,dicia! eceden"s no"iced in de"ai! eea+"e& i" is ,ed "a" i"o,!d e a ,es"ion o+ cons",c"ion as "o e"e "e eec,"ion o+ a +,"e con"ac" is acondi"ion o+ "e "e o+ "e aain o e"e i" is a ee eession o+ "e desie o+ "ea"ies as "e anne in ic "e "ansac"ion a!ead- aeed "o i!! in +ac" o "o,. e

s,ission is "a" +ai!,e "o eec,"e +oa! doc,en"s canno" e a o,nd +o denia! o+ aconc!,ded con"ac" e"een "e a"ies.


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61. %. #aes Diedi& !eaned senio Co,nse! +o de+endan" No. 1 and %. Sandee Se"i&!eaned senio Co,nse! aeain +o de+endan" Nos. 2 "o 6 s,i" "a" "e !ain"i++ as "eene+icia- o+ "e ide !oan and "e en"ie ao,n" o+ #s. 100 coes as +oaded - "ede+endan" No. 2 "o "e !ain"i++ "oads "e s,!ies e++ec"ed - i" and as s,c& i" as "e so!eene+icia- o+ "e "o ide !oans.

62. %. Se"i& !eaned senio Co,nse! +o "e de+endan" No. 2 a!so e!ies on a co,nica"ionda"ed 30" 'an,a-& 2001 addessed - i" "o "e Dea"en" o+


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oed o,". e s,ission is "a" +o "is eason& "e de+endan" No. 1?s c!ai +o seci+ice+oance e,iin "e !ain"i++ "o eec,"e ,aan"ees +o "e ide !oan is ain"aina!e.

67. ;eaned senio Co,nse! ae ,ed "a" "e !ain"i++ acce"ed "a" ICICI o,!d en"e in"oan in"ei ide !oan aeeen" i" "e de+endan" No. 2 and +o "is eason iss,ed a !e""eo+ co+o" and ,nde"ain. e !ain"i++ a!so ae an ,nde"ain "o +i!e an a!ica"ion i""e %inis"- o+ inance (


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A !e""e o+ in"en" a- eess!- s"a"e "a" i" is no" "o ae con"ac",a! e++ec". In Dae andSc,!!


17/83

"e co,se o+ ,siness& and "ee is no c!ea indica"ion "a" "e- ae no" in"ended "o e !ea!!-en+ocea!e.

77. In "e an,e ,sse!s Case (s,a)& o!din "a" "e !e""e ad con"ac",a! +oce& "eco," ad oseed "a":

ee so,!d e no oo in "e oe +!o o+ coece +o soe ,a"o- ee

s"a"een"s ade - ,siness en& a+"e ad aainin and ade "o ind,ce ano"e,siness eson "o en"e in"o a ,siness "ansac"ion o,!d& i"o," an- eess s"a"een" "o"a" e++ec"& eside in a "i!i" Bone o+ ee!- ono,a!e enaeen". e o!e ",s" o+"e !a "oda- is "o a""e" "o ie oe e++ec" "o coecia! "ansac"ions.... I+ "eses"a"een"s ae aoia"e!- oisso- in caac"e& co,"s so,!d en+oce "e en "e-ae ,""eed in "e co,se o+ ,siness& and "ee is no c!ea indica"ion "a" "e- ae no"in"ended "o e !ea!!- en+ocea!e.

So +a as "e !e""e o+ co+o" is concened& "e co," !aid don "e +o!!oin inci!es icie a!,a!e ,idance on "e s,ec". e ;eaned Cie+ ',s"ice o+ A,s"a!ia e!d "a":

1. In de"einin e"e a !e""e o+ co+o" ies ise "o con"ac",a! o!ia"ions

(a) "e odina- ,!es o+ cons",c"ion and in"ee"a"ion e!a"in "o con"ac"s a!-

() "e oeidin "es" is "a" o+ "e in"en"ion o+ "e a"ies as ded,ced +o "e doc,en" asa o!e& seen aains" "e aco,nd o+ "e ac"ices o+ "e a"ic,!a "ade o ind,s"- andin "e een"s s,o,ndin i"s ince"ion

(c) "e ia +acie es,"ion "a" in esec" o+ coecia! "ansac"ions "ee is anin"en"ion "o cea"e !ea! e!a"ions a!ies& and "e on,s o+ oin "e asence o+ s,cin"en"ion es"s i" "e a"- o asse"s "a" no !ea! e++ec" is in"ended.

2. In "e cic,s"ances& and "ain in"o acco,n" "e neo"ia"ions !eadin "o "e +ina! esiono+ "e !e""e o+ co+o"& and a c!ose "e",a! ana!-sis o+ i"s "es& "e !e""e o+ co+o"con"ained 2 en+ocea!e con"ac",a! oises& eac o+ ic ae ise "o a !iai!i"- in

daaes ee "e saes...ee so!d i"o," "e !ain"i++ ein ien 90 da-s? no"ice.

e A,s"a!ian co," as o+ "e ie "a" i" o,!d e iniica! "o "e e++ec"ie adinis"a"ion o+,s"ice in coecia! dis,"es& "a" a co," so,!d ,se a J+ine!- ",ned !in,is"ic +oJ.

78. e inci!es in


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!aced e+oe "e co,"& "e co," !aid don "e +o!!oin indin inci!es ic o,!d ,idead,dica"ion eein:

13. In "is connec"ion "e cadina! inci!e "o eee is "a" i" is "e d,"- o+ "e co," "ocons",e coesondence i" a ie "o aie a" a conc!,sion e"e "ee as an- ee"ino+ ind e"een "e a"ies& ic co,!d cea"e a indin con"ac" e"een "e ," "eCo," is no" eoeed "o cea"e a con"ac" +o "e a"ies - oin o,"side "e c!ea!an,ae ,sed in "e coesondence& ece" inso+a as "ee ae soe aoia"ei!ica"ions o+ !a "o e dan. Fn!ess +o "e coesondence i" can ,ne,ioca!!- andc!ea!- eee "a" "e a"ies ee ad ide "o "e "es& i" canno" e said "a" anaeeen" ad coe in"o eis"ence e"een "e "o, coesondence. e Co," ise,ied "o eie a" "e a"ies o"e and o "e- ac"ed and +o "a" a"eia! "o in+ee"e "e in"en"ion as eessed in "e coesondence as "o in in"o eis"ence a,",a!!- indin con"ac". e in"en"ion o+ "e a"ies is "o e a"eed on!- +o "eeessions ,sed in "e coesondence and "e eanin i" cone-s and in case i" sos "a""ee ad een ee"in o+ ind e"een "e a"ies and "e- ad ac",a!!- eaced anaeeen"& ,on a!! a"eia! "es& "en and "en a!one can i" e said "a" a indin con"ac"as caa!e o+ ein se!" o," +o "e coesondence.

14. o a cae+,! e,sa! o+ "e en"ie coesondence on "e ecod& e ae o+ "e oinion"a" no conc!,ded aain ad een eaced e"een "e a"ies as "e "es o+ "e s"and-

!e""e o+ cedi" and e+oance ,aan"ee ee no" acce"ed - "e esec"ie a"ies. In "easence o+ acce"ance o+ "e s"and- !e""e o+ cedi" and e+oance ,aan"ee - "ea"ies& no en+ocea!e aeeen" co,!d e said "o ae coe in"o eis"ence. ecoesondence ecaned e"een "e a"ies sos "a" "ee is no"in eess!- aeede"een "e and no conc!,ded en+ocea!e and indin aeeen" coe in"o eis"encee"een "e. Aa" +o "e coesondence e!ied ,on - "e !eaned sin!e ',de o+ "e@i Co,"& "e +a essaes ecaned e"een "e a"ies& e+eed "o aoe& o "o so"a" "e a"ies ee on!- neo"ia"in and ad no" aied a" anaeeen". ee is a as"di++eence e"een neo"ia"in a aain and en"ein in"o a indin con"ac". A+"eneo"ia"ion o+ aain in "e esen" case& "e s"ae nee eaced en "e neo"ia"ionsee co!e"ed iin ise "o a indin con"ac". e !eaned sin!e ',de o+ "e @i Co,"as& "ee+oe& e+ec"!- ,s"i+ied in o!din "a" C!a,se 53 o+ "e Ca"e *a"- e!a"in "oAi"a"ion ad no eis"ence in "e e-e o+ !a& eca,se no conc!,ded and indin con"ac"

ee cae in"o eis"ence e"een "e a"ies. e +indin ecoded - "e !eaned sin!e',de is ased on a oe aecia"ion o+ eidence on "e ecod and a coec" a!ica"ion o+"e !ea! inci!es. e +ind no ei" in "is aea!. I" +ai!s and is disissed i" cos"s.

81. In "is con"e"& !eaned Co,nse! +o "e de+endan" No. 1 as a!so !aced e!iance on adecision o+ "e co," o+ aea!s o+ eas& @o,s"on (is" Dis"ic") eo"ed a" 729 S 2d 768eaco Inc . *ennBoi! Co. eein sii!a iss,es ad aisen +o considea"ion. In "isono,nceen"& seea! io ono,nceen"s o+ aio,s co,"s ee consideed. einci!es !aid don ce"ain!- "o a!,a!e !i" on "e s,ec". *!acin e!iance on "e

,den" eo"ed as ins"on . %edia+ae


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ac"ed on "ese "es +o a !on eiod o+ "ie o i+ "e- ad eended considea!e s,s o+one- in e!iance on "e.

83. In "is case& ased on s,c cond,c" o+ "e a"ies& "e co," ad e!d "a" "e !ain"i++o,!d s,++e ieaa!e !oss and daae i+ "e de+endan" as no" es"ained +o eacins,c "es and ad an"ed an in"ei in,nc"ion in +ao, o+ "e !ain"i++.

84. ;eaned Co,nse! +o "e de+endan" No. 1 as a!so !aced e!iance on -e" ano"e,den" +o "e Ne So," a!es S,ee Co," eo"ed a" ACN 089 347 562 en"i"!ed$a"e $o,e" A,s"a!ia *"- ;ii"ed (in !i,ida"ion) . $a"e $o,e" @o!din A.$. Co. N,eC% 020.3.003.9451 and Os. eo"ed a" (2004) NS SC 149 eein "e co," as ca!!ed,on "o conside as "o e"e a !e""e o+ co+o" so s,o"s cedi" !ea! o!ia"ions. eJ!e""e o+ s,o"J eec,"ed - $a"e $o,e" In"ena"iona! A.$. as in "e +o!!oin "es:

is is "o con+i "a" "e aen" en"i"-& $a"e $o,e" In"ena"iona! A$& i!! oide "e+inancia! s,o" "a" a- e necessa- "o ena!e $a"e $o,e" (@o!dins) *"- ;ii"ed andi"s con"o!!ed en"i"ies "o ee" i"s +inancia! coi"en"s as and en "e- +a!! d,e. is,aan"ee i!! no" e i"dan e+oe $a"e $o,e" (@o!dins) *"- ;ii"ed and i"scon"o!!ed en"i"ies ae s,++icien" eans "o ee" "ei o!ia"ions i"o," "e s,o" o+ "eaen" en"i"-.

85. On a s"ic" cons",c"ion o+ a !e""e !aced e+oe "e co," in $a"e $o,e" A,s"a!ia;ii"ed (S,a)& i" aied a" a conc!,sion "a" i"s "es ee c!ea and ,ne,ioca! and i"oided "a" "e Siss aen"s i!! oide "e +inancia! s,o" "a" a- e necessa- "oena!e "e A,s"a!ian o!din coan- and i"s con"o!!ed en"i"ies "o ee" "ei +inancia!coi"en" as and en "e- +a!! d,e and "a" "e !e""e o,!d no" e i"dan e+oe "eA,s"a!ian o!din coan- and i"s con"o!!ed en"i"ies ae s,++icien" eans "o ee" "eio!ia"ions i"o," "e s,o" o+ "e Siss aen"s. e s"a"een"s ee ,ncondi"iona! andno ,a!i+ica"ion "ee"o co,!d e discened een - e+eence "o "e cic,s"ancess,o,ndin "e ain eesen"a"ions. e eesen"a"ions a!so e!a"ed "o a""es in "e+,",e and conse,en"!- cea"ed a indin o!ia"ion.

86. e Ne So," a!es S,ee Co," ad e!ied ,on "e ono,nceen" eo"ed a"Coonea!" an o+ A,s"a!ia . ;I %anaeen" *"- ;ii"ed (1990) .#. 510 eein "ee!ean" !e""e o+ co+o" ead as +o!!os:

e ee- acno!ede "a" "e Coonea!" an o+ A,s"a!ia as aeed "o ae"eoa- cedi" +aci!i"ies "o"a!!in "o ,nded and +i+"- "o,sand A,s"a!ian do!!asA250&000 aai!a!e "o @oe"ae! A,s"a!ia *"- ;"d ic eesen"s a-en"s +o onoinoea"in cos"s and sa!aies.

e con+i "a" "e coan- i!! co!e"e "aeoe aaneen"s (s,ec" "o saeo!des?aoa!) o+ @oe"ae! ;"d as soon as !ea!!- ossi!e. ese aaneen"s inc!,de "einec"ion o+ s,++icien" cai"a! "o ea- "e "eoa- +aci!i"- as en"ioned aoe "o "aeoeda"e o i"in 30 da-s o+ "is da"e.

Cons",in "is !e""e& "e co," ad e!d as +o!!os:

GIHn "e cic,s"ances "e da+" did no"& in - ,den"& con"ain ods cone-in "o "ede+endan" "e idea "a"& - ain i" enossed and sined& "e de+endan" o,!d e,nde"ain a con"ac",a! o!ia"ion. I" o,!d ae een e- si!e& i+ "a" ad eenin"ended& "o ae ,sed ods o+ oise& s,c as Je aeeJ& Je ,nde"aeJ& o een JeoiseJ. e ods Je con+i "a" e i!!....J ee& in "e cic,s"ances& a" !eas"ai,o,s. a" as s"a"ed in "e eainde o+ "e sen"ence einnin i" "ose odsas in essence a s"a"een" o+ no oe "an as a!ead- non o e!ieed - "e !ain"i++ "oe "e de+endan"?s in"en"ion....

87. I" as +,"e e!d "a" an- o+ "e o"e ods con"ained in "e !e""e ee a,e and,nce"ain Ga" 516H:

e di++ic,!"- is accen",a"ed - "e e!a"ie a,eness o+ an- o+ "e ods +o ea!e&Jco!e"eJ& J"aeoe aaneen"sJ and Jas soon as !ea!!- ossi!eJ. a" o,!d cons"i","ea eac o+ s,c an ,nde"ain e second sen"ence adds "o "e iecision o+ "e +is". I+


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"e Jaaneen"sJ inc!,de J"e inec"ion o+ s,++icien" cai"a!J e"c.& a" ae "e o"eaaneen"s a" is Js,++icien" cai"a! "o ea- "e "eoa- +aci!i"- as en"ionedaoeJ And a" is ean" - Jinec"ionJ I" is +a +o c!ea "a" a" is ean" is "edeosi" o+ one- "o "e an acco,n".

88. I" as& "ee+oe& e!d "a" "e !ea! s"a",s o+ "e !e""e as ee!- "a" o+ a Jseio,sacno!eden" - "e de+endan" o+ i"s ,ndes"andin o+ "e coecia! osi"ion e"een"e !ain"i++ and i"s c,s"oe& and a seio,s s"a"een" con+iin "e de+endan"?s in"en"ioni" esec" "o "e aen" o+ "e c,s"oe....J

89. Ano"e ,den" e!ied ,on as endeed in A,s"a!ian %/s ;,cen" ecno!oies& FSA co,nica"ed "ei acce"ance o+ "e "es >condi"ions i"in 30 da-s +o "e ecei" o+ "is !e""e and ,n!ess "e ,ndei"inaeeen"& ,ee !oan aeeen"& enea! condi"ions& ,aan"ee aeeen"& esona!

,aan"ee aeeen"s& aio,s ,nde"ains and an- o"e doc,en"s as a- e seci+ied- ICICI ;ii"ed e!a"in "o "e aoe +aci!i"-& ae eec,"ed - S-a e!e!in ;"d in s,c+o& as a- e e,ied - ICICI ;ii"ed i"in +o, on"s +o "e da"e o+ "is !e""e os,c +,"e eiod as a- e a!!oed - ICICI ;ii"ed in i"s aso!,"e disce"ion. e ICICI


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;ii"ed a!so eseed "o i"se!+ "e i" "o aend o odi+- "e !e""e as e!! as "e "esee" in !ine i" adice eceied +o i"s !ea! Co,nse! Jd,in "e co,se o+ doc,en"+ina!iBa"ionJ.

93. Ce"ain de"ai!s en"ioned in "e "e see" ic as enc!osed i" "e co,nica"ionda"ed 13" Se"ee& 2000& ae io"an". i!e %/s S-a e!e!in ;ii"ed as desciedas "e JooeJ& "e ICICI ;ii"ed as de+ined as "e J!ead aaneJ i!e ;,cen"ecno!oies Inc incooa"ed& FSA as "e ,aan"o. e s,!ies inc!,ded no" on!- %/s;,cen" ecno!oies @ind,s"an *". ;ii"ed& India ," o"es inc!,din Cinco S-s"e India*ia"e ;ii"ed. e +aci!i"- aeed "oe adanced - "e ICICI ;ii"ed as ,ndei"in o+"e en"ie de" e,ieen" o+ "e oec" aea"in #s. 4.84 i!!ion.

Io"an"!-& "e Jaeeen" da"eJ "a" as s"i,!a"ed in "e "e see" as J"e da"e onic "e +aci!i"- doc,en"s ae sined - "e ooe& "e !ead aane and "e,aan"oJ.

e ?+aci!i"- doc,en"s? ee de+ined "o inc!,de "e Koec" aeeen"s? and "e K+inancinaeeen"?.

So +a as "e J+inancin aeeen"J as concened& i" as s"i,!a"ed "a" J"e +aci!i"ies i!! e

s,ec" "o neo"ia"ions& eec,"ion and de!ie- o+ de+ini"ie +inancin aeeen"s "o een"eed in"o - "e ooe& "e sonsos and "e ,aan"o& as "e case a- e& e!a"in "o"e +aci!i"ies inc!,din ," no" !ii"ed "o "e sec,i"- doc,en"s& !oan aeeen"s& !ease+aci!i"- aeeen"s& ,aan"ee aeeen"s e"c. sa"is+ac"o- "o "e !ead aaneJ.

e "e see" s"i,!a"ed Jin"ees"J ic "e +aci!i"- o,!d ca-. I" as s"i,!a"ed "a" "een"ie de" +aci!i"- o,!d ca- an in"ees" a"e o+ ICICI ;*;# !,s 3L e ann, a-a!e,a"e!- !,s a!ica!e in"ees" "a ea!en" on "e da"e o+ eac dis,seen". e ICICI;*;# as on da"e as s"i,!a"ed as ein 12.5L e ann, a-a!e ,a"e!-.

I" is oin"ed o," "a" "is "e see" a!so s"a"ed "a" "e !ende o,!d conside "o oide aide !oan aains" "e oosed +aci!i"ies i" +,!! sec,i"- in"ees"s inc!,din an,ncondi"iona! and ieoca!e ,aan"ee +o %/s ;,cen" ecno!oies Inc& FSA in a +o and

anne sa"is+ac"o- "o "e !ead aane.


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,aan"ee is a con"ac" "o e+o "e oise& o discae "e !iai!i"- o+ a "id eson incase o+ i"s de+a,!"& as de+ined ,nde Sec"ion 126 o+ "e Indian Con"ac" Ac"& 1872. As eSec"ion 127 o+ "e said Ac"& an-"in done o an- oise ade& +o "e ene+i" o+ "eincia! de"o& a- e s,++icien" considea"ion "o "e s,e"- +o iin "e ,aan"ee.

97. So +a as "e e!iance on "e !ain"i++?s !e""e da"ed 27" Se"ee& 2000 e+ein "o "e!oan is concened& "e !ain"i++ "ee- s"a"ed "a" ;,cen" ecno!oies Inc ?sa!! acce" "e"es and condi"ions se" o," in "e "e see"? ee- ;,cen" i!! oide ,aan"ee , "o65L o+ "e +aci!i"-& ?s,ec" "o "e "es and condi"ions o+ "e "e see" and neo"ia"ion o+sa"is+ac"o- doc,en"a"ion?.

98. I" is eiden" "a" se""!een" o+ "e +ina! "es and neo"ia"ion o+ doc,en"a"ion as -e""o "ae !ace. e !e""e da"ed 27" Se"ee& 2000 +o "e !ain"i++ - i"se!+ "ee+oecanno" e "ea"ed as an ,ne,ioca! o aso!,"e acce"ance o+ "e "es o+ "e "e see".

99. e !ain"i++ as a!so ,ed a" soe !en" "a" "e ide !oan aeeen" da"ed 27"Se"ee& 2000 en"eed in"o - "e de+endan" No. 1 i" "e de+endan" No. 2 and "esecond aeeen" da"ed 12" Decee& 2000 ee en"eed in"o and eec,"ed indeenden"o+ "e ain +inancin aeeen". e sae as en"eed in"o on "es and condi"ions i"o,"a ,aan"ee +o "e !ain"i++ and +o "is eason& "e ICICI ;ii"ed adanced "e ide !oanon a s"i,!a"ed in"ees" a"e ic as ie "an "e in"ees" a"e s"i,!a"ed ,nde "e+inancin aeeen".

100. e de+endan"s a!so e!- on "e !e""e da"ed 30" Noee& 2000 addessed - "e!ain"i++ "o "e ICICI ;"d. "o asse" "a" a conc!,ded con"ac" can e ade o," - "ecoesondence ecaned e"een "e a"ies. is !e""e no"ed "a" "e ocess o++ina!isa"ion o+ doc,en"a"ion +o "e ain "e +aci!i"- as ,ndea- and as !ie!- "o eeec,"ed in "e on" o+ Decee& 2000. e !ain"i++ s"a"ed "eein "a" i" acce"ed "a""e ICICI en"e in"o an in"ei ide !oan +inancin aeeen" i" "e de+endan" No. 2ei""in "e "o aai! cedi" , "o an addi"iona! #s. 500 i!!ion oe and aoe an ao,n"aai!ed ea!ie "a" "e necessa- a!ica"ion "o "e %inis"- o+ inance +o aoa! o+ "e?oosed ,aan"ee? - ;,cen" ecno!oies Inc is eec"ed "o e ade in "e ne" ee.e !ain"i++ con+ied "a" ?s,ec" "o "e sa"is+ac"o- neo"ia"ion and eso!,"ion o+ "e+inancin "es o+ "e aeeen"?& "e sec,i"- doc,en"& "e ,aan"ee "es& "e

,aan"ee s",c",es and "e ,aan"ee e!ease ecanis as oided in "e "e see"?& i"o,!d ?oceed i" "e eec,"ion o+ "e ,aan"ee and o"e doc,en"s as e,ied +oco!e"in "e con"e!a"ed "ansac"ion on "e "es "e a"ies ad aeed ,on.

e co,nica"ion a" one !ace sos "a" neo"ia"ion and eso!,"ion o+ "e +inancin "eso+ "e aeeen" and "e ,aan"ee "es e"c as -e" "o "ae !ace i!e a" ano"e !ace ae+eence is ade "o "es aeed ,on. is co,nica"ion is "o e ead aains" "es"i,!a"ions ade - "e de+endan" No. 1 i"se!+ in "e !e""e da"ed 13" Se"ee& 2000 andead "oe"e +o "ese co,nica"ions& i" is no" ossi!e "o o!d "a" "ee as a +icon"ac" ic ad coe in"o !ace e"een "e a"ies.

101. I" as een ,ed - %. Diedi& !eaned senio Co,nse! +o "e de+endan" No. 1 "a""e !ain"i++ ad addessed a !e""e da"ed 12" 'an,a-& 2001 "o "e Dea"en" o+


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"e s"i,!a"ions con"ained "eein& i" is oio,s "a" "e "es and condi"ions ee -e" "o e+ina!ised.

e !ain"i++ +,"e oin"s o," "a" i"s !e""e da"ed 12" 'an,a-& 2001 "o "e $oenen" o+India seein aoa! c!ea!- s"a"ed "a" i" o,!d iss,e "e oosed ,aan"ee ?s,ec" "osa"is+ac"o- doc,en"a"ion?.

103. I" is no"eo"- "a" S-a e!e!in ;"d.de+endan" No. 2 addessed a !e""e as !a"e ason 4" Ai!& 2002 "o "e de+endan" No. 1 seein eision o+ "e "es o+ sanc"ion o+ "e"e !oan +o #s. 484 coes sanc"ioned - "e !e""e da"ed 13" Se"ee& 2000. ede+endan" No. 2 o"e in no ,nce"ain "es& "a" "e sanc"ion !e""e ad a C!a,se ee-"e !oan as "o e ,aan"eed - "e !ain"i++. I" as s"a"ed "a" on acco,n" o+ donadino+ "e a"in o+ ;,ccen" ecno!oies Inc.& "e de+endan" No. 1 ad ased i" "o oidea!"ena"e ,aan"ee o+ aoia"e a"in in esec" o+ ide !oans. e de+endan" No. 2in+oed "e ICICI an "a" i" ad een aoaced - ;,cen" "o aoac ICICI i" ae,es" and oosa! "a" "e "es o+ "e sanc"ion e eised so as "o ae "e "e !oani"o," eco,se "o ;,cen". e de+endan" No. 2 accodin!- e,es"ed "e ICICI an "ode!e"e "e C!a,se e"ainin "o ,aan"ee o+ ;,cen" Inc. and "o ae "e said !oan i"o,"eco,se "o ;,cen" Inc.

104. I" is "i"e "a" i" is "e eess in"en" o+ "e a"ies ic con"o!s "e ,!e o+ con"ac"+oa"ion a"e "an ee +o. In "e ins"an" case& "e a""e e!a"es "o +inancin o+ a !oanic as "o "e ",ne o+ #s. 484.00 i!!ion ,ees. adinCooa"ion . #econs",c"ion inance Cooa"ion& a++ied in 257 . 2d 765 (2nd Ci. 1958)&"e co," ad s"a"ed "a" Ji+ "e aeeen" is eess!- s,ec" "o "e eec,"ion o+ a +oa!con"ac"& "is in"en" ,s" e esec"ed and no con"ac" +o,nd ,n"i! "enJ.

106. @ain ead "o "e ,ne,ioca! eession o+ "e in"en" in "e "e see"& i" is eiden""a" "e de+endan" No. 1 ad i"se!+ in"ended no" "o e o,nd - an- s"i,!a"ion o coenan"e+oe "e sinin o+ a +oa! doc,en"s.

107. e !e""e da"ed 13" Se"ee& 2000 as e!! as "e "e see" oose +ina!isa"ion o+

indin "es a+"e acce"ance o+ "e oosa! in "is co,nica"ion and neo"ia"ion o+ "edoc,en"a"ion ,n!ie "e +ac"s in "e case o+ an,e ,sa!s (s,a). e !e""es o+ co+o"ee no" ,ncondi"iona! o ,ne,ioca! in "e cea"ion o+ "e !iai!i"- o+ "e !ain"i++. e!ain"i++ ad c!ea!- ade "e Js,ec" "o co!e"ion o+ seci+ic +oa!i"iesJ. ee isce"ain!- a di++eence e"een a "ansac"ion ein s,ec" "o aio,s e,ieen"s and "e+oa"ion o+ "e aeeen" i"se!+ ein deenden" ,on co!e"ion o+ s,c a""es.

108. I" is no"eo"- "a" in "e !e""e da"ed 30" 'an,a-& 2001 as sen" - S-a e!e!in;"d. "o "e Dea"en" o+


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ade s,ec" "o "e occ,ence o+ ce"ain een"s. e co," de+ined "e ase Js,ec" "oJ asein "e e,ia!en" "o Jcondi"iona! ,on o deendin onJ and e!d "a" ain "eacce"ance o+ an o++e s,ec" "o a condi"ion as no" "e ind o+ assen" e,ied "o ae i" aindin oise. @oee& ain "e acce"ance o+ an o++e condi"iona! o eess!- ainan aeeen" i"se!+ condi"iona! is a ,c c!eae eession o+ an in"en" no" "o e o,nd "an"e ,se o+ "e oe ai,o,s od J"ansac"ionJ.

110. %- a""en"ion is dan "o "e ono,nceen" o+ "e Ae Co," eo"ed a" (2006) 1 SCC751 Desse #and S.A. . inda! Ao Ce ;ii"ed eein "e co," ad e!d "a" "ea"ies aeein ,on "e "es s,ec" "o ic a con"ac" i!! e oened en ade& isno" "e sae as "e en"ein in"o "e con"ac" i"se!+. Sii!a!-& aeein ,on "e "es ici!! oen a oec" i"o," "e ode ein !aced& is no" "e sae as !acin "e oec"sode. A e!,de "o "e con"ac" so,!d no" e con+,sed i" "e con"ac" i"se!+. In "is case&"e co," as o+ "e ie "a" "e !e""es o+ in"en" ade i" c!ea "a" i+ "e oec"s ode asno" !aced and a !e""e o+ cedi" as no" iss,ed - a a"ic,!a da"e& "e o"e a"- as a"!ie"- "o a!"e "e ice and "e de!ie- sced,!e. e co," "ee+oe e!d "a" i" a- no" eossi!e "o "ea" "e !e""e o+ in"en" as "e oec"s ode. I" as +,"e e!d ",s:

Aeein ,on "e "es s,ec" "o ic o++e is "o e ade and acce"ed& is i"se!+ aco!ica"ed and "iecons,in ocess. ,"& eacin an aeeen" as "o "e "es s,ec""o ic a ,case i!! e ade& is no" en"ein in"o an aeeen" "o ,case.

32. *a"ies aeein ,on "e "es s,ec" "o ic a con"ac" i!! e oened& en ade&is no" "e sae as en"ein in"o "e con"ac" i"se!+. Sii!a!-& aeein ,on "e "es ici!! oen a ,case en a ,case ode is !aced& is no" "e sae as !acin a ,caseode. A e!,de "o a con"ac" so,!d no" e con+,sed i" "e con"ac" i"se!+. e ,ose o+#eision 4 da"ed 1061991 as "a" i+ and en a ,case ode as !aced& nei"e "eJ$enea! Condi"ions o+ *,caseJ o+ INDA;& as odi+ied - #eision 4. ," en no ,caseode as !aced& nei"e "e J$enea! Condi"ionsJ o+ *,caseJ no "e ai"a"ion C!a,se in"e J$enea! Condi"ions o+ *,caseJ ecae e++ec"ie o en+ocea!e. ee+oe& ini"ia!!in o+#eision 4J - D# and INDA; on 1061991 con"ainin "e odi+ica"ions "o "e $enea!Condi"ions o+ *,case& did no" in in"o eis"ence anai"a"ion aeeen" "o se""!edis,"es e"een "e a"ies.

111. I" is an adi""ed osi"ion e"een "e a"ies "a" so +a as "e doc,en"a"ion o+ "e+aci!i"- aeeen" and "e eec,"ion o+ an- +oa! +inancin aeeen" and doc,en"s aeconcened& coesondence as ecaned e"een "e ICICI and "e !ea! cons,!"an"s +oOc"oe& 2000 onads. @oee& no +oa! +inancin aeeen" as ee eec,"ed. Asoin"ed o," - "e !ain"i++ seea! condi"ions? eceden"& ic ee no" een de+ined& co,!de caned - "e !ain"i++& de+endan" No. 1 o de+endan" No. 2 and "ese condi"ions?eceden" ee nee co!e"ed.

112. In "e ean"ie& "e de+endan" No. 2 en"eed in"o a aan" aeeen" da"ed 5"Oc"oe& 2001 i" ;,cen" ecno!oies @ind,s"an *ia"e ;ii"ed a!so ,s,an" "o ic&,on sa"is+ac"ion o+ "e "es o+ "e aeeen"& ;,cen" @ind,s"an ecno!oies *". ;ii"edas "o e iss,ed sec,i"ies o+ an a++i!ia"e o+ S-a e!e!in ;ii"ed de+endan" No. 2.

113. o "e aoe disc,ssion "e +o!!oin +ac"s eee:

(i) ;,cen" ecno!oies Inc ("e !ain"i++) is no" a sina"o- "o an- o+ "e aeeen"s.

(ii) "e !e""e da"ed 13" Se"ee& 2000 as a oosa! ade - "e ICICI an "o S;i" a co- enc!osed "o "e !ain"i++. I" s"a"es "a" "e de+endan" No. 1 as Jaeea!e ininci!eJ "o adance +inancia! +aci!i"- "o i" ic as Js,ec" "o "e secia! "es andcondi"ions se" o," in "e "e see"J. e "e see" as s"a"ed "o e on!- Jindica"ieJ andJi!! e +ina!ised a+"e "e co!e"ion o+ d,e di!ience and a" "e "ie o+ Jdoc,en"s+ina!isa"ionJ. ICICI e"ained "e i" "o seci+- o"e "es and condi"ions as a- e e,ieda" "e "ie o+ de+ini"ie doc,en"a"ion.

(iii) e +aci!i"- aeeen" and +inancin aeeen"& ic as "o con"ain "e C!a,se +odis,"e eso!,"ion& as no" een eec,"ed "i!! da"e and as no" een coe in"o eis"enceeen.


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(i) e !e""e da"ed 13" Se"ee& 2000 c!ea!- s"a"ed "a" "e deand o+ ICICI ass,ec" "o "e sa"is+ac"ion o+ eac condi"ions eceden" en"ioned in "e "e see". eICICI no"i+ied "e a"ies "a" "e co,nica"ion so,!d no" e cons",ed as iin ise "oJan- indin o!ia"ionJ (inc!,din "e ,aan"ee aeeen"s) ic eec,"ed.

() e "e see" ,ses seea! eessions ic so "a" "e ICICI i"se!+ did no" "ea" "econ"ac" as +ina!. I" as s,ec" "o sa"is+ac"ion o+ seea! condi"ions eceden" and "oeec,"ion o+ +inancin aeeen"s. So +a as "e coenan" o+ "e ,aan"o as concened&i"s o!ia"ions ee "o s,sis" d,in "e "en,e o+ "e ,aan"ees ,nde "e +inancinaeeen"s. e da"e as s"i,!a"ed as "e da"e on ic "e +aci!i"- doc,en"s ae sined- "e a"ies "e "e see" seci+ied J+aci!i"- doc,en"sJ "o inc!,de "e Joec"aeeen"sJ and "e J+inancin aeeen"J. I" as +,"e s"i,!a"ed "a" "e +aci!i"ies o,!de Js,ec" "o neo"ia"ion& eec,"ion and de!ie-J o+ de+ini"ie +inancin aeeen"s J"o een"eed in"o - "e ooe& "e sonso and "e ,aan"oJ. e doc,en"s inc!,ded,aan"ee aeeen"s and o"e doc,en"s.

(i) Fnde "e eadin JSec,i"- > Doc,en"sJ& "e "e see" en"ioned "a" Js,ec" "o"e sa"is+ac"ion o+ "e ,aan"oJ on "e ,aan"ee s",c",e& i" o,!d eec,"e a!! doc,en"sin e!a"ion "o cea"ion and e+ec"ion o+ "e sec,i"- and "e ,ncondi"iona! and ieoca!e,aan"ee - "e ,aan"o "o a- 65L o+ a!! ao,n"s d,e ,nde "e +aci!i"iesJ.

(ii) A seci+ic C!a,se as en"ioned as a condi"ion eceden" "o eec,"ion o+ +inancinaeeen"s ic inc!,ded a econdi"ion o+ e,!a"o- and s"a","o- aoa!s in"e a!ia "eeission +o ,aan"ee !ea! oinion - "e ,aan"o?s Co,nse! coein a!! a""es i"ead "o incooa"ion and eis"ence o+ "e ,aan"os and "e !ea!i"-& a!idi"- anden+oceai!i"- o+ "e ,aan"ee. As e "e "e see"& "e s"i,!a"ion eadin $oenin;a > ',isdic"ion as e+eed "o in "e con"e" o+ "e J+inancin aeeen" a!oneJ and no" inesec" o+ a!! a""es e!a"ed "ee"o ic inc!,ded ,aan"ee aeeen"s. No +ina! "esand condi"ions o "e aeeen" cae in"o eis"ence no as an- s,c aeeen" een !acede+oe "is co,".

114. A!-in "e !ea! inci!es !aid don in "e seea! ,den"s no"iced eeinaoe& "ecic,s"ances and doc,en"s do no" indica"e "a" "e a"ies in"ended "o cea"e an- !ea!e!a"ions. e e- "es o+ "e !e""e da"ed 13" Se"ee& 2000& "e "e see" enc!osed

"eei" and "e esonse o+ "e !ain"i++ as con"ained in !e""es o+ co+o" da"ed 27"Se"ee& 2000 and 30" Noee& 2000 ae a s"on indica"o in "is ead. o" ,seases and conce"s ain c!ea "ecnica! !ea! sini+icance and do no" ani+es" anin"en""a" a +ina! and conc!,ded con"ac" ad een en"eed in"o. In ie o+ "e aoe disc,ssion& i"&"ee+oe& as "o e e!d "a" "e co,nica"ions !aced e+oe "is co," do no" con"ain "eind o+ assen" e,ied "o ae +o a indin con"ac".

II

115. e second ,es"ion ic is e,ied "o e anseed in "e esen" case is as "oe"e "e C!a,se s"i,!a"in "e ?$oenin ;a and ',isdic"ion? in "e "e see" o an-o"e s"i,!a"ion in "e doc,en"s ao,n"ed "o an ai"a"ion aeeen" ic o,!d ind"e !ain"i++ and "e de+endan" No. 1.

116. A +,"e ,es"ion as een aised as "o e"e "e ai"a! "i,na! aoin"ed a" "eins"ance o+ %/s S-a e!e!in ;ii"ed and ;,cen" ecno!oies @ind,s"an *". ;"d. ,nde i"scon"ac"s da"ed 14" Decee& 1999 co,!d e consideed as an Ja!"ena"e dis,"e eso!,"ion+o,J i"in "e eanin o+ "e eession as con"ained in "e "e see" enc!osed - "eICICI i" i"s !e""e o+ 13" Se"ee& 1999& ic o,!d ae ,isdic"ion "o eaine "edis,"e a" "e ins"ance o+ ICICI ;ii"ed.

117. An eaina"ion o+ "is iss,e necessi"a"es a !oo a" "e e!ean" dis,"e eso!,"ionC!a,ses in "e aio,s doc,en"s e!ied ,on - "e a"ies. In "e ode o+ cono!o-& "eseae "e s,!- aeeen"s da"ed 14" o+ Decee& 1999 "e "e see" enc!osed i" "e!e""e da"ed 13" Se"ee& 2000 and "e aan" aeeen" da"ed 5" o+ Oc"oe& 2001.

118. e s,!- con"ac"s da"ed 14" Decee& 1999 e"een S-a e!e!in > a"a ;,cen"ecno!oies ;"d. con"ains a Jdis,"es eso!,"ion and ai"a"ionJ ecanis in C!a,se 55(ic is C!a,se 58 in one o+ "e s,!- con"ac") and s"a"es ",s:


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55. Dis,"es eso!,"ion and Ai"a"ion

55.1 I+ an- dis,"e& di++eence& con"oesies o c!ais o+ an- ind a"soee sa!! aisee"een "e *a"ies in connec"ion i" o aisin o," o+ "is Con"ac" inc!,din an- ,es"ioneadin i"s eis"ence& a!idi"- o "eina"ion o+ "e eec,"ion o+ "e os& e"e e+oeo a+"e "e "eina"ion& aandonen" o eac o+ "is Con"ac"& "e *a"ies sa!! see "oeso!e an- s,c dis,"e o di++eence - ,",a! cons,!"a"ion. *SC i!! ae "ei es"endeao "o eso!e dis,"es& di++eences& con"oesies o c!ais - ,",a! de!iea"ion. Incase o+ +ai!,e& "e iss,es i!! e esca!a"ed "o "e esec"ie C


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9.2 A Dis,"e i!! e deeed "o aise en one *a"- sees on "e o"e *a"- a no"ices"a"in "e na",e o+ "e Dis,"e (a ?No"ice o+ Dis,"e?).

9.3 e *a"ies ee"o aee "a" "e- i!! ,se a!! easona!e e++o"s "o eso!e e"een"ese!es& an- Dis,"e "o, neo"ia"ions.

9.4 An- Dis,"es and di++eences a"soee aisin ,nde o in connec"ion i" "is

Aeeen" ic co,!d no" e se""!ed - *a"ies "o, neo"ia"ions& a+"e "e eiod o+"i"- (30) ,siness Da-s +o "e seice o+ "e No"ice o+ Dis,"e& sa!! e +ina!!- se""!ed -ai"a"ion in accodance i" "e Ai"a"ion and Conci!ia"ion Ac"& 1996 and:

a. A!! oceedins sa!! e cond,c"ed in


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127. I" is +,"e con"ended "a" "e oe con+eed on i" is ide eno, "o een ,ni!a"ea!!-aoin" "e ai"a! "i,na! o "o aoac an eis"in ai"a! "i,na!. o "e eason "a""e de+endan" No. 1 as aoaced "e ai"a! "i,na!& i" is ,ed "a" "e !ain"i++ asec!,ded +o inin "e esen" s,i" o +o ca!!enin "e eis"ence& a!idi"- oindinness o+ "e ai"a"ion aeeen". I" as een ,ed "a" "e oisions o+ "eAi"a"ion and Conci!ia"ion Ac"& 1996 oii" s,c an eaina"ion - an- cii! co," and in"is ea!+ - a""en"ion is dan "o "e oisions o+ Sec"ions 5& 16 and 34 o+ "e Ai"a"ionand Conci!ia"ion Ac"& 1996& - "e de+endan"s.

128. e !ain"i++ on "e o"e and as con"ended "a" een "e enisaed d,e di!iencee+oe en"ein in"o a +oa! aeeen" as no" oe and "a" "e a""e as a" "e s"ae o+neo"ia"ions on!-. A C!a,se oidin ?$oenin ;a and ',isdic"ion? o,!d ind "e a"ieson!- i+ s,c C!a,se as incooa"ed in a +oa! and +ina! +inancin aeeen" aied a"e"een "e a"ies. A s,ission as a!so een ade& "a" e+eence "o "e ,isdic"ion o+"e co,"s a" De!i nea"es "e eis"ence o+ an ai"a"ion aeeen".

129. %. A,n 'ai"!e-& !eaned senio Co,nse! +o "e !ain"i++& as con"ended "a" eenass,in "a" "is C!a,se as indin& "e sae does no" cons"i","e an ai"a"ion aeeen"e"een "e a"ies. e C!a,se con+es a ,ni!a"ea! i" on "e ICICI an "o aoac ana!"ena"e dis,"e eso!,"ion +o, i"o," an- s,c i" ein aai!a!e "o "e !ain"i++. eC!a,se a!so does no" s"i,!a"e as "o a" o,!d e "e na",e o+ "e a!"ena"e dis,"e

eso!,"ion ecanis and "ee is no indica"ion a" a!! "a" ai"a"ion is "e s,es"ed ode.

130. I ae consideed "e ia! con"en"ions on "is iss,e.

131. In aa 23& o+ "e ,dicia! ono,nceen" eo"ed a" (1999) 7 SCC 339 S"a"e o+ ' > = .De D,"" *andi" e!ied ,on - "e de+endan"s& "e Ae Co," as oseed "a" ai"a"ionis consideed "o e an io"an" a!"ena"ie dis,"es edessa! ocess ic is "o eenco,aed eca,se o+ "e i endenc- o+ cases in "e co,"s and cos"s o+ "e !i"ia"ion. I"as +,"e oseed "a" ai"a"ion as "o e !ooed ,"o i" a!! eanes"ness so "a" "e!i"ia"in ,!ic as +ai" in "e seed- ocess o+ eso!in "ei dis,"es - "is ocess.ee can e no dis,"e i" "ese osea"ions.

132. e o"e ,den" e!ied ,on - "e de+endan"s is eo"ed a" (2003) 1 SCC 49 Sa!e%. Adoca"e a Associa"ion& N . Fnion o+ India eein "e co," as concened i" aca!!ene "o "e aenden"s ade "o "e Code o+ Cii! *oced,e - "e Aenden" Ac" 46o+ 1999. e co," no"ed "a" one o+ "e aended oisions ic as o," in - "e!eis!a",e is "o e +o,nd in Sec"ion 89 o+ "e Code& ic oides +o se""!een" o+ dis,"eso,"side co," ee i" aeaed "o "e co," "a" "ee eis"ed e!een"s o+ a se""!een"ic a- e acce"a!e "o "e a"ies. is aenden" ena!ed "e co," "o +o,!a"e "e"es o+ a ossi!e se""!een" and ie "e "o "e a"ies +o "ei osea"ionse+o,!a"e "e "es and "o e+e "e sae +o ai"a"ion o conci!ia"ion o edia"ion o

,dicia! se""!een" inc!,din se""!een" "o, ;o Ada!a". e Ae Co," oseed Sec"ion89 descies "e a!"ena"e dis,"es ecanis "o inc!,de ai"a"ion and "e esci"edo"e odes.

133. ee can ce"ain!- e no dis,"e i" "e inci!e "a" "e ai"a"ion is one o+ "e

seea! e"ods o+ a!"ena"ie dis,"es edessa! (?AD#? +o ei"-) s"a","oi!- econiBed -incooa"ion o+ Sec"ion 89 and aenden" o+ "e Code o+ Cii! *oced,e. e !ain"i++ asa!so no" dis,"ed "is s,ission.

134. I" is no"eo"- "a" "e J$oenin ;a and ',isdic"ionJ C!a,se ic is ,ndeconsidea"ion a!ies on!- "o "e inancin Aeeen". I" s"i,!a"es "a" Indian !a o,!doen "e +inancin aeeen"s ic ee "o e eec,"ed i!e co,"s a" De!i o,!d ae

,isdic"ion in esec" o+ a!! a""es e!a"in "ee"o.

e C!a,se as con"ained in "e "e see" es"ed "e ,isdic"ion in co,"s a" De!i in esec"o+ a!! a""es e!a"in "o "e +inancin aeeen"s.

135. As s"i,!a"ed in "e "e see"& "e da"e o+ "e +inancin aeeen" as "e da"e onic "e aeeen"s ee sined and eec,"ed. es and condi"ions on ic "e+inancin aeeen"s ee "o e en"eed in"o ee -e" ,nde neo"ia"ion and +ina!isa"ion.oa! eec,"ion "eeo+ as no" een e++ec"ed "i!! da"e. e da"e o+ "e +inancin aeeen"


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as s"i,!a"ed in "e "e see"& as "e da"e on ic "e aeeen"s ee sined andeec,"ed.

136. e eadin o+ "e C!a,se o,!d so "a" "e ICICI ;ii"ed ad eseed "e aso!,"eand ,ni!a"ea! i" "o aoac an- o"e a!"ena"ie dis,"e eso!,"ion +o, i" i"s en,ea" De!i.

137. e o"e a"ies "o "e "e see" did no" ae an- i" "o aoac s,c +o, +o adis,"e eso!,"ion a" "ei ins"ance. e ooe& sonso and "e ,aan"o& as "e casea- e& ee e,ied "o Js,i" "o s,c +o,J.

138. ee is -e" ano"e di++ic,!"-. e +is" a" o+ "e C!a,se aes a e+eence "o ?co,"?i!e "e !a"e a" e+es "o ?a!"ena"e dis,"e edessa!?. e +ac",a! osi"ion ic "ee+oeeees can e s,ed , as +o!!os:

(i) "e C!a,se J$oenin ;a > ',isdic"ionJ on!- s"i,!a"ed "a" "e s,s"an"ie !a ico,!d oen an- dis,"e eso!,"ion o,!d e Indian !as.

(ii) So +a as "e "ei"oia! ,isdic"ion as concened& "e a"ies aeed "o con+ine "e,isdic"ion "o co,"s a" De!i.

(iii) e C!a,se e+es "o ?co,"s a" De!i? as e!! as an ?a!"ena"e dis,"e eso!,"ion +o,?.

(i) ?A!"ena"e dis,"e eso!,"ion? inc!,des eco,se "o e"ods as ai"a"ion& edia"ion&conci!ia"ion a!! o+ ic ae ased on consen" o+ o" a"ies. I" is no" con+ined "o ai"a"ion.No seci+ic consen" +o inoin ai"a"ion o+ "e !ain"i++ is aai!a!e.

() ICICI an as "ea"ed "is C!a,se as con+ein an aso!,"e ,ni!a"ea! oe on i" "o "aeeco,se "o ai"a"ion i"o," "e consen" o+ "e o"e side. So ,c so& i" as con+eed,on i"se!+ "e aso!,"e i" een "o decide "e na",e o+ "e a!"ena"e dis,"e +o, i"o,""e consen" o+ "e o"e side.

(i) I" is an adi""ed osi"ion& "a" so +a as "e +aci!i"- doc,en"s and "e +inancinaeeen"s ae concened& "e a"ies ad no" eec,"ed "e sae. e esen" dis,"es aeaisen a" a s"ae io "ee"o.

(ii) i" is os" io"an" "o no"e "a" "e an as c!aied "a" i" as no" on!- ien a i""o cea"e "e "i,na! ," a so!e i" is con+eed ,on "e de+endan" No. 1 "o "ae eco,se"o "e dis,"e eso!,"ion. is in +ac" "an"ao,n"s "o sa-in "a" "e !ain"i++ is ec!,ded+o aisin dis,"es o ain c!ais ,on "e o"e side.

139. e +is" ,es"ion ic "ee+oe aises in "e esen" case is& "a" een i+ i" ee "o ee!d "a" "e a"ies ad aeed "o dis,"e edessa! - "e a!"ena"ie ode& "en e"eai"a"ion as "e ecanis ic as een aeed ,on.

e essen"ia! inedien"s o+ a a!id ai"a"ion ae s"a","oi!- esci"ed in Sec"ion 7 o+ "eAc" o+ 1996 in "e +o!!oin "es:

7. Ai"a"ion aeeen". (1) In "is *a"& Jai"a"ion aeeen"J eans an aeeen" -"e a"ies "o s,i" "o ai"a"ion a!! o ce"ain dis,"es ic ae aisen o ic a-aise e"een "e in esec" o+ a de+ined !ea! e!a"ionsi& e"e con"ac",a! o no".

(2) An ai"a"ion aeeen" a- e in "e +o o+ an ai"a"ion C!a,se in a con"ac" o in"e +o o+ a seaa"e aeeen".

(3) An ai"a"ion aeeen" sa!! e in i"in.

(4) An ai"a"ion aeeen" is in i"in i+ i" is con"ained in

(a) a doc,en" sined - "e a"ies


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() an ecane o+ !e""es& "e!e& "e!eas o o"e eans o+ "e!eco,nica"ion icoide a ecod o+ "e aeeen" o

(c) an ecane o+ s"a"een"s o+ c!ai and de+ence in ic "e eis"ence o+ "e aeeen"is a!!eed - one a"- and no" denied - "e o"e.

(5) e e+eence in a con"ac" "o a doc,en" con"ainin an ai"a"ion C!a,se cons"i","es an

ai"a"ion aeeen" i+ "e con"ac" is in i"in and "e e+eence is s,c as "o ae "a"ai"a"ion C!a,se a" o+ "e con"ac".

140. is !a anda"es a c!ea aeeen" - "e a"ies "o s,i" "o ai"a"ion "eidis,"es in esec" o+ a de+ined !ea! e!a"ionsi.

141. In aa 10 o+ "e ono,nceen" in Sa!e Adoca"e a Associa"ion (s,a)& "eS,ee Co," as oseed "a" "ee is a e,ieen" "a" "e a"ies "o "e s,i" ,s"indica"e "e +o, o+ a!"ena"e dis,"e edessa! ic "e- o,!d !ie "o eso" "o d,in "eendenc- o+ "e "ia! o+ "e s,i". Consen" o+ "e a"ies is e,ied& no" on!- "o aeeen" "o"e a!"ena"e dis,"e edessa! ecanis ," a!so "o "e +o,.

I" "ee+oe e,ies "o e seen as "o e"e i" as so ee.

142. e ,dicia! ono,nceen" eo"ed a" AI# 2000 SC 1379 i!!in"on Associa"es ;"d. .=ii" %ea "os a!,a!e !i" on "e seea! iss,es aised - "e de+endan" No. 1. In "iscase& "e aeeen" con"ained a e+eence "o co,"s as e!! as "o ai"a"ion. In C!a,se 4 o+"e aeeen" e!ied ,on in "is case i!!in"on Associa"ed ;"d. (s,a)& "e a"ies adaeed "a" i+ an- dis,"e aises in connec"ion i" "e aeeen"& on!- co,"s in oa-o,!d ae ,isdic"ion "o "- and de"eine "e s,i". C!a,se 5 o+ "e sae aeeen"ecoded "a" i" as a!so aeed - and e"een "e a"ies "a" an- dis,"e o di++eenceaisin in connec"ion i" "e aeeen" ?a-? e e+eed "o ai"a"ion. e e"i"ione adcon"ended "a" "e od ?a-? in C!a,se 5 ad "o e cons",ed as ?sa!!?. e Ae Co," aso+ "e ie "a" "e a"ies ad ,sed "e od ?a-? no" i"o," eason. C!a,se 4 soed "edesie o+ "e a"ies "a" in case o+ dis,"es& "e cii! co,"s a" oa- ae "o e aoaced- a- o+ a s,i". C!a,se 5 ee!- ena!ed "e a"ies "a" "e- need no" necessai!- o "o "e

cii! co," - a- o+ a s,i" ," can a!so o e+oe an ai"a"o. o "is eason& i" as e!d"a" "e a"ies did no" in"end "a" ai"a"ion is "o e "e so!e eed- and "a" "e ?a"iesaeed "a" "e- can a!so? o +o ai"a"ion in case "e aieed a"- does no" is "o o"o a cii! co," - a- o+ a s,i".

In aa 25 o+ "e said ono,nceen"& i" as e!d "a" "e ods ?a- e e+eed? ,sed inC!a,se 5 ead i" C!a,se 4 !ed "o "e conc!,sion "a" C!a,se 5 is no" a +i o a anda"o-ai"a"ion C!a,se and& "a"& i" os",!a"ed a +es aeeen" e"een "e a"ies "a" "e-o,!d o "o ai"a"ion.

143. I +ind "a" in i!!in"on Associa"es ;"d. (s,a)& "e Ae Co," a!so consideed Sec"ion 7o+ "e Ai"a"ion > Conci!ia"ion Ac" ic oides "e essen"ia!s o+ an ai"a"ion aeeen".e s"a","e anda"es "a" an ai"a"ion aeeen" eans an aeeen" - "e a"ies "o

s,i" "o ai"a"ion a!! o ce"ain dis,"es ic ae aisen o ic a- aise e"een"e in esec" o+ a de+ined !ea! e!a"ionsi e"e con"ac",a! o no".

e Ae Co," e+eed "o a ono,nceen" o+ "e #aas"an @i Co," eo"ed a" AI#1971 #aas"an 258 . $oa! Das . =o"a S"a oad eein "e C!a,se e!ied ,on eadas +o!!os:

"a" in case o+ an- dis,"e aisen e"een ,s& "e a""e a- e e+eed "o ai"a"o,",a!!- aeed ,on and acce"a!e "o -o, and ,s.

e #aas"an @i Co," e!d "a" +es consen" +o ai"a"ion as necessa-.

144. In "e esen" case& "e ?$oenin ;a > ',isdic"ion? C!a,se is an aa!aa"ion o+

C!a,se 4 and 5 ic ee consideed - "e Ae Co," in i!!in"on Associa"es ;"d. (s,a).


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145. A!an #ed+en > %a"in @,n"e in ;a and *ac"ice O+ In"ena"iona! Coecia!Ai"a"ion (o,"


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e !a""e C!a,se is ien as an ea!e o+ a Jdisas"o,s cooiseJ ic i" !ead "oe"ensie !i"ia"ion (,ne!a"ed "o "e ei"s o+ "e dis,"e) "o so" o," an- con"adic"ions in"e aio,s !as s"a"ed "o e a!ica!e.

147. As no"iced aoe& "e J$oenin ;a > ',isdic"ionJ C!a,se con"ains o" o"ions asno"iced aoe a e+eence "o ?co,"? as e!! as "e a!"ena"e dis,"e eso!,"ion +o, in "e!a"e. I" needs no e!aoa"ion "a" "e a!"ena"e dis,"e eso!,"ion +o, does no" necessai!-ean ai"a"ion and can een e+e "o edia"ion o conci!ia"ion o ee" de"eina"ion. eC!a,se is sii!a "o "e +o," i!!,s"a"ion se" o," - %a"in @,n"e in "e e"ac" o+ "e "e"no"iced aoe.

148. e C!a,se e!ied ,on - "e de+endan" No. 1& does no" se" o," as "o e"e "edis,"e eso!,"ion is "o e edia"ion o conci!a"ion o ai"a"ion o se""!een" "o, ;oAda!a". As a es,!"& een i+ i" ee "o e e!d "a" "ee as an aeeen" +o dis,"eedessa! "o e - "e a!"ena"ie ecanis& i" is aaen" "a" "ee as no aeeen"i" ead "o "e e"od o+ "e a!"ena"ie dis,"e edessa! and "a" "ee as noaeeen" "a" "e ecanis o+ ai"a"ion o,!d e eso"ed "o +o dis,"e edessa!.

e C!a,se does no" s"a"e ic is "e ode o+ dis,"e eso!,"ion "o e +o!!oed and o,!dno" e en+ocea!e on o,nds o+ ,nce"ain"-.

149. is C!a,se a!so e,ies "o e consideed +o "e an!e o+ "e e,ieen"s o+,",a!i"- in a a!id ai"a"ion aeeen". In "e +is" a" o+ "e C!a,se J$oenin ;a and',isdic"ionJ e!ied ,on - "e de+endan" No. 1& e+es "o Indian ;a and i" is s"a"ed "a" "eco,"s a" De!i i!! ae ,isdic"ion in esec" o+ a!! a""es e!a"in "o "e +inancinaeeen"s. I" +,"e s"a"es "a" on!- "e ICICI ;"d. esees a i" "o aoac an- Jo"ea!"ena"e dis,"e eso!,"ion +o,J. I" is eiden" "a" "ee as no aeeen" "o e+edis,"es "o ai"a"ion een a" "e ins"ance o+ de+endan" No. 1. I" is eiden" "a" no consen"o+ "e o"e a"- "o aee "o e+e dis,"es "o ai"a"ion is os",!a"ed and "a" "ede+endan" No. 1 ,ni!a"ea!!- eseed "e i" "o aoac an- o"e Ja!"ena"e dis,"eeso!,"ion +o,J and "a" "e o"es i. e. "e ooe& sonsos and "e ,aan"o sa!!s,i" "o s,c a +o,.

150. An ai"a"ion aeeen" is e,ied "o e consens,a! e"een "e a"ies "ee"o. eC!a,se s"i,!a"ed - "e ICICI ;ii"ed ies no o"ion a" a!! "o "e o"e a"ies.

151. I" as e!d in G1947H 2 A!!


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18. Ai"a"ion i"o," e,dice "o "e aoe C!a,se 17& o+ "e con"ac" "e Coan-& %/s.An ,es ;ii"ed& esees i"s i" "o o in +o ai"a"ion& i+ an- dis,"e so aisen is no",",a!!- se""!ed i"in 3 on"s o+ s,c no"ice ien - "e Coan- "o "e Con"ac"o. And&"e aad o+ "e Ai"a"o& "o "e aoin"ed - "e Coan-& %/s. AN ,es ;ii"ed& sa!!e +ina! and indin on o" "e Coan- and "e Con"ac"o.

e seea! ,es"ions ic ae a!so een ,ed e+oe "is co," ee aised as +o!!os:

%. ana"i con"ends "a" - no s"e"c o+ iaina"ion "is C!a,se can e ca!!ed i!a"ea!. In+ac" "e eed- o+ "is C!a,se sos "a" "e de+endan" e" "o ise!+ "e oe "o e+e i"sdis,"es on!- "o Ai"a"ion. ," no s,c oe o+ inoin "e Ai"a"ion C!a,se ae ien "o!ain"i++. is C!a,se is one sided& i" esees "e i" o+ ai"a"ion on!- "o de+endan"coan-. is sos "a" "e con"ac"o& i.e. "e esen" !ain"i++ as no i" "o inoe "eoisions o+ C!a,se 18. e i" is on!- eseed - "e de+endan" %/s An ,es ;ii"ed.S,c a C!a,se canno" e ca!!ed an ai"a"ion c!a,se. @e as !aced e!iance on "e decision o+Co," o+ Aea! in "e case aon . S,nde!and Cooa"ion eo"ed in A!!


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osea"ion I a o+ "e oinion s,c a C!a,se as C!a,se 18 canno" e ca!!ed an ai"a"ionc!a,se. On "e asis o+ C!a,se 18 s,i" canno" e s"a-ed. C!a,se 18 is no" a a!id ai"a"ionC!a,se ence "e a!ica"ion o+ "e de+endan" desee disissa!.

155. e ,den" o+ "e !eaned Sin!e ',de as assai!ed - a- o+ an aea! and a++ied- "e Diision enc in "e ono,nceen" eo"ed a" 1992 (2) A.;.#. 8 A..N. ,es;"d. . a"ia C,"!e @ae ;"d. e Diision enc conc!,ded "a" "e c,,!a"ie e++ec" o+"e "ee o"ions o+ "e C!a,se eod,ced aoe as "a" "e i" "o o in +o ai"a"ionaisin o+ dis,"es and "e i" "o aoin" "e ai"a"o as ien on!- "o AN ,es !"d.ic ao,n"ed "o "e sae ein a ,ni!a"ea! aeeen". o "is eason& i" as e!d "a"s,c an aeeen" as no" en+ocea!e in !a.

156. ese e- inci!es ae een ei"ea"ed in "e ono,nceen"s o+ "is co," eo"eda" 2005 (116) D; 559 ',isdic"ionJ is oid a!so +o eason"a" i" is con"a- "o Sec"ion 28 o+ "e Con"ac" Ac". ee+oe& ass,in "a" "e C!a,see!ied ,on cons"i","ed an ai"a"ion aeeen"& in "e !i" o+ "e indin inci!es no"icedaoe& i" as "o e e!d "a" "e sae is a!so no" en+ocea!e in !a +o !ac o+ ,",a!i"- ase!! as ,nce"ain"-.

158. Conci!ia"ionCen"es o s,c !ie odies.

@oee& in ie o+ "e decision on "e o"e asec"s& i" is no" necessa- +o e "o dea! i""is asec".

III

160. On ea!+ o+ "e de+endan"s& i" is ,ed "a" in ie o+ "e oisions o+ Sec"ion 5& 8(3)&16(5) and 13(4) o+ "e Ai"a"ion Ac"& "a" in ie o+ "is s"a","o- oii"ion& "e s,i" is!ea!!- aed. I" is "o e no"ed "a" IA No. 2758/2005 as een +i!ed - "e de+endan" No. 1,nde Ode 7 #,!e 11 C*C a-in +o eec"ion o+ "e !ain" on "is o,nd.

161. is ins e "o "e "id iss,e "a" ass,in "e eis"ence o+ a a!id ai"a"ionaeeen" e"een "e a"ies& e"e Sec"ion 5& 8(3) and 16(5) o+ "e Ai"a"ion andConci!ia"ion Ac"& 1996 cons"i","e a !ea! a "o "e ain"ainai!i"- o+ "e s,i" once "eai"a"os ae en"eed ,on "e ai"a"ion and& as a conse,ence& "e !ain" is !ia!e "o eeec"ed ,nde #,!e 11 o+ Ode 7 o+ C*C.

162. On ea!+ o+ "e de+endan"s& e!iance is !aced on "e ono,nceen"s eo"ed a"(2002) 2 SCC 388 =onan #ai!a- Cooa"ion ;"d. . #ani Cons",c"ion ;"d.& : (2004) 3 SCC447 Sec, Ind,s"ies ;"d. . $ode > o-ce %an,+ac",in Co. ;"d. and An. (2005) 8 SCC618 S* > Co. . *a"e!


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163. %. #aes Diedi& !eaned senio Co,nse! +o "e de+endan" No. 1 as ,ed "a" onceai"a"ion as coenced& "e on!- oisions ei""in co," in"een"ion ae Sec"ions 9&14(2)& 27 and Sec"ion 37(2)() o+ "e Ai"a"ion Ac"& 1996 and "a" "e co," canno"in"eene in an- o"e cic,s"ance i!e "e ai"a"ion is endin. In s,o" o+ "iss,ission e!iance is !aced on "e ono,nceen"s eo"ed a" (2005) 8 SCC 618 S..*. >Co. . *a"e! .*.; Co,nica"ions AI#2004 *>@ 276 *a, #ice %i!!s . *,na S"a"e Coo. S,!- > %ae"in edea"ion and2003 A.;.#. 470 Fni"ed India Ins,ance Co. . S,ndaa inance ;"d.

164. In e!-& e"ensie s,issions ae een ade - %. A,n 'ai"!e-& !eaned senioCo,nse! aeain +o "e !ain"i++& "a" so +a as "e eis"ence o+ an ai"a"ion aeeen" isconcened& "e co,"s ae ien iac- ,nde Sec"ion 8 o+ "e Ai"a"ion > Conci!ia"ion Ac"&1996. I" is oin"ed o," "a" on "e iss,e i" ead "o "e a!idi"- o+ an ai"a"ion i"ead "o en+oceen" o+ +oein aads aain co,"s ae ien iac- ,nde Sec"ion 45 o+"e s"a","e. I" as een ,ed "a" inas,c as& een i+ "ee is a a!id eis"in and indinaeeen"& -e" a a"- "o "e ai"a"ion aeeen"& seein edessa! o+ a dis,"e a- e!ec"no" "o inoe "e dis,"e edessa! ecanis - a- o+ ai"a"ion and a- "ae eco,se"o "e eed- o+ a cii! s,i" o cii! oceedins e+oe "e co,"s. o "is eason& i" is ,ed"a" "e s,ission "a" "e oisions o+ Ai"a"ion > Conci!ia"ion Ac"& 1996 as "eeed- o+ a s,i" "o a"ies "o an ai"a"ion aeeen"& is isconceied.

165. I" as +,"e een ,ed& "a" "e i" "o ain"ain a s,i" is an"ed ,nde "e s"a","eand "ee+oe can e "aen aa- on!- - a seci+ic s"a","o- oii"ion and no s,c s"a","o-oision is in +oce.

166. I" is e!! se""!ed "a" an a!ica"ion +o eec"ion o+ a !ain" as "o e decided onde,e. o "e ,oses o+ considea"ion o+ "is ,es"ion& i" a- e ass,ed "a" "eeeis"s a a!id and !ea! ai"a"ion aeeen" and +,"e "a" a s,i" as een +i!ed in esec"o+ c!ais ic ae "e s,ec" a""e o+ s,c aeeen".

167. Inas,c as "e de+endan"s ae con"ended "a" "e esen" s,i" is aed in "es o+Sec"ion 5& 8 and 16 o+ "e Ai"a"ion Ac"& 1996& i" o,!d e ,se+,! "o e+e "o "e e!ean"oisions ic ead as +o!!os:

5


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(2) A !ea "a" "e ai"a! "i,na! does no" ae ,isdic"ion sa!! e aised no" !a"e "an "es,ission o+ "e s"a"een" o+ de+ence oee& a a"- sa!! no" e ec!,ded +o aisins,c a !ea ee!- eca,se "a" e as aoin"ed& o a"icia"ed in "e aoin"en" o+& anai"a"o.

(3) A !ea "a" "e ai"a! "i,na! is eceedin "e scoe o+ i"s a,"oi"- sa!! e aised assoon as "e a""e a!!eed "o e e-ond "e scoe o+ i"s a,"oi"- is aised d,in "e ai"a!oceedins.

(4) e ai"a! "i,na! a-& in ei"e o+ "e cases e+eed "o in S,sec"ion (2) o S,sec"ion (3)& adi" a !a"e !ea i+ i" consides "e de!a- ,s"i+ied.

(5) e ai"a! "i,na! sa!! decide on a !ea e+eed "o in S,sec"ion (2) o S,sec"ion(3) and& ee "e ai"a! "i,na! "aes a decision eec"in "e !ea& con"in,e i" "eai"a! oceedins and ae an ai"a! aad.

(6) A a"- aieed - s,c an ai"a! aad a- ae an a!ica"ion +o se""in asides,c an ai"a! aad in accodance i" Sec"ion 34.

168. So +a as in"ee"a"ion o+ "e s"a","o- oisions ae concened& "e !ea! osi"ion as

een s,ccinc"!- s"a"ed in a !e"oa o+ ,dicia! ono,nceen"s& "e e!ean" ones !acede+oe "is co," ae consideed eea+"e.

169. e na",e o+ "e eed- ic is aai!a!e "o a eson o is c!aiin eis"ence o+ anai"a"ion aeeen" i" ead "o "e s,ec" a""e o+ a s,i" +i!ed aains" i as e!! as"e anne in ic i" is "o e aoaced in ie o+ "e s"a","o- scee need "o eeained e+oe oceedin an- +,"e.

170. e oa- @i Co," ad occasion "o conside an iss,e i" ead "o a !ea o+iden"i"- o+ "e s,ec" a""e e+oe in "e s,i" e+oe "e co," i" "a" o+ "e ai"a"ionaeeen". e co," as a!so concened i" "e e,ieen"s o+ Sec"ion 8 o+ "eAi"a"ion Ac" in "is case. e ,den" endeed - "e oa- @i Co," is eo"ed a"AI# 2002 o. 8 en"i"!ed $aden inance ;"d. . *aas Ind,s"ies ;"d. In aa 9 o+ "e

ono,nceen"& "e co," as a,"oi"a"ie!- anseed "ese iss,es ",s:

9. I" is c!ea +o "ese osea"ions "a" one o+ "e asec" "o e consideed - "e Co,"i!e considein "e a!ica"ion +o e+ein "e a"ies "o ai"a"ion is "a" "e s,ec"a""e o+ "e ac"ion is "e sae as "e s,ec" a""e o+ "e ai"a"ion aeeen". No& "ise,ieen" i!! ino!e e+eence "o "e con"en"s o+ "e !ain" as a!so "o "e ai"a"ionaeeen" and "e anne in ic "e a!ican" an"s "e Co," "o ead "e aeen"sade in "e !ain" as a!so "e eci"a! in "e ai"a"ion aeeen". I" is oio,s "a" "e!ain"i++ o as o," "e ac"ion o,!d a!so ae "e i" o+ a,dience on s,c ana!ica"ion. In ode "o a++od "e !ain"i++ a co!e"e oo",ni"- o+ ein ead on ana!ica"ion ,nde Sec"ion 8 o+ "e Ai"a"ion Ac". In - oinion& i" o,!d ae "o e e!d "a""e a"- ic sees "o e+e "e dis,"e "o "e Ai"a"o as "o ae a i""en a!ica"ion+o "a" ,ose& so "a" "e !ain"i++& o as ins"i","ed "e s,i"& nos eac"!- "e o,nds

on ic "e e+eence is so,". In "e esen" case& "o, "e De+endan" as een seedi" "is s,i" !on ac& "ee is no i""en a!ica"ion ade. D,in "e co,se o+ eain&-es"eda-& en "is asec" as oin"ed o,"& "e !eaned Co,nse! s"a"ed "a" e so,!d eien one da-?s "ie "o ae an a!ica"ion. o, "e eain o+ "e a""e did no"conc!,de -es"eda-& and "e De+endan" o" "ie ic e as seein "o ae ana!ica"ion& een "oda- no s,c a!ica"ion as een ade. ,s& "ee is no a!ica"ionade ,nde Sec"ion 8 +o e+ein "e dis,"e "o "e ai"a"ion and "ee+oe as "ee is noa!ica"ion ade +o e+ein "e dis,"e "o "e ai"a"ion& oisions o+ Sec"ion 5 do no"coe in"o !a- and do no" oea"e. I" is +,"e "o e seen "a" een i+ i" is ass,ed "a" anoa! a!ica"ion +o e+ein "e a"ies "o Ai"a"o can e en"e"ained& i" is c!ea +o "eosea"ions o+ "e S,ee Co," ,o"ed aoe in i"s ,den" in *. Anand?s case "a" oneo+ "e essen"ia! e,ieen" is "a" "e s,ec" a""e o+ "e ac"ion is "e sae as "e s,ec"a""e o+ "e ai"a"ion aeeen". ,s& accodin "o "e S,ee Co," in ode "a",nde Sec"ion 8 a""e can e e+eed "o ai"a"ion& "ee as "o e iden"i"- o+ "e s,ec"

a""e o+ "e s,i" and "e ai"a"ion aeeen". As oin"ed o," aoe& "e s,ec" a""e o+"e s,i" is "o aeeen"s nae!- "e aeeen" o+ !ease o+ e,ien" e"een "e !ain"i++and "e De+endan" No. 1 as a!so "e aeeen" o+ ,aan"ee e"een "e !ain"i++ and "eDe+endan" No. 2& eeas& "e s,ec" a""e o+ "e ai"a"ion aeeen" is on!- "e !ease


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aeeen" and no" "e ,aan"ee aeeen". ee+oe& i" canno" e said "a" "ee is aniden"i"- o+ s,ec" a""e o+ "e s,i" and "e ai"a"ion aeeen". In "is ie o+ "ea""e& in - oinion& Sec"ion 5 o+ "e Ai"a"ion Ac" o,!d a!so no" coe in "e a- o+ "isCo," en"e"ainin "e esen" s,i".

171. *e,sa! o+ "e ono,nceen" in : (2004) 3 SCC 447 Sec, Ind,s"ies ;"d. . $odeo-ce %an,+ac",in Co. ;"d. and An.& e!ied ,on - "e de+endan"& o,!d so "a" "eeas no dis,"e "o "e eis"ence& a!idi"- o indinness o+ an ai"a"ion aeeen". e s,i"ad een o," - "e esonden" No. 1 in"e a!ia +o a dec!aa"ion "a" "e c!aied e"i"ion+i!ed - "e ae!!an" e+oe "e Co,nci!& ("e s"a","o- ai"a"os) as ,!"aies o+ "eoisions o+ "e Ac" and "ee+oe i" is !ea!& n,!! and oid. In "is aco,nd& "e co,"cons",ed "e oisions o+ "e Ai"a"ion Ac"& 1996 and e!d "a" i+ a s,i" is +i!ed in a a""eic is "e s,ec" a""e o+ an ai"a"ion aeeen"& i" is inc,en" on "e co," "o e+e"e a"ies "o ai"a"ion ,nde Sec"ion 8(1) o+ "e 1996 enac"en".

e coe iss,e ",s as "a" "e s,i" ad een +i!ed in esec" o+ a a""e ic is "e s,ec"a""e o+ an ai"a"ion aeeen". e ai"a"ion aeeen" is a!so e,ied "o e !acede+oe "e co," in accodance i" Sec"ion 8 o+ "e 1996 Ac". In ie o+ "e +ac" "a" "e "es,ec" a""e o+ "e esen" s,i" is a c!ai - a a"- o as no i" "o inoe "e eed-o+ a!"ena"e dis,"e edessa! ,nde "e Joenin !a and ,isdic"ionJ c!a,se& i" is eiden""a" "ee is no iden"i"- o+ s,ec" a""e o+ "e "o oceedins. e inci!es !aid don in

"is a,"oi"a"ie ono,nceen" o,!d "ee+oe no" a!- "o "e ins"an" case.

172. In (2000) 2 SCC 178 aa A!i . FOI& a!so e!ied ,on - "e de+endan"& "e co,"eec"ed a ca!!ene "o "e ies o+ "e Ai"a"ion Ac" o+ 1996 and e!d "a" ee!- eca,se"e co," co,!d conside "e ,es"ion o+ ,isdic"ion o+ an ai"a"o on!- a+"e "e assin o+"e aad& i" canno" e a o,nd +o con"endin "a" s,c an ode ,nde Sec"ion 16(5) is no"s,ec" "o an- ,dicia! sc,"in- and "a" i" as oen +o "e !eis!a",e "o !a- don "e "ieand anne o+ "e ,dicia! sc,"in-.

I" is necessa- "o no"e "a" "is ,den" did no" aise in "e +ac",a! aco,nd !acede+oe "is co,".

173. So +a as "e ono,nceen" eo"ed a" (2002) 1 SCC 2003 =a!ana =o"ai . S,daEada is concened&"e co," e!d as +o!!os:

8. ...In s"iin con"as" "o "e said scee ,nde!-in "e oisions o+ "e 1940 Ac"& in "ene 1996 Ac"& "ee is no oision coesondin "o Sec"ion 34 o+ "e o!d Ac" and Sec"ion 8o+ "e 1996 Ac" anda"es "a" "e ',dicia! A,"oi"- e+oe ic an ac"ion as een o,"in esec" o+ a a""e& ic is "e s,ec"a""e o+ an ai"a"ion aeeen"& sa!! e+e "ea"ies "o ai"a"ion i+ a a"- "o s,c an aeeen" a!ies no" !a"e "an en s,i""inis +is" s"a"een". e oisions o+ "e 1996 Ac" do no" enisae "e seci+ic o"ainin o+an- s"a- as ,nde "e 1940 Ac"& +o "e eason "a" no" on!- "e diec"ion "o ae e+eenceis anda"o- ," no" i"s"andin "e endenc- o+ "e oceedins e+oe "e ',dicia!A,"oi"- o "e ain o+ an a!ica"ion ,nde Sec"ion 8(1) o+ "e 1996 Ac"& "e ai"a"ionoceedins ae ena!ed& ,nde Sec"ion 8(3) o+ "e 1996 Ac" "o e coenced o con"in,edand an ai"a! aad a!so ade ,naeed - s,c endenc-. e ae "o "es" "e ode

,nde aea! on "is asis.

o "e aoe& i" is aaen" "a" "e co," as considein "e oe o+ "e co," ,ndeSec"ion 34 o+ "e Ai"a"ion Ac" o+ 1940 as aains" "e oes o+ "e co," i!e consideinan a!ica"ion ,nde Sec"ion 8 o+ "e Ac" o+ 1996. is ,den" o,!d a!so so "a"eco,se "o Sec"ion 8 o+ "e Ai"a"ion Ac"& 1996 as anda"o- i+ a a"- as c!aiin "a""ee as an ai"a"ion aeeen" ased eeon "e co," is e,ied "o conside e"e"e s,ec" a""e o+ "e s,i" is coeed ,nde "e c!aied aeeen". No s,c a!ica"ionas een +i!ed in "e esen" oceedins.

174. In (2003) 12 SCC 140 CDC inancia! Seices (%a,i"i,s) . *; Co,nica"ion ;"d. andOs.& "e ai"a"o as aoin"ed in oceedins ,nde Sec"ion 11 o+ "e Ai"a"ion Ac"&1996. e odes assed - "e ai"a"o ee eea"ed!- ca!!ened - a- o+ i" e"i"ions

,nde A"ic!e 226 o+ "e Cons"i","ion o+ India e+oe "e i co," ic in"eened in "ea""e. In "is aco,nd& "e co," oseed "a" in ie o+ Sec"ions 5 o+ "e 1996enac"en"& co,"s ae es"ained +o in"e+ein i" "e ai"a"ion ece" in "e anneoided in "e 1996 s"a","e and "a" "e odes assed - "e co," o,!d ao,n" "o a


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io!a"ion o+ "is anda"e. is osi"ion as no" dis,"ed - "e esonden"s and "ee+oe "eodes assed - "e @i Co," ee se" aside. e ,den" as endeed in "e +ac"s o+"e case.

ee can e no dis,"e i" "e inci!es !aid don - "e Ae Co," o "e !eis!a"ieanda"e. A" "e sae "ie& "e !ea! inci!es ae "o e a!ied "o "e +ac"s o+ "e case.

175. In a !anda ono,nceen" eo"ed a" (2003) 5 SCC 531 S,an-a @o!dins *". ;"d.. 'a-es @. *and-a and An. "e S,ee Co," as c!ea!- e!d "a" "e Ai"a"ion Ac" doesno" o,s" "e ,isdic"ion o+ "e cii! co," "o decide "e dis,"e in a case ee a"ies "o "eai"a"ion aeeen" do no" "ae "e s"es s"i,!a"ed ,nde Sec"ion 8 a+oeno"iced. In "isea!+& "e co," consideed "e s"a","o- oisions and e!d ",s:

12. o in"ee"a"ion o+ Sec"ion 8& Sec"ion 5 o,!d ae no eain eca,se i" on!-con"e!a"es "a" in "e a""e oened - *a"I o+ "e Ac"& ,dicia! a,"oi"- sa!! no"in"eene ece" ee so oided in "e Ac". (2) o+ Sec"ion 8 o+ "e Ac".

13. Second!-& "ee is no oision in "e Ac" "a" en "e s,ec" a""e o+ "e s,i" inc!,dess,ec" a""e o+ "e ai"a"ion aeeen" as e!! as o"e dis,"es& "e a""e is e,ied"o e e+eed "o ai"a"ion. ee is a!so no oision +o s!i""in "e ca,se o a"ies ande+ein "e s,ec" a""e o+ "e s,i" "o "e ai"a"os.

14. id!-& "ee is no oision as "o a" is e,ied "o e done in a case ee soea"ies "o "e s,i" ae no" a"ies "o "e ai"a"ion aeeen". As aains" "is& ,nde Sec"ion24 o+ "e Ai"a"ion Ac"& 1940& soe o+ "e a"ies "o a s,i" co,!d a!- "a" "e a""es indi++eence e"een "e e e+eed "o ai"a"ion and "e Co," a- e+e "e sae "oai"a"ion oided "a" "e sae can e seaa"ed +o "e es" o+ "e s,ec" a""e o+ "es,i". Sec"ion a!so oided "a" "e s,i" o,!d con"in,e so +a as i" e!a"ed "o a"ies o aeno" oined in s,c a!ica"ion.

15. e e!ean" !an,ae ,sed in Sec"ion 8 is Jin a a""e ic is "e s,ec" a""e o+ anai"a"ion aeeen"J. Co," is e,ied "o e+e "e a"ies "o ai"a"ion. ee+oe& "e s,i"so,!d e in esec" o+ ?a a""e? ic "e a"ies ae aeed "o e+e and ic coesi"in "e ai" o+ ai"a"ion aeeen". ee& oee& a s,i" is coenced Jas "o aa""eJ ic !ies o,"side "e ai"a"ion aeeen" and is a!so e"een soe o+ "e a"ieso ae no" a"ies "o "e ai"a"ion aeeen"& "ee is no ,es"ion o+ a!ica"ion o+ Sec"ion8. e od ?a a""e? indica"es en"ie s,ec" a""e o+ "e s,i" so,!d e s,ec" "oai"a"ion aeeen".

16. e ne" ,es"ion ic e,ies considea"ion iseen i+ "ee is no oision +o a"!-e+ein "e dis,"e "o ai"a"ion& e"e s,c a co,se is ossi!e ,nde Sec"ion 8 o+ "eAc" In o, ie& i" o,!d e di++ic,!" "o ie an in"ee"a"ion "o Sec"ion 8 ,nde ici+,ca"ion o+ "e ca,se o+ ac"ion "a" is "o sa- "e s,ec" a""e o+ "e s,i" o in soe casesi+,ca"ion o+ "e s,i" e"een a"ies o ae a"ies "o "e ai"a"ion aeeen" ando"es is ossi!e. is o,!d e !a-in don a "o"a!!- ne oced,e no" con"e!a"ed ,nde"e Ac". I+ i+,ca"ion o+ "e s,ec" a""e o+ a s,i" as con"e!a"ed& "e !eis!a",e o,!dae ,sed aoia"e !an,ae "o ei" s,c a co,se. Since "ee is no s,c indica"ion in"e !an,ae& i" +o!!os "a" i+,ca"ion o+ "e s,ec" a""e o+ an ac"ion o," e+oe a

,dicia! a,"oi"- is no" a!!oed.

,s& a!ica"ion o+ Sec"ion 8 e,ies "a" "ee so,!d e a a!id ai"a"ion aeeen"

e"een "e a"ies "o "e s,i" and "e en"ie s,ec" a""e o+ "e s,i" so,!d e coeed"ee,nde& "ee can e no i+,ca"ion o+ ei"e "e a"ies o "e s,ec" a""e o+ "e s,i".


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176. Soea" sii!a "o "e +ac",a! naa"ion in "e ins"an" case i" ead "o "eca!!ene "o "e ain"ainai!i"- o+ "e s,i" on "e o,nd "a" "ee as an ai"a"ionaeeen" aised e+oe "is co," as consideed in "e ,den" eo"ed a" 105 (2003)D; 467 Asa- =a, and Os. . #isa =ao and Os. e de+endan" ad +i!ed ana!ica"ion ,nde Sec"ion 8 o+ "e Ai"ai"on > Conci!ia"ion Ac" and i" as +,"e con"ended"a" inci!es o+ aie& ac,iescence and es"oe! ead i" Sec"ion 5 o+ "e Ac" o+ 1996ee a""ac"ed since "e !ain"i++ ad a"icia"ed in "e ai"a! oceedins i" +,!!no!ede and i"o," ande, a"soee. On a de"ai!ed considea"ion o+ "e en"ie !a&

"e co," ad !aid don "e c!ea dis"inc"ion e"een "e ,isdic"iona! disensa"ion ,nde "eAi"a"ion Ac"& 1940 and "e 1996 eie. I" as oseed "a" "e ai" o+ Sec"ion 8 ,nde"e 1996 Ac" is ,c ide "an "e Sec"ion 34 o+ "e 1940 Ac". #e!iance as !aced on "eono,nceen" o+ "e Ae Co," in AI# 2002 SC 404 =a!ana =o"ai . S,da Eada andOs. eein "e Ae Co," as oseed "a" in s"iin con"as" "o "e said scee ,nde"e Ac" o+ 1940& "ee is no oision coesondin "o Sec"ion 34 o+ "e ne Ac". Sec"ion 8 o+"e 1996 Ac" anda"es "a" "e ,dicia! a,"oi"- e+oe ic an ac"ion as een o," inesec" o+ a s,ec" a""e ic is "e s,ec" a""e o+ an ai"a"ion aeeen"& sa!!e+e "e a"ies "o ai"a"ion i+ a a"- "o s,c an aeeen" a!ies no" !a"e "an ens,i""in is +is" s"a"een". e oisi

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