Delhi High Court Grants Leave for Withdrawal of Section 9 Arbitration Petition as Parties Agree on Share Entitlements
In a significant development, the Delhi High Court has allowed Bennett Coleman and Co. Ltd. to withdraw its petition filed under Section 9 of the Arbitration and Conciliation Act, 1996, following an assurance from Lord's Mark Industries Limited regarding the petitioner's entitlements under a Share Cum Warrant Subscription Agreement. The bench, presided over by Justice Amit Sharma, heard arguments through hybrid mode and subsequently dismissed the petition as withdrawn, granting Bennett Coleman the liberty to initiate proceedings if commitments are unmet.
The dispute arose over share capital and warrant conversion rights following a merger involving Lord's Mark Industries Limited. Bennett Coleman had initially sought interim reliefs to restrain the trading of shares and maintain the status quo with respect to its warrant conversion rights, which were acknowledged in a communication by Lord's Mark Industries.
The core of the issue revolved around Bennett Coleman's entitlement to 10,28,483 equity shares in Lord's Mark Industries, stemming from a warrant conversion notice. The resolution plan, approved by the National Company Law Tribunal (NCLT), paved the way for the merger of Kratos Energy and Infrastructure Limited with Lord's Mark Industries, leading to a restructuring process that temporarily affected the conversion and issuance of shares.
On May 30, 2026, Lord's Mark Industries issued a letter acknowledging Bennett Coleman's rights under the Share Cum Warrant Subscription Agreement, assuring compliance with these entitlements. The communication indicated that Lord's Mark Industries would take necessary steps post-withdrawal of the petition to ensure transparency and compliance, including coordination with the Monitoring Committee overseeing the resolution plan implementation.
Justice Amit Sharma granted Bennett Coleman leave to withdraw the petition in light of this assurance. The court emphasized that Bennett Coleman retains the right to initiate legal proceedings should Lord's Mark Industries fail to adhere to the commitments outlined in the communication.
This resolution marks a pivotal moment in the ongoing corporate restructuring process, ensuring that shareholder rights are respected amidst complex insolvency and merger proceedings. The decision underscores the importance of amicable resolutions in corporate disputes, particularly in the context of arbitration and conciliation frameworks.
Bottom line:-
Arbitration and Conciliation Act, 1996 - Section 9 petition seeking interim reliefs - Withdrawal of petition following acknowledgment by respondent of petitioner's entitlement under a Share Cum Warrant Subscription Agreement - Liberty granted to petitioner to initiate appropriate proceedings if respondent fails to comply with the terms acknowledged in the communication.
Statutory provision(s): Arbitration and Conciliation Act, 1996 - Section 9
