Interim Arrangement Ensures Continuation of Engagements; Justice Sadhana Jadhav Appointed as Sole Arbitrator
In a significant development, the Bombay High Court, presided over by Justice Sandeep V. Marne, has facilitated the conversion of a Section 9 petition into a Section 17 application under the Arbitration and Conciliation Act, 1996, in the matter of Onedigital Entertainment Pte Ltd. versus Prajakta Koli. The case revolves around disputes arising from a Performance of Artists Management Agreement dating back to September 10, 2015.
The parties involved have mutually agreed to transition from seeking interim measures to conducting domestic arbitration with Mumbai as the seat, despite the Petitioner being a Singapore-based entity. The Court has appointed Justice Sadhana Jadhav, a former judge of the Bombay High Court, as the sole arbitrator to adjudicate the disputes.
During the proceedings, both parties concurred on a pro tem arrangement to sustain current and future engagements until the arbitral tribunal decides on the Section 17 application. Key elements of this temporary arrangement include:
1. Respondent Prajakta Koli will honor existing agreements with third parties, with Onedigital sharing comprehensive documentation and revenue details.
2. For new client engagements brought by Onedigital and accepted by Koli, a revenue-sharing model of 10% with Onedigital has been stipulated. However, Koli remains free to pursue other engagements independently.
3. Koli is to maintain detailed accounts of all engagements until the tribunal's decision on the Section 17 application.
This arrangement ensures business continuity while preserving the rights and contentions of both parties for future arbitration.
The order further details that the fees of the arbitrator will be governed by the Bombay High Court Rules, 2018, and equally borne by both parties, subject to the final award. The petitioner has been directed to file the Section 17 application within four weeks, with all rights to be argued before the appointed tribunal.
The judgment concludes with the disposal of the Commercial Arbitration Petition, marking a critical step in resolving the disputes through arbitration rather than prolonged litigation.
Bottom line:-
Arbitration - Section 9 Petition seeking interim measures before commencement of arbitral proceedings converted into Section 17 Application by mutual agreement - Pro tem arrangement agreed upon between parties to ensure continuation of existing engagements and revenue sharing till decision of Section 17 Application - Sole Arbitrator appointed to adjudicate disputes arising out of Performance of Artists Management Agreement.
Statutory provision(s): Arbitration and Conciliation Act, 1996 Sections 9, 17, and 11.
Onedigital Entertainment Pte Ltd. v. Prajakta Koli, (Bombay) : Law Finder Doc id # 2898843
