We are pleased to share the successful resolution of a significant post-acquisition dispute arising from the acquisition of a major information technology company

We are pleased to share the successful resolution of a significant post-acquisition dispute arising from the acquisition of a major information technology company, in which SAMVĀD: Partners represented 24 selling shareholders.

Samvad had originally advised the selling shareholders on the underlying share acquisition transaction and subsequently represented them in the disputes that arose between the parties. The dispute proceeded to arbitration before a three-member tribunal headed by a retired Judge of the Supreme Court of India. The arbitral proceedings spanned over two years and involved an extensive trial, including the in-person examination of witnesses in Singapore and New York. The proceedings culminated in an award in our clients' favour.

 Thereafter, the dispute expanded into multi-forum proceedings before the Commercial Court, Bengaluru; the Karnataka High Court; and the National Company Law Tribunal, Bengaluru. The buyer, a product engineering company, challenged the award under Section 34 of the Arbitration and Conciliation Act, 1996, and sought a stay of its enforcement, while our team simultaneously initiated enforcement proceedings under Section 36. Although the Commercial Court granted a conditional stay subject to the deposit of 75% of the award amount or the furnishing of a bank guarantee, both parties challenged the order before the Karnataka High Court. The High Court disposed of the writ petitions, directing the Commercial Court to endeavour to decide the Section 34 proceedings within four months and declining to interfere with the execution proceedings.

Separately, it was discovered that the buyer had initiated merger/amalgamation proceedings before the NCLT, Bengaluru. Intervention applications were accordingly filed on behalf of our clients to safeguard our clients’ interests as creditors of the company. Following sustained proceedings across multiple forums, the buyer deposited the entire award amount before the Commercial Court in the execution proceedings. The amount was subsequently released to our clients, and the parties thereafter also entered into a settlement, resulting in the disposal of all pending proceedings across all forums.

The matter was led by the Samvad Partners team, comprising Partner Aakash Sherwal and Associates Vaibhav Suppal and Joel Jacob.

Senior Advocate Harish Narasappa SA was instructed as Senior Counsel in the matter.