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of <h1>Dismissed: Injunction Petition vs. Russian Co. for Commission Payment. Privity issue.</h1> <h3>Rite Approach Group Ltd. Versus Rosoboronexport</h3> Rite Approach Group Ltd. Versus Rosoboronexport - TMI Issues:Privity of contract between the parties, responsibility of respondent to discharge liabilities of M/s. Russian Technologies, validity of the petitioner's claim for commission, appropriateness of injunction against respondent, application of Section 9 of the Arbitration and Conciliation Act, 1996, relevance of Order 38 Rule 5 of the CPC in the present case.Analysis:The petitioner, a Singapore-based Company, sought injunction against a Russian State owned Company to secure a commission for services rendered in supplying helicopters to the Government of India. The petitioner claimed to have acted as an agent for M/s. Russian Technologies, which later merged with the respondent. The respondent denied any contract with the petitioner and disputed the claim for commission, asserting independent negotiations with the Ministry of defense. The respondent contended that the petitioner's agreement with M/s. Russian Technologies was void due to cessation of activities by the latter. The Court noted discrepancies in the number and models of helicopters under different contracts, highlighting the absence of privity between the parties. The petitioner's request for an injunction was deemed premature as commission is typically due after contract completion. The Court also considered the respondent's status as a State-owned entity with substantial assets, indicating no immediate threat to executing any future decree.The Court declined the petitioner's plea for interim relief under Section 9 of the Act, drawing parallels with Order 38 Rule 5 of the CPC to assess the necessity of injunction. Citing precedents, the Court emphasized the lack of grounds for issuing interim orders, given the complexities and disputes surrounding the commission claim. The Court stressed that only the Arbitrator's award could definitively determine the petitioner's entitlement to commission. The manufacturer's communication regarding commission payment was deemed non-binding on the respondent, further weakening the petitioner's case for injunction against payment release by the Government of India. Ultimately, the Court found the petitioner's claims lacking merit and dismissed the petition, vacating any interim orders previously issued.In conclusion, the Court's detailed analysis focused on the absence of a contractual nexus between the parties, the premature nature of the injunction request, and the lack of immediate threat to the respondent's ability to fulfill any future decree. The judgment underscored the need for arbitration to resolve the commission dispute conclusively and highlighted the insufficiency of grounds for granting the petitioner's requested reliefs.
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