Dhanera Diamonds loses arbitration against Motilal Oswal; defaults to the tune of Rs 80.74cr

Motilal Oswal Financial Services Limited has announceed that it wins the award for Rs89cr against Dhanera Diamonds, as High Court of Bombay has by interim order directed Dhanera not to sell / dispose of their assets.

Dhanera who is one of the Clients of MOFSL had defaulted in payment of outstanding debit balance of Rs80.74cr approximately, which has arisen on account of Crude Oil Contracts of April 2020 expiry.

When despite of repeated requests of MOFSL, Dhanera failed to pay, MOFSL has filed petition u/s 9 of Arbitration Act before Hon’ble High Court of Bombay requesting for security for repayment of outstanding debit balance, pending arbitration before Arbitral Tribunal of Multi Commodity Exchange of India Limited (“MCX”).

Thereafter on 3rd July, 2020, Hon’ble High Court after hearing both the parties passed an interim order restraining Dhanera and its partners from selling/disposing of their assets which were disclosed in Affidavit of Dhanera.

Further, the MCX Arbitral Tribunal comprising of three Arbitrators has by an Award/Order dated 12th June, 2021, allowed the claim of MOFSL and directed M/s. Dhanera to pay Rs80.74cr along with interest @ 9% p.a. from April 24, 2020 till the date of this Award and with interest @ 12% p.a. from the date of Award till payment/realization.

After the above Award/Order of Arbitral Tribunal of MCX, MOFSL before Hon’ble High Court has filed a petition u/s 9 of Arbitration Act against Dhanera and its partners for seeking security for payment of Award Amount by hanera and its partners.

The Hon’ble High Court vide its interim Order dated June 28, 2021 directed M/s. Dhanera Diamonds not to sell / dispose of its assets and file its reply within the period of three weeks and the said petition is pending before Hon’ble High Court.

*Courtesy: India Info Online - This is a Third Party Reportage and Diamond World does not take any responsibility for any discrepency in the article