Delhi High Court: Arbitral Tribunals Can Order Share Transfers in Joint Venture Disputes

The Delhi High Court has held that arbitral tribunals, including those seated abroad, may direct share transfers in joint venture companies if such relief flows from a shareholders’ agreement. 

Justice Prathiba M. Singh clarified that granting such remedies does not encroach upon the jurisdiction of company law tribunals, as it pertains to enforcing private contractual rights.

The judgment arose from a dispute between Roger Shashoua and Mukesh Sharma under a 1998 shareholders’ agreement. 

The Court affirmed that an arbitral tribunal deriving authority from the shareholders’ agreement is competent to order share transfers as part of contractual remedies.

[Roger Shashoua Vs Mukesh Sharma]