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18 December 2021, Saturday

2 years ago

Section 9 is not a tool to recover money: Delhi High Court

18 November 2021 | Pinaka Studios Pvt. Ltd. v. MX Media and Entertainment Pte. Ltd. | OMP (I) (Comm.) 377 of 2021| C. Hari Shankar J | Delhi High Court | 2021 SCC OnLine Del 5033

The respondent developed, produced and exploited a web series known as “Raktanchal.” It commissioned the services of the petitioner for Season 2. Parties executed a production agreement.

Later, the respondent terminated the agreement alleging several breaches. The petitioner applied to restrain the respondent from using the content of 550 minutes of Season 2 that had been handed up to the respondent.

Dismissing the petition, C Hari Shankar J ruled that:

  1. Section 9 ACA cannot be used as a tool to compel the opposite party to pay money to the claimant.
  2. In a case where the claim of the claimant is monetary in nature, ordinarily, the highest that can be sought from a Court under Section 9 is securing of the monetary claim under Section 9(1)(ii)(b) ACA (for which there is no prayer). Any direction for securing the amount can be passed only if the case, in principle, fulfills the requirements of Order XXXVIII Rule 5 Civil Procedure Code, 1908.

Read the judgment here.

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Categories: Interim Measures by Court | Interim Measures Ordered by Arbitral Tribunal | Order XXXVIII CPC | Scope of Section 9 ACA | Section 17 ACA | Section 37 ACA | Section 9 ACA | Securing the Amount in Dispute in Arbitration

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