AZB & Partners successfully represented Edelweiss Financial Services Limited, where the validity and arbitrability of put option clauses in India where upheld by the Division Bench of the Hon’ble Bombay High Court.
This is a first of a kind matter under Part 1 of the Indian Arbitration & Conciliation Act, 1996 which dealt with arbitrability of put options in India. The Hon’ble Court also held that a put option clause contained in a share purchase agreement is not prohibited under the Securities Contract (Regulations) Act, 1956 (“SCRA”). Such options are not ‘forward contracts’ or ‘contracts in derivatives’ that would attract the rigours of Section 16 and 18A of the SCRA and the related notifications.
The AZB team comprised of our Senior Partner Rajendra Barot, Partners Dr. Dhirajkumar Totala and Priyanka Shetty, Associates Harshit Jaiswal and Aditya Singh Chauhan.