Bombay High Court Allows Raj Kundra's Company To Challenge UK Anti-Suit Injunction In Rajasthan Royals Dispute

The Bombay High Court on Monday granted leave under Clause XII of the Letters Patent to Kuki Investments Limited, a company owned by Raj Kundra, to institute a suit challenging an anti-suit injunction passed by the High Court of England and Wales in a dispute relating to the affairs of IPL franchise Rajasthan Royals.

Allowing the petition seeking permission to file the suit against Emerging Media Ventures Ltd. and others, Justice Abhay Ahuja observed that the court was satisfied that grounds were made out for grant of leave to institute the proposed suit.

“Having heard the learned Counsel and having considered his submissions and also having perused paragraphs 20 to 22 of the Plaint in the proposed Suit as well as paragraphs 17 to 19 in the Petition, this Court is of the view that, for reasons as contained in the said paragraphs and as submitted by the learned Counsel, leave under Clause XII of the Letters Patent be granted and is hereby granted in terms of prayer clause (a) of the Petition, to enable the Petitioners to file and pursue the above Suit against the Respondents,” the Court said.

The proposed suit seeks a declaration that the anti-suit injunction granted by the King's Bench Division of the High Court of England and Wales is bad in law, along with consequential reliefs. The foreign court order had restrained Kundra and his company from proceeding with a company petition before the Mumbai bench of the National Company Law Tribunal.

Kuki Investments Limited, a company owned by Raj Kundra, holds shares in Royals Multisport Private Limited, which owns the Rajasthan Royals IPL franchise. Kundra had initiated proceedings before the National Company Law Tribunal, Mumbai, in relation to the affairs of the company.

During the pendency of those proceedings, Emerging Media Ventures Ltd. approached the High Court of England and Wales and obtained an anti-suit injunction restraining continuation of the Indian proceedings.

Kundra's company then moved the Bombay High Court under Clause XII of the Letters Patent seeking permission to file a suit challenging this foreign injunction, contending that part of the cause of action had arisen within the court's jurisdiction. Accepting the submission, the court granted leave to institute the suit.