Bombay High Court issues show cause notice to companies in dispute with Sourav Ganguly

The Bombay High Court on Friday issued notice to two management companies involved in an arbitration dispute with President of the Board of Control for Cricket in India (BCCI), Sourav Ganguly seeking response on why contempt of court action should not be invoked against them for non-compliance with the Court's orders passed in the execution proceedings initiated by Ganguly..The order by Justice BP Colabawalla came in Ganguly's plea seeking enforcement of award by an arbitral tribunal awarding him over ₹35 crores payable by his former management companies - Percept Talent Management Ltd. and Percept D Mark (India) Ltd..In one of the earlier orders of the High Court, one of the management company, Tiger Sports Management Limited, a garnishee in the transaction was directed to deposit ₹62 lakh with the High Court which was due and payable to Percept D.However, since the same had not been complied with by the company, the Court issued notice to the directors to respond why a contempt ought not be issued against such non-compliance.During the course of the hearing, it was also brought to the Court’s attention that Percept Limited had made an entry in their account books which essentially wrote off receivables from its debtors, and the same was done despite orders of the High CourtThe Court issued notice against the directors of Percept Limited to explain why contempt ought not be issued for breaching orders of the Court..Senior Advocate Dr Birendra Saraf also brought to the Court’s attention that Percept Ltd. had been directed to pay ₹1.2 crore to Percept D Mark. However that amount had been deducted to ₹64 lakhs, without any clear justification.To this, Justice Colabawalla directed Percept Limited and its affiliates to disclose the transactions between the companies..The arbitration between the parties arose out of a "Player Representation Agreement" through which the respondent companies were to act as the exclusive manager for Ganguly.After disputes arose between the parties, the agreement was terminated and aggrieved by such purported illegal termination, Ganguly had invoked the arbitration clause in the agreement.The arbitration led to an arbitral award through which the respondent companies were directed to pay Ganguly a sum of ₹14.49 crore together with interest at the rate of 12% per annum till the date of realisation of the amount.In the absence of any stay on the implementation and execution of the award, Ganguly moved an application in the Calcutta High Court for execution of the arbitral award.During the pendency of this execution application, the respondent companies admittedly paid ₹2.07 crores.The assets disclosed by the companies were not within the jurisdiction of the Calcutta High Court and hence the execution application filed there was withdrawn and a fresh execution application was filed before the Bombay High Court for realisation of the balance portion of the total compensation.In his application, Ganguly raised concerns that the directors of the respondent companies have systematically siphoned away the funds from their accounts to other companies..Saraf along with Advocate Vaibhav Charalwar were briefed by Advocates H. Khokhawala and Ishwar Nankani from Nankani & Associates represented Ganguly.Shardul Singh along with Advocates Parag Kandhar and Saloni Shah from DSK Legal appeared for Percept Talent Management Ltd.Advocate Dipesh Siroya appeared for Percept D Mark (India) Ltd.