Visaka industries Limited ("the Company") and Hyderabad Cricket Association("HCA") have entered an agreement on 16.10.2004 for sponsorship of construction of World class international stadium in Hyderabad. As per the terms and conditions of the agreement HCA will extend certain privileges to Visaka Industries Ltd for a period of 25 years. HCA after receiving substantial amount breached the terms and conditions of the agreement dt.16.10.2004 and arbitrarily terminated the agreement on 16.07.2011 citing impossibility of performance of agreement. Aggrieved by the unilateral and Arbitral termination of agreement Visaka Industries Ltd Preferred Arbitration of dispute.
In the year 2016, Arbitration Tribunal Awarded a sum of Rs.25.92 crores to Visaka Industries Ltd as compensation along with 18% interest till the date of realisation. HCA failed to honour the award. Visaka Industries Ltd filed Execution Petition bearing No.12 and 13 of 2023 before Commercial Court, Ranga Reddy court seeking attachment of Bank account and Moveable Properties of HCA.
The Hon'ble Commercial Court, Ranga Reddy Court vide order dt.22.09.2023 passed orders attaching the Bank account and Moveable properties of HCA. HCA filed Civil Revision Petion No.2920 of 2023 before Hon'ble High Court of Telangana to stay attachment orders passed by Commercial Court, Ranga Reddy.
After hearing both sides today i.e., 29.09.2023 the Hon'ble High Court of Telangana passed conditional stay order directing HCA to deposit a sum of Rs.17.50 crores within six weeks and also directed HCA not to transfer/alienate the properties in favour of third parties.