Peepul Capital Fund II LLC and another (Appellants) v Vsoft Holdings LLC (Respondent) (Mauritius)

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Case summary

Case ID

JCPC/2018/0084

Jurisdiction

Mauritius

Parties

Appellant(s)

(1) Peepul Capital Fund II LLC, (2) Millenium Strategic Group Ltd

Respondent(s)

Vsoft Holdings LLC

Issue

(i) In appeal 2018/0084, whether the Supreme Court erred in finding compelling reasons to grant an injunction restraining the appellants from pursuing further action elsewhere on the basis they were shareholders in the respondent. (ii) In appeal 2018/0089, whether the arbitration award should be set aside (a) because of a breach of natural justice in the arbitration, or (b) because of a failure by the arbitrator to decide all the issues, or (c) to give reasons, or (d) because the award was in breach of public policy, or (e) because the Supreme Court erred in its construction of the shareholders’ agreement.

Facts

Peepul Capital Fund LLC and Millenium Strategic Group Limited (‘Peepul and Millenium’) were investors in Vsoft Holdings LLC (‘Vsoft’). The parties agreed on the resolution of certain disputes between them by arbitration. The arbitrator made an award on 8 January 2015, ruling that he did not need to determine a number of issues and ordering Vsoft to pay Peepul and Millenium in excess of US$ 23m in respect of sums due, damages and costs. Peepul and Millenium obtained a provisional order for recognition and enforcement of the award from the Mauritian Supreme Court. Vsoft considered that there was a failure of due process in the arbitration and that the arbitrator should have decided the issues that were before him. It applied for the award and the provisional order to be set aside. Before the hearing of that application, Peepul and Millenium obtained a freezing injunction on 17 August 2016, and Vsoft was granted an injunction restraining Peepul and Millenium from pursuing any further action in India or elsewhere on the basis that they were shareholders in Vsoft and/or from seeking relief inconsistent with the award on 12 September 2016. On 13 December 2017 the Supreme Court dismissed Vsoft’s application to set aside the order and upheld the injunctions.