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were not within the jurisdiction of the Calcutta High Court and hence the execution application filed there was withdrawn and a fresh execution application was filed before the Bombay High Court for realisation of the balance portion of the total compensation.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.