Veteran actor Dilip Kumar told to comply with HC order for ₹25-crore undertaking

The Bombay high court (HC) has given veteran actor Dilip Kumar one week to respond as to whether he will comply with a May 2018 order that requires him to give an undertaking to secure property worth ₹25 crore.

The order concerns an arbitration petition in which a developer had demanded damages of ₹176 crore, saying Kumar had flouted a 2006 agreement to develop his bungalow on Pali Hill.

After Kumar reneged on the agreement, the developer invoked the arbitration clause through a petition in 2015.

The bench of justice BP Colabawalla was hearing the appeal filed by Kumar through senior counsel Rajeev Kumar against the arbitration order.

Appearing for the developer, senior counsel Aspi Chinoy along with Zal Andhyarujina and advocate Aurup Dasgupta argued that Kumar had not complied with the Supreme Court (SC)-appointed arbitrator’s 2018 order and hence their interests were prejudiced.

Chinoy further submitted that as Kumar had failed to comply, the appeal could not be heard.

After hearing the submissions, Colabawalla directed Kumar to respond as to whether he was willing to comply with the arbitrator’s order within a week and only if he showed the undertaking would the court hear the matter on February 12.

The petitioner had entered into a contract with Kumar in 2006 to develop the 2,412 square yards property of which Kumar would have a 50% share in the developed property, while 25% of the remainder would the developer’s saleable component. However, the developer has alleged that Kumar breached the contract and entered into a contract with another developer.

The first developer had then approached the HC in 2015 and later the SC. The SC-appointed arbitrator, retired justice Venkatrama Reddi, had said in May 2018 that Kumar must “furnish an undertaking to the effect that he will not alienate or encumber or part with the possession of the property worth Rs.25 crores till the arbitration proceedings are concluded.”