Archive · 4 Oct 2026
Bombay High Court Seeks Explanation Over Unpaid ₹700-Crore Award
A court is asking three developers to explain why they have not paid money ordered in an arbitration case.
The case began with an investment in a company called Joyce Realtors.
In 2019, an arbitral tribunal ordered payment of money, interest and compensation.
The people owed the money say the developers can pay at least part of it.
The developers say that simply not paying does not prove they should be arrested.
They also say some of their assets are not easy to turn into cash.
The judge has not ordered anyone arrested or detained.
The developers will first get a chance to answer the court's notices.
The Bombay High Court issued show-cause notices to developers Kishor, Vimal and Nainesh Shah over an unpaid arbitral award.
The dispute arose from an investment in Joyce Realtors Pvt Ltd; an arbitral tribunal ordered payment of ₹106.61 crore plus interest and ₹16.56 crore in compensation in 2019.
The decree holders alleged the amount had grown substantially and the Shahs had assets and financial means but had not paid.
The Shahs argued that non-payment alone did not justify detention and that some assets and loans were not readily recoverable.
Justice Rajesh Patil said the notices were not arrest or detention orders and gave the Shahs an opportunity to respond.
- Who
- The Bombay High Court, decree holders Urban Infrastructure Trustees Ltd and Urban Infrastructure Venture Capital Fund, and developers Kishor N. Shah, Vimal K. Shah and Nainesh K. Shah.
- What
- The court issued show-cause notices asking why the developers should not be detained in civil prison over an unpaid arbitral award; it did not order arrest or detention.
- When
- The order was pronounced on September 29, 2026; the arbitral award was issued in May 2019.
- Where
- Bombay High Court, Mumbai.
- Why
- The decree holders alleged the developers had the means to pay but had not satisfied the award.
Decree holders' position
Shahs' position
Ability and failure to pay
Decree holders' position
The decree holders said the Shahs had assets, ongoing real-estate projects and had advanced loans to group companies, and alleged they had the means to pay but had not satisfied the award.
Shahs' position
The Shahs argued that non-payment alone was insufficient grounds for arrest proceedings and that the decree holders must establish both ability to pay and deliberate refusal or neglect.
Assets and spending
Decree holders' position
The court noted disclosed assets of about ₹130 crore and loans advanced to group companies after the award, and found grounds to ask whether the Shahs could pay a substantial part of the amount.
Shahs' position
The Shahs said loans to associate companies were not readily realisable, and that education expenses, donations and other payments were made in the ordinary course rather than to defeat the decree.
- Court
- Bombay High Court
- Judge
- Justice Rajesh Patil
- Show-cause notice recipients
- Kishor N. Shah, Vimal K. Shah and Nainesh K. Shah
- Award date
- May 2019
- Award components reported
- ₹106.61 crore plus interest, and ₹16.56 crore in compensation
- Decree holders
- Urban Infrastructure Trustees Ltd and Urban Infrastructure Venture Capital Fund
- Court's immediate action
- Show-cause notices; no arrest warrant or detention order