Motilal Oswal Financial Services has won an arbitration award of ₹89 crore in the crude default case and moved the Bombay High Court to secure the payment.

Dhanera Diamonds was one of Motilal Oswal’s clients and was trading in crude oil. When crude prices fell below zero to $37 a barrel, for the first time ever in last April amid Covid pandemic outbreak, Dhanera defaulted ₹80.74 crore of payment .

Motilal filed a petition in Bombay High Court against Dhanera and its partners seeking security on payment of outstanding dues, pending arbitration before Arbitral Tribunal of Multi Commodity Exchange of India.

On July 3 last year, the Bombay High Court after hearing both the parties restrained Dhanera and its partners from disposing of its assets disclosed in affidavit.

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Last month, MCX Arbitral Tribunal had allowed the claim of Motilal and directed Dhanera to pay ₹80.74 crore along with interest at 9 per cent per annum from last April till the date of the award and 12 per cent per annum per annum from the date of award till realisation.

Following this, Motilal moved the Bombay High Court again seeking security for payment of the award.

The Court vide its interim Order, on Monday directed Dhanera Diamonds not to dispose of its assets and file its reply within three weeks, said Motilal Oswal Financial Services.

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