Thu Sep 26 14:49:09 UTC 2024: ## Former SEBI Chairperson Exonerated in $25 Million Arbitration Case
**Chicago, IL:** In a significant legal victory, a US court has overturned a $25 million arbitration award against Meleveetil Damodaran, former Chairperson of the Securities and Exchange Board of India (SEBI). The decision, reached by the US District Court for the Northern District of Illinois, Eastern Division, marks a rare instance of an arbitration award being successfully challenged in the United States.
The dispute stemmed from a 2022 share purchase agreement between UpHealth Holdings Inc., a US-based healthcare entity, and Glocal Healthcare Systems Private Ltd., an Indian healthcare company. As part of the deal, UpHealth acquired shares of Glocal held by Damodaran and other individuals. However, a disagreement arose concerning UpHealth’s acquisition of control over Glocal, leading to arbitration proceedings.
The Arbitral Tribunal, seated in Chicago, ultimately awarded UpHealth over $110 million in damages, including $25 million individually against Damodaran. However, the US court found that there was no evidence to support the liability imposed on Damodaran. The court remanded the case back to the Arbitral Tribunal for reconsideration, while upholding the award against other respondents.
This decision underscores the high bar for setting aside arbitration awards in the US. The case highlights the critical importance of robust evidence in supporting such awards.
Damodaran was represented by Jenner & Block LLP and Shardul Amarchand Mangaldas & Co. (SAMCo), while UpHealth was represented by DLA Piper and P&A Law Offices. Glocal and other shareholders were represented by Paul Hastings LLP.
First Piper 