In a significant interim ruling, the Bombay High Court has directed Whitehat Education Technology Pvt. Ltd.-the edtech company once hailed as a major player in online coding education-to secure an arbitral award worth ₹80.35 lakh in favor of its former employee, Prashant Singh. The direction came from Justice Somasekhar Sundaresan on September 22, 2025, in an arbitration petition filed under Section 9 of the Arbitration and Conciliation Act, 1996.
The order comes at a delicate time, as Whitehat Education’s parent entity is currently facing proceedings under the Insolvency and Bankruptcy Code (IBC), 2016, adding another layer of uncertainty to the petitioner’s claim recovery.
Background
According to court filings, Prashant Singh, a former employee, had moved arbitration after a dispute with the company over dues and other financial obligations. The Arbitral Tribunal, on June 30, 2025, awarded Singh approximately ₹80.35 lakh, including principal and interest, along with litigation costs.
Despite receiving notice, Whitehat Education and its representatives failed to appear before the court. The petitioner’s counsel, Ms. Naira Jejeebhoy, assisted by advocate Geetika Kopur, appeared on behalf of Singh.
Ms. Jejeebhoy argued that the award amount was due and payable and that the company's insolvency situation placed her client at serious financial risk. She further submitted that without immediate protection, the respondent might dispose of assets or transfer funds, frustrating the award’s execution.
Court's Observations
Justice Sundaresan took note of the respondents non-appearance despite proper service and acknowledged the petitioner's precarious position given the ongoing insolvency of the parent entity.
"The respondent’s financial condition makes the petitioner’s claim even more vulnerable," the bench remarked while hearing the matter. The judge emphasized that interim protection was necessary to prevent the erosion of the petitioner’s legitimate claim under the arbitral award.
The Court observed that Section 9 of the Arbitration Act empowers it to safeguard the rights of a successful claimant post-award but before actual enforcement. In this context, the judge found it appropriate to grant limited, protective reliefs at the interim stage.
Interim Relief and Directions
As an ad-interim measure, the Court granted relief in terms of prayer clauses (a), (c), and (d) of the petition.
This means Whitehat Education and its associated respondents have been directed to:
- Secure the arbitral award amount - by depositing ₹80.35 lakh (principal + interest + costs) in court or by furnishing a bank guarantee of the equivalent sum.
- Disclose all assets - both within India and abroad through a sworn affidavit. This includes movable and immovable properties, bank accounts, securities, shareholding interests, and intellectual property.
- Refrain from transferring or alienating assets - until the execution of the arbitral award is completed.
The bench observed, "The petitioner's entitlement cannot be left in jeopardy merely because the respondent company is under financial distress. Protective measures are necessary to ensure enforcement of the arbitral award."
Additionally, Justice Sundaresan directed the petitioner's counsel to serve the court order once again upon the respondents and fixed the matter for further hearing on October 15, 2025.
Court's Decision
In conclusion, the Bombay High Court has temporarily safeguarded the petitioner's rights by restraining Whitehat Education from dissipating assets and mandating disclosure of all holdings. The Court's decision reinforces the principle that arbitral awards must be respected and claimants protected, especially when the debtor entity faces insolvency complications.
As Justice Sundaresan stated in his closing remarks,
"All actions required to be taken pursuant to this order shall be taken upon receipt of a downloaded copy available on this Court’s website."
The case will next be heard on October 15, 2025, when the respondents are expected to present their side - if they appear at all. For now, the Court’s interim protection provides some relief to the petitioner, ensuring that the awarded amount remains traceable and secure amid ongoing financial turbulence.
Case Title: Prashant Singh vs. Whitehat Education Technology Pvt. Ltd. & Ors.
Case Number: Arbitration Petition (L) No. 26263 of 2025
