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        Case ID :

        2012 (7) TMI 1050 - SC - Indian Laws

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        Section 9 interim relief cannot revive a terminated lease or create a fresh operating right in a luxury train dispute. Interim relief under Section 9 of the Arbitration and Conciliation Act was not available to revive a terminated lease arrangement for operation of a ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Section 9 interim relief cannot revive a terminated lease or create a fresh operating right in a luxury train dispute.

                              Interim relief under Section 9 of the Arbitration and Conciliation Act was not available to revive a terminated lease arrangement for operation of a luxury train or to create a fresh operating right. The Court treated the petitioner's request as seeking a mandatory injunction that would, in substance, restore contractual rights after termination, which is impermissible at the interim stage. Any remedy for alleged breach lay in damages, while the owner's continued operation of the train pending arbitration could be accepted on the facts. The High Court order was left undisturbed and the dispute was to be resolved in arbitration without prejudice to the parties' rights.




                              Issues: Whether interim relief under Section 9 of the Arbitration and Conciliation Act, 1996 could be granted to continue the operation of the luxury train after termination of the lease arrangement, and whether the petitioner could seek restoration of the arrangement or a fresh right to operate the train.

                              Analysis: The arrangement concerned a train owned by the respondent and operated through a joint venture company. The petitioner, though financially involved in the project, was not entitled to obtain a mandatory injunction that would in effect revive a terminated lease arrangement or create a fresh operating right in its favour. The remedy, if any, lay in damages for breach of contractual terms, while the operation of the train by the owner pending arbitration was an arrangement that could be accepted in the circumstances.

                              Conclusion: The claim for continuance of the interim arrangement was rejected, and the petitioner was not found entitled to the relief sought under Section 9.

                              Final Conclusion: The challenge to the High Court order failed, the interim arrangement in favour of the respondent was left undisturbed, and the dispute was directed to be worked out in arbitration without prejudice to the parties' rights.


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