Section 9 interim relief cannot compel sale of disputed iron ore where no third-party sales are taking place.

Pending arbitration, a Section 9 interim direction compelling the appellant to sell iron ore to the respondent was found unwarranted because the appellant stated it was not selling to third parties and was consuming the ore captively in its own plant. The Court held that, on that categorical assurance, such a direction would effectively enforce the disputed agreement before the arbitral adjudication. The appellant's undertaking not to sell any part of the ore to third parties during the arbitration was accepted, and the interim order was not sustained in its original form.

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Issues: Whether, pending arbitration, the appellant could be directed to sell the iron ore to the respondent and maintain sale-related accounts in aid of the respondent's claim for specific performance.

Analysis: The appeal arose from an order under Section 9 of the Arbitration and Conciliation Act, 1996 granting interim protection to the respondent. The appellant stated that it was not selling iron ore to third parties and was consuming the entire quantity captively in its own plant. In view of that categorical assertion and undertaking, a direction compelling sale to the respondent would amount to virtually enforcing the disputed agreement before adjudication in arbitration. The Court noted that such interim relief would be justified only if the appellant were proposing to sell the ore to third parties, which was not the position placed before it.

Conclusion: The direction to sell iron ore to the respondent was unwarranted, and the appellant's undertaking not to sell any part of the ore to third parties during the pendency of the arbitration was accepted.

Final Conclusion: The interim order in favour of the respondent was not sustained in its original form, and the matter was disposed of on the basis of the appellant's undertaking and captively-consumed use of the mineral.

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