Consent arrangement in Section 9 arbitration petition preserved claims, regulated bank guarantees, and pushed the dispute into arbitration.

A Section 9 petition under the Arbitration and Conciliation Act was disposed of in terms of a consent arrangement governing interim protection pending arbitration. Four advance bank guarantees were permitted to be encashed, while two performance bank guarantees were to remain unencashed until the respondent approached the arbitrator, with their fate left to arbitral orders. The petitioner's claims concerning removal of plant and machinery and other site items were preserved for relief under Section 17, and the parties were directed to nominate arbitrators from the approved panel so the dispute could proceed without delay.

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Issues: Whether the petition under Section 9 of the Arbitration and Conciliation Act, 1996 should be disposed of on the basis of the parties' agreed arrangement concerning encashment of bank guarantees, preservation of claims, and constitution of the arbitral tribunal.

Analysis: The parties accepted a consent arrangement under which four advance bank guarantees were permitted to be encashed, while the two performance bank guarantees were to remain unencashed until the respondent moved the arbitrator, and their fate would abide by the arbitral orders. The petitioner's claims regarding removal of plant and machinery and other items at site were left to be pursued before the arbitrator under Section 17. The parties were also directed to nominate arbitrators from the approved panel so that the dispute could proceed to arbitration without further delay. In view of this agreed course, no further orders were required in the Section 9 proceedings.

Conclusion: The petition was disposed of in terms of the consent arrangement, granting the petitioner limited interim protection and preserving its remedies before arbitration.

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