Interim protection in arbitration preserves status quo against coercive termination action pending adjudication of renewal disputes

Interim protection under Section 9 of the Arbitration and Conciliation Act, 1996 was considered appropriate where arbitral and related proceedings were already pending, a renewal request had been made, and termination was issued just before expiry of the licence despite the petitioner's asserted compliance with renewal conditions. Applying prior principles on the Court's power to prevent arbitrary or unfair termination-related action, the Court preserved the status quo pending the next hearing. Coercive action against the petitioner was restrained until then.

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Issues: Whether the petitioner was entitled to interim protection under Section 9 of the Arbitration and Conciliation Act, 1996 against coercive action pending adjudication of the disputes.

Analysis: The petition was founded on the existence of pending arbitral and related proceedings, the asserted renewal request, the respondent's termination notice issued just before expiry of the licence, and the claim that the petitioner had complied with the conditions communicated for renewal. Relying on prior decisions on the power of the Court under Section 9 of the Arbitration and Conciliation Act, 1996 to protect parties from arbitrary or unfair termination-related action, the Court found it appropriate to preserve the status quo pending the next hearing.

Conclusion: Interim protection was granted and the respondent was restrained from initiating coercive action against the petitioner till the next date of hearing.

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