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of <h1>Court orders arbitration for dispute resolution, grants interim relief to maintain status quo on security deposits.</h1> <h3>M/s. Coastal Projects Ltd. And Anr. Versus The Union Of India And 3 Ors., National Project Construction Corporation Ltd.</h3> M/s. Coastal Projects Ltd. And Anr. Versus The Union Of India And 3 Ors., National Project Construction Corporation Ltd. - TMI Issues:1. Termination of contract and forfeiture of security deposit.2. Liquidation proceedings and legal proceedings against corporate debtor.3. Invocation of arbitration clause and seeking interim relief.Analysis:1. The petitioner company was awarded a construction project with an arbitration clause in the agreement. Disputes arose during execution, leading to contract termination and liquidation proceedings initiated by a bank. The petitioner filed a writ petition seeking to set aside the termination order, prevent forfeiture of security deposit, and obtain other reliefs. The court noted that the disputes arose from the agreement containing an arbitration clause. It directed the petitioner to approach the appropriate forum for arbitration and file an application under the Arbitration and Conciliation Act, subject to insolvency law provisions.2. The court highlighted that the reliefs sought were contractual issues rather than fundamental rights violations. It advised the petitioner to pursue arbitration for dispute resolution, emphasizing the agreement's arbitration clause. The court refrained from intervening under Article 226 of the Constitution, suggesting the petitioner seek arbitration appointment and file necessary applications under the Arbitration Act. The petitioner was instructed to comply with insolvency law requirements before initiating arbitration proceedings.3. The petitioner sought interim relief to maintain the status quo regarding security deposits and performance guarantees until arbitration proceedings commenced. The court, considering the petitioner's willingness for arbitration, granted interim relief for two months. It directed the respondents to preserve the status quo regarding securities and guarantees. The writ petition was disposed of with the interim order valid for two months from the date of issuance, after which it would stand vacated.
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