2020 (9) TMI 1204

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....cts, would suffice. 3. Respondent No. 2 contracted, with Respondent No. 1, for construction of HVDC terminals and DC XLPE Cable System between Chhattisgarh and Tamil Nadu. Thereafter, a back-to-back sub-contract agreement was executed, between the petitioner and Respondent No. 1, for carrying out certain civil works, in connection with the main contract. The date of completion of the contract was 31st May, 2019. 4. As required by the covenants of the sub-contract agreement, bank guarantees were submitted by the petitioner to Respondent No.1. 5. Various grievances have been ventilated in this petition, regarding the discontinuance of payment of running accounts bills submitted by the petitioner, consequent breach, by Respondent No.1, of C....

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....id facts and circumstances, it is most respectfully prayed that this Hon'ble Court may graciously be pleased to:- thereby directing it furnish a bank guarantee of Rs. 3,61,39,925/-(Rupees Three Crore Sixty One Lakhs Thirty Nine Thousand Nine Hundred and Twenty Five) in favour of the Registrar General, Delhi High Court, New Delhi to secure the claim amount of the petitioner. b. Pass a restraint order against the Respondent No. 2 thereby directing it not to clear the final Bills/Invoice of the respondent No. 1 or withhold payment of the respondent No.1 to the extent of Rs. 3,61,39,925/- (Rupees Three Crore Sixty One Lakhs Thirty Nine Thousand Nine Hundred and Twenty Five) to secure the recoverable amount of the petitioner. c. D....

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....to establish, on facts, that, were security not to be directed as prayed, the arbitral proceedings were likely to be frustrated. Section 9 is not intended to operate as an alternative to Section 17. The pre-eminence of the jurisdiction of the arbitral institution, to deal with arbitrable disputes, permeates the 1996 Act, and interference by Courts is required, statutorily, to be reduced to a minimum. Section 9, therefore, operates only as an emergency provision, to provide interim protection - as opposed to interim relief- where, but for such protection, the corpus of the arbitration might vanish, or the arbitral proceedings frustrated even before they commence. 13. To a specific query from the Bench, as to whether any averment, demonstrat....

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.... manner, the claims of the petitioner. 18. The response of Mr. Ranjan, on this issue, is that earlier payments, which were made by Respondent No. 2, to Respondent No. 1, and which ought to have been paid by Respondent No. 1 to his client, are still outstanding. 19. That, in my view, cannot be a ground for this Court to in junct Respondent No. 2 from making payments to Respondent No. 1, especially at the instance of the petitioner. In case the bills of Respondent No. 1 are cleared by Respondent No. 2, and the petitioner is entitled to the said payment from Respondent No. 1, that would constitute an independent claim, which would have to be examined in appropriate arbitral proceedings. 20. No occasion, therefore, arises, to issue notice on....