BIRENDRA KUMAR, J.

1. Heard learned counsel for the parties and the appeal is being disposed of at this stage itself considering the short question of law involved.

2. This is an appeal, under Section 37 of the Arbitration and Conciliation Act, 1996, against the order dated 01.12.2017 passed by the learned 5th Additional District Judge, Patna in Misc. (Arbitration) Case No. 02 of 2017 filed by the respondent Bhagalpur Electricity Distribution Company Private Limited whereby the sole-appellant South Bihar Power Distribution Company Limited and the State Bank of India, Kolkata have been restrained from invoking/encashing the bank guarantee. The aforesaid order was passed in exercise of power under Section 9 of the Arbitration and Conciliation Act, 1996.

3. A brief fact of this case leading to this appeal is that the erstwhile Bihar State Electricity Board floated a notice inviting tender/Request for Proposal being No. 136/PR/BSEB/2010, dated 22nd October, 2012 for appointment of ‘Distribution Franchisee’ for supply of electricity in the town of Bhagalpur and the adjoining area. In the meantime, Bihar State Power (Holding) Company Limited and four subsidiaries including the appellant came into existence replacing the Bihar State Electricity Board in accordance with the provisions of the Electricity Act, 2003. M/s SPML Infra Limited emerged as a ‘Successful Bidder’ and received letter of intent from the appellant dated 21st March, 2013 which was accepted unconditionally by M/s SPML Infra Limited through letter dated 5th April, 2013 vide Annexure-1. According to the terms of the letter of intent, the successful bidder was allowed to promote a 100% Special Purpose Vehicle. Accordingly, M/s SPML Infra Limited incorporated and promoted a Special Purpose Vehicle known as Bhagalpur Electricity Distribution Company Private Limited (respondent herein). The agreement dated 19th July, 2013 between the appellant and M/s SPML Infra Limited was a distribution franchisee agreement. M/s SPML Infra Limited furnished bank guarantee as well as performance guarantee in favour of the appellant. Some dispute arose out of the aforesaid agreement and the respondent-Bhagalpur Electricity Distribution Company Private Limited took the matter before the Arbitrator on 14.05.2016 in terms of agreement between the parties vide Arbitration No. 106 of 2016. Since no award was made within one year, the arbitration proceeding expired on 14.05.2017 in terms of Section 29A of the Arbitration and Conciliation Act, 1996. However, time was extended by the Tribunal with consent of the parties for three months by order dated 20.05.2017. The appellant contends that already dead arbitration proceeding could not revive on 20.05.2017 unless the order specifically mentions that it would have retrospective operation.

4. The respondent filed a petition on 13/16 November, 2017 vide Misc. Arbitration Case No. 02 of 2017 under Section 9 of the Arbitration and Conciliation Act, 1996 with a prayer to issue an injunction restraining the appellant and their agency from taking any coercive measure by attempting to invoke the bank guarantee or any letter of credit, pending the arbitration proceeding. Prayer for ad interim injunction was also there. A copy of the petition is at page 22 on wards of the supplementary affidavit.

5. The District Judge, Patna heard to the respondent herein who was petitioner before the learned District Judge and directed issuance of notice to the respondent thereat/appellant herein, through registered post and the case was transferred to the court of learned 5th Additional District Judge, Patna fixing next date on 10.10.2017. Till the date fixed i.e. 10.10.2017 no requisites for issuance of notice against the appellant was filed and after hearing the respondent, the court directed the parties to maintain status quo as regards the bank guarantee. The status quo order was to be effective till appearance of the opposite parties i.e. the appellant herein a