Vipin Sanghi, J.

1. This petition has been preferred under Section 9 of the Arbitration and Conciliation Act, 1996 (‘the Act’) by the petitioner to seek a stay of discharge of the performance bank guarantee dated 29.10.2010 issued by HSBC Bank at the behest of the respondent, and to seek a direction to the respondent to keep the said bank guarantee alive till the conclusion of the proceedings under Section 34 of the Arbitration and Conciliation Act, 1996. In the alternative, the petitioner seeks the permission to encash the said bank guarantee dated 29.06.2010.

2. The respondent was awarded a turnkey contract dated 02.06.2010 for providing overlays on rental basis including supply, installation, testing, commissioning, operation, maintenance, de-commissioning and removal of games overlays for Cluster II and IV, for the Commonwealth Games, 2010. The total contract value of the services defined under the contract was Rs. 57,47,77,574/- for Cluster II, and Rs. 70,42,21,779/- for cluster IV including all taxes but excluding service tax which was to be paid extra as applicable. In terms of the contract, the respondent was required to furnish a performance bank guarantee equivale