1. This appeal under Section 37(2)(b) of the Arbitration and Conciliation Act, 1996 filed by Lanco Infratech Ltd. (‘Lanco’) is directed against an order dated 4th June, 2016 passed by the Arbitral Tribunal (‘AT’) allowing the application filed by the Respondent Hindustan Construction Company Ltd. (‘HCCL’) under Section 17 of the Act and directing Lanco to furnish a bank guarantee to the extent of 50% of the amount claimed by HCCL within 30 days in an approved RBI format for an initial period of 12 months and to be kept renewed from time to time upto 30 days from the date of pronouncing of the Arbitral Award.

2. The background to the present appeal is that Lanco is part of the Lanco conglomerate group known as the 'Lanco Group' which has various subsidiaries dealing with power infrastructure, construction, real estate etc. Lanco entered into two contracts for civil works of Power House, transformers and Butterfly Valve Caverns and switch yard of Teesta VI Hydroelectric Project, Sikkim and Contract No. LITC/Contract/Teesta-VI/4B i.e., LOT IV B and for civil works for various tunnels from RD 10370 upto junction with the bottom of Surge Tunnels including Adit Tunnels- IVA and IV