IN THE HIGH COURT OF DELHI AT NEW DELHI
CHANDRA DHARI SINGH, J.
GMR Pochanpalli Expressways Limited - Petitioner
Versus
National Highways Authority of India - Respondent
O.M.P.(I) (COMM.) No. 396 of 2020
Decided On : 10-01-2023
Arbitration Act - Relief under Section 9 - Summary of Acts and Sections: Arbitration and Conciliation Act, 1996 (Section 9), Commercial Courts Act, 2015 (Section 2(1)) - The court discussed the limitations of relief under Section 9 of the Arbitration Act and emphasized that the relief sought by the petitioner cannot be granted as a permanent measure under the Act.
Fact of the Case:
The petitioner sought a mandatory injunction to release an amount deducted by the respondent in breach of an Arbitral Award. The dispute arose from a Concession Agreement for the construction, operation, and maintenance of a project on National Highways in Andhra Pradesh.
Finding of the Court:
The court found that the relief sought by the petitioner cannot be granted under Section 9 of the Arbitration Act, as it cannot be a permanent measure. The court dismissed the petition as not maintainable.
Issues: The primary issue was whether the relief sought by the petitioner could be granted under Section 9 of the Arbitration Act.
Ratio Decidendi: The court emphasized that the relief under Section 9 of the Arbitration Act is interim in nature and cannot be a permanent measure. It discussed the limitations of relief under Section 9 and highlighted that the mandate of the provision does not permit passing of a permanent order in favor of either party under the Act.
Final Decision: The court dismissed the petition as not maintainable.
ORDER :
Chandra Dhari Singh, J.
1. The instant petition under Section 9 of the Arbitration and Conciliation Act, 1996 (hereinafter "Arbitration Act") read with Section 2(1) of the Commercial Courts Act, 2015 has been filed on behalf of the petitioner seeking the following reliefs :
ii. Pass any such other or further orders as may be deemed fit by this Hon'ble Court in the facts and circumstances of the present case."
FACTUAL MATRIX
2. The parties had entered into a Concession Agreement on 31st March 2006, for the design, construction, development, finance, operations and maintenance of K.M. 367.00 (Adloor Yellareddy) to K.M. 447.000 (Kalkallu) covering 85,745 km and improvement, operation and maintenance of K.M. 447.000 (Kalkallu) – 464.000 (Gundla-Pochanpalli) covering 17,000 km on NH-7 in the State of Andhra Pradesh (hereinafter "the Project").
3. The petitioner, being a Special Purpose Vehicle incorporated and registered under the Companies Act, 1956, by the consortium of GMR Infrastructure Ltd. and GMR Energy Limited, is involved in construction, operation and maintenance of the Project arising out of the Concession Agreement between the parties. The respondent is the National Highways Authority of India responsible for maintenance, management and development of National Highways or stretch of the National Highways vested in or entrusted to it by the Central Government.
4. As per the Concession Agreement, the petitioner achieved the Provisional Commercial Operation Date within 30 months, i.e., on 26th March 2009, whereafter, the petitioner has been operating and maintaining the Project. The final Completion Certificate was also obtained by the petitioner on 25th July 2009.
5. Thereafter, disputes arose between parties regarding requirement to do renewal work every five years. After several attempts of resolution of such disputes, with the intervention of this Court in OMP (I)(COMM) No. 421/2018, an Arbitral Tribunal was constituted by the Indian Council of Arbitration and ultimately, the Award dated 14th January 2020 was passed. The following reliefs were given in the said Award:-
b. Petitioner is entitled to the claim amount of Rs.10,78,61,8641- on account of deductions made by the Respondent towards damages. The Respondent is required to pay the aforesaid amount to the Petitioner along with interest @ 12% p.a. from the date of deduction, i.e., 27.03.2018, till the date of payment.
c. Petitioner is entitled to the litigation costs of Rs.30 lacs, which is required to be paid by the Respondent to the Petitioner. In addition to this amount, whatever amount the Petitioner has deposited with the ICA towards the share of the fees payable by the Respondent, Rs.57,65,250/-, shall also be paid by the Respondent to the Petitioner as further costs.
d. Counter Claim of the Respondent stands rejected.
e. The awarded sum of Rs.10,78, 61,8641- along with costs of Rs.30 lacs and interest @ 12% p.a. shall be paid by the Respondent to the Petitioner within 30 days from the date of the Award.
f. The renewal work is required to commence by 01.04.2020 and the work is required to be completed by the end of the year 2020. For the 3rd cycle, it is directed that the work is required to be completed by 01.04.2025."
6. Accordingly, on 13th February 2020, the petitioner raised an invoice f
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The relief sought under Section 9 of the Arbitration Act is interim in nature and cannot be a permanent measure.
A court cannot grant permanent relief under Section 9 of the Arbitration and Conciliation Act, as its provisions are limited to interim measures to support arbitration, not for final outcomes.
The award holder can seek interim relief under Section 9 of the Arbitration and Conciliation Act, 1996 until the complete satisfaction of the award.
The main legal point established in the judgment is the wide powers of the court under Section 9 of the Arbitration and Conciliation Act, 1996 to grant interim measures and protect the subject matter....
The Court emphasized the limited circumstances under which the Court should intervene under Section 9(3) of the Act, 1996 after the constitution of the Arbitral Tribunal, and the alternative remedy u....
The court upheld the rejection of an interim injunction under the Arbitration Act due to the appellant's failure to establish a prima facie case and balance of convenience.
The main legal point established in the judgment is the wide powers of the court under Section 9 of the Arbitration and Conciliation Act, 1996 to grant interim measures of protection, including speci....
The relief sought under Section 9 of the Arbitration Act must be in the nature of interim measures to protect the subject matter of the arbitration and cannot extend to permanent injunctions.
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