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DELHI HIGH COURT
C.HARI SHANKAR
Union of India – Appellant
Versus
RCCIVL-ITIL P. Ltd. (JV) – Respondent
| Table of Content |
|---|
| 1. details of application and bank guarantee (Para 1 , 3 , 4 , 5 , 6 , 10) |
| 2. court observations on counter-claims (Para 8 , 9 , 15) |
| 3. arguments regarding the application status (Para 12 , 13 , 14 , 16) |
| 4. final decision on the appeal (Para 17) |
(Video-Conferencing)
1. The appellant claims to be aggrieved by orders dated 24th March, 2021 and 17th April, 2021, whereby the learned Arbitral Tribunal disposed of the appellant's application under Section 23 (3), and the respondent's application under Section 17 , of the Arbitration & Conciliation Act, 1996 ("the 1996 Act").
2. Mr. Arvind Minocha, learned Counsel for the respondent in the present appeal has drawn my attention to a communication dated 28th June, 2021, addressed by the Union Bank of India to the appellant, following which, in my opinion, nothing survives for adjudication in the present appeal.
3. As such, a very brief recital of facts may suffice.
4. As per the covenants of the contract between them, the respondent furnished performance security to the appellant by way of Bank Guarantee for Rs.13,06,06,000/-.
5. The respondent moved an application, before the learned Arbitral Tribunal, under
Arbitration - Interim measures - Once Arbitral Tribunal directed return of entire Bank Guarantee, and Bank has also written to appellant, intimating that Bank Guarantee stood discharged in full in fa....
The court affirmed that a performance security cannot be withheld post-acknowledgment of contract performance, and interim relief must balance equities in arbitration under Section 17 of the Act.
The right to approach the Arbitral Tribunal under Section 17 of the Act can be reserved even after withdrawal of an appeal under Section 9 of the Act.
Court affirmed the importance of maintaining a bank guarantee during pending arbitration proceedings while allowing parties to explore their legal remedies regarding claims.
Interim measures under the Arbitration and Conciliation Act allow arbitration tribunals to secure claims, especially under concerns of insolvency, as long as the actions align with just and convenien....
The dismissal of a petition for interim relief does not prevent a party from invoking arbitration as per the contract terms.
Interim measures – Direction to furnish security in form of Performance Bank Guarantees is contingent upon fulfilment of certain conditions.
A request for arbitration can be made informally, and claims for damages do not crystallize into debts until adjudicated, impacting the rights related to bank guarantees.
An arbitral tribunal, while adjudicating an application for interim protection under Section 17, does not determine the lis between the parties.
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