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IN THE HIGH COURT OF DELHI AT NEW DELHI
JASMEET SINGH
Gail (India) Limited – Appellant
Versus
Focus energy ltd. – Respondent
JUDGMENT :
JASMEET SINGH, J.
1. This is a petition under Section 9 of the Arbitration and Conciliation Act, 1996 (“ 1996 Act ”) seeking the following substantial prayers:
“A. Pass an ex-parte ad interim Order directing the Respondents to maintain status quo and continue the supply of gas to the Petitioner in terms of the Gas Sale and Purchase Agreement (GSPA) till the make-up gas is supplied in its entirety.
B. Grant an interim measure extending the Restoration Period from 4 months to such additional period until all the Balance Make-up Gas is supplied by the Respondent No.1.
C. Pass an Order directing the Respondents to deposit the balance Annual Take or Pay (AToP) amount of Rs. 156.75 Crores with this Hon ’ ble Court or furnish adequate security in lieu thereof.
D. Pass an Order directing the Respondents to furnish the details its assets free from encumbrance, sufficient to secure the amount due to the Petitioner towards the make up gas.
E. Issue an order restraining the Respondents, from alienating, transferring, encumbering or otherwise disposing of their properties and assets until the final disposal of the arbitration proceedings….”
2. The parties entered into a Gas Sale and Purc
The court granted interim relief under Section 9 of the Arbitration Act, emphasizing a strong prima facie case and balance of convenience for securing the disputed amount in arbitration.
The court upheld the invocation of the force majeure clause by the first respondent, ruling that the applicant had accepted the contract's termination and had no grounds for an injunction.
The court clarified that the relief sought would amount to directing specific performance of the contract as an interim measure of protection, which is not permissible under section 9 of the a&C act.
The court upheld that obligations under gas supply contracts are subject to government directives, affirming the validity of pricing based on regulatory compliance.
The words 'Arbitral Tribunal' in Section 9(3) of Act have to take colour from all said provisions and thus have to be interpreted as Arbitral Tribunal constituted to adjudicate disputes which have ar....
The main legal point established in the judgment is the limited scope of interference under the Arbitration and Conciliation Act, 1996, and the interpretation of specific clauses of the Gas Supply Ag....
Court affirmed that the existence of an arbitration agreement can be inferred from parties' conduct and correspondence, even absent formal signing of the contract, emphasizing the binding nature of a....
The financial distress of a party cannot justify securing unadjudicated claims as interim relief under Section 9 of the Arbitration Act; a prima facie case, balance of convenience, and irreparable ha....
Disputes concerning GST liabilities under a contract are arbitrable and do not pertain to sovereign functions or taxation issues as defined by the Arbitration and Conciliation Act, 1996.
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