M.R. Shah, J.

[1.0] Feeling aggrieved and dissatisfied with the impugned order passed by the learned Additional District Judge, Vadodara in Civil Miscellaneous Application No.467/2013 by which in exercise of powers under section 9 of the Arbitration and Conciliation Act, 1996 [hereinafter referred to as “Arbitration Act”], the learned Additional District Judge, Vadodara has directed the appellant herein – original respondent to furnish the Bank Guarantee for an amount of Rs.79,61,76,998.58 ps., within 3 months of the said order, the appellant has preferred the present appeal under section 37 of the Arbitration Act.

[2.0] Facts leading to the present First Appeal in nutshell are as under:

[2.1] That in August 1996, the respondent United India Insurance Co. Ltd. issued an insurance policy to the appellant in respect of the appellant’s refinery which was under construction at Wadinar, Jamnagar. It appears that the said insurance policy, inter alia, covered (1) the material damage [under section I of the insurance policy] i.e. damage to the appellant’s properties, machinery, equipment etc. and (2) advance loss of profit i.e. loss of future profits caused on account of delay in commissioning the refinery. That in the year 1998, a massive cyclone hit the coast of Gujarat and caused severe damage to the appellant’s property, machineries, equipments etc. at the refinery site. Therefore, the appellant made claims under the insurance policy i.e. material damage claimed and advance loss of profit claimed. A dispute arose between the parties and therefore, the dispute was referred to the Arbitral Tribunal in view of the Arbitration Agreement dated 05.01.2008. The arbitration primarily related to two insurances against the appellant herein – original refinery being (a) the claim of Rs.391.70 Crores (approximately) towards material damaged at the refinery on account of the cyclone, (b) the claim of Rs.3306.28 Crores (approximately) towards the Advance Loss of Profits which the appellants suffered on account of the reason of delay in commissioning the refinery. That the Arbitral Tribunal passed an interim award dated 24.02.2012. Thereafter, on 25.04.2012, the Arbitral Tribunal passed the corrected interim award under which the learned Tribunal rejected the appellant’s claims and allowed the respondent’s counter claim and directed the appellants to pay Rs.6,74,04,740/- to the respondent, however without interest.

That being aggrieved and dissatisfied with the award declared by the Arbitral Tribunal, the appellant has filed Civil Misc. Application No.295/2012 before the learned District Court, Vadodara under section 34 of the Arbitration Act, which is pending.

It appears that thereafter on 02.07.2012, the respondent filed an application before the learned Arbitral Tribunal seeking costs to the tune of Rs.29 Crores. It appears that subsequently the respondent filed an extended schedule of costs, claiming costs to the tune of Rs.94.5 Crores. That on 21.06.2013, the learned Arbitral Tribunal passed the correct final award awarding the cost to the tune of Rs.69,40,90,433.20 to the respondent.

[2.2] Feeling aggrieved and dissatisfied with the aforesaid corrected final award awarding the cost to the tune of Rs. 69,40,90,433.20, the appellant herein has filed Civil Misc. Application No.444/2013 before the learned District Court, Vadodara under section 34 of the Arbitration Act, which is also pending.

That during the pendency of the aforesaid proceedings before the learned District Court, Vadodara, on 23.08.2013, the respondent filed the Civil Misc. Application No.467/2013 under section 9 of the Arbitration Act, seeking an order directing the appellant to deposit an amount of Rs.79,61,76,998.58 as awarded by the corrected interim award and corrected final award and interest thereon solely on the ground that the Arbitral Tribunal’s awards are in favour of the respondent and the appellant was making huge losses and was having huge debts including a hug