JUDGMENT :

Sandeep N. Bhatt, J.

1.1 By preferring the present appeal under Section 37 of the Arbitration and Conciliation Act, 1996 read with Section 13 of the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015, read with Section 96 of the Code of Civil Procedure, 1908, the appellants seek to quash and set aside the order dated 21.01.2021 passed by the Commercial Court 6th Additional District Judge, Vadodara, partially allowing the application of the respondent herein under Section 9 of the Arbitration and Conciliation Act, 1996.

1.2 By the impugned order, the Commercial Court has directed the appellants to furnish bank guarantee from the nationalized bank for a period of one year from the date of issue of the amount of Rs.3,78,71,569/- (Rupees Three Crores Seventy Eight Lakhs Seventy One Thousand Five Hundred Sixty Nine Only) in favour of the present respondent within a period of 30 days from the date of order passed by the Trial Court.

2. Before hearing of this appeal, the parties filed the relevant pleadings and documents on record about the contents of which they were ad idem. The learned advocates for both the parties stated that no further pleadings were to be added or supplemented. They argued the appeal finally and with consent and request of the parties, the appeal was accordingly heard finally.

3.1 Shorn off unnecessary details, it transpires that in the year 2015, the respondent-OPaL has appointed the present appellant as one of the Del Credre Agent. The relevant facts involved in the dispute are inter alia that the respondent herein is a company viz., ONGC Petro Additions Limited (OPaL), who has invited Consignment Stockiest Agent (for short, 'CSA') and Del Credre Agent (for short, 'DCA') for marketing and distribution of its product of polymer including poly-ethylene and poly-propylene manufactured by it and ultimately, two separate contracts were executed between the respondent-OPaL and the appellant No.1- Napin Impex Limited (for short 'Napin'), for a period of three years from 11.04.2017 to 10.04.2020 both companies are registered under Companies Act.

3.2 Thereafter, appellant No.1 was appointed as a 'CSA' by Domestic Channel Partner Agreement (for short 'CSA Agreement') dated 11.04.2017 for marketing and distribution of the products of OPaL through Napin's Depot, including making of storage as stockiest. Clause 8 of CAS Agreement is pertaining to security deposit of such as per which CSA had to make cash deposit of sum which may be determined by OPaL to protect the interest of OPaL. Clause 26 of the said CSA Agreement is in respect of termination/expiry of the agreement on the grounds mentioned in the said Clause. Clause 30 of the said CSA Agreement pertains to conferring the jurisdiction of the Courts at Vadodara and Clause 31 is for alternative dispute resolution in respect of any dispute between the parties.

3.3 According to the case of the respondent herein that the respondent-OPaL has filed an application being Civil Miscellaneous No.97 of 2020 under Section 9 of the Arbitration and Conciliation Act, 1996 before the learned Commercial Court, Vadodara, inter alia praying as under:

"i. to appoint a Receiver(s) to take custody of petitioner products lying at depot/godown of the Respondent No.1 and 5 and/or any other place or warehouse of anyone else as traced by the Receiver in this regard;

ii. to pass an order, direction, etc. restraining Respondents to dispose/remove/sell/embezzle/misappropriate/transfer/alienate Petitioner's products or to create any third party interest on the same;

iii. to direct Respondent(s) to furnish bank guarantee from a nationalized bank to the tune of Rs. 6,50,00,000/(Rupees Six Crore Fifty Lakh only) to be recovered along'; with pendent lite interest, damages for loss of market value of products in favour of Petitioner with a minimum validity of 2 (two) years from the date of issue, alternatively to direct Respondent(s) to deposit the-amount