O R D E R

CHANDRA DHARI SINGH, J (Oral)

1. The instant appeal under Section 37(2) of the Arbitration and Conciliation Act, 1996 (hereinafter “the Act, 1996”) has been filed on behalf of the appellant seeking the following reliefs:

“(i) To allow the present appeal and set aside the Impugned Order dated (21.02.2023) passed by the Ld. Sole Arbitrator Hon‟ble Justice Mohammad Rafiq.

(ii) To restrain the respondent from acting upon the termination notice dated 16.11.2021 and the new operator M/s Budget CFS Terminals Pvt Ltd from continuing its operations until the Arbitral proceedings is decided.

(iii) Any other in the interest of justice may kindly be passed.”

FACTUAL MATRIX

2. The appellant is a company duly incorporated under the Companies Act, having its registered office at 201-204, Parth Soliatre, Plot No. 2, Sector 9E, Near D-Mart, Kalamboli, Navi Mumbai.

3. The respondent is a government of India undertaking established under the provisions of the Central Warehousing Corporation Act, 1962.

4. The respondent on 5th February 2020 published a notice inviting tenders for the appointment of Strategic Alliance Management Operator (SAMO) for its Container Freight Station (CFS), Dronagari Node, and a Strategic Alliance Management Agreement (SAMA) dated 18th April 2020 was signed between the parties and operations commenced in the said CFS.

5. The appellant requested the respondent to release 50% of their payments to meet their running expenses which were refused by the respondents on 19th August 2020

6. The respondent, on 6th November 2020 issued a Show-Cause Notice to the appellant seeking an explanation as to why SAMA should not be terminated for non-submission of Bank Guarantee to which the appellant vide response dated 10th November 2020 provided a reply to the respondent. Subsequently, SAMA was terminated by the respondent on

12th November 2020.

7. The respondent heard the appellant where the appellant apprised that a sanction letter was issued by the Bank on 17th November 2020 and the Bank Guarantee would be deposited soon.

8. The appellant approached the Delhi High Court vide Writ Petition to grant relief to the appellant and submit the Bank Guarantee due to the ongoing COVID-19 Pandemic and the High Court set aside the termination notice dated 12th November 2020 and extended the time to submit the Bank Guarantee.

9. The appellant thereafter submitted the Bank Guarantee of RS. 7.75 Cr. and raised invoices for the work done which was refused by the respondent and demand of depositing RS. 98,92,545 was made by the respondent.

10. The respondent vide letter dated 4th August 2021 informed the respondent that they had to encash the Bank Guarantee. A Show-Cause Notice was again issued to the appellant on 20th August 2021. The respondent raised RS. 3,93,77,806 through a demand letter dated 8th July

2021.

11. The respondent invoked Arbitration on 30th November 2021 which was challenged by the appellant in the Delhi High Court on the ground that the respondent as per SAMA did not constitute a joint committee prior to invoking the Arbitration which was allowed by the High Court on

22nd December 2021, quashing the invocation notice.

12. The appellant sent a reply to the Arbitration Notice that the joint committee has not been instituted which was replied to by the respondent stating the Arbitral Tribunal has already been constituted and the joint committee could not be formed.

13. The High Court vide Order dated 11th March 2022 dismissed the application of the appellant for interim relief under Section 9 of the Act, 1996.

14. The appellant appealed against the aforementioned order before High Court and the Court vide Order dated 18th November 2022 appointed a learned Sole Arbitrator.

15. The Appellant preferred an application under section 17 of the Act

1966, seeking interim reliefs before the learned Arbitrator

16. The appellant thus filed an appeal under Section 37(2) of the Act, 1966 against the order of dismissal dated 21st February 2023 in an application