MINI PUSHKARNA, J (ORAL):

1. The present petition has been filed under Section 9 (1) (ii) (e) of the Arbitration and Conciliation Act, 1996 (“Arbitration Act”) seeking injunction for restraining the respondent no.1 from terminating the Contract Agreement dated 30th June, 2023 executed between the parties, and consequently restraining the respondents from invoking the Bank Guarantees provided by the petitioner.

2. As per the case put forth by the petitioner, the petitioner had emerged as the successful bidder in the „Request For Proposal‟ (“RFP”) for permanent rectification of black spot by construction of a light vehicular underpass at Poottuthakku Junction in Krishnagiri-Walajapet Section of NH-48 in Tamil Nadu. The Contract Agreement was formally executed on 30th June, 2023, with the appointed date declared as 12th September, 2023, and the Scheduled Completion date fixed at 11th September, 2024.

3. As per Clause 7 of the Contract Agreement dated 30th June, 2023, between the parties, the petitioner was liable to furnish an irrevocable and unconditional Bank Guarantee to the tune of 3% of the contract value. The petitioners in compliance of the same, furnished the following Bank Guarantees:

i. Performance Security bearing 065571123000017 dated 22nd June, 2023 to the tune of Rs. 24,89,800/-.

ii. Performance Security bearing 065571123000019 dated 26th July, 2023 to the tune of Rs. 24,89,720/-.

iii. Additional Performance Guarantee bearing 065571123000018 dated 22nd June, 2023 to the tune of Rs. 1,19,232/- was in addition to the Bank Guarantees already furnished.

4. Further, the said Contract Agreement in Clause 26.3, contains an arbitration clause, which reads as under:

“26.3 Arbitration

26.3.1 Any Dispute resolved amicably by conciliation as provided in Clause 26.2 shall be finally settled by arbitrations set forth below:

(i) The Dispute shall be finally referred to Society for Affordable Resolution of disputes (hereinafter called as SAROD), a Society registered under Society's Act, 1860 vide Registration no. S/RS/SW1049/2013 duly represented by Authority and National Highways Builders Federation (NHBF). The dispute shall be dealt with in terms of Rules of SAROD. The detailed procedure for conducting Arbitration shall be governed by the Rules of SAROD and Provisions of Arbitration & Conciliation Act, 1996, as amended from time to time. The Dispute shall be governed by Substantive Law of India.

(ii) The appointment of Tribunal, Code of conduct for Arbitrators and fees and expenses of SAROD and Arbitral Tribunal shall also be governed by the Rules of SAROD as amended from time to time.

(iii) Subject to the provisions of THE LIMITATION ACT, 1963, as amended from time to time, Arbitration may be commenced during or after the Contract Period, provided that the obligations of Authority and the Contractor shall not be altered by reason of the Arbitration being conducted during the Contract Period.

(iv) The venue of Arbitration shall be New Delhi or a place selected by governing body of SAROD and the language for all documents and communications between the parties shall be English.

(v) The expenses incurred by each party in connection with the preparation, presentation, etc., of arbitral proceedings shall be shared by each party itself.

26.3.2 The Arbitrators shall make a reasoned award (the "Award"). Any Award made in any arbitration held pursuant to this Article 26 shall be final and binding on the Parties as from the date it is made, and the Contractor and the Authority agree and undertake to carry out such Award without delay.

26.3.3 The Contractor and the Authority agree that an Award may be enforced against the Contractor and/or the Authority, as the case may be, and their respective assets wherever situated.

26.3.4 This Agreement and the rights and obligations of the Parties shall remain in full force and effect, pending the Award in any arbitration proceedings hereunder. Further, the parties unconditionally acknowledge and agr