IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 06.10.2025 CORAM THE HONOURABLE MR.JUSTICE N.ANAND VENKATESH Original Application No.824 of 2025 Vishnu Infra Pvt. Ltd., represented by its Director, Mr.MVS Krishnam Raju Having registered office at:

H.No.6-3-1095 & 1096, Metro Palm, Grove Apartment, Hyderabad, Telengana - 50034. .... Applicant Vs.

1.Engineering Projects India Ltd.

represented by its Director, Ms.Akanksha Pare Kashiv Having registered office at:

Core 3 Scope Complex 7 Institutional Area, Lodhi Road, New Delhi - 110 003.

Also at:

Southern Regional Office, 3D, EC Chambers, 92, G.N.Chetty Road, T.Nagar, Chennai - 600 017.

2.Union Bank of India Besant Nagar Branch, No.58, AV Church Road, Chennai - 600 090. .... Respondents PRAYER Original Application filed under Order XIV Rule 8 of O.S.Rules read with Section 9(1)(ii)(e) of the Arbitration and Conciliation Act, 1996, praying to grant an order of interim injunction restraining the first respondent, its men, agents and representatives from encashing the Performance Bank Guarantee of Rs.2,89,50,000/- dated 31.01.2024 bearing No.52720IGL0002423 issued by the second respondent as well as the Demand Draft for Rs.2,89,50,000/- furnished by the applicant, until a competent Arbitral Tribunal is seized of the matter.

For Applicant : Mr.Rohan Rajasekaran For Respondents : Mrs.Hema Srinivasan [R1]

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ORDER

This application has been filed under Section 9 of the Arbitration and Conciliation Act, 1996 (for brevity 'the Act') for an order of interim injunction restraining the first respondent from encashing the Performance Bank Guarantee for a sum of Rs.2,89,50,000/- dated 31.01.2024 bearing No.52720IGL0002423 issued by the second respondent as well as the demand draft for a sum of Rs.2,89,50,000/- furnished by the applicant until the dispute is resolved by the Arbitral Tribunal.

2. The facts of the case and the grounds raised by the applicant was considered by this Court and an interim order was passed on

14.08.2025 and for proper appreciation, the same is extracted hereunder:

"This application has been filed under Section 9 of the Arbitration and Conciliation Act, 1996, seeking for an order of interim injunction to restrain the first respondent from encashing the Performance Bank Guarantee for a sum of Rs.2,89,50,000/- dated 31.01.2024 given by the applicant; and also for an order of interim injunction to restrain the first respondent from encashing the Demand Draft (DD) for a sum of Rs.2,89,50,000/- issued by the second respondent bank.

2. The applicant was appointed as a sub-contractor by the first respondent, who was awarded a contract by the Railways. As per the terms and conditions of the sub-contract awarded to the applicant, the applicant had executed a Performance Bank Guarantee for a sum of Rs.2,89,50,000/- dated 31.01.2024 in favour of the first respondent. According to the applicant, despite fulfilling their part of the contract as per the terms and conditions of the contract agreement dated 05.02.2024, the first respondent is now attempting to encash the Performance Bank Guarantee in violation of the terms and conditions of the contract. The applicant has also pleaded in the affidavit filed in support of this application that if the Performance Bank Guarantee is encashed, the applicant will be put to irreparable loss/hardship and they have also pleaded that any attempt made by the first respondent to encash the Performance Bank Guarantee will amount to fraud.

3. Earlier, the very same applicant in respect of the very same contract had approached this Court against the very same respondents and this Court, vide its order dated 30.10.2024 passed in O.A.No.834 of 2024, restrained the first respondent from engaging a third party. Thereafter, the applicant and the first respondent reached an amicable settlement and the same was recorded by the Arbitrator through the compromise arbitral award dated 01.03.2025. However, according to the applicant, despite the applicant's readiness and wi