O.M.P. (I) (COMM.) 433/2020 Page 1 of 44

IN THE HIGH COURT OF DELHI AT NEW DELHI

Pronounced on: 19^th July, 2022

+

O.M.P. (I) (COMM.) 433/2020, & I.As. 131/2021, 757-58/2021,

5762/2021, 7056-57/2021, 9045-46/2021 and 9068-69/2021

SHANGHAI ELECTRIC GROUP CO LTD

..... Petitioner

Through:

Mr. Rajiv Nayar and Mr. Dayan

Krishnan, Senior Advocates with Mr.

Ashish Bhan, Mr. Ketan Gaur and Mr.

Aayush Mitruka, Advocates.

versus

RELIANCE INFRASTRUCTURE LTD

..... Respondent

Through:

Mr. Harish Salve and Mr. Sandeep

Sethi, Senior Advocates with Mr.

Sanjeev

Kapoor,

Mr.

Mahesh

Agarwal, Mr. Gaurav Juneja, Mr.

Aditya

Ganju,

Mr.

Pranjit

Bhattacharya, Mr. Akshit Mago, Ms.

Shruti Garg, Mr. Arjit Oswal and Ms.

Monika Vyas, Advocates.

CORAM:

HON'BLE MR. JUSTICE SANJEEV NARULA

JUDGMENT

SANJEEV NARULA, J.:

1.

The present petition under Section 9 of the Arbitration and Conciliation

Act, 1996 [hereinafter, “the Act”] seeks interim measures for securing the

amount in dispute in arbitration payable in terms of a Guarantee Letter dated

26^th June, 2008 issued by the Respondent as well as injunctive reliefs

restraining the Respondent from selling, transferring or otherwise disposing

of and/ or creating any encumbrances on its assets during the pendency of the

arbitration proceedings.

This is a digitally signed Judgement.

NEUTRAL CITATION NO: 2022/DHC/002657

O.M.P. (I) (COMM.) 433/2020 Page 2 of 44

TABLE OF CONTENTS

PARTIES TO THE DISPUTE .....................................................................3

FACTS ............................................................................................................3

CONTENTIONS ADVANCED ....................................................................6

I.

ON BEHALF OF SEGCL ..........................................................................6

II.ON BEHALF OF RELIANCE .................................................................... 11

ANALYSIS .................................................................................................. 16

I.

INTERIM ORDERS IN FORCE ................................................................. 17

II.JURISDICTIONAL OBJECTIONS .............................................................. 18

III.MERITS ................................................................................................ 39

This is a digitally signed Judgement.

NEUTRAL CITATION NO: 2022/DHC/002657

O.M.P. (I) (COMM.) 433/2020 Page 3 of 44

PARTIES TO THE DISPUTE

2.

The Petitioner – SEGCL Electric Group Co. Ltd. [hereinafter,

“SEGCL”] is a company incorporated and having its registered office in the

People’s Republic of China, and is inter alia, engaged in the business of

supplying equipment and services relating to the design, engineering,

manufacturing, installation of the main body of turbines and generators and

the supervision of erection and commissioning of boilers, turbines and

generators, including associated accessories and spare parts.

3.

The Respondent – Reliance Infrastructure Limited [hereinafter,

“RELIANCE”] is a company incorporated having its registered office in India,

and is inter alia, engaged in the business of operating and carrying out

engineering, procurement and construction services for various power

projects, including thermal power plants.

FACTS

4.

SEGCL entered into an ‘Equipment Supply and Service Contract’

dated 26^th June, 2008 [hereinafter, “Contract”] with a subsidiary of

RELIANCE viz. Reliance Infra Projects (UK) Limited [hereinafter, “Reliance

UK”] – under which, SEGCL was engaged as the contractor to, inter alia,

supply equipment, erect the main body of the turbines and generators, and

provi