Delhi High Court - Orders
M/S Engineering Projects India Limited vs Southern Railway & Anr on 6 November, 2023
Author: Dinesh Kumar Sharma
Bench: Dinesh Kumar Sharma
$~28
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ O.M.P.(I) (COMM.) 357/2023
M/S ENGINEERING PROJECTS INDIA LIMITED
..... Petitioner
Through: Mr. Uttam Datt, Ms. Sonakshi Singh,
Mr. Kumar Bhaskar, Mr. Aman
Sanjeev Sharma, Advs. with A.R. for
the petitioner.
versus
SOUTHERN RAILWAY & ANR. ..... Respondents
Through: None.
CORAM:
HON'BLE MR. JUSTICE DINESH KUMAR SHARMA
ORDER
% 06.11.2023 I.A. 21987/2023 Exemption allowed, subject to all just exceptions. Application stands disposed of.
O.M.P.(I) (COMM.) 357/2023 The present petition has been filed under Section 9 of the Arbitration and Conciliation Act seeking Ad-interim protective orders and to restrain the respondent from encashing the performance bank guarantee with the following prayer:
"a) Issue ex-parte ad interim stay on the operation of the termination letter dated 18.10.2023 issued by the Respondent No. 1 to the Petitioner bearing reference number No. W.148/1/CN/ERS/CAPE/SD;
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 08/11/2023 at 00:24:39
b) Issue ex-parte ad interim stay on the operation of the Invocation of Bank Guarantee letter dated 27.10.2023 issued by the Respondent No. 1 to the Petitioner bearing reference number No. W.148/1 /CN/ERS/XI/BG Encashment;
c) Issue ex-parte ad interim stay to restrain the Respondent No. 1, its principal officers, servants, agents and all other acting for, and on their behalf, from invoking and encashing Bank Guarantee bearing No. IOB/LGI/040871122000057 dated 13.12.2022, issued by Respondent No. 2 for a sum of Rs.1,48,08,313.20/- submitted by the Petitioner,
d) Issue ex-parte ad interim stay to restrain the Respondent No. 2, its principal officers, servants, agents and all other acting for, and on their behalf, from releasing and encashing sums under the Bank Guarantee bearing No. IOB/LGI/040871122000057 dated 13.12.202, issued by it for a sum of Rs.1,48,08,313.20/- submitted by the Petitioner to the Respondent No. 1;
e) Direct the Respondent No. 1 and 2 to maintain status quo with respect to the Bank Guarantee bearing No. IOB/LGI/040871122000057 dated 13.12.2022, issued by Respondent No. 2 for a sum of Rs.1,48,08,313.20/- submitted by the Petitioner, pending determination of subject matter of dispute between the parties in accordance with the terms of the Contract,
f) Pass ad-interim orders reliefs in terms of the above prayer;
g) Pass ad-interim orders relief's in terms of the above prayer,
h) Pass any other order/direction which this Hon'ble Court may 'deem just, fair and equitable in the circumstances."
Learned counsel for the petitioner submits that the contract agreement was signed and formally executed between the parties on 02.02.2023 and as This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 08/11/2023 at 00:24:39 per the agreement the work is to be completed by June 2024. However, learned counsel for the petitioner submits that on account of unforeseen reasons, some of the milestones in the interim period have been missed.
Learned counsel submits that in fact both parties are government entities and they have been talking from time to time regarding certain problems on account of which certain milestones were not able to be reached.
Learned counsel submits that now the respondents have invoked the bank guarantee. Learned counsel further submits that they are ready and willing to invoke the Arbitration Clause.
Issue notice to the respondent through all permissible modes returnable on 09.11.2023.
However, in case the bank guarantee is encashed that will be subject to the order of this court.
DINESH KUMAR SHARMA, J NOVEMBER 6, 2023/AR..
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 08/11/2023 at 00:24:39