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Supreme Court - Daily Orders

M/S Trafalgar House Construction (T) ... vs State Of Orissa on 20 April, 2022

Bench: L. Nageswara Rao, B.R. Gavai

                                                                1

                                           IN THE SUPREME COURT OF INDIA
                                           CIVIL APPELLATE JURISDICTION


                                           CIVIL APPEAL        NO.    8651 OF 2009


     M/S TRAFALGAR HOUSE CONSTRUCTION (T) SATYAM
     SHANKARANARAYANA (JV)                                                               APPELLANT(S)

                                                               VERSUS

     STATE OF ORISSA & ORS.                                                              RESPONDENT(S)



                                                           O R D E R

This appeal has been filed against the judgment of the High Court dated 14.09.2007 by which the writ petition filed by the appellant was dismissed. The appellant filed the writ petition seeking release of bank guarantees and for a direction to the respondents preventing them from encashing the bank guarantees. A further direction was sought in the writ petition to the respondents to issue taking over certificate and defect liability certificate in addition to a relief for extension of time upto 28.12.1998 for the Head Race Tunnel (HRT) work. A further direction to the respondents for ordering payment of final bill as per the agreement terms including the price escalation dues and dues arising out of payment of revised rates with interest @ Signature Not Verified 10% from the due date as per sub-clause 60.8 of the Digitally signed by GEETA AHUJA Date: 2022.04.23 10:40:53 IST Reason: agreement was sought.

After examining the contentions of both sides, the 2 High Court dismissed the writ petition and refused to grant injunction on the ground that the appellant failed to make out a case for any irretrievable injustice.

Notice was issued in this appeal on 03.10.2007. An order was passed that the bank guarantees would not be encashed, if they were not already encashed. While granting leave on 17.12.2009, this Court directed the interim order to continue subject to the appellant’s keeping the bank guarantees in question alive till the disposal of the appeal.

Ms. Kiran Suri, learned senior counsel appearing for the appellant submitted that the respondents referred the disputes to the arbitration and the proceedings have not concluded till date for reasons which need not be recorded here.

We are informed that Justice Hon’ble Mr. Justice Arijit Pasayat, former Judge, Supreme Court of India has been appointed to the Arbitral Tribunal in the year 2019 along with two retired Judges of the Orissa High Court. A perusal of the judgment of the High Court would show that the disputes raised in the writ petition are also the subject matter of arbitration.

Ms. Suri, learned senior counsel further submitted that the bank guarantees in question have already lapsed during the pendency of the writ petition in the year 2000. In view of the order passed by this Court on 17.12.2009, it was incumbent on the part of the appellant 3 to ensure that the bank guarantees were kept alive. In case, the bank guarantees lapsed in the year 2000, the appellant should have brought to the notice of this Court the said fact and sought modification of the Order dated 17.12.2009.

Therefore, we are not inclined to interfere with the judgment of the High Court at this stage in view of the fact that the dispute pertaining to the bank guarantees is the subject matter of arbitration. The appeal is dismissed.

Pending application(s), if any, shall stand disposed of.

............... J.

(L. NAGESWARA RAO) ............... J.

                                                  (B.R. GAVAI)
NEW DELHI
20th APRIL, 2022
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ITEM NO.104                 COURT NO.5                 SECTION XI-A

                 S U P R E M E C O U R T O F      I N D I A
                         RECORD OF PROCEEDINGS

Civil Appeal    No(s).   8651/2009

M/S TRAFALGAR HOUSE CONSTRUCTION (T) SATYAM SHANKARANARAYANA (JV) Appellant(s) VERSUS STATE OF ORISSA & ORS. Respondent(s) Date : 20-04-2022 This appeal was called on for hearing today. CORAM :

HON'BLE MR. JUSTICE L. NAGESWARA RAO HON'BLE MR. JUSTICE B.R. GAVAI For Appellant(s) Mrs. Kiran Suri, Sr.Adv.
Mr. S.J. Amith, Adv.
Mr. B. Purushottam Reddy, Adv. Dr. (Mrs. ) Vipin Gupta, AOR For Respondent(s) Mr. Shibashish Misra, AOR UPON hearing the counsel the Court made the following O R D E R The appeal is dismissed in terms of the signed order. Pending application(s), if any, shall stand disposed of.
     (Geeta Ahuja)                            (Anand Prakash)
     Court Master                              Court Master
(Signed Order is placed on the file)