Abhik Advertising Private Limited vs Gujarat State Road Transport ... on 18 March, 2021

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Gujarat High Court

Abhik Advertising Private Limited vs Gujarat State Road Transport ... on 18 March, 2021

Bench: N.V.Anjaria, A.C. Rao

          C/SCA/4710/2021                                      ORDER




        IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
          R/SPECIAL CIVIL APPLICATION NO. 4710 of 2021
==========================================================
              ABHIK ADVERTISING PRIVATE LIMITED
                             Versus
        GUJARAT STATE ROAD TRANSPORT CORPORATION
==========================================================
Appearance:
MR. MIHIR JOSHI, SR. ADVOCATE WITH MR. JAY KANSARA FOR M/S
WADIAGHANDY AND CO(5679) for the Petitioner(s) No. 1
for the Respondent(s) No. 1
==========================================================
 CORAM: HONOURABLE MR. JUSTICE N.V.ANJARIA
        and
        HONOURABLE MR. JUSTICE A.C. RAO

                       Date : 18/03/2021
                        ORAL ORDER

(PER : HONOURABLE MR. JUSTICE N.V.ANJARIA) Heard learned senior advocate Mr. Mihir Joshi with learned advocate Mr. Jay Kansara for M/s. Wadiaghandy and Co. for the petitioner.

2. The initial prayer as it stood in the present petition was to set aside order dated 6.3.2021 below Exh.9 in Commercial Civil Misc. Application No. 353 of 2021 passed by the Commercial Court, City Civil Court, Ahmedabad. The Commercial Civil Misc. Application No. 353 of 2021 was an application under section 9 of the Arbitration and Conciliation Act, 1996. In the background, the dispute in relation to the advertisement agreement between the parties had arisen and the petitioner has invoked the arbitration clause by issuing notice dated 24.2.2021. Application under Section 9 of the Arbitration Act, 1996, came to be filed by the petitioner for interim measures.

3. As per the said order dated 6.3.2021 below Exh. 9, the Commercial Court granted time to the respondent Corporation to submit its reply.

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3.1 It was submitted by learned senior advocate that the order passed by the Commercial Court granting such time would have resulted into encashment of bank guarantee by the respondent Corporation. In any view, it was fairly stated that the bank guarantee has now been encashed by the respondent Corporation.

3.2 The petition, still-born otherwise, was put to life in view of the subsequent developments and orders by the court below which are sought to be produced and incorporated by the petitioner by way of draft amendment.

3.3 The draft amendment dated 15.3.2021 figuring with the papers of the petition, is hereby granted. The same may be carried out immediately.

3.4 On the basis of the contents and documents produced alongwith the draft amendment, it was submitted on behalf of the petitioner that after the aforementioned order dated 6.3.2021, the proceedings were kept by the Commercial Court on 10.3.2021.

3.5 On 10.3.2021, the order was passed and the respondent Corporation was allowed time to file reply to the applicant under section 9. The court granted interim stay in terms of para 63(C) of the application under section 9 of the petitioner as the respondent was given opportunity to file reply.

3.6 Interim prayer as was prayed for under section 9 application in para 63(C) reads as under, "restrain the respondents and any of its officers, employees, agents, representatives or any other person acting on behalf of the Respondent from taking any coercive steps, measures and/or actions against the Applicant with respect to Agreements dated 13th March, 2018 executed for divisions of Ahmedabad, Bharuch, Godhra, Nadiad, Surat and Valsad and Agreement Page 2 of 3 Downloaded on : Sat Mar 20 00:35:03 IST 2021 C/SCA/4710/2021 ORDER dated 31st May, 2019 for division of Vadodara with respect to the work awarded to the Applicant under Tender No. STG / TR / COM / ADVT / OT- 1 / 2017-18 inter alia appointing the applicant as Advertising Agent of the respondent till the final disposal of the arbitration proceedings."

3.7 After the aforesaid order dated 10.3.2021, in which the interim relief as above was granted, the proceedings were kept on 15.3.2021. by the time, the respondent Corporation appears to have filed its reply., However, on that day, the petitioner herein before the court for grant of time to file rejoinder.

3.8 The court passed order on 15.3.2021 taking view and observing that interim order granted on 10.3.2021 was only till filling of the reply by the respondent Corporation and the question whether such interim order is required to be continued till the final disposal of the main application or not, has to be considered after hearing both the sides. At the same time, the Commercial Court vacated the stay order passed on 10.3.2021 while granting time to file rejoinder to the petitioner.

4. It was submitted by learned senior advocate for the petitioner that the final decision about extension or otherwise of the interim relief granted, ought to have been taken only after hearing both the sides. It was submitted that the order of the court in vacating the interim stay when the petitioner is yet to file rejoinder affidavit, not only prejudiced the petitioner but has virtually rendered the prayer infructuous.

5. Notice, returnable on 6.4.2021. Interim stay passed by the court below on 10.3.2021 shall continue to operate till the next date.

Direct service is permitted, as requested, in addition to the normal mode of service.

(N.V.ANJARIA, J) (A. C. RAO, J) C.M. JOSHI Page 3 of 3 Downloaded on : Sat Mar 20 00:35:03 IST 2021

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