Delhi High Court - Orders
M/S Frontioer Alloy Steel Ltd vs Union Of India Northerin Railway, ... on 29 July, 2021
Author: Sanjeev Sachdeva
Bench: Sanjeev Sachdeva
$~18
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 10141/2020
M/S FRONTIOER ALLOY STEEL LTD. ..... Petitioner
Through: Mr. Jai Bansal, Advocate.
versus
UNION OF INDIA NORTHERIN RAILWAY, THROUGH ITS
CONTROLLER OF STORES ..... Respondent
Through: Mr. Jagjit Singh, Senior Counsel,
Railways with Mr. Preet Singh along
with Mr. Shamsher Singh Yadav, Dy.
Chief Material Manager, Northern
Railways.
CORAM:
HON'BLE MR. JUSTICE SANJEEV SACHDEVA
ORDER
% 29.07.2021 CM APPL.18371/2021
1. The hearing was conducted through video conferencing.
2. Petitioner seeks a direction to the respondent to release the bank guarantee dated 03.04.2019 in the sum of Rs.50 lakhs and further seeks a restraint on the respondents from demanding any future bank guarantee for PO No. 07092037104733 dated 08.02.2011 and also seeks release of the security deposit of Rs.10 lakhs.
3. Learned counsel for the petitioner submits that petitioner had been awarded the subject contract and had furnished the security deposit and the bank guarantee towards performance of the said contract. He submits that subsequently there were disputes between the parties which were referred Digitally Signed Signature Not Verified By:JUSTICE SANJEEV Digitally Signed By:KUNAL SACHDEVA MAGGU Signing Date:29.07.2021 Signing Date:30.07.2021 08:04:29 19:59 This file is digitally signed by PS to HMJ Sanjeev Sachdeva.
W.P(C) 10141/2020 1to a sole arbitrator. Both the petitioner and well as respondents raised their claims and counter claims. Both the claims as well as counter claims have been rejected by the arbitrator and nil award has been passed.
4. Learned counsel appearing for the respondent submits that the respondents have filed objections under Section 34 of the Arbitration & Conciliation Act against the award dated 04.08.2016.
5. Learned counsel appearing for the respondent submits that since objections have been filed to the award the issue with regard to claim of future bank guarantee or release of security deposit is subject matter of the objections filed against the award.
6. Learned counsel for respondent prays for time to file a counter affidavit in so far as those reliefs are concerned.
7. Learned counsel for the petitioner points out that the subject bank guarantee dated 03.04.2019 was valid till 31.03.2021 and since the award on the claim of the Railways was nil award said bank guarantee was not extended after 31.03.2021 and has lapsed.
8. Learned counsel for petitioner submits that the non release of original bank guarantee is causing prejudice to the petitioner in as much as the petitioner is incurring expenditure with the bank that has issued the bank guarantee.
9. Learned counsel for respondent concedes that the subject bank guarantee has expired and is no longer valid and cannot be invoked.
10. Since the subject bank guarantee dated 03.04.2019 has already Digitally Signed Signature Not Verified By:JUSTICE SANJEEV Digitally Signed By:KUNAL SACHDEVA MAGGU Signing Date:29.07.2021 Signing Date:30.07.2021 08:04:29 19:59 This file is digitally signed by PS to HMJ Sanjeev Sachdeva.
W.P(C) 10141/2020 2lapsed and is no longer valid and cannot be enforced, the retnetion of the same by the respondent is not justified.
11. Accordingly, respondents are directed to release the original bank guarantee papers to the petitioner forthwith.
12. Application is disposed of in the above terms.
W.P.(C) 10141/2020 & CM APPL.32314/2020
13. Let counter affidavit be filed within six weeks. Rejoinder within four weeks thereafter.
14. List on 11.10.2021.
15. Mr. Shamsher Singh, Deputy Chief Material Manager, Northern Railways is present in person. His personal presence is dispensed with.
16. Copy of the order be uploaded on the High Court website and be also forwarded to learned counsels through email by the Court Master.
SANJEEV SACHDEVA, J
JULY 29, 2021
rk
Digitally Signed
Signature Not Verified By:JUSTICE SANJEEV
Digitally Signed By:KUNAL SACHDEVA
MAGGU Signing Date:29.07.2021
Signing Date:30.07.2021 08:04:29 19:59
This file is digitally signed by PS
to HMJ Sanjeev Sachdeva.
W.P(C) 10141/2020 3