Technofab Engineering Limited vs Tesla Transformers Limited on 4 August, 2021
The factual scenario in Virender Khanna (supra) was entirely
different. The Appellant therein had encashed the bank guarantee furnished
by the Respondent for one project (Ranchi Airport) to recover the dues of
another project (Kolkata Airport). While this was found to be untenable by
the Arbitral Tribunal, it did not direct the refund of the said amount stating
that disputes regarding the Kolkata Airport project were sub-judice and the
Arbitral Tribunal adjudicating the said disputes would deal with the recovery
of the encashed bank guarantee. Further, the Arbitral Tribunal, after recording
that interest was to be awarded from the date the cause of action arose, instead
awarded interest from the date the request for appointment of arbitrator was
made. The learned Single Judge found these findings to be unsustainable and
accordingly set them aside. That view has been confirmed by the Division
Bench on the ground that the findings of the Arbitral Tribunal were
contradictory and incongruous.