Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Bank guarantee Injunction Arbitration and Conciliation Act 1996 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Arbitration and Conciliation Act, 1996 (26 of 1996) |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Arbitration and Conciliation Act, 1996 ~ s. 9 — Bank guarantee — Encashment — Injunction against — Award of two contracts by Railway Department to Contractor — Termination of the first contract for non-completion of work — As regards second contract, contractor on its completion asked for return of Bank guarantee — However, Railway Department.sought encashment of Bank Guarantee - Invocation of arbitration clause by Contractor ~ Application u/s. 9 by contractor seeking injunction against the Department from encashing Bank Guarantee — Dismissed by the courts below — On appeal, held: Arbitration proceedings in relation to the first contract still pending ~ Sum claimed from the contractor does not relate to the contract for which the Bank Guarantee was furnished but relates to another contract for which no bank guarantee was furnished — Further, the sum claimed by the contractor neither an admitted sum and nor a sum which stood adjudicated by any court of law in any judicial proceedings but a disputed sum ~ Bank Guarantee being in the nature of a performance guarantee furnished for execution work of second contract and work having been completed to the satisfaction of the Department, they had no right to encash the Bank Guarantee — Contractor made out a prima facie case in their favour for grant of injunction against the Department so also balance of convenience and irreparable loss — Thus, entitled ta claim injunction against the Department in relation to encashment of Bank Guarantee — Order passed by the High Court set aside. |
Judge | Hon'ble Mr. Justice Abhay Manohar Sapre |
Neutral Citation | 2016 INSC 375 |
Petitioner | M/s Gangotri Enterprises Ltd. |
Respondent | Union Of India & Ors. |
SCR | [2016] 2 S.C.R. 1074 |
Judgement Date | 2016-05-05 |
Case Number | 4814 |
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