SPML INFRA LIMITED v. NTPC LIMITED

Delhi High Court · 18 Dec 2013 · 2013:DHC:6521
Rajiv Shakdher
OMP 1273/2013 and OMP 1274/2013
2013:DHC:6521
civil petition_dismissed

AI Summary

The Delhi High Court dismissed the petition seeking interim investment of encashed bank guarantee amounts under Section 9 of the Arbitration and Conciliation Act, 1996, holding no credible risk justified such relief.

Full Text
Translation output
OMP 1273-13 & 1274-13 HIGH COURT OF DELHI
JUDGMENT
delivered on: 18.12.2013
O.M.P. 1273/2013
SPML INFRA LIMITED ..... PETITIONER
VERSUS
NTPC LIMITED & ANR ..... RESPONDENTS
O.M.P. 1274/2013
SPML INFRA LTD ..... PETITIONER
VERSUS
NTPC LIMITED & ANR ..... RESPONDENTS ADVOCATES WHO APPEARED IN THIS CASE:
For the Petitioner : Mr. Rajiv Nayar, Sr. Advocate with Mr. Rakesh, Mr. Pradeep Gupta and Mr. S.S.
Gupta, Advocates For the Respondents : Mr. Bharat Sangal, Ms. Saumya Agarwal, Ms. Abenta and Mr. Rohan Poddar, Advocates for R-1
CORAM :-
HON'BLE MR JUSTICE RAJIV SHAKDHER RAJIV SHAKDHER, J
IA No.20707/2013 (Exemption) in OMP 1273/2013
IA No.20708/2013 (Exemption) in OMP 1274/2013
Allowed subject to just exceptions.
2013:DHC:6521 OMP 1273-13 & 1274-13 OMP No.1273/2013 and OMP No.1274/2013

1. The captioned petitions have been filed under Section 9 of the Arbitration and Conciliation Act, 1996.

2. Mr. Nayar says that the prayers made in the captioned petitions are common, save and except the amounts referred to therein.

3. Broadly, the prayer sought is that the bank guarantees in issue which were encashed by respondent no.1 and the amounts which came by the said respondents, should be invested in an interest bearing fixed deposit.

4. To be noted, there is no averment in the petitions that respondent no.1 is not good for its money. 4.[1] Mr. Nayar concedes that no such averment has been made nor any document has been filed in that behalf.

5. The concern of the petitioner is that if they were to file a substantive action, and succeed, they may not be able to retrieve the money with interest. As indicated above, there is no basis set out to substantiate such a plea. If the respondents’ counsel is to be believed, respondent no.1 is presently categorised as a “Maharatna”.

6. Needless to say though, if a substantive action is filed, if not already filed and, if it were to include a claim for such an amount alongwith interest, the concerned forum will consider the same in accordance with law.

7. With the aforesaid observations in place, the captioned petitions are disposed of.

RAJIV SHAKDHER, J DECEMBER 18, 2013