National Highways Authority of India v. Sabarkanth Annuity Pvt Ltd

Delhi High Court · 11 Oct 2017 · 2017:DHC:8900-DB
S. Ravindra Bhat; Sunil Gaur
LPA 653/2017
2017:DHC:8900-DB
civil appeal_dismissed Significant

AI Summary

The Delhi High Court dismissed the appeal against an interim order restraining encashment of a bank guarantee, emphasizing cautious judicial intervention and the pendency of writ proceedings.

Full Text
Translation output
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HIGH COURT OF DELHI
LPA 653/2017
NATIONAL fflGHWAYS AUTORITY OF INDIA .... Appellant
Through: Ms. Gunjan Sinha Jain, Advocate ,
VERSUS
SABARKANTH ANNUITY PVT LTD. .....Respondent
Through: Mr. Chirag M. Shroff & Ms. Neha Sagwan, Advocates
CORAM:
HON'BLE MR, JUSTICE S. RAVINDRA BHAT
HON'BLE MR. JUSTICE SUNIL GAUR
11.10.2017 Caveat No. 872/2017 Caveator/ respondent is representedthrough Counsel. >
Caveat is discharged.
LPA 653/2017 & C.Ms. 36447-48/2017
Appellant- National Highways Authority of India (NHAI) is aggrieved by the interim order made by the learned Single Judge, restraining it from initiating any precipitate action towards'encashmentof bank guarantee., The impugned order has also directed NHAI not to give effect to the?termination ofthe contract communicated to the respondent.
Notice.
Mr. Chirag M. Shroff, Advocate, accepts notice.
,' Learned Counsel for NHAI argues that though the learned Single
Judge has expressedly recorded that the observations made in support of the interim directions primafacie indicate finality in respect to its. alleged unfair action, it is furthermore pointed out that the respondent did not
LPA 653/2017 Page 1 of2
2017:DHC:8900-DB disclose that under similar circumstances, it had sought relief under
Section 34 of the Arbitration and Conciliation Act, 1894. It is lastly urged that Supreme Court in Joshi Technologies International Inc. Vs.
Union ofIndia &ors. (2015) 7 SCC 728 has cautioned the courts from exercising powers to interdict in contractual matters, such as bank guarantees etc.'
This Court has considered the submissions. At the outset we notice that the writ petition is pending consideration and is listed for further proceedings on 23"^ October, 2017. In these circumstances, this Court clarifiesthat the observations ofthe learned Single Judge in the impugned order shall not-be treated as conclusive in respect of any matter recorded or in controversy between the parties. All rights arid contention of the parties including maintainability ofthe proceedings and appropriate relief under Article 226 of the Constitution of India are kept open to be contended. The Single Judge may consider expediting and disposing of the proceedings pending before him atthe earliest. Both the parties are directed to cooperate in that regard.
The appeal and pending applications are disposed of in above terms.
S.RAVINDRABHAT, J OCTOBER 11, 2017 r
LPA 653/2017
SUNIL GAUR, J Page 2 of2 2017:DHC:8900-DB
JUDGMENT