Shapoorji Pallonji and Company Private Limited v. Oil and Natural Gas Corporation Ltd.

1. The petitioner has filed the present petition under Section 9 of the Arbitration and Conciliation Act, 1996 inter alia seeking the following reliefs:- “(a) that pending the initiation, hearing and final disposal of the arbitration proceedings between the parties and the enforcement of any award passed therein, this Hon’ble Court be pleased to pass an order of temporary injunction restraining the respondent, their agents, representatives and/or any person claiming by, from, through or under them from in any manner whatsoever:- 2016:DHC:2961

(i) terminating or seeking to terminate the Contract or contending that the contract stands terminated (either automatically, or otherwise), whether on account of non fulfilment of any conditions precedent of the contract or otherwise;

(ii) dealing with, invoking, interfering, alienating, assigning or offloading of the Bank Guarantee under the contract;

(iii) meeting, negotiating, holding discussions, dealing with any third party (whether by way of a proposed purchaser or bank or financial institution or otherwise), with respect of any proposed with regard to any of the remaining work under the contract; (b) that pending the initiation, hearing and final disposal of the arbitration proceedings between the parties and the enforcement of any award passed therein, this Hon’ble Court be pleased to pass an order of mandatory injunction directing the respondents, their agents, successors and assigns and/or any person claiming by, from, through or under them from in any manner whatsoever to comply with all their obligations under the contract in the manner provided therein to ensure the completion of work.

(c) That pending initiation, hearing and final disposal of the arbitration proceedings, it is therefore fit, just and the balance of convenience requires that the Respondent, be restrained by an order and direction from this Hon’ble Court, from in any manner whatsoever from terminating the contract and invoking the Bank Guarantee in the specific peculiar facts and circumstances of the case mentioned above;

(d) That pending initiation, hearing and final disposal of the arbitration proceedings, the Respondent and/or its successor, agents, employees and/or assigns be restrained from receiving any money under the bank guarantees till the disputes between the parties are finally decided. (e) For ad-interim reliefs in terms of prayer clauses (a) to

(d) above.

2. The matter was heard on 7th April, 2016 when certain proposals were exchanged between the parties for settlement in view of the statement made by the learned counsel for the respondent. An undertaking in view of the proposal made has been filed by way of affidavit of Mr.Francis Ambooken, Regional Head and Authorized Signatory of the petitioner-Company, who has deposed in the affidavit on behalf of the petitioner that the petitioner-Company shall execute the remaining/pending work duly identified in the joint inspection report prepared and counter-signed/sealed on 4th April, 2016 by the respondent and the petitioner-Company on or before 30th April, 2016 except the security package mentioned in item No.A[5] in page 1 and 2 (Tower A and B) and item No.A[4] in page No.3 (Board Room) under the head of ‘CCTV & Access Control System’.

3. He has also deposed in the affidavit that the petitioner-Company shall execute the said security package mentioned in item No.A[5] in page 1 and 2 (Tower A and B) and item No.A[4] in page No.3 (Board Room) under the head of ‘CCTV & Access Control System’ on or before 15th May, 2016, utilizing the make ‘RBH’.

4. It has also been agreed by the petitioner that in case of their failure to duly execute the said remaining/pending work mentioned in the said joint inspection report within the said time frame specified above, the three Bank Guarantees can be invoked by the respondent. It is also agreed that the petitioner shall start the work from today onwards.

5. The said undertaking is taken on the record. The petitioner- Company shall execute the remaining/pending work duly identified in the joint inspection report prepared and counter-signed/sealed on 4th April, 2016 by the respondent and the petitioner-Company on or before 30 April, 2016 except the security package mentioned in item No.A[5] in page 1 and 2 (Tower A and B) and item No.A[4] in page No.3 (Board Room) under the head of ‘CCTV & Access Control System’. The petitioner-Company shall also execute the said security package mentioned in item No.A[5] in page 1 and 2 (Tower A and B) and item No.A[4] in page No.3 (Board Room) under the head of ‘CCTV & Access Control System’ on or before 15th May, 2016, utilizing the make ‘RBH’.

6. The respondent is agreeable to the aforesaid offer and subject to the petitioner complying with the terms of the undertaking, the respondent will withdraw its termination of the contract and shall not invoke the Bank Guarantees provided by the petitioner. In light of the agreement arrived at, the petitioner is permitted to restart the work from today.

7. The petition is accordingly disposed of.

8. Dasti, under the signatures of the Court Master.

JUDGE APRIL 08, 2016