ITI LIMITED Vs. HCL INFOSYSTEMS LIMITED

JUDGEMENT

(1.) This writ petition is filed questioning the legality of the order passed on I.A.No.1 in COM.AP No.150/2024 whereby the Trial Court has allowed the application filed under Sec. 36 (2) of the Arbitration & Conciliation Act, 1996, staying the award of the Arbitrator subject to condition that the petitioner was to deposit 75% of the award amount within sixty days from the date of the award. The order passed by the Trial Court was in the context of proceedings under Sec. 34 challenging the award before the Commercial Court.

(2.) The facts as made out are that the petitioner, a Public Sector Undertaking was awarded with a project and in this regard the respondent was engaged on a back to back contractual basis. The relationship was governed by contractual documents including a Memorandum of Understanding dtd. 8/3/2006, Master Agreement dtd. 23/4/2006 and subsequent addendum entered into under which the respondent-HCL Infosystems Ltd., had undertaken to absolve certain losses incurred by ITI Limited.

(3.) As disputes arose regarding the entitlement of the respondent, the respondent eventually initiated arbitration making claims. The Arbitrator was appointed under ICADR Rules and Arbitration proceedings were conducted in Arbitration Case No.56/2017.