CRSC RESEARCH AND DESIGN INSTITUTE GROUP CO. LTD. Vs. DEDICATED FREIGHT CORRIDOR CORPORATION OF INDIA LIMITED

JUDGEMENT

(1.) This appeal, under Section 37(1)(b) of the Arbitration and Conciliation Act, 1996, impugns the judgment dated 30th September, 2020 of the Single Judge of this Court of dismissal of OMP(I)(COMM) No.184/2020 filed by the appellant, seeking interim measure of restraining invocation/encashment of four Advance Payment Bank Guarantees of a total value of approximately Rs.38.06 crores and one Performance Bank Guarantee for Rs.23.55 crores, issued by the respondent No.2 Standard Chartered Bank Limited, Mumbai and the respondent No.3 Industrial and Commercial Bank of China Limited, Mumbai Branch respectively, at the instance of the appellant, in favour of the respondent No.1 Dedicated Freight Corridor Corporation of India Limited, in pursuance to the contract dated 3rd October, 2016 entered into by the respondent No.1 with the appellant for "Design, Supply, Construction, Testing and Commissioning of Signaling, Telecommunication and Associated Works of Double Track Railway Lines Under Construction, on a Design Build Lump Sum Basis, for Mughalsarai-New Bhaupur section of Eastern Dedicated Freight Corridor".

(2.) During the pendency of the OMP aforesaid before the Single Judge, the respondent No.1 had made a statement before the Single Judge that the Bank Guarantees (BGs) will not be encashed. Fearing that on dismissal of the OMP vide the impugned judgment, the respondent No.1 will invoke and encash the BGs, the appellant got the appeal listed on 1st October, 2020, on urgent mentioning, and the same was received by us at 1543 hours. None appeared for the respondent No.1 on that date and on being informed of the undertaking before the Single Judge and that after the dismissal of the OMP, the BGs had been invoked but the monies thereunder not been released by the respondents No.2&3 Banks in favour of the respondent No.1 till then, vide order dated 1st October, 2020, the respondents No.2&3, if had not already released the monies, were restrained from releasing the monies of the BGs in favour of the respondent No.1 and the appeal was posted to 6th October, 2020. Thereafter the appeal was adjourned to 11th November, 2012, 12th November, 2020 and 24th November, 2020 and the interim arrangement continued.

(3.) On 24th November, 2020, we heard the senior counsel appearing for the appellant and the Solicitor General for the respondent No.1.