CANARA BANK Vs. HELM DUNGEMITTEL GMBH

JUDGEMENT

(1.) The present petition under Sec. 9 of the Arbitration and Conciliation Act, 1996 [hereinafter, "the Act"] has been filed seeking interim measures for securing the amount in dispute of 38 crores, pending appointment of the arbitral tribunal. Canara Bank - the Petitioner - also seeks continuation of orders of restrain against withdrawal of bank guarantee of Rs.15.00 Crores, furnished by Respondent No. 1 in O.M.P. (I.) (COMM.) 318/2018.

(2.) Briefl stated, the background of the case is as follows:

(3.) Canara Bank asserts that a fresh arbitration has been requested, however, the Tribunal is not in place. The interim order of protection dtd. 21/12/2021, as extended by the Division Bench till 21/2/2022, requires further extension. It is also the case of Canara Bank that Helm - incorporated and carrying on business in West Germany - has no assets within the jurisdiction of this Court. Thus, in the event Canara Bank were to succeed in arbitration, it would be unable to enforce the arbitral award against Helm. On merits, it is argued that the erstwhile Tribunal had held in favour of Canara Bank that on invocation of bank guarantee, German Bank was bound to honour its commitment under the counter guarantee.