FLOWMORE PRIVATE LIMITED Vs. NTPC LIMITED

JUDGEMENT

(1.) THIS is a petition filed by the petitioner under Section 41 of the Arbitration Act, 1940, praying, inter alia, that respondents be restrained from encashing the bank guarantees which were five in number. THIS Court on 26.3.1993 by ex parte order restrained the respondents from encashing bank guarantees with the direction that the petitioner shall keep alive all the above bank guarantees. On 24.1.1991, the matter was referred for arbitration by the parties and the arbitrator was appointed which, according to Mr.Taneja, learned counsel for the respondents continued till 24.5.1992. According to Mr.Sanjeev Puri, learned counsel for the petitioner, the arbitrator continued with the arbitration proceedings till 14.4.93 and thereafter as time for making the award was not extended by the defendants, the petitioner filed a petition under Sec-28 of the Arbitration Act in this Court. In the present application this Court is not concerned with the application under Sec.28 of the Arbitration Act.

(2.) THE main arguments advanced by the learned counsel for the respondents is that the present petition is not maintainable in view of the plain language of Sec-41 (b) which reads as under:-