RATTANINDIA POWER LTD Vs. BHARAT HEAVY ELECTRICALS LTD

JUDGEMENT

(1.) By way of this order, I propose to decide the abovementioned appeal filed by the appellant (who is the respondent in the arbitration proceedings) under Section 37(2)(b) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the "Act") against the interim order dated 4th August, 2016 passed by the Arbitral Tribunal under Section 17 of the Act. The respondent is the claimant in the arbitration proceedings. The appellant has also raised a counter-claim in the arbitration proceedings which is pending adjudication. By the impugned order, the Arbitral Tribunal has directed the release of the Advance Bank Guarantee ('ABG') as well as the Performance Bank Guarantee ('PBG'), as the contract was terminated by the respondent.

(2.) The brief facts of the case as pleaded by the appellant are as under:-

(3.) On receipt of the advance payment from the appellant and to secure the same in terms of the Supply Contract and Services Contract, the respondent furnished the following Bank Guarantees in favour of the appellant: