SPML INFRA LIMITED Vs. NTPC LIMITED

JUDGEMENT

(1.) This is a petition under Section 9 of the Arbitration & Conciliation Act, 1996 ( Act ), filed by M/s. SPML Infra Limited (SPML) seeking to restrain the Respondent/National Thermal Power Corporation Limited (NTPC) from invoking and encashing four Bank Guarantees (BGs) - one being a Performance BG, one against mobilisation advance and two against security deposits, all issued by Canara Bank.

(2.) An interim order was passed by this Court on 4th October, 2016 directing NTPC to maintain status quo. That interim order has continued since.

(3.) The background facts relevant to the present petition are that on 8th September, 2006, a Letter of Award (LOA) was issued by NTPC in favour of SPML for the work of Construction of CW System and Offsite Area Civil Works Package for Korba Super Thermal Power Project, State-III (1x500 MW). Pursuant thereto, a Contract Agreement was entered into on 28th February, 2007. As required by the terms and conditions of the said contract, the aforementioned four BGs were furnished by SPML to NTPC.