KAMAL VIRDICHANDJI GARG Vs. FIRE INDIA PVT LTD

JUDGEMENT

(1.) The present petition under section 9 of the Arbitration and Conciliation Act, 1996, inter alia, seeks relief that pending the hearing and final disposal of the arbitration proceedings and until enforcement of the award the respondent No. 1 should be restrained from in any manner invoking and/or realising and/or encashing the bank guarantee bearing No. 36/p/ 23 dated 4-10-2002 as extended by letter dated 29-9-2003.

(2.) The aforesaid relief is sought on the facts which are briefly set out as under:--

(3.) The firm of the petitioner M/s. Ganesh Automobiles was appointed as a dealer of the 1st respondent company. The 2nd respondent is a bank who has given bank guarantee which is the subject matter of the present petition. Petitioner No. 1 was appointed as a dealer for promotion, sale and service of the Fiat branded car in the notified territory under an agreement dated 20-5- 1999. The said agreement was initially for a period of three years with an option of renewal as per the mutual agreement by and between the parties. On 26-12-2001, the said dealership agreement was renewed for a further period of three years. This renewed agreement of dealership contains an arbitration clause which reads as under:-