PATEL ENGINEERING LTD. Vs. ACRON DEVELOPERS PVT. LTD.

JUDGEMENT

(1.) THE Appellant being aggrieved by the Order passed by the learned Single Judge in Petition filed under Section 9 of the Arbitration & Conciliation Act, 1986 (for short "Arbitration Act") has filed this appeal. The learned Single Judge by the impugned order was pleased to direct the Appellant/original Respondent to furnish security in the sum of Rs. 11 crores in favour of the Respondent/original Petitioner by depositing the said amount with the Prothonotary & Senior Master or to furnish a bank guarantee of like amount of a nationalized bank in the name of the Prothonotary & Senior Master within four weeks.

(2.) BRIEF facts which are relevant for the purpose of deciding this appeal are as under: - -

(3.) THE Respondent/original Petitioner submitted 26 running account bills for the period from June, 2010 till December, 2013 amounting to Rs. 15,45,13,401/ -. According to the Respondent/original Petitioner, they constructed additional area of 40,000 sq. ft. and according to the Respondent, the Appellant herein agreed to pay to the Respondent/original Petitioner for actual built up area. However, the Appellant/original Respondent terminated the agreement by notice dated 22/10/2011 and threatened to encash bank guarantees furnished by the Respondent herein/original Petitioner. A Deed of Settlement was thereafter executed dated 31/10/2011 which revived the original Agreement dated 11/11/2010. It is the case of Respondent herein that though the Appellant had assured to clear the running account bills, no payment was made by the Appellant.