ACRON DEVELOPERS PRIVATE LIMITED Vs. PATEL ENGINEERING LIMITED

JUDGEMENT

(1.) BY this petition filed under section 9 of the Arbitration & Conciliation Act, 1996 (for short "Arbitration Act"), the petitioner seeks interim measure i.e. injunction against the respondent from selling, alienating, creating lien, inducting any third party or creating any third party rights in respect of the property of the respondent at Bangalore described in prayer clause (a) of the petition or in the alternate to deposit a sum of Rs. 15,45,13,401/ - in this Court. Insofar as injunction in respect of the bank guarantees are concerned, the said relief has become infructuous in view of this Court refusing to grant ad -interim injunction by an order dated 28th November, 2013. Some of the relevant facts for the purpose of deciding this petition are as under : - -

(2.) SOME time in the year 2010, the respondent awarded a contract to the petitioner for the work of execution of civil, structural, architectural, finishing works for 7 towers for the "Proposed Smondoville Residential Apartments" at Bangalore for the value of Rs. 37,47,59,624/ -. The respondent thereafter issued a letter of award dated 23rd June, 2010 for six towers and on 26th July, 2010 for the remaining one tower. Under the said contract, the petitioner furnished various bank guarantees in favour of the respondent. The petitioner was required to submit the running account bills to the respondent for the purpose of the payment for the work done from time to time, which was payable in accordance with the terms and conditions of the contract in the manner provided therein.

(3.) THE respondent however, terminated the said agreement dated 11th November, 2010 by termination notice dated 22nd October, 2011 and threatened to encash the bank guarantees furnished by the petitioner. The parties thereafter executed a Deed of Settlement dated 31st October, 2011 and revised the said agreement dated 11th November, 2010 subject to the modifications contained in the said Deed of Settlement. It is the case of the petitioner that all other terms and conditions contained in the said agreement dated 11th November, 2010 remained unaltered except those specifically altered/modified by the said Deed of Settlement dated 31st October, 2011. Under the said Deed of Settlement, the petitioner agreed to renew the performance guarantee for Rs. 85,39,052/ - and Rs. 8,99,938/ - for the period till 29th October, 2012 on or before 15th December, 2011. The petitioner undertook to complete the entire balance work as per milestones on or before 31st January, 2012. The respondent agreed to withdraw the termination notice. It was agreed by and between the parties that the petitioner may raise running account bill every 15 days and the respondent agreed to pay the running account bill within a period of 15 calendar days from the date of submission of the bill.