RASHMI CEMENT LIMITED Vs. TRAFIGURA BEHEER B V

JUDGEMENT

(1.) This appeal is at the instance of a respondent in a proceeding under Section 9 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the Act) and is directed against an order dated October 05, 2010 passed by a learned Single Judge of this Court by which His Lordship modified the earlier ad interim order of injunction passed by His Lordship dated October 01, 2010 and 2 passed a fresh interim order directing the present appellant to export to the respondent the contracted quantity of 40,000 Metric tonnes of iron by 15th October, 2010 from any Port without prejudice to the rights and contentions with further condition that if such goods cannot be so exported within the stipulated time, the appellant should furnish security by way of bank guarantee of the value of 20% of the sale price of US Dollar 4,864,000 at the conversion rate on the date of issue of the bank guarantee in favour of and to the satisfaction of the Registrar, Original Side. In default of furnishing such security, the Court proceeded, all immovable properties of the appellant would be attached.

(2.) The learned Single Judge also passed direction for filing affidavit by the appellant by 18th November, 2010. Being dissatisfied, the appellant has come up with the present appeal.

(3.) Therefore, the only question that arises for determination in this appeal is whether on the basis of the averments made in the application under Section 9 of the Act, the learned Single Judge was justified in passing the interim order, which is an order in the nature of attachment before judgment. 4 In order to appreciate the question involved, it would be profitable to refer to the provisions contained in Section 9 of the Act, which is quoted below:-