Case Note & Summary
The dispute arose between the parties under an agreement requiring arbitration for resolution. The respondent sought an ex parte injunction under Section 9(d) of the Arbitration and Conciliation Act, 1996, to prevent the appellant from transferring alumina. The trial court allowed the application, permitting the respondent to lift alumina upon payment and providing a bank guarantee. The High Court modified this order, allowing the respondent to lift a specified quantity of alumina while requiring a bank guarantee for the price difference. The Supreme Court, while recognizing the ongoing arbitration, modified the order to ensure the appellant's interests were secured by requiring payment at a fixed rate before delivery. The court directed the respondent to pay the agreed price and furnish a bank guarantee for the difference in market value, ensuring that both parties' interests were protected during the arbitration process. The appeal was disposed of with these modifications.
Headnote
A) Arbitration Law - Interim Relief - Ex Parte Injunction - Arbitration and Conciliation Act, 1996, Section 9 - The court modified the interim order allowing the respondent to lift alumina on payment and bank guarantee, ensuring both parties' interests were protected pending arbitration. Held that the appellant's claim of ownership and the need for a bank guarantee were acknowledged (Paras 1-3).
Issue of Consideration
Whether the interim order regarding the sale of alumina and the bank guarantee was appropriate under the Arbitration and Conciliation Act, 1996.
Final Decision
The Supreme Court modified the interim order, directing the respondent to pay US $ 430 per MT for alumina and to furnish a bank guarantee for the price difference before taking delivery.
Law Points
- Arbitration
- Interim Relief
- Ex Parte Injunction
- Bank Guarantee
- Jurisdiction
