1. The petitioner, M/s ARIO Infrastructure Private Limited (hereinafter
„ARIO‟) has filed the present petition under Section 9 of the Arbitration
and Conciliation Act, 1996 (hereinafter ‘the Act’), inter alia, seeking stay of
invocation of the bank guarantees issued for securing the mobilization
advance – Bank Guarantee No.0188IGPERO07614 (hereinafter the
Mobilization BG) – for the sum of `82,12,450/- and for due performance of
the Contract – Performance Bank Guarantee No.0188IGPERO07714
(hereinafter the Performance BG) – for the sum of `1,49,31,728/-.
O.M.P.(I) (COMM.) 254/2016 Page 1 of 20
2. At the outset, the learned counsel for respondent no.1 (hereafter
„GGL‟) submitted that insofar as Performance BG is concerned, its
invocation will not be pressed till ARIO has had an opportunity to seek
relief from the Arbitral Tribunal, which would be constituted shortly. In
view of the aforesaid submission, GGL is restrained from invocation of the
Performance BG till ARIO‟s application under Section 17 of the Act –
which the learned counsel for ARIO states will be filed as soon as the
Arbitral Tribunal is constituted – is disposed of by the Arbitral Tribunal.
This direction is conditional upon ARIO filing an appropriate application
under Section 17 of the Act within a period of two weeks of the Arbitral
Tribunal being constituted.
Source: Indian Kanoon