Mon. Nov 23rd, 2020

National Thermal Power … vs Navayuga Engineering Company … on 1 June, 2018

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1. The National Thermal Power Corporation (NTPC hereafter)
appeals under Section 37 of the Arbitration and Conciliation Act,
1996 (in short “the Act”), questioning two orders; one, disposing of
a Section 9 petition by the respondent- (hereafter “Navayuga”) and

FAO(OS) (C) 227/2017 Page 1 of 11
the other, dismissing the application seeking review of the first
order, both passed by the ld. Single Judge.

2. This appeal is the outcome of the award of a contract by
NTPC to Navayuga for SG Area Civil Works Package for Barh
Super Thermal Power Project (3 x 660 MV). The contract was
signed amongst the parties on 15.4.2006 and thereunder, as security
deposit, Navayuga furnished a bank guarantee to NTPC for an
amount of `6,83,16,562/- (in short “the bank guarantee”), which
was extended from time to time. The bank guarantee was issued by
State Bank of India, Hyderabad, Telangana. The disputes, which
arose amongst the parties, were referred to arbitration. During the
arbitral proceedings, the bank guarantee had subsisted and was kept
alive; it was valid till 30.6.2017.

Source: Indian Kanoon

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