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by Admin
07 May 2024 2:49 AM
In a significant move, the Supreme Court of India has extended interim protection against the encashment of bank guarantees pertaining to the case involving Continental Engineering Corporation and Jaipur Metro Rail Corporation. The apex court’s order comes as a relief to the petitioner, who approached the Supreme Court after the High Court of Judicature for Rajasthan delayed its decision on the matter.
In the proceedings held on November 20, 2023, the Supreme Court observed, “Since the statement which was made by the first respondent was to remain in operation only until 17 November 2023 and was not extended thereafter, the petitioner has moved this Court.” This observation was critical in understanding the urgency of the petitioner’s situation, where the imminent expiry of bank guarantees posed a significant financial risk.
The dispute revolves around performance and retention bank guarantees furnished by the petitioner to the first respondent. The invocation of these guarantees was contested in the High Court under Section 9 of the Arbitration and Conciliation Act, 1996. However, a jurisdictional challenge based on the provisions of the Commercial Courts Act, 2015, led to a postponement of the hearing, prompting the petitioner to seek relief from the Supreme Court.
In its order, the Supreme Court stated, “Both the parties have agreed to the above course of action and state that they will cooperate in the hearing of the application for the grant of injunctive relief.” This directive underlines the Court’s commitment to ensuring a fair and expedited hearing in the High Court.
Date of Decision: 20-11-2023
M/S. CONTINENTAL ENGINEERING CORPORATION VS JAIPUR METRO RAIL CORPORATION & ORS.
