Leighton India Contractors Pvt. Ltd. (Formerly Known As Leighton Contractors (India) Pvt. Ltd. v. Oil And Natural Gas Corporation Ltd.

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION INTERIM APPLICATION NO. 1568 OF 2021 IN COMMERCIAL ARBITRATION PETITION NO. 406 OF 2019 Leighton India Contractors ...

Applicant Private Limited (Formerly known as Leighton Contractors (India) Pvt. Ltd.

In the matter between Oil and Natural Gas Corporation Ltd.

... Petitioner vs.

Leighton India Contractors ... Respondent Private Limited (Formerly known as Leighton Contractors (India) Pvt. Ltd.

Mr. Srinivas Deshmukh a/w. Mr Ramesh Rajput i/b. M/s. Mulla & Mulla & CBE and Mr. Nikhil Rathod from the Applicant / Org. Respondent. Mr. Hemant Prabhulkar i/b. Jurisperitus a/w. Mr. S. J. Rao authorised Officer of the Petitioner (ONGC) CORAM : A. K. MENON, J.

th AUGUST, 2021.

DATED : 24 P.C. :

1.

By this interim application the applicant-original respondent in the Arbitration Petition seeks to renew bank guarantee in a sum of 178,21,50,000/- issued in favour of the petitioner and furnished pursuant to RAJESHWARI RAMESH PILLAI RAJESHWARI RAMESH PILLAI Date: 2021.08.25 16:04:09 +0530 1/3

order dated 5 th September, 2019 passed in Notice of Motion No. 831 of 2019 in the above Commercial Arbitration Petition. It is submitted that the bank guarantee expires on 16 th September, 2021 is proposed to be renewed for further period of two years. In view of the order directing providing incremental guarantees to cover interest accrued on the original amount of Rs. 150 crores, the applicant seeks leave to furnish a bank guarantee of different bank in a sum of Rs.33,52,22,415/- to secure covers interest from th September, 2021 upto 16 th September, 2023.

2.

At the hearing of the application today both learned counsel state that they have arrived at a consensual arrangement and have reduced that to writing in the form of consent terms of even date whereby they have agreed that the bank guarantee issued by Standard Chartered Bank shall be renewed for a further period of two years in a sum of 178,21,50,000/- with its validity extended upto 16 th September, 2023. It is also agreed that the applicant will now provide a Supplemental Bank Guarantee issued by HSBC Limited in a sum of Rs.33,52,22,415/- to secure interest from 17 th September, 2021 to 16 th September, 2023.

3.

Consent terms tendered today are signed by parties and Advocates. Signatories are present and have confirmed execution of the consent terms and I accordingly pass the following order :

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(i) There will be an order in terms of the consent terms taken on record and marked "A" for identification.

(ii) Extension of bank guarantee in terms of the minutes issued by Standard Chartered Bank shall be furnished on or before 6 th September, 2021.

(iii) Likewise supplemental bank guarantee per clause 5(b) of the consent terms to be issued by HSBC shall also be furnished on or before 6 th September, 2021.

(iv) Parties shall ensure that the guarantees are unconditional and without demur or protest.

(v) Interim Application disposed in the above terms. (vi) All concerned to act on an authenticated copy of this order. (A. K. MENON, J.) 3/3