Delhi HC Grants Interim Relief U/S 9 Of Arbitration Act By Attaching TMT Steel Bars Worth ₹69.5 Crores Made Using Coal Whose Quality Was Disputed
The Delhi High Court bench of Justice Manoj Kumar Ohri has granted interim relief to a petitioner under Section 9 of the Arbitration and Conciliation Act, 1996 to the extent of 50% of the balance outstanding claimed i.e., Rs. 69.50 Crores by attaching TMT Steel bars (finished product) of the equivalent amount in a dispute over the quality of coal delivered, which was used to manufacture...
The Delhi High Court bench of Justice Manoj Kumar Ohri has granted interim relief to a petitioner under Section 9 of the Arbitration and Conciliation Act, 1996 to the extent of 50% of the balance outstanding claimed i.e., Rs. 69.50 Crores by attaching TMT Steel bars (finished product) of the equivalent amount in a dispute over the quality of coal delivered, which was used to manufacture the steel bars.
Brief Facts of the case:
The dispute arose with respect to an agreement for the delivery of Tuhup hard coking coal by the petitioner to respondent No.1 on a cost-on-freight basis. After the delivery of the coal, it was consumed to produce TMT steel bars, and the respondent No. 1 contended that the quality of the coal was not good.
Respondent No.1 contended that he is entitled to get a substantial rebate or diminution in the price of the coal. The petition approached the High Court to get interim relief measures against the respondent No.1 for securing his claim.
Further, the petitioner also alleged that the petitioner is in the process of invoking arbitration under the Singapore International Arbitration Centre (“SIAC”) Rules within two weeks and prays that in the meantime, its outstanding dues be secured.
Observation of the Court:
The court noted that the respondent has consumed the entire supply of coal and that the issues raised about quality would require the leading of evidence in the arbitral proceedings.
Thus, the court held that the petitioner's interest be secured to the extent of 50% of the balance outstanding claimed i.e., Rs. 69.50 Crores, by attaching TMT Steel bars (finished product) of an equivalent amount as determined by the book value in the accounts of respondent No.1.
Case Title: RESCOM MINERAL TRADING FZE versus RASHTRIYA ISPAT NIGAM LIMITED RINL AND ANR
Citation: 2025 LiveLaw (Del) 282
Case Number: O.M.P.(I) (COMM.) 402/2024, CCP(O) 5/2025, I.A. 582/2025, I.A. 4997/2025
APPEARANCE:
Advocates for Petitioner(S): Mr. Anirudh Bakhru and Mr. Divyam Aggarwal, Advocates.
Advocates for Respondent(S): Mr. Rajsekhar Rao, Senior Advocate with Mr. Shravan Yammanur, Mr. Mangesh Krishna, Ms. Prachi Kaushik, Mr. Zahid Laiq Ahmed and Ms. Aashna Chawla Advocates.
Date of Judgment: 28.02.2025
