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06 July 2021| Navayuga Bengalooru Tollway Pvt. Ltd. v. National Highways Authority of India | OMP (I) (Comm) 152 of 2021 | Asha Menon J | 2021 SCC OnLine Del 3611
A single-judge bench of Asha Menon J has reiterated what the 2-judge bench (of which Menon J was a part) had said recently in National Highways Authority of India v. Bhubaneswar Expressway Private Limited, FAO (OS) (COMM) 66/2020.
Menon J rejected an application under Section 9 ACA that sought a direction from the respondent NHAI to release 90% of the total debt due (INR 1400 crores approximately). The applicant had argued that the liability was established, and the money had to be paid by NHAI for the benefit of the applicant’s lenders.
She distinguished Jetpur Somnath Tollways Ltd. v. NHAI, 2017 SCC OnLine Del 9453. She ruled that the power to issue interim measures can only be exercised if it does not involve final adjudication and does not require an interpretation of the contract. Thus, even if a party asking for a direction were to offer bank guarantees securing the deposits ( made by the other party), the domain to decide substantive claims is of the arbitrator, not the court.
Access the judgment here.