Disposed¶18

The Great Eastern Shipping Co. Ltd. v. Nayara Energy Limited

Bombay HC10 Feb 2026CARBP/753/2025

Case brief

AI extract

What is this about?

Great Eastern Shipping Co. Ltd. v Nayara Energy Limited; Bombay High Court; Commercial Arbitration Petition No. 753 of 2025; Sandeep V. Marne, J.; Section 17 and Section 17(2) Arbitration and Conciliation Act 1996; arbitral tribunal order deemed order of Court; withdrawal of deposited amount with accrued interest; Bank Guarantee of Nationalised/Scheduled bank; Prothonotary and Senior Master; Rs. 5.16 crores deposit; directions for acceptance of bank guarantee.

What did the court decide?

Directions to the Prothonotary and Senior Master to accept the Bank Guarantee tendered by the Petitioner/Claimant, and entitlement of the Petitioner/Claimant to withdraw the entire deposited amount alongwith accrued interest. ¶18

The Great Eastern Shipping Co. Ltd. vs Nayara Energy Limited — Arbitration | Bombay HC (2026)

What the court decided

AI extract

Outcome

¶18

Issue for consideration

Whether, given that under Section 17(2) of the Arbitration Act any order made by the Arbitral Tribunal is deemed to be an order made by the Court, the Prothonotary and Senior Master was required to insist on a clarification from this Court before permitting withdrawal of the deposited amount. +1 more

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Court's answer

Under sub-section (2) of Section 17 of the Arbitration Act, any order made by the Arbitral Tribunal is deemed to be an order made by the Court; accordingly, it was not necessary for the Prothonotary and Senior Master to insist that the Petitioner/Claimant secure a clarification from this Court for withdrawal of the deposited amount.

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Ratio / Principle

The Prothonotary and Senior Master shall accept the Bank Guarantee tendered by the Petitioner/Claimant, and the Petitioner/Claimant is entitled to withdraw the entire deposited amount alongwith accrued interest.

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Detailed headnote1 paragraphs

Bombay High Court, Commercial Arbitration Petition No. 753 of 2025 (decided 10 February 2026, Sandeep V. Marne, J.): Following an Arbitral Tribunal order under Section 17 of the Arbitration and Conciliation Act, 1996 permitting the Petitioner/Claimant to withdraw Rs. 5.16 crores deposited in Court (deposit made by the Respondent per order dated 6 October 2025, corrected 15 October 2025) subject to furnishing a Bank Guarantee of a Nationalised/Scheduled bank, the Court held that under Section 17(2) any order of the Arbitral Tribunal is deemed to be an order of the Court, so the Prothonotary and Senior Master need not insist on a separate clarification from the Court. Directions issued: the Prothonotary and Senior Master to accept the Bank Guarantee tendered by the Petitioner/Claimant, who is entitled to withdraw the entire deposited amount alongwith accrued interest.

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Megha 5_carbp_753_2025

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION

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COMMERCIAL ARBITRATION PETITION NO.753 OF 2025

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The Great Eastern Shipping Co. Ltd. ...Petitioner

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V/s.

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Nayara Energy Limited ...Respondent

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Mr. Amitava Majumdar with Ms. Sneha Goud & Ms. Harshini Iyengar i/b. M/s. Bose & Mitra & Co. for the Petitioner.

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Mr. Alabh Anant Lal i/b. Trilegal for the Respondent.

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CORAM: SANDEEP V. MARNE, J. DATED: 10 FEBRUARY 2026.

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P.C.:

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By order dated 6 October 2025 as corrected by order dated 15 October 2025, the Respondent has deposited amount of Rs.5.16 crores in this Court. While dealing with application under Section 17 of the Arbitration and Conciliation Act, 1996 ( the Arbitration Act ) Arbitral Tribunal has permitted the Petitioner/ Claimant to withdraw the deposited amount alongwith accrued interest subject to furnishing a Bank Guarantee of a Nationalised/ Scheduled bank.

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The Petition is placed for directions for acceptance of Bank Guarantee, which is kept ready by the Petitioner/ Claimant and for permitting it to withdraw the deposited amount with accrued interest.

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Page No. 1 of 2

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10 February 2026

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Megha 5_carbp_753_2025

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As a matter of fact, under sub-section (2) of Section 17 of the Arbitration Act any order made by the Arbitral Tribunal is deemed to be an order made by the Court. In that view of the matter it was not really necessary for the Prothonotary and Senior Master to insist that the Petitioner /Claimant must secure clarification from this Court for withdrawal of the deposited amount upon furnishing Bank Guarantee as directed by the Arbitral Tribunal. The order passed by the Arbitral Tribunal is deemed to be the order passed by this Court and it was not necessary for the Prothonotary and Senior Master to insist that the Petitioner/Claimant must secure a clarification from this Court.

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Be that as it may. Prothonotary and Senior Master shall accept the Bank Guarantee to be tendered by the Petitioner/Claimant and the Petitioner/Claimant shall be entitled to withdraw the entire deposited amount alongwith accrued interest.

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[SANDEEP V. MARNE, J.]

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Signed by: Megha S. Parab Designation: PA To Honourable Judge Date: 10/02/2026 20:59:51

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Page No. 2 of 2 10 February 2026

The Great Eastern Shipping Co. Ltd. v. Nayara Energy Limited

Case brief

What is this about?

What did the court decide?

The Great Eastern Shipping Co. Ltd. v. Nayara Energy Limited

Case brief

What is this about?

What did the court decide?

Why is it important?

What the court decided

Issues for consideration

Statutes considered

Procedural history

Parties & counsel

Coram

Case details

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