Disposed¶24

Cfm Asset Reconstruction Private Limited v. National Highways Authority of India

Delhi HC7 May 2025O.M.P.(I) (COMM.)/137/2025

Case brief

AI extract

What is this about?

Keywords: CFM Asset Reconstruction Private Limited; National Highways Authority of India; NHAI; O.M.P.(I) (COMM.) 137/2025; Delhi High Court; Jyoti Singh; Section 9 Arbitration and Conciliation Act 1996; Section 9(3); Section 17; interim relief; deposit Rs.104,82,65,061/-; no lien interest bearing account; Substitution Agreement dated 25.04.2015; Arbitral Tribunal constituted; petition withdrawn; NCLT; Justice D.K. Jain's Committee; Union of India comments; order dated 07.05.2025.

What did the court decide?

No interim relief directed; petition disposed of as withdrawn with liberty to take recourse to filing an application under Section 17 of the 1996 Act before the Arbitral Tribunal for interim relief; no opinion expressed on merits. ¶24

Cfm Asset Reconstruction Private Limited Vs National Highways… — Arbitration | Delhi HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the Respondent should be directed to deposit Rs.104,82,65,061/- in an earmarked no lien interest bearing account with a scheduled bank, disbursal subject to orders of the Arbitral Tribunal. +1 more

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Ratio / Principle

Exemption application I.A. 10098/2025 is allowed subject to all just exceptions and the application stands disposed of.

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Key takeaways

The petition is disposed of as withdrawn, with the Petitioner at liberty to take recourse to filing a Section 17 application before the Arbitral Tribunal for interim relief.ratio¶24
The Court expressly did not express any opinion on the merits of the case, and all rights and contentions of the parties were left open.ratio¶24

Detailed headnote1 paragraphs

Delhi High Court (Jyoti Singh, J.), O.M.P.(I) (COMM.) 137/2025, order dated 07.05.2025 — CFM Asset Reconstruction Private Limited v. National Highways Authority of India. Section 9, Arbitration and Conciliation Act 1996 petition seeking a direction to NHAI to deposit Rs.104,82,65,061/- in an earmarked no lien interest bearing account, tied to the Arbitral Tribunal constituted for disputes arising out of the Substitution Agreement dated 25.04.2015. NHAI (through Sanjay Jain, Sr. Adv.) represented that the Tribunal had been constituted, that settlement approval by Justice D.K. Jain's Committee stood accorded on 03.02.2025, and that the Concessionaire's NCLT process was underway (listed 06.05.2025; next posted last week of May 2025). On this, Amit Sibal, Sr. Adv. withdrew the petition with liberty to file a Section 17 application before the Arbitral Tribunal. Petition disposed of as withdrawn; the Court expressed no opinion on the merits and left all rights and contentions open. I.A. 10098/2025 (Exemption) allowed subject to all just exceptions.

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$~94

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IN THE HIGH COURT OF DELHI AT NEW DELHI

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- O.M.P.(I) (COMM.) 137/2025

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CFM ASSET RECONSTRUCTION PRIVATE LIMITED

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.....Petitioner

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Through: Mr. Amit Sibal, Senior Advocate with Mr. Atul Shanker Mathur, Ms. Priya Singh, Mr. Shubhankar, Mr. Ankit Handa and Ms. Smriti Nair, Advocates.

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versus

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NATIONAL HIGHWAYS AUTHORITY OF INDIA

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.....Respondent Through: Mr. Sanjay Jain, Senior Advocate with Mr. Nishant Awana, Ms. Rebecca Mishra, Ms. Harshita Sukhija, Mr. Nishank Tripathi and Ms. Palak Jain, Advocates.

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CORAM:

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HON'BLE MS. JUSTICE JYOTI SINGH

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O R D E R

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% 07.05.2025

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I.A. 10098/2025 (Exemption)

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Allowed, subject to all just exceptions.

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Application stands disposed of.

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O.M.P.(I) (COMM.) 137/2025

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This petition is preferred under Section 9 of the Arbitration and Conciliation Act, 1996 (‘1996 Act’) seeking a direction to the Respondent to deposit an amount of Rs.104,82,65,061/- in an earmarked no lien interest bearing account with a scheduled bank, disbursal of which or part thereof would be subject to orders that may be passed by the Arbitral Tribunal,

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`O.M.P.(I) (COMM.) 137/2025 Page 1 of 2

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This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 16:26:21

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which is constituted in respect of reference related to disputes arising out of Substitution Agreement dated 25.04.2015.

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Mr. Sanjay Jain, learned Senior Counsel appearing for the Respondent submits that the Arbitral Tribunal has been constituted and no exceptional circumstance has been made out by the Petitioner for entertaining this petition during the pendency of the arbitral proceedings as envisaged under Section 9(3) of the 1996 Act. It is further submitted that the settlement arrived at between NHAI and the Concessionaire was subject to approval by Justice D.K. Jain’s Committee, which has been accorded on 03.02.2025 and the Concessionaire has approached the NCLT, as per the agreed mechanism between the parties. It is further submitted that the matter was listed before the NCLT on 06.05.2025, on which date the Tribunal has called for comments from Union of India and the matter is next posted by NCLT in the last week of May, 2025. In these circumstances, it is submitted that this petition should not be entertained.

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Mr. Amit Sibal, learned Senior Counsel for the Petitioner, on instructions, seeks to withdraw the petition, in light of the submissions made on behalf of NHAI, with liberty to take recourse to filing an application under Section 17 of the 1996 Act before the Arbitral Tribunal for interim relief.

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Petition is disposed of as withdrawn. It is made clear that this Court has not expressed any opinion on the merits of the case and all rights and contentions of the parties are left open.

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JYOTI SINGH, J

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MAY 07, 2025/ RW

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`O.M.P.(I) (COMM.) 137/2025

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Page 2 of 2

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Cfm Asset Reconstruction Private Limited v. National Highways Authority of India

Case brief

What is this about?

What did the court decide?

Cfm Asset Reconstruction Private Limited v. National Highways Authority of India

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

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