Vertex Cranes and Hoists India Pvt. Ltd. Vs Central Organisation… — Arbitration | Delhi HC (2026)

Vertex Cranes and Hoists India Pvt. Ltd. Vs Central Organisation… — Arbitration | Delhi HC (2026)

What the court decided

AI extract

Outcome

Continuation of the interim restraint on encashment of the bank guarantees referred to in paragraph 20 of the Court's order dated 24th June 2026 until the Section 9 proceedings initiated by the appellant are decided; direction that the (pleadings-complete) Section 9 proceedings be decided expeditiously; pending applications disposed of; merits expressly not examined.

Issue for consideration

Whether the Court's interim restraint on encashment of the bank guarantees referred to in paragraph 20 of its order dated 24th June 2026 should continue, and on what terms, while the Section 9 proceedings remain pending before the District Judge (Commercial).

Court's answer

The interim restraint on encashment of the bank guarantees referred to in paragraph 20 of the Court's order dated 24th June 2026 shall continue to operate until the appellant-initiated Section 9 proceedings are decided.

Ratio / Principle

Since pleadings are complete in the Section 9 proceedings, the Court directed that those proceedings be decided expeditiously.

Key takeaways

The Court expressly disclaimed any examination of the merits, confining its action to continuance of the interim arrangement and disposal of the appeal and pending applications.ratio¶22

Detailed headnote1 paragraphs

Delhi High Court, FAO (COMM) 169/2026 & CM APPL. 39277/2026, CM APPL. 39280/2026, decided 01.07.2026 (coram Hon'ble Mr. Justice Nitin Wasudeo Sambre and Hon'ble Mr. Justice Amit Sharma). Appellant: Vertex Cranes and Hoists India Pvt. Ltd.; respondents led by Central Organisation for Modernization of Workshops (COFMOW) & Ors. The Court noted that proceedings initiated under Section 9 of the Arbitration and Conciliation Act, 1996 remain pending, with pleadings complete, before the learned District Judge (Commercial), Central, Tis Hazari Courts, Delhi. It continued its vacation interim order of 24th June 2026 restraining encashment of the bank guarantees referred to in paragraph 20 of that order until the Section 9 proceedings are decided, directed expeditious decision of those proceedings, and disposed of the appeal and pending applications, expressly stating that it had not gone into the merits of the matter.

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IN THE HIGH COURT OF DELHI AT NEW DELHI

- FAO (COMM) 169/2026 & CM APPL. 39277/2026 CM APPL. 39280/2026

VERTEX CRANES AND HOISTS INDIA PVT. LTD. .....Appellant

Through: Mr. Himanshu Yadav, Advocate

versus

CENTRAL ORGANISATION FOR MODERNIZATION OF WORKSHOPS (COFMOW) & ORS. .....Respondents Through: Mr Farman Ali CGSC, Manish Rawat GP, Ms Usha Jamnal, Ms Sristi Singh and Mr Mohit Bokoliya, Advocates. Lt Col Tarun Pillai MS Legal with Major Anish Muralidhar.

CORAM: HON'BLE MR. JUSTICE NITIN WASUDEO SAMBRE HON'BLE MR. JUSTICE AMIT SHARMA

O R D E R

% 01.07.2026

Heard learned counsel for the respective parties.

It is an admitted position on record that the proceedings initiated under Section 9 of the Arbitration and Conciliation Act, 1996 are pending consideration before the learned District Judge (Commercial), Central, Tis Hazari Courts, Delhi.

This Court, during vacation, on 24^th June, 2026 has directed that till the hearing of the present appeal, the bank guarantees referred to in paragraph 20 of order dated 24^th June, 2026 shall not be encashed.

Learned counsel appearing for the respondents states that they shall

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 03/07/2026 at 11:40:23

extend all cooperation and assistance for expeditiously deciding the Section 9 proceedings and till then, the interim order passed by this Court, thereby not invoking the bank guarantees referred to above, can be continued.

In view of above, we deem it appropriate to dispose of the present appeal.

The interim order passed by this Court of not encashing the bank guarantees referred to in paragraph 20 of the order dated 24^th June, 2026, shall continue to operate till the Section 9 proceedings initiated by the appellant are decided.

Since we are informed that pleadings are complete in the Section 9 proceedings, let the said proceedings be decided expeditiously.

The appeal, accordingly, stands disposed of.

We make it clear that we have not gone into the merits of the matter.

Pending applications also stand disposed of.

NITIN WASUDEO SAMBRE, J

AMIT SHARMA, J

JULY 1, 2026/ ay/st

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 03/07/2026 at 11:40:23