Allowed

M/S Vijaya Energy Plus Pvt. Ltd. v. M/S Uco Bank

Karnataka HC9 Sept 2024WP/18794/2024

Case brief

AI extract

What is this about?

Petitioner sought quashing of a bank endorsement refusing termination of its bank guarantee. With the Section 34 appeal dismissed and the arbitral award final, the court allowed the writ, quashed the endorsement, and directed release of Rs.67,12,042/- on furnishing an indemnity bond.

What did the court decide?

Endorsement dated 25.06.2024 quashed; Bank directed to accept termination of bank guarantee dated 21.6.2013 and release Rs.67,12,042/- to petitioner on furnishing indemnity bond.

M/S Vijaya Energy Plus Pvt. Ltd. Vs M/S Uco Bank — Arbitration | Karnataka HC (2024)

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1 - NC: 2024:KHC:36728 WP No. 18794 of 2024

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9^TH DAY OF SEPTEMBER, 2024

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BEFORE

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THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR WRIT PETITION NO. 18794 OF 2024 (GM-RES)

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BETWEEN:

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M/S VIJAYA ENERGY PLUS PVT LTD A REGISTERED COMPANY HAVING ITS REGISTERED OFFICE AT NO 657, 2ND B MAIN, 8TH BLOCK KORAMANGALA, BENGALURU KARNATAKA 560 095 REPRESENTED BY ITS MANAGING DIRECTOR.

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…PETITIONER

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(BY SRI. UMESH M N., ADVOCATE)

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AND:

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M/S UCO BANK NO 146/2, NEXT TO OLD FORUM MALL KORAMANGALA, BENGALURU KARNATAKA 560095 REPRESENTED BY ITS CHIEF MANAGER.

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Digitally signed by R HEMALATHA Location: HIGH COURT OF KARNATAKA

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…RESPONDENT (BY SRI. PARASHURAM K R., ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ENDORSEMENT REF. NO.BO/KORMA/MISC/2024/25/79 DATED 25/06/2024 VIDE ANNEXURE-F AND ETC.

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THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR

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NC: 2024:KHC:36728 WP No. 18794 of 2024

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ORAL ORDER

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The petitioner had furnished bank guarantees for sums of Rs.1,34,24,084/- and Rs.67,12,042/- in favor of M/s. Gammon India Private Limited. Due to a dispute, the arbitration clause was invoked, and an arbitral award was passed directing the petitioner to pay Rs.62,83,025/- with interest at the rate of 15%. An appeal was filed against the arbitral award under Section 34 of the Arbitration and Conciliation Act, 1996, before the Bombay High Court.

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In the meantime, the petitioner filed a writ petition before this Court seeking a direction to the respondent-Bank to accept the termination of the bank guarantee in No.33052/2019. This Court, vide order dated 25.03.2021, directed the Bank not to encash the bank guarantee until the disposal of the appeal before the Bombay High Court. The Bombay High Court, vide order dated 02.05.2024, dismissed Arbitration Petition No.255/2019 filed by M/s. Gammon India Ltd. for want of prosecution.

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With the appeal having been dismissed and the arbitral award having attained finality, the petitioner is entitled to the return of the bank guarantee. Accordingly, I pass the following:

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ORDER

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i) The petition is allowed.

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ii) The impugned endorsement dated 25.6.2024 vide Annexure-F is hereby quashed.

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NC: 2024:KHC:36728 WP No. 18794 of 2024

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iii) The respondent is hereby directed to accept the termination of the bank guarantee dated 21.6.2013 for a sum of Rs.67,12,042/-, and release the said amount in favour of the petitioner. The petitioner to furnish an indemnity bond for the said sum.

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Sd/(HEMANT CHANDANGOUDAR) JUDGE

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BKM

M/S Vijaya Energy Plus Pvt. Ltd. v. M/S Uco Bank

Case brief

What is this about?

What did the court decide?

M/S Vijaya Energy Plus Pvt. Ltd. v. M/S Uco Bank

Case brief

What is this about?

What did the court decide?

What the court decided

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