International Seaport Dredging Pvt. Ltd. v. Kamarajar Port Limited
Case brief
What is this about?
Interim application (A.No.463 of 2025) in a Section 34 Arbitration and Conciliation Act challenge: withdrawal of a Supreme Court-directed Court deposit of Rs.28,60,82,993/- permitted only on substitution by a nationalized-bank bank guarantee favouring the Registrar (General), Madras High Court, Abdul Quddhose J., order dated 07.02.2025. Conditions: periodic renewal with prior intimation to respondent; return with 12% per annum interest to the Arb. O.P. petitioner if the respondent succeeds; discharge of guarantee on return; patent-illegality question deferred until the Arb. O.P. is heard. Parties: International Seaport Dredging Pvt. Ltd. v. Kamarajar Port Limited. Keywords: bank guarantee substitution, idle Court deposit, Section 34 Arb. O.P. (Com. Div.), 12% interest undertaking, Registrar (General), nationalized bank.
What did the court decide?
Permission to withdraw Rs.28,60,82,993/- from the Court deposit in Arb. O.P. (Com. Div.) No.335 of 2024, granted on the applicant furnishing a bank guarantee from a nationalized bank for the like sum favouring the Registrar (General) of the Court, supported by an affidavit of undertaking providing for: (i) periodic renewal of the guarantee before expiry with prior intimation to the respondent; (ii) return of the withdrawn amount with interest at 12% per annum to the petitioner in the Arb. O.P. if the respondent succeeds in that Arb. O.P.; and (iii) discharge of the bank guarantee once the money is returned.