Uvm Renewables Energy Private Limited Vs Jayabal — Arbitration | Madras HC (2025)

Uvm Renewables Energy Private Limited Vs Jayabal — Arbitration | Madras HC (2025)

What the court decided

AI extract

Outcome

Interim injunction restraining respondents 1 to 3 from alienating, selling, transferring, encumbering or creating third party rights in the schedule property at Kattumavadi Village, Nagapatinam District pending the arbitration proceedings; applicant directed to comply with Order XXXIX Rule 3(a) C.P.C. and file compliance affidavit; notice to respondents through Court as well as privately, returnable by 20.12.2024; matter posted on 20.12.2024.

Issue for consideration

Whether the applicant, a solar park developer who has paid substantial advances and furnished a Rs.75 lakhs bank guarantee to TANGEDCO, is entitled to an interim injunction restraining respondents 1 to 3 from alienating, selling, transferring, encumbering or creating third party rights in the schedule property at Kattumavadi Village, Nagapatinam District, pending initiation and completion of the arbitration proceedings.

Court's answer

Having regard to the huge advances paid to the respondents and the bank guarantee furnished to TANGEDCO in furtherance of the Solar Project, the court is satisfied the applicant will be put to irreparable loss if the respondents deal with the property with a view to defeat the applicant's rights, and accordingly grants an order of interim injunction as prayed for.

Ratio / Principle

As an operative condition accompanying the interim injunction, the applicant is directed to strictly comply with the provisions under Order XXXIX Rule 3(a) of C.P.C. and file the necessary affidavit in Court regarding compliance.

Detailed headnote1 paragraphs

Interim injunction under S.9, Arbitration and Conciliation Act, 1966 — P.B.BALAJI, J. (05.12.2024): Applicant, a solar park developer, had entered into a written agreement with the respondents for setting up a solar plant, paid substantial advances and furnished a bank guarantee of Rs.75 lakhs to TANGEDCO; the letter of intent contains an arbitration clause. Finding that the respondents' dealing with the schedule property at Kattumavadi Village, Nagapatinam District would defeat the applicant's rights and cause irreparable loss, the Court restrained respondents 1 to 3 from alienating, selling, transferring, encumbering or creating third party rights in the schedule property pending initiation and completion of the arbitration proceedings. The applicant was directed to strictly comply with Order XXXIX Rule 3(a) C.P.C. and file a compliance affidavit; notice was ordered through Court and privately, returnable by 20.12.2024, and the matter was posted to 20.12.2024.

O.A.No.917 of 2024

P.B.BALAJI, J.

This application has been filed under Section 9 of the Arbitration and Conciliation Act, 1966, to restrain the respondents 1 to 3 or anybody claiming through them from in any manner alienating, selling, transferring, encumbering or creating third party rights in the schedule property situated at Kattumavadi Village, Nagapatinam District pending the initiation and completion of the arbitration proceedings.

2.Heard the learned counsel for the applicant. The affidavit filed along with the application and also the additional affidavit filed today are perused.

3.It is the specific case of the applicant that the applicant is solar park developer and he had entered into a written agreement with the respondents for setting up a solar plant. In furtherance of the said contract, the applicant has made substantial advances to the respondents, besides also submitting a bank guarantee to the tune of Rs.75 lakhs to TANGEDCO for securing approvals for the project. However, it is the case of the applicant that the respondents are now trying to alienate the subject property, which would cause irreparable loss to the applicant, who has already spent enormous time and money in the said project.

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4.The letter of intent contains an arbitration clause. I am satisfied that despite payment of huge advances paid to the respondents and also furnishing bank guarantee to the TANGEDCO, in furtherance of the Solar Project, the applicant will be put to irreparable loss if the respondents deal with the property, with a view to defeat the rights of the applicant and hence, there shall be an order of interim injunction as prayed for.

5.The applicant is directed to strictly comply with the provisions

under Order XXXIX Rule 3(a) of C.P.C., and file necessary affidavit in Court regarding compliance.

6.Issue notice to the respondents through Court as well as

privately, returnable by 20.12.2024.

7.Post the matter on 20.12.2024.

05.12.2024

ata

Note : Issue order copy on 06.12.2024.

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P.B.BALAJI, J.

ata

O.A.No.917 of 2024

05.12.2024

https://www.mhc.tn.gov.in/judis

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