Application u/s 9 of Arbitration Act
sushil bhatt
(Querist) 24 March 2010
This query is : Resolved
Dear All,
One bank based in Kanpur issued a Bank Guarantee (BG) in our name on behalf of our Sub Contractor (say Z) against perforamance of the contract between our company and the sub contractor. As per contract the Jurisdiction place is at New Delhi.
A dispute arisen between the parties in between and we were eligible to invoke the BG as per contract. Z immdtly moved an application u/s 9 of A&C Act before ADJ court, Kanpur against the issuing bank and impleaded us as a party to restrain both the respondents from releasing and invoking the BG and accordingly got interim injuction as prayed for before 4-5 months back. But the ADJ court is not taking-up the matter properly and adjourning the matter from one date to next date since then.
Now what way we should adopt to get the BG invoked.
1. Should we challenge the matter in High Court strictly on jurisdiction ground? or;
2. Should we pray for directions from High Court to ADJ court to dispose off the matter within a time frame issued by High Court?
Parveen Kr. Aggarwal
(Expert) 24 March 2010
Yes. You should approach the High Court challenging the order(s) passed by the ADJ on the ground of jurisdiction. In the alternative, you may pray for direction to the ADJ Court for early disposal of the petition within a time frame.
Babu Narayanan
(Expert) 30 March 2010
on what grounds they got injunction , by alleging fraud ?
sushil bhatt
(Querist) 01 April 2010
No., actually the Party got an interim injuction u/s 9 of A&C Act, 1996 against us from invoking bank guarantee. However, the application is still pending for disposal since last 6-7 months. The main ground was taken that the issuing Bank is situated within the teritorial jurisdiction of the ADJ court, Kanpur, besides the fact that as per the contract, the jurisdiction place was solely at New Delhi.
Pls suggest what is the right legal remedy?
