Allahabad High Court Refuses To Grant Stay On Seeking Encashment Of Bank Guarantee [Read Order]
Live LawThe Hon'ble High Court of Allahabad it its decision on 28th August 2020 in M/S Cg Power & Industrial Solutions Ltd. Thru. Power Transmission Corporation Ltd from seeking extension and/or encashment of the Bank Guarantee withheld on account of non-payment of statutory dues towards the labour cess by Cg Power & Industrial Solutions Ltd. The Petitioner sought relief from the Lucknow Bench of the Hon'ble High Court of Allahabad on the basis of an order passed by the co-ordinate Division Bench of the Court on 24.2.2020 passed in Writ Petition No.125 of 2019, subsequently challenged and assailed by the Respondent corporation in the Supreme Court of India vide Special Leave Petition no. The Learned Counsel for the Petitioner submitted that the writ petition regarding imposition of 1% Cess on the writ petitioner has been allowed, therefore, the letter, by which Bank has directed the petitioner to extend the period of Bank Guarantee, is incorrect and against the aforesaid order dated 24.2.2020. After considering the submissions made by the parties, the Division Bench of the Hon'ble High Court held that, "5. there is an arbitration clause and, therefore, in case the petitioner is aggrieved by the aforesaid action of the Bank, he can take recourse as available to him under Section 9 of the Arbitration and Conciliation Act, 1996.