Case Law Details
Pink City Expressway Private Limited Vs National Highways Authority of India (Delhi High Court)
Conclusion: Power under Section 9 could only be exercised for preservation of the subject matter of the dispute till the decision of the Arbitral Tribunal and scope of relief under Section 9 of the Arbitration and Conciliation Act, 1996 Act could not be extended for directing specific performance of the contract.
Held: Appellant was required to undertake certain work on a particular section of the National Highway 8. Under the Concession Agreement, appellant also operated a toll plaza for collection of toll. Appellant sought approval of the respondent for extension of the Concession Period under the said Concession Agreement. The respondent did not grant extension for the entire period claimed by the appellant and the appellant was granted interim extension only up to a certain date. The respondent also threatened to forcibly takeover the toll plazas operated by the appellant. Thereafter, the respondent issued a notice inviting a fresh tender, calling for bids from third-parties to collect toll on the said section of the National Highway, for the period post the expiry of the Concession Period granted to the appellant. Consequently, the respondent awarded a fresh tender to the selected third-parties. Appellant filed a petition under Section 9 of the A&C Act seeking interim protection of its rights under the Concession Agreement. It was held that the scope of relief under Section 9 of the A&C Act could not be extended to directing specific performance of the contract. The Court held that since the appellant had withdrawn the writ petition filed by it against the fresh tendering process initiated by the respondent, appellant could not challenge the award of tender by the respondent in favour of the third-parties. The Court noted that the appellant had not challenged the tendering process and the consequent award of the fresh tender to the third parties, in the petition filed by it under Section 9 of the A&C Act. The Court further observed that even after withdrawing the writ petition, the appellant did not amend its petition under Section 9 to incorporate the said challenge. Thus, the Court dismissed the appeal.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. Allowed, subject to all just exceptions.
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