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Section 9 petition of sub-contractor against contractor

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On 3.10.2008, there was agreement between appellant Ashoka Buildcon Ltd (ABL) and respondent no.2 Maharashtra State Electricity Distribution Company Ltd (MSEDL) for various works of erection, testing and commissioning of sub-transmission lines, distribution lines at Jalna Circle.

There was sub-contract between the appellant ABL and the respondent no.2 MAEIPL.  The said work was completed on 31.3.2011.

There were disputes between ABL and the sub-contractor in respect of payments. 

On 15.2.2020, an Arbitral Award was passed between ABL against MSEDCL for Rs.48,41,40,260/- in respect of the same contract and the work thereof.

Thereafter, the sub-contractor invoked arbitration clause for Rs.113,76,27,213/- and filed section 9 petition on 17.1.2024 for deposit of Rs.63,27,46,890/-. 

Salutary interim relief that the main contractor ABL shall not enter into any compromise with the principal- MSEDCL that would affect the rights of the sub-contractor without its written consent.

The contractor ABL is directed to deposit Rs.9,74,12,889/- and furnish bank guarantee of Rs.14,61,19,333/-.

Judgment dated 30.4.2025 of the Division Bench of the High Court of Bombay in Commercial Arbitration Appeal NO.10 of 2024 of Ashoka Buildcon Ltd  Vs. Maha Active Engineers India Pvt Ltd and another with connected interim applications.

 

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