YOGRAJ INFRAS. LTD. versus SSANG YONG ENG. & CONSTRN. CO. LTD. & ANR.

YOGRAJ INFRAS. LTD. versus SSANG YONG ENG. & CONSTRN. CO. LTD. & ANR.

Since fraud allegations raised by the petitioner were rejected up to Supreme Court level and no special equities were shown, and the partial arbitral award was not challenged, respondent is entitled to invoke the bank guarantees and recover the amount awarded therein.

Parties
Petitioner: Yograj Infras. Ltd.; Respondent: Ssang Yong Engineering & Construction Co. Ltd.; National Highways Authority of India (NHAI)
Jurisdiction
India
Judgment Date
31 January 2012
Procedural Posture
Special Leave Petition (civil) / Final Disposition by Supreme Court
Outcome
Special Leave Petition dismissed with costs
Legal Topics
Injunction Against Bank Guarantee Invocation, Fraud Allegations in Arbitration, Special Equities, Partial Arbitral Award
Arbitration Contract Law Banking Law Injunction Against Bank Guarantee Invocation Fraud Allegations in Arbitration Special Equities Partial Arbitral Award

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Parties

Yograj Infras. Ltd.

Petitioner

Ssang Yong Engineering & Construction Co. Ltd.

Respondent

National Highways Authority of India (NHAI)

Procedural Posture

Special Leave Petition (civil) / Final Disposition by Supreme Court

Legal Issues

  1. 1 Whether the respondent can be restrained from invoking the bank guarantees despite fraud allegations and partial arbitral award
  2. 2 Whether special equities exist justifying interim stay on invocation of bank guarantees

Ratio Decidendi

Since fraud allegations raised by the petitioner were rejected up to Supreme Court level and no special equities were shown, and the partial arbitral award was not challenged, respondent is entitled to invoke the bank guarantees and recover the amount awarded therein.

Court Disposition

Special Leave Petition dismissed with costs

Orders

  • Petitioner to pay Rs. 1 lakh to the Supreme Court Legal Services Committee.
  • Interlocutory Application for early hearing and disposal disposed of.