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Case Analysis Kalpataru Projects International Limited vs JSW Infrastructure Limited 2026 DHC 4699
Synopsis
The petitioner (contractor) entered into a contract for laying a slurry pipeline. the respondent granted extension of time till 31.05.2026 without levying liquidated damages (ld). however, the petitioner stopped work, claimed extended stay costs, and eventually terminated the contract. the respondent sought to levy ld, invoked risk purchase, and threatened encashment of an unconditional advance bank guarantee. the petitioner filed a section 9 petition seeking restraint on ld levy and bank guarantee encashment. the delhi high court dismissed the petition, holding that (i) the extension without ld was conditional on completion of work by the extended date; (ii) since the contractor did not complete work and terminated the contract, the respondent’s right to levy ld was not prima facie barred; (iii) the unconditional bank guarantee could not be restrained except on grounds of egregious fraud or irretrievable injury, neither of which was established.
Court: High Court of Delhi at New Delhi
Coram: Hon’ble Ms. Justice Mini Pushkarna (Single Judge)
Date of Judgment: 25th May 2026
Citation: O.M.P.(I) (COMM.) 218/2026 (unreported)
Core Law: Arbitration and Conciliation Act, 1996 – Section 9 (interim measures); Contract law – liquidated damages, extension of time, bank guarantees.
1. Heading of the judgment
High court of delhi at new delhi
O.m.p.(i) (comm.) 218/2026 & i.a. nos. 14254/2026 & 14255/2026
Kalpataru projects international limited (petitioner) vs. Jsw infrastructure limited (respondent)
Coram: hon’ble ms. justice mini pushkarna
Reserved on: 20th may, 2026; pronounced on: 25th may, 2026
2. Legal framework
Major laws and provisions involved:
Arbitration and conciliation act, 1996 – section 9 (interim measures by court)
Indian contract act, 1872 – section 73 (compensation for loss), section 74 (liquidated damages)
Bank guarantee law – principles governing invocation of unconditional/irrevocable bank guarantees
Subject matter of the judgment:
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