Synopsis

The petitioner (contractor) filed a petition under Section 9 of the Arbitration and Conciliation Act, 1996 seeking a stay on the respondent’s (NHAI) notice of intention to terminate an EPC contract dated 27th October 2022, as well as a stay on invocation of two bank guarantees and a surety bond. The petitioner alleged that delays were attributable to the respondent (non‑availability of right of way, encumbrances, forest permissions, etc.). During the pendency of the petition, the respondent indicated its intention to invoke the bank guarantees. Both parties had already nominated their arbitrators under the SAROD (Society for Affordable Resolution of Disputes) rules. The High Court, noting the existence of a valid arbitration agreement and that the arbitral process had commenced, converted the Section 9 petition into an application under Section 17 to be decided by the arbitral tribunal. It directed the respondent not to encash the bank guarantees and surety bond for six weeks, and restrained the petitioner from removing plant and machinery from the site. The petition was disposed of with liberty to the petitioner to move the arbitral tribunal for interim relief.

Court: High Court of Delhi

Coram: Honourable Ms. Justice Mini Pushkarna

Date of Judgment: 20th April 2026

Citation: O.M.P.(I) (COMM.) 133/2026 (2026:DHC:? not fully reported)

Core Law: Arbitration and Conciliation Act, 1996 – Section 9 (interim measures by court), Section 17 (interim measures by arbitral tribunal), Section 12 (disclosure by arbitrators)

2. Legal Framework

Major laws and provisions involved

• Arbitration and Conciliation Act, 1996 – Section 9 (interim measures by court), Section 17 (interim measures by arbitral tribunal), Section 12 (disclosure by arbitrators)

Key legal principles applied

Section 9 petition can be converted into Section 17 application when arbitral tribunal is constituted: Once the arbitral tribunal is in place (nominee arbitrators appointed), the court under Section 9 may, instead of deciding interim measures itself, direct the parties to approach the arbitral tribunal under Section 17. The court may also pass protective orders for a limited period to enable the tribunal to consider the matter.

Interim protection pending constitution of arbitral tribunal: The court can grant short‑term protection (e.g., stay on invocation of bank guarantees) to preserve the subject matter of dispute and prevent irreparable harm, while leaving the final decision on interim measures to the arbitral tribunal.

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