Supreme Court hears appeal on post-award Section 9 application in arbitration dispute

The case concerns a dispute between National Projects Construction Corporation Ltd. and Ishvakoo (India) Pvt. Ltd. regarding the encashment of bank guarantees issued for a mobilization advance, specifically addressing whether a Section 9 application under the Arbitration and Conciliation Act, 1996, filed by the unsuccessful party after an arbitral award is maintainable.

Who it concerns: Appellant: National Projects Construction Corporation Ltd.; Respondent: Ishvakoo (India) Pvt. Ltd.; Bench: Justice K. V. Viswanathan.

What the court decided

• The Supreme Court is hearing a Civil Appeal challenging the Delhi High Court's dismissal of the appellant's appeal.
• The High Court had previously confirmed a Single Judge's order that allowed the respondent's Section 9 application for the refund of Rs. 3.5 crores.
• The Court notes that the appellant encashed the bank guarantees in September 2017 because the respondent failed to keep them alive, contrary to a 2005 undertaking.
• The Arbitrator dismissed the respondent's claims, citing the respondent's failure to keep guarantees alive and alleged fraudulent conduct.
• The Single Judge found that the Arbitrator did not explicitly decide Issue No. 3 (discharge of bank guarantees) and was unaware that the guarantees had already been encashed.

Also in the document

• The document is a reportable judgment (2026 INSC 828).
• The Single Judge observed that the Arbitrator was unaware of the encashment of the bank guarantees when rendering the award.
• The High Court's Division Bench had previously set aside interim orders directing the return of funds, leaving the matter to be decided with the Section 34 objections.