Road Infrastructure Development Company of Rajasthan Ltd. vs. M/ s. I.V.R.C.L. Ltd.

Arbitration & Conciliation Act, 1996–Sec. 9(ii)(b)–Direction to deposit the bank guarantee amount in fixed deposit–Justification–No specific circumstance for restraining the appellant from encashing the bank guarantee–No prima facie case in favour of respondents–Case of appellants that the respondent-claimant had failed to carry out the maintenance according to condition 45.2–Further, even if the respondent were to win the arbitration claim, it could have been compensated–Appellant is a Govt. undertaking having sufficient capital for discharging its financial duties–Impugned order is legally
unsustainable and set aside.