Order Date: 27 May 2026 (order signed 03 June 2026).
Petition: Filed under Section 9 of the Arbitration and Conciliation Act, 1996 seeking interim protection from termination and encashment of a Performance Bank Guarantee (PBG).
Interim Relief Period: 06 Mar 2025 – 17 Dec 2025 (restraining respondent from invoking PBG); vacated on 17 Dec 2025; appeal dismissed on 09 Jan 2026; PBG subsequently invoked.
Parties Involved
Appellant: Black Gold Resources Private Ltd.
Respondent: International Coal Ventures Pvt Ltd and another party.
Counsel for Appellant: Sr. Adv. Guru Krishna Kumar, Sr. Adv. P. B. Suresh, Adv. Mayank Jain, Adv. Madhur Jain, Adv. Aakriti Dhawa, Adv. Arpit Goel, Adv. Kartik Yadav, Adv. Deepak Jain, Adv. Nikilesh Ramachandran, AOR Sughosh Subramanyam, Adv. Deeksha Gupta, Adv. M. B. Ramya, Adv. Pushpita Basak, etc.
Counsel for Respondent: Sr. Adv. Aman Lekhi, Adv. Shaiwal Srivastava, Adv. Ghanishta Mishra, AOR Rachna Gupta.
Arbitral Tribunal: Constituted under ICC (International Chamber of Commerce) as per arbitration clause.
Bench: Hon’ble Mr. Justice Aravind Kumar and Hon’ble Mr. Justice Prasanna B. Varale.
Issues / Allegations / Violations
Appellant alleged wrongful termination of contract and sought to prevent encashment of the Performance Bank Guarantee.
Respondent invoked the PBG after the Supreme Court appeal was dismissed, raising the question of interim protection and jurisdiction.
The core dispute concerning the bank guarantee and contract termination is pending before the ICC Arbitral Tribunal.
Findings & Observations
The Court noted that the arbitration clause had been invoked and an ICC Arbitral Tribunal was duly constituted and had already entered reference.
It held that adjudicating the merits would interfere with the arbitration process and therefore refrained from doing so.
The Court recognized that the interim order restraining the bank guarantee was operative from 06 Mar 2025 until its vacatur on 09 Jan 2026.
Penalties / Settlements / Directions
The Court directed the respondent(s) to deposit the proceeds of the invoked Performance Bank Guarantee, which have been realized, into an escrow account with the bank that issued the guarantee.
No monetary penalty was imposed beyond the escrow direction.
Corrective Actions & Future Obligations
Respondent must comply with the escrow deposit order.
The ICC Arbitral Tribunal will independently determine the final disposition of the escrowed amount and any related payment obligations.
Final Ruling & Enforcement
The appeal is disposed of; any pending applications, if any, are also disposed of.
The escrow direction remains enforceable, and the parties are bound to adhere to it pending the arbitral award.
