Authority: Supreme Court of India
Order Date: 23 July 2026
Case Overview
- Petitioners: Rajasthan State Road Transport Corporation (RSRTC) & Anr; Respondent: Kalpatu Infra Project Pvt Ltd.
- SLP No. 24462/2026 filed against the impugned final judgment and order dated 25-05-2026 of the High Court of Rajasthan (DBCMA No. 2552/2026).
- High Court had awarded in favour of the respondent and the learned Single Judge exercised powers under Section 34 of the Arbitration and Conciliation Act, 1996.
- Petitioners argued that if the appeal were allowed, they would be unable to recover the amount from the respondent.
Court Reasoning
- The Court noted the award favours the respondent and the Single Judge’s exercise of Section 34 powers.
- To safeguard petitioners’ interests, the Court conditioned the payment directed by the High Court on the furnishing of a bank guarantee for the said amount.
Order
- Petitioners must furnish a bank guarantee for the amount to be paid to the respondent within four weeks from the date of this order.
- Upon furnishing the guarantee, petitioners shall release the amount as directed by the High Court.
- The Special Leave Petition is disposed of.
- Any pending applications, if any, are also disposed of.
Final Outcome
- RSRTC is required to provide a bank guarantee within four weeks before releasing the payment; the SLP is dismissed and the matter is closed.
Topics: Arbitration, Bank Guarantee, State Transport