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The Bombay High Court recently granted ad-interim relief under Part I of the Arbitration and Conciliation Act, 1996 (Arbitration Act) to Dalian Huarui Heavy Industry International Co. , Chinese heavy industry giant Ltd in relation to a 2012 agreement.
Dalian has claimed Rs 100 crore in unpaid dues against purchasers to whom it sold machinery vide the agreement. The company handed over cranes to purchasers for project work undertaken by the Visakhapatnam Port Trust. The purchasers, however, abandoned the work. The company thus approached the Bombay High Court seeking interim relief under Section 9 of the Arbitration Act.
The Bombay High Court has granted interim relief despite the fact that the agreement between the parties excluded the operation of Part I of the Arbitration Act. The Court has also held that the submissions made by counsel for Dalian merit prima facie consideration and granted the company ad-interim protections till the parties are heard. It also directed Bank of Baroda and the Board of Trustees of Visakhapatnam Port to file an affidavit in reply within two weeks in order to prove their claim on the machinery.
The Court further directed the purchasers, lenders and ports to restrain from dealing with, alienating or creating any third party rights in any manner, in respect of the cranes in question, till the matter is heard on July 29.
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