Section 9, 36 – Code of Civil Procedure, 1908 (V of 1908), Order 38 Rule 5 -- Securing the amount -- Attachment before judgment – Absence of averment -- Section 9 of the Arbitration Act confers wide power on the Court to pass orders securing the amount in dispute in arbitration, whether before the commencement of the arbitral proceedings, during the arbitral proceedings or at any time after making of the arbitral award, but before its enforcement in accordance with Section 36 of the Arbitration Act –Court exercising power u/s 9 of the Arbitration Act should not withhold relief on the mere technicality of absence of averments, incorporating the grounds for attachment before judgment under Order 38 Rule 5 of the CPC.

(SC) Decided on : 14.09.2022

Section 9 – Code of Civil Procedure, 1908 (V of 1908), Order 38 Rule 5 -- Securing the amount – Interim relief -- Attachment before judgment – Proof of actual attempts to deal with, remove or dispose of the property with a view to defeat or delay the realisation of an impending Arbitral Award is not imperative for grant of relief u/s 9 of the Arbitration Act -- A strong possibility of diminution of assets would suffice.

(SC) Decided on : 14.09.2022

Section 9, 37 – Code of Civil Procedure, 1908 (V of 1908), Order 38 Rule 5 -- Securing the amount by interim relief -- Essar House Private directed to deposit an amount of Rs.35.5 crores with the Prothonotary and Senior Master of the High Court or, in the alternative, to furnish bank guarantee of any nationalised bank for the entire amount along with interest thereon – Prima facie, the refundable security deposit is not being released to Arcellor on the purported ground of a convoluted series of internal arrangements between group companies for diversion of the security deposits towards liquidation of alleged dues of Essar Steel to third parties -- No infirmity in the well-reasoned judgment and order of the Division Bench -- Appeals dismissed.

(SC) Decided on : 14.09.2022