Even before the commencement of arbitral proceedings the Court can grant interim relief to preserve and protect the subject property of the dispute

M/s.Sundaram Finance Ltd. vs. M/s.NEPC India Ltd. 

(A.I.R. 1999 SC 565)

(1999) 2 SCC 479

Head Note

Arbitration and Conciliation Act, 1996, Section 9 - Interim relief - Existence of arbitration agreement and dispute - When a party applies for interim relief to the court under Sec. 9 of 1996 Arbitration Act, it is implicit that it accepts that there is a final and binding arbitration agreement - The material words "before or during the arbitral proceedings" clearly contemplate that the court has the power and jurisdiction to grant interim injunction to preserve and protect the subject property of the dispute or any other direction envisaged in Section 9 even before start of arbitral proceedings - Pendency of proceedings before Arbitral Tribunal is not the condition precedent.

[Paras 9 to 14 and 17]

Cases Referred:
1. Sant Ram and Co. v. State of Rajasthan and others, 1997(1) SCC 147.
2. The Channel Tunnel Group Ltd. and France Manche S.A. v. Balfour Beatty Construction Ltd. and others, 1992(2) Lloyd's Law Reports (sic).

Comparative Citations:
1999 (3) CLJ 205, 1999 (32) CLA 321, 1999 AIR(SC) 565, 1999 (1) ArbLR 305, 1999 (1) JT 49, 1999 (1) RAJ 365, 1999 (1) Supreme 126, 1999 (1) Scale 40, 1999 (2) SCC 479, 1999 (1) SCJ 289, 1999 (1) SLT 179, 1999 (2) SRJ 71, 1999 (2) MLJ 53 (SC), 1999 (3) LW 335,

 wherein the Hon'ble Supreme Court was pleased to lay down as under:

"17. In our opinion this view correctly represents the position in law, namely, that even before the commencement of arbitral proceedings the Court can grant interim relief