CHHATTISGARH STATE POWER GENERATION COMPANY LIMITED v. M/S BGR ENERGY SYSTEMS LIMITED

IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. OF 2024 (Arising out of SLP(C) No.30010/2024)

CHHATTISGARH STATE POWER GENERATION COMPANY LIMITED APPELLANT

1. Leave granted.

2. Heard learned senior counsel on behalf of the

appellant and Mr. Kartik Seth, learned counsel for

respondent No.1.

3. During the course of hearing, Mr. Kartik Seth,

learned counsel, on the basis of his instructions, has

taken a very fair stand that the respondent (M/s. BGR

Energy Systems Limited) has no objection against

encashment of the bank guarantees, provided that its

interest is adequately safeguarded and there is a timely

adjudication by the Arbitral Tribunal constituted under

the Madhya Pradesh Madhyastham Adhikaran Adhiniyam, 1983

(which is also applicable to the State of Chhattisgarh).

4. To this, Mr. Tushar Mehta, learned senior counsel,

representing the appellant-Chhattisgarh State Power

Generation Company Limited (in short, the “Company”), has

no objection.

5. In lieu thereof, the appellant-Company shall file

an undertaking before this Court that in the event the

respondent-Company finally succeeds in the arbitral

proceedings, the amount of bank guarantee shall be

refunded along with the interest without prejudice to the

rights of the parties.

6. So far...