IN THE HIGH COURT OF JUDICATURE AT BOMBAY O. O. C. J. ARBITRATION PETITION NO.34 OF 2008 M/s. Ghai Construction Co. ..Petitioner. Vs. Union of India and another ..Respondents. .... Ms. Shilpa Kapil for the Petitioner. Mr. Suresh Kumar for the Respondents. ..... CORAM: DR. D.Y. CHANDRACHUD, J. 1st February, 2008. P.C. : By consent the petition has been heard, and taken on board. The Arbitration Petition under Section 9 of the Arbitration and Conciliation Act, 1996 is for an injunction restraining the Respondents pending the arbitral proceedings from recovering any amount from the Petitioner from any other contract undertaken by the Petitioner from the Respondents and from adjusting any amount from the bills due to the Petitioner under any other contract. The Petition has been filed on the basis of an apprehension that recoveries would be effected by the Respondents under a letter dated 22nd August, 2007 is referred to in paragraph 18 of the Petition. The letter has not been annexed but at the hearing of the Petition a copy thereof has been placed on the record. A bare reading of the letter would make it clear that the Respondents have not purported to effect any recovery. The directions contained in the letter dated 22nd August, 2007 which was addressed by the Deputy Chief Engineer (Construction) Bhusawal is for taking action to withhold payment of the amounts that may be due to the Petitioner restricted to Rs.40,19,839.32. That amount, it was alleged is on account of risk and cost payments pursuant to a contract dated 6th December, 2005 which was rescinded. The correctness of the action of the Respondents will fall for determination by the arbitral tribunal and this Court is informed that a petition under Section 11 is pending. At the present stage, Counsel appearing for the Petitioner does not dispute that under Clause 52 of the general conditions of contract, the Respondents are entitled to withhold the amount due. Counsel appearing for the Respondents states that the authorities have done no more than to withhold the aforesaid amount in terms of Clause 52. Since no recoveries have been made nor have any amounts been adjusted, the apprehension of the Petitioner is without any basis or foundation. The Arbitration Petition is dismissed