1 arbpl977-11 vai IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION ARBITRATION PETITION (LODGING) NO.977 OF 2011 Spanco Limited ....Petitioner V/s. State of Maharashtra ....Respondent Mr.Janak Dwarkadas, Senior Counsel with Mr.Zal Andhyarujina, Ms.Jyoti Singh and Ms.Shruti Sardesai i/b Phoenix Legal for the Petitioner. Mr.Shailesh Shah, Senior Counsel with Ms.Uma Palsuledesai, A.G.P. for the State - Respondent. CORAM : S.J. VAZIFDAR, J. DATE : 27TH SEPTEMBER, 2011. P.C. :- 1. The petition is by consent admitted and heard finally. 2. The parties have agreed to refer the disputes and differences to arbitration in accordance with the arbitration agreement, which is not disputed. 3. Mr.Shah, the learned senior counsel submits that the petitioner be directed to make an application under section 17 of the Arbitration & Conciliation Act, 1996 for the reliefs claimed in this petition. Least any observations in this petition prejudice either party in 2 arbpl977-11 the arbitration. 4. Mr.Dwarkadas, the learned senior counsel appearing on behalf of the petitioner agrees to make an application under section 17 of the said Act for interim reliefs including those sought in the present petition. He seeks protection till then. He states that the guarantee is valid till 30.11.2011 and may be invoked by the respondent at any time till that date. In view thereof, the present order is passed. 5. The respondent shall not invoke the existing guarantee till 11.10.2011. In the event of the petitioner furnishing on or before 10.10.2011 in favour of the respondent a fresh bank guarantee in terms of the guarantee already issued with an additional term that in the event of the bank guarantee being invoked at any stage, the bank shall pay the amounts together with interest at 12% p.a. from 14.9.2011 till payment the existing guarantee shall not be invoked by the respondent and shall stand discharged. This rate of interest is ad-hoc and will be subject to the orders in the arbitration proceedings. 6. In the event of the fresh bank guarantee not being furnished by 10.10.2011, the respondent shall be at liberty to invoke the existing guarantee. The fresh bank guarantee, if issued, shall not be invoked till the disposal of the application under section 17 provided the same is filed on or before 31.10.2011. 7. This order does not and cannot affect any of the contentions of the parties on merits. It is only for the purpose of enabling the 3 arbpl977-11 petitioner to make an application under section 17 of the said Act. All the rights and contentions of the parties are kept open. 8. The petition is accordingly disposed of with no order as to costs.