Key insights
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1
Court said Section 9(3) limited its power once the arbitral tribunal was constituted: The court observed that once the arbitral tribunal was constituted, the court’s power to grant interim measures or an injunction on invocation of bank guarantees was barred under Section 9(3) of the Arbitration and Conciliation Act, 1996, and pointed to Section 17 relief before the tribunal.
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2
Unconditional bank guarantees weighed against interim protection: The court noted the unconditional nature of the bank guarantees when concluding that the balance of convenience did not favor L&T.
Takeaways
L&T’s court bid to restrain K-RIDE from encashing bank guarantees was dismissed, the existing injunction was set to lapse on January 24, 2026, and L&T was directed to seek relief from the arbitral tribunal within 20 days.