Reliance Infrastructure Can't Sell, Transfer Assets Worth $135 Million, Says Delhi HC

Recently, the Delhi High Court in the case of "Shanghai Electric Group Co. Ltd vs Reliance Infrastructure Ltd. FAO(OS)(COMM) 213/2022" restrained the Anil Ambani-owned Reliance Infrastructure from selling, alienating, transferring or encumbering its assets, amounting to USD 135,320,728.42.

Case Overview:

In the aforementioned matter, Shanghai Electric Group ("Shanghai") had filed a Petition under Section 9 of the Arbitration and Conciliation Act, 1996 ("A&C Act") seeking urgent interim relief, to secure their amount of INR 1100 Crores, which was in dispute under the then ongoing Arbitration with Reliance Infrastructure, in view of its concern that the Arbitral Award which was yet to be passed, could be rendered incapable of being executed in the absence of any interim protection award to the Shanghai. The said amount happened to have been due and payable by Reliance Infrastructure ("Reliance") through its own guaranteed letter dated 26.06.2008 issued in favour