The Arbitration and Conciliation Act, 1996, provides that
a Party may approach the Court for interim measures at any stage of
the arbitral process. However, Section 9 does not prescribe the
territorial jurisdiction of the Court empowered to grant such
interim injunctions.
The question that arose in the present case of NHPC
Limited v. Hindustan Construction Co. Ltd. 2015 SCC Online Del
9804 was the regarding the territorial jurisdiction of the
Court where the interim application should be filed.
The Appellant and Respondent were involved in an arbitration
matter, in which the final award was being challenged in the Delhi
High Court, when the Respondent filed for an injunction under
Section 9 of the Act asking for one week's advance notice if
the Appellant decided to invoke the bank guarantees given by the
Respondent, during the pendency of the challenge proceedings. The
setting aside application under Section 34 of the Arbitration Act
and the application for interim