THE MAHARASHTRA STATE ELECTRICITY DISTRIBUTION COMPANY LIMITEDversusAshoka Buildcon Ltd

                                                          1 of 3                  909.IA.4992.2026.DOC



                    IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                      ORDINARY ORIGINAL CIVIL JURISDICTION

                      INTERIM APPLICATION NO.4992 OF 2026
                                      IN
                  COMMERCIAL ARBITRATION PETITION NO.66 OF 2022

Maharashtra State Electricity Distribution
Co.Ltd.                                                                                Applicant
             versus
Ashoka Buildcon Limited                                                                Respondent
                                      _______
Mr.Soham Bhalerao i/by DSK Legal for Applicant.
Mr.Sriraj G.Menon for Respondent.
                                                 _______

                                      CORAM           :            AARTI SATHE, J.

                                      DATE            :            1st October 2026

P.C.

1.                 This Interim Application has been filed praying for the following

reliefs:

             “a. That the Hon'ble Court may be pleased to grant an exemption of 101 days to
             the Applicant for depositing the Bank Guarantee amounting to Rs.36,35,48,620/-
             arising out of the consent order dated 19.12.2023 in the subject matter before this
             Hon'ble Court;

             b.    For such other reliefs as this Hon'ble Court may deem fit and proper.”

2.                 The Applicant has preferred application primarily seeking exemption

for a period of 101 days in depositing renewed bank guarantee amounting to

Rs..36,35,48,620/- in continuation of the bank guarantee no.0054, dated 17 th

January 2024 of the same amount arising out of consent order dated 19 th

December 2023 passed in Commercial Arbitration Petition No.66 of 2022. By

way of aforesaid order dated 19th December 2023 passed in Commercial

Arbitration Petition No.66 of 2022, the Applicant was directed to deposit an


M.S.Thatte
                                          2 of 3                909.IA.4992.2026.DOC



amount of Rs.24,23,65,747/- only by way of furnishing a bank guarantee in favour

and to the satisfaction of the Prothonotary & Senior Master of this Court with

direction to the Respondent to keep the bank guarantee alive till disposal of the

Commercial Arbitration Petition filed by the Applicant. The State Bank of India

(`SBI’), therefore, in the format provided by the Applicant agreed to give the bank

guarantee in favour of Prothonotary & Senior Master of this Court on behalf of the

Applicant for a sum of Rs.36,35,48,620/-. The aforesaid bank guarantee no.0054

of Rs.36,35,48,620/- was valid from 17th January 2024 to 16th January 2026.

3.           Considering that Commercial Arbitration Petition was pending and in

compliance of the order dated 19th December 2025, and further with a view to

extend the said bank guarantee for two years more from 16 th January 2026, the

Applicant approached SBI on 29th December 2025 and sought extension of said

bank guarantee for two years from 17th January 2026 to 16th January 2028.

However, the SBI refused to extend the aforesaid bank guarantee as per the original

format as approved by the Prothonotary & Senior Master of this Court and

inclusion of certain clauses which were deemed unacceptable by the Taxing Master.

The Applicant contended before the SBI that original bank guarantee No.0054was

already in the format approved by the Prothonotary & Senior Master of this Court

and Applicant was only seeking extension but the same was still refused by SBI.

4.           The Applicant also approached Canara Bank for issuance of a fresh

bank guarantee and Canara Bank issued bank guarantee No.1702 for

Rs.36,35,48,620/- as per the format accepted by Prothonotary & Senior Master.

However, Canara Bank issued the said bank guarantee on 28 th April 2026 and in




M.S.Thatte
                                            3 of 3                 909.IA.4992.2026.DOC



view of the aforesaid, there is a delay of 101 days from the expiry of bank guarantee

no.0054 issued by SBI. The Taxing Master vide order dated 6 th May 2026 directed

the Applicant to obtain corrected bank guarantee being renewed from the date of

earlier bank guarantee i.e. dated 17th January 2026.

5.           Considering the aforesaid facts and as the Applicant was in process of

renewing the bank guarantee and only on account of format being not approved by

the relevant bank, this Court is of the view that in these facts, the delay of 101 days

in providing the bank guarantee from 17th January 2026 (expiry date of bank

guarantee no.0054) till 28th April 2026 (date of issuance of new bank guarantee

no.1702) can be condoned. Learned counsel for the Respondent has no objection

to the aforesaid extension.

6.           Accordingly considering the facts of the case and averments made in the

Interim Application, the Interim Application is allowed and disposed of in terms of

prayer clause (a). No costs.

7.           It is directed that the learned Prothonotary & Senior Master of this

Court shall take on record the renewed bank guarantee No.1702, dated 28 th April

2026 for Rs.36,35,48,620/- issued by Canara Bank in compliance of order dated

19th December 2023 passed in Commercial Arbitration Petition No.66 of 2022.




                                                     (AARTI SATHE, J.)




M.S.Thatte