Current AffairsIndia

Will not create third party rights over assets worth Rs 995 crore: Reliance Infrastructure

Following a petition by Shanghai Electric Group, Reliance Infrastructure on Monday assured the Delhi High Court that it would not create any third-party rights over assets worth Rs 995 crore till the next date of hearing. (Shanghai Electric Group vs Reliance Infrastructure)

Senior counsel for the respondent reiterates that the respondent had assured this Court on 24.12.2020 that till the next date, the respondent will not create any further third party rights in its assets valued at Rs.995 Crores, which assets will be available for appropriate orders being passed by this Court in case the need so arises.”, the statement recorded by Single Judge Bench of Justice Rekha Palli reads.

Earlier this month, the Court had ordered Reliance Infrastructure to maintain status quo regarding its shareholding in BSES Yamuna Ltd and BSES Rajdhani Ltd.

Anil Ambani’s Reliance Infrastructure had an agreement with Shanghai Electric Group for engineering and manufacturing of power plants.

Subsequently, Shanghai Electric Group invoked arbitration against Reliance infrastructure on account of the latter’s failure to pay for the purchased equipment.

The arbitration was invoked as per the Singapore International Arbitration Centre (SIAC) Rules for alleged default of $135.3 million or Rs 995 crores.

In the meantime, Shanghai Electric Group also moved the High Court under Section 9 of Arbitration & Conciliation Act, seeking a direction to Reliance Infrastructure to furnish security of Rs 995 crores which corresponds to the minimum amount that is payable to it under the SIAC Arbitration.

Shanghai Electric Group has further prayed for a direction to Reliance Infrastructure to disclose on affidavit, the details and status of its assets, whether movable and immovable properties, located within India or outside India, as on the date on of the Guarantee Letter and the date of filing of the petition.

Disclosure is also sought with respect to any ongoing transactions entered into by Reliance Infrastructure for sale of its assets, which could pose a threat to the realization of monies likely to be awarded in the ongoing arbitration.

Reliance Infrastructure has opposed the petition for being not maintainable.

The matter would be heard next on January 27.

Senior Advocates Rajiv Nayar, Dayan Krishnan with Trilegal Advocates Ashish Bhan, Ketan Gaur, Aayush Mitruka, Saurabh Seth, Sukrit Seth appeared for Shanghai Electric.

Senior advocate JJ Bhat appeared for Reliance with Advocates Mahesh Agarwal, Sanjeev Kapoor, Gaurav Juneja, Aditya Ganju, Shruti Garg, Arjit Oswal.

 

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