Delhi High Court
Delhi High Court

Reliance Infrastructure Ltd Monday assured the Delhi High Court that it would not create any third party rights over assets worth over Rs 900 crore till January 27, in relation to a plea by Shanghai electric Group which has invoked arbitration proceedings against it.

The Anil Ambani's Reliance Infra had entered into an agreement with Shanghai Electric Group (SEG) for engineering and manufacturing of power plants. The SEG invoked arbitration against Reliance Infra on account of its failure to pay for the purchased equipment.

Justice Rekha Palli recorded the assurance given by Reliance Infra's counsel that it will not create any third party rights over its assets worth over Rs 900 crore till Wednesday.

Earlier on January 19, the high court had asked R eliance Infra to maintain status quo regarding its shareholding in two Delhi power distribution companies, BSES Yamuna Ltd and BSES Rajdhani Ltd.

The arbitration was involved as per Singapore International Arbitration Centre (SIAC) rules to claim around Rs 995 crore for the alleged default by the Reliance Infra.

The SEG approached the high court under the Arbitration and Conciliation Act, seeking to direct Reliance Infra to furnish security, by depositing in an interest bearing account of the high court the claim amount of Rs 995 crore, which corresponds to the minimum amount that is payable by it to SEG in the arbitration.

Reliance Infra has opposed the plea saying that the suit itself is not maintainable before this court.

The SEG, in its suit, also sought to direct Reliance Infra to disclose on affidavit, details of all of its assets including any movable and immovable properties, whether such properties may be located within India or outside and any security or encumbrance created on such assets as on June 26, 2008, the date of the Guarantee Letter.

It also sought to restrain Reliance Infra from selling, transferring, alienating and otherwise disposing off and creating encumbrances on any of its assets.

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Free Press Journal