Topic

Interim Security

1 articleLatest March 2026
Section 17 A&C Act | Prima Facie Case of Liquidated Damages Justifies Interim Bank Guarantee Despite Financial Recovery Claim : Bombay HC
Case Law Analysis
|Bombay High Court

Section 17 A&C Act | Prima Facie Case of Liquidated Damages Justifies Interim Bank Guarantee Despite Financial Recovery Claim : Bombay HC

Bombay High Court rules that a strong prima facie case under a liquidated damages clause overrides a respondent's financial recovery claims, mandating interim security via bank guarantee. The ruling reinforces that arbitral tribunals retain discretion to order interim measures under Section 17 of the Arbitration and Conciliation Act where contractual breaches are evident, even if the respondent disputes liability.