#prima facie case arbitration

Bombay High Court clarifies that Section 9 interim relief under the Arbitration Act mandates concrete evidence of asset diversion or financial instability, not just fear of dissipation. The ruling underscores that delays in seeking relief weaken claims of urgency, setting a stricter threshold for contractors and businesses seeking emergency protection.

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.