M/S Trg Industries Private Ltd vs Directorate Of Civil Aviation & Anr on 28 February, 2026
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Delhi High Court – Orders
M/S Trg Industries Private Ltd vs Directorate Of Civil Aviation & Anr on 28 February, 2026
Author: C. Hari Shankar
Bench: C. Hari Shankar, Prateek Jalan
$~1
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ FAO(OS) (COMM) 46/2026 & CM APPL. 14158/2026, CM
APPL. 14159/2026, CM APPL. 14160/2026, CM APPL.
14161/2026
M/S TRG INDUSTRIES PRIVATE LTD. ....Appellant
Through: Mr. Akshkrit Tiwari, Mr. Aman
Kumar and Mr. Abhinav Akash, Advs.
versus
DIRECTORATE OF CIVIL AVIATION
& ANR. .....Respondents
Through:
CORAM:
HON'BLE MR. JUSTICE C. HARI SHANKAR
HON'BLE MR. JUSTICE PRATEEK JALAN
ORDER
% 28.02.2026
[Though today was declared a holiday for Court, this matter was
specially mentioned before Hon’ble the Chief Justice and placed
before this Bench specifically constituted for the said purpose.]
CM APPL. 14158/2026 (Exemption), CM APPL. 14159/2026
(Exemption) and CM APPL. 14160/2026 (Exemption)
1. Exemptions allowed, subject to all just exceptions.
2. The applications stand disposed of.
FAO(OS) (COMM) 46/2026 & CM APPL. 14161/2026
FAO(OS) (COMM) 46/2026 Page 1 of 4
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3. This appeal is directed against order dated 26 February 2026
passed by a learned Single Judge of this Court, which vacates an
earlier order dated 17 November 2025, exercising the jurisdiction
vested by Section 9 (2) of the Arbitration and Conciliation Act, 19961.
4. The dispute pertains to encashment of one Performance Bank
Guarantee and five other Bank Guarantees tendered by the appellant
to the respondents towards security deposit.
5. Admittedly, the bank guarantees were encashed on the ground
that the contract between the parties was terminated.
6. The appellant moved an application under Section 9 of the 1996
Act seeking an interim order restraining the respondents from
invoking the Bank Guarantees.
7. By order dated 17 November 2025, a learned Single Judge of
this Court restrained the respondents from invoking the Bank
Guarantees, holding that special equities existed in favour of the
appellant.
8. Admittedly, the said order was not challenged by the
respondents.
9. By a subsequent order dated 26 February 2026, under challenge
in the present appeal, another learned Single Judge has vacated the
1 “the 1996 Act”
FAO(OS) (COMM) 46/2026 Page 2 of 4
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The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
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said interim order on the ground that the invocation of the Bank
Guarantee was consequent to termination of the contract and that,
though there were certain disputes between the parties pending in
arbitration, no relief in respect of the termination of the contract had
been sought in the arbitral proceedings.
10. While fairly acknowledging that no relief against termination of
the contract has been sought in the arbitration, Mr. Tiwari submits that
there are averments in the statement of claim which question the
correctness of the termination of the contract. Moreover, he submits
that Section 9(2) only requires commencement of arbitral proceedings
and does not specifically require any relief to be sought, in the arbitral
proceedings in respect of the grievance forming subject matter of the
Section 9 order.
11. Having heard learned Counsel, we are not inclined to grant any
ex parte ad interim stay of operation of the order passed by the learned
Single Judge, especially as the dispute relates to invocation of
unconditional Bank Guarantees.
12. Issue notice in the appeal as well as in CM Appl. 14161/2026,
dasti under signatures of the Court Master.
13. Let notice be served on the respondents dasti through learned
Counsel who was appearing on behalf of the respondents before the
learned Single Judge.
FAO(OS) (COMM) 46/2026 Page 3 of 4
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14. As this is a statutory appeal, no reply to the appeal would be
required. However, reply to the stay application, if any, may be filed
within a week so as to be on record at least 24 hours in advance of the
next date of hearing, after exchanging a copy with learned Counsel for
the appellant.
15. List before the appropriate Bench, as per roster, on 12 March
2026, after obtaining orders of Hon’ble the Chief Justice.
C. HARI SHANKAR, J.
PRATEEK JALAN, J.
FEBRUARY 28, 2026/dsn
FAO(OS) (COMM) 46/2026 Page 4 of 4
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
The Order is downloaded from the DHC Server on 28/02/2026 at 20:30:24
