SRMB Srijan fails to get Calcutta High Court stay in arbitration case with Great Eastern Energy

The Calcutta High Court has directed Bengal-based secondary steel maker SRMB Srijan Ltd to deposit Rs 70 crore with the court in an arbitration case involving coal bed methane (CBM) producer Great Eastern Energy Corporation Ltd (GEECL). Justice Moushumi Bhattacharya rejected the petition filed by SRMB which sought a stay on an arbitral award handed out to GEECL linked to a commercial dispute over gas sales and purchase agreement. SRMB, which manufactures TMT bars which are used in the construction industry, has been directed to deposit 50 per cent of the amount by way of a bank guarantee and the remaining by way of cash to the Registrar, Original Side of Calcutta HC. GEECL, which produces CBM from the Ranigunj field in the Burdwan district, had invoked arbitration proceedings after SRMB terminated the contract, seeking specific performance of the Gas Supply and Purchase Agreement (GSPA) and damages.