The Supreme Court has directed TMT steel maker SRMB Srijan Ltd to deposit ₹20 crore with the court’s registry, in a long-standing commercial dispute with Great Eastern Energy Corporation Ltd, the coal bed methane producer from Ranigunj, Bengal.
The court order was in response to a special leave petition filed by SRMB against a Calcutta High Court verdict dismissing the appeal filed by the steel company to stay execution of an arbitral award.
“Subject to further deposit of an amount of ₹20 crore with the registry of this court within a period of six weeks from today, the execution of the award shall remain stayed,” Justice J.K. Maheshwari and Justice Atul Chandurkar said.
An arbitral tribunal had passed an award on June 21, 2022, directing SRMB to pay ₹58.5 crore to GEECL, which had invoked arbitration due to disagreement in the gas sales and purchase agreement. The arbitral tribunal held the termination of the GSPA to be wrongful and illegal and awarded ₹58.5 crore to GEECL along with damages. SRMB was one of the customers of GEECL that signed a GSPA in 2011, which was valid till April 30, 2034.
A dispute arose between the parties on the commercial terms of the GSPA in 2014, and the company initiated arbitration proceedings. According to the calculations carried out by GEECL, SRMB’s payable stands at ₹119.7 crore as on May 31, after factoring in interest of ₹61.22 crore.
Against the arbitral award, SRMB filed section 34 and section 36 petitions before HC, raising objections and for a stay of the award, respectively. On February 29, 2024, the HC dismissed SRMB’s stay petition (section 36) and directed SRMB to deposit ₹70 crore by way of 50 per cent in cash and the remaining 50 per cent by way of bank guarantee before the registrar.
Challenging the HC order, SRMB filed an SLP before the apex court. On April 26, 2024, the SC directed SRMB to deposit ₹15 crore in two equal instalments. SRMB complied.
In another order on September 5, 2024, objections filed by SRMB under section 34 of the Act were dismissed by the HC. Within less than two weeks, the TMT maker moved an application under section 37 of the Arbitration and Conciliation Act seeking to stay execution. The same was dismissed by HC on April 13, 2026, leading SRMB to file the immediate petition before SC.