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2014 (7) TMI 1253 - HC - Indian LawsInterim mandatory injunction - Arbitration and Conciliation - restraining the appellants from withdrawing the amounts retained by the Corporation Bank in the appellants' account to the extent of USD 60 Million and in the event the balance in the said account with the Corporation Bank is less than USD 60 Million, a direction to the appellants to deposit the short fall in the said account, so as to maintain the balance of USD 60 Millions - Held that:- As noticed an interim mandatory injunction can only be granted in exceptional cases and that too preserve or restore status quo of the last non-contesting status, which preceded the controversy. The grant of interim mandatory injunction must not amount to grant of pre trial decree. Such relief is essentially an equitable relief and discretion in that regard has to be exercised in light of facts and circumstances of each case. In the facts and circumstances of the present case, we are of the opinion that interests of justice would be served, if the appellants are directed to deposit an additional amount equivalent to USD 20 Million in its Corporation Bank Account at Mumbai, so that total deposit in the said account is maintained at USD 30 Million. This is on the basis that the HSBC can be said to have made out a fairly strong case, of a standard higher than a mere prima-facie case, for an award of such amount in the arbitral proceedings at Singapore. This direction to deposit, is certainly, without prejudice to the rights and contentions of the parties before the Arbitral Tribunal at Singapore. Accordingly, we may not be taken to have expressed any final opinion either upon the merits of the contentions of either parties or quantum of damages. Thus we partly allow the present appeal. The direction to the appellants to deposit the shortfall in the Corporation Bank Account at Mumbai, so as to maintain balance of USD 60 Million is substituted by a direction to the appellants to deposit the shortfall in the said account, so as to maintain a balance of USD 30 Million within four weeks from today. Save and except the aforesaid modification, rest of the directions in the impugned judgment and order dated 22 January 2014, are hereby upheld and maintained.
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