[Cites 1, Cited by 0]
Calcutta High Court
Amrit Cement Limited vs Sai Surfactants Private Limited on 12 February, 2026
Author: Debangsu Basak
Bench: Debangsu Basak
OCD-3
ORDER SHEET
IN THE HIGH COURT AT CALCUTTA
Civil Appellate Jurisdiction
COMMERCIAL DIVISION
APOT/4/2026
IA No. GA-COM/1/2026
AMRIT CEMENT LIMITED
-Vs-
SAI SURFACTANTS PRIVATE LIMITED
BEFORE:
The Hon'ble JUSTICE DEBANGSU BASAK
-AND-
The Hon'ble JUSTICE MD. SHABBAR RASHIDI
Date: February 12, 2026.
Appearance:
Mr. Jishnu Chowdhury, Sr. Adv.
Mr. Sankarsan Sarkar, Adv.
Ms. Bhawna Parasramka, Adv.
Ms. Priyashi Jajoo, Adv.
...for the appellant
Mr. Chayan Gupta, Adv.
Mr. Uttam Sharma, Adv.
Ms. Vrinda Kedia, Adv.
...for the respondent
The Court : Appeal is directed against an order passed under Section
9 of the Arbitration and Conciliation Act, 1996 dated January 8, 2026
passed in AP-COM/545/2025
Learned senior advocate appearing for the appellant submits that the
appellant and the respondent entered into a contract under which, the
respondent was to manufacture and supply polypropylene woven bags. The
appellant is the manufacturer of cement. Such bags were required for the
purpose of packing cement manufactured by the appellant and selling it in
the market.
Learned senior advocate appearing of the appellant draws the
attention of the Court to the materials on record. He submits that, the
appellant rejected some of the supplies from time to time. A joint meeting
was held in which issue with regard to quantum of rejection was also
identified. Appellant paid a portion for the bags supplied.
Learned senior advocate appearing for the appellant submits that,
the issue with regard to the quantum of rejection and the amount paid may
be decided in arbitration. The claim is purely monetary in nature and,
therefore, no order for security in the manner as passed should be
sustained. He submits that the appellant is otherwise solvent and need not
be saddled with an order of furnishing security.
Learned advocate appearing for the respondent submits that, from
time to time, the respondent manufactured and supplied the polypropylene
bags to the appellant. He submits that, the bags were actually consumed.
Despite consumption of such bags, the appellant did not pay for the same.
He draws the attention of the Court to the materials on record in this
regard.
Court is informed that, pursuant to the agreement between the
parties, learned Arbitrator entered into reference. The first meeting of the
arbitration is fixed on February 16, 2026.
In the facts and circumstances of the present case, there are
disputes arising out of a contract which stand referred to arbitration.
Prior to reference being made, respondent before us approached the
learned Single Judge under Section 9 of the Act of 1996 seeking various
reliefs. Claim of the respondent is premised upon goods sold and delivered
and the price thereof not being paid by the appellant.
We find from the records that, the respondent from time to time
supplied polypropylene bags to the appellant. The polypropylene bags so
supplied apparently were consumed. Materials on record suggest that, there
is a portion which remains unpaid. We hasten to add that we are not
returning any definitive finding as to the quantum of the bags supplied or
quantum of money, if any, due and payable by the appellant to the
respondent. Such issues may be decided in arbitration.
So far as the direction for furnishing security is concerned we find
that the claim of the respondent is to the tune of Rs. 59 lakhs and odd on
account of principal. It would be appropriate to keep such claim secured in
the facts and circumstances of the case.
In such circumstances, it would be appropriate to modify the order
under appeal.
We, therefore, direct the appellant to create a fixed deposit for a sum
of Rs.60,00,000/- since we find that principal claim is for a sum of
Rs.59,00,000/- and odd.
Such fixed deposit be created within a period of a fortnight from date
in any bank of the choice of the appellant. Appellant will continue to keep
such fixed deposit renewed from time to time till disposal of the arbitration.
Fixed deposit will abide by the result of the arbitration. Original fixed
deposit receipt may be retained by the advocate on record for the appellant.
A copy of the fixed deposit receipt may be made over by the appellant to the
learned advocate-on-record for the respondent.
APOT/4/2026 along with connected applications are disposed of.
(DEBANGSU BASAK, J.)
(MD. SHABBAR RASHIDI, J.)
sp3/As
