[Cites 2, Cited by 0]
Delhi High Court
Twenty First Century Mining Private ... vs Nominated Authority Ministry Of Coal ... on 3 February, 2026
$~42
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Date of decision: 03.02.2026
+ O.M.P.(I) (COMM.) 41/2026, I.A. 2925/2026 & I.A. 2926/2026
TWENTY FIRST CENTURY MINING PRIVATE LIMITED
.....Petitioner
Through: Mr. Kirtiman Singh, Senior
Advocate with Mr. Sanjeev K.
Kapoor, Ms. Saman Ahsan,
Ms. Swastika Chakravarti and
Ms. Mimansha Durgapal,
Advocates.
versus
NOMINATED AUTHORITY MINISTRY OF COAL
GOVERNMENT OF INDIA & ANR. .....Respondents
Through: Mr Abhishek Gupta, CGSC
with Mr. Kumar Kartikeya,
Mr.Dhananjay Singh and
Mr.Chankya Kene, Advocates
for R-1
Mr. Santosh Kumar Rout,
Advocate for R-2.
CORAM:
HON'BLE MR. JUSTICE HARISH VAIDYANATHAN
SHANKAR
% JUDGEMENT (ORAL)
1. The present Petition, under Section 9 of the Arbitration and
Conciliation Act, 1996 ["Act"], has been filed seeking the following
prayers:
"(a) Pass an injunction restraining Respondent No. 1, during the
pendency of the proceedings between the Petitioner and
Respondent No.1, from invoking/appropriating/encashing the
Petitioner's Bank Guarantee with reference no.
0896524BG0000547, as amended on 17 May 2025, whether in
whole or in part, in furtherance of the recommendation of the
Scrutiny Committee passed in its meeting dated 6 November 2025
Signature Not Verified
Digitally Signed
O.M.P.(I) (COMM.) 41/2026 Page 1 of 5
By:HARVINDER KAUR
BHATIA
Signing Date:06.02.2026
12:20:13
and 7 November 2025, and Respondent no. 1's letter forwarding
the same dated 3 December 2025;
(b) Pass and order directing Respondent No. 2 to refuse and return
any request from Respondent No. 1 for appropriating a part of the
Petitioner's Bank Guarantee with reference no.
0896524BG0000547, as amended on 17 May 2025;"
2. Learned Senior Counsel appearing on behalf of the Petitioner
would draw this Court's attention to the Letter dated 03.12.2025 and
submit that as per Para 3 thereof, the Petitioner herein was granted an
opportunity to submit a representation in respect of the
recommendation by the Scrutiny Committee for invocation of the
Performance Bank Guarantee dated with reference no.
0896524BG0000547, as amended on 17.05.2025.
3. He would submit that on the basis of the said Letter, various
representations were made and the latest of which is the detailed
representation dated 17.12.2025, and no response has been
forthcoming from the Respondents herein.
4. The learned Senior Counsel appearing on behalf of the
Petitioner would also draw this Court's attention to Clause 10 of the
Coal Block Development and Production Agreement ["CBDPA"]
dated 17.08.2022, which reads as follows:
"10. EFFICIENCY PARAMETERS
10.1. The conduct of mining operations at the Coal Mine shall be
subject to the Efficiency Parameters In bona fide cases of delays
not attributable to the Successful Bidder, the Nominated Authority
will decide on case to case basis the extension of timeline in
Efficiency Parameters. For the said purpose, the Nominated
Authority may refer the matter to Scrutiny Committee which will
consider the delay caused on case to case basis and furnish its
recommendation to the Nominated Authority for taking a decision,
10.2. The Successful Bidder would provide periodic information to
the Nominated Authority and the Central Government regarding
compliance with the Efficiency Parameters in the manner
stipulated in Clause 7 (INFORMATION)
Signature Not Verified
Digitally Signed
O.M.P.(I) (COMM.) 41/2026 Page 2 of 5
By:HARVINDER KAUR
BHATIA
Signing Date:06.02.2026
12:20:13
10.3. Any non-compliance with the Efficiency Parameters would
result in appropriation of the Performance Security in the manner
stipulated in Clause 6 (PERFORMANCE SECURITY) and in case
where such non-compliance exceeds for more than three instances,
such non-compliance may also result in termination of this
Agreement as provided in Clause 26 (EFFECTIVE DATE, TERM
AND TERMINATION)"
5. He would submit that, in terms of said Clause, it is apparent that
the Nominating Authority is to take a decision in respect of the non-
compliance of any deficiency parameters that have been set out in
Schedule C of the CBDPA.
6. He would further draw the attention of the Court to Clause 27 of
the CBDPA, which sets out the Dispute Resolution Process, and in
particular Clause 27.6 thereof, which reads as follows:
"27. GOVERNING LAW AND DISPUTE RESOLUTION
27.1 This Agreement and all questions of its interpretation shall be
construed in accordance with the laws of India, without regard to
its principles of conflicts of laws.
27.2 Any dispute, controversy or claim arising out of or relating to
or in connection with the Agreement including a dispute as to the
validity or existence of this Agreement, or any breach or alleged
breach thereof, shall be settled through mutual discussions between
the Parties.
27.3 In this regard, the Successful Bidder shall nominate an officer
not below the rank of a director to participate in the discussions on
its behalf. In the event that the Successful Bidder fails to nominate
an officer in the manner required under Clause 27.2; or the Parties
are unable to resolve any dispute in accordance with Clause 27.2
within a period of 30 Business Days starting from the date on
which the first notice of dispute was provided by either Party, such
dispute shall be resolved in accordance with Section 27 of the Act.
27.4 There shall be 3 (three) arbitrators, of whom each Party shall
select 1 (one), and the third arbitrator shall be appointed by the 2
(two) arbitrators so selected, and in the event of disagreement
between the two arbitrators, the appointment shall be made in
accordance with the Arbitration Rules. The arbitrators' award (the
"Award") shall be final and binding on the Parties as from the date
it is made, and the Parties agree and undertake to carry out such
Award without delay. This Agreement and the rights and
obligations of the Parties shall remain in full force and effect,
Signature Not Verified
Digitally Signed
O.M.P.(I) (COMM.) 41/2026 Page 3 of 5
By:HARVINDER KAUR
BHATIA
Signing Date:06.02.2026
12:20:13
pending the Award in any arbitration proceedings hereunder.
27.5 The Parties agree that an Award may be enforced against
them and their assets wherever situated.
27.6 It is expressly agreed between the Parties, that any existence
of a dispute shall not affect in any manner any of the rights of the
Nominated Authority under this Agreement, including without
limitation the right to appropriate Performance Security or
terminate this Agreement, until a final determination in this regard
is made.
27.7 The provisions contained in this Clause 27 shall survive the
termination of this Agreement."
7. Learned counsel appearing on behalf of the Respondents, on
advance notice, would submit that the present reliefs as sought should
not be granted since the Performance Guarantee is an unconditional
Bank Guarantee.
8. He, too, places reliance on Clause 27.6 of the Dispute
Resolution Clause to contend that the existence of a dispute cannot in
any manner affect the right of the Respondents to invoke the said bank
guarantee.
9. This Court has heard the learned counsel for the parties and is
of the opinion that Clause 27.6 refers to the right of the Nominated
Authority to appropriate the performance security till a final
determination in regard to the disputes as between the parties is given.
The "final determination" as referred to in the said Clause, in the
opinion of the Court would be relatable to the decision of the learned
Arbitral Tribunal & not of the Nominated Authority.
10. However, and is apparent, a decision by the Nominated
Authority is yet to be arrived at. The Letter dated 03.12.2025 is
categoric insofar as it grants the Petitioner an opportunity to submit a
representation, and in terms of the Petitioner has submitted a
representation dated 17.12.2025.
Signature Not Verified
Digitally Signed
O.M.P.(I) (COMM.) 41/2026 Page 4 of 5
By:HARVINDER KAUR
BHATIA
Signing Date:06.02.2026
12:20:13
11. Admittedly, no decision has been taken by the Nominated
Authority till date.
12. In view of the fact that the said Letter envisages the submission
of a representation by the Petitioner, and on which the Nominated
Authority is yet to take a decision, this Court is of the view that
Clause 27.6 cannot in any manner be pressed into the service for the
purpose of contending that the Respondents can at this point in time
invoke the Performance Guarantee.
13. Resultantly, this Court is of the view that till such time as the
Nominated Authority takes any decision in respect of the
representation as given in pursuance of the communication dated
03.12.2025, the Performance Guarantee shall not be invoked.
14. It is also directed that the Respondents shall, upon the
Nominated Authority taking a decision on the representation of the
Petitioner, notify the Petitioner within a period of one week of the said
decision, and till which time the Respondents will not invoke the
Performance Guarantee.
15. In view of the aforesaid direction, the present Petition, along
with pending application(s), if any, stands disposed of.
HARISH VAIDYANATHAN SHANKAR, J.
FEBRUARY 3, 2026/JYH/va
