Rigours of attachment prior to judgment not strictly applicable while deciding a pre-arbitration

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The Supreme Court has held that the procedural rigours of Order 38 Rule 5 (attachment prior to judgment) of the Code of Civil Procedure 1908 are not strictly applicable while deciding a prearbitration §9 Petition to secure the amount in dispute.

Facts

Essar Steel entered into an agreement with Essar Services for the latter to provide support services to the former. Under the agreement, Essar Steel was supposed to pay a security deposit of ₹73
Crores, out of which an amount of ₹47.41 Crores was paid.

A different transaction was entered into…

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