In Brief
Hindustan Construction Company Limited challenged the constitutional validity of Section 87 of the Arbitration and Conciliation Act, 1996 and provisions of the Insolvency and Bankruptcy Code, 2016 as applied to Government-owned enterprises. The company also challenged a 10% extra bank guarantee requirement in arbitral awards. The Supreme Court held that disputed arbitral awards fall outside the Insolvency Code's scope; NHAI cannot be proceeded against under the Code as highway maintenance is a Government function; and the bank guarantee requirement is reasonable as it covers future interest. All petitions were dismissed as without merit.
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