GHV Infra Subsidiary Secures Interim Stay on Corporate Guarantees

AED 11,242,746 (Earnest Money Deposit claim); Interim relief granted for corporate guarantee stay.

Reader Takeaway: Interim stay protects liquidity from guarantee invocation, but full recovery remains subject to ongoing formal arbitration proceedings.

What just happened

GHV Infra Projects Ltd has received an Emergency Arbitration Order from the Dubai International Arbitration Centre (DIAC). The order favors its wholly-owned subsidiary, GHV Infra FZ-LLC, in a dispute with Rana Exim FZ-LLC. The disagreement stems from an EPC contract for the Erisha Smart Manufacturing Hub located in Ras Al Khaimah, UAE.

Why this matters

The Emergency Arbitrator has issued a stay on the invocation of corporate guarantees associated with the project. Rana Exim FZ-LLC is now restrained from demanding, collecting, or enforcing payment under these guarantees. This prevents immediate cash outflow from the company while the parties move toward formal dispute resolution.

The backstory

The dispute involves a contract dated October 6, 2025. Following disagreements, GHV Infra FZ-LLC initiated arbitration proceedings. A formal request for emergency relief was filed on October 19, 2026, leading to the order issued on November 3, 2026.

Risks to watch

The current order is interim and does not decide the final contractual merits. The company is pursuing a substantive claim for the refund of its Earnest Money Deposit (EMD) of AED 11,242,746. As the outcome of the final arbitration is pending, the eventual financial impact remains uncertain, and management has stated that liabilities cannot be assessed until the formal process concludes.

What to track next

Investors should monitor future BSE filings for updates on the regular arbitration hearings and any developments concerning the recovery of the EMD or potential future liabilities related to the EPC contract.