JUDGMENT :

R.F. Nariman, J.

1. Leave granted.

2. This appeal arises out of a petition filed under Section 11(6) of the Arbitration and Conciliation Act, 1996, for appointment of a Sole Arbitrator for adjudication of disputes between the parties. The Respondent, Galaxy Infra and Engineering Pvt. Ltd., is a company incorporated under the provisions of the Companies Act, 1956, having its registered office at Village Arra Gadh, Post Office Dharhara, Dist. Vaishali, P.S. Hajipur, Bihar and is in the business of providing consultancy services. The Appellant, Pravin Electricals Pvt. Ltd., operates in key industrial and commercial retail sectors and provides services for electrical supplies etc.

3. On 26th May, 2014, an online tender was invited by Chief Engineer, South Bihar Power Distribution Company Ltd. (hereinafter referred to as “SBPDCL”) for appointment of implementing agencies for execution of a Scheme, on turnkey basis, for strengthening, improvement and augmentation of distribution systems capacities of 20 towns in Bihar. The Appellant submitted its technical and financial bid and was declared the L1 bidder and was awarded the work on 22nd September, 2014. It is the case of the Respondent that it had made substantial efforts under a Consultancy Agreement dated 7th July, 2014, to facilitate the Appellant in getting the aforesaid contract for which it was entitled to commission. It is then alleged that the Appellant sent an email dated 15th July, 2014 to the Respondent with a draft agreement attached for comments and confirmation. On the same day, the Respondent sent its reply stating that certain terms were not acceptable. In emails that have surfaced for the first time in this Court dated 22nd July, 2014 and 25th July, 2014, the Respondent argued that, in point of fact, all differences between the parties were ironed out and a Final Consultancy Agreement was agreed upon through correspondence between the parties.

4. The Respondent alleged that it had raised an invoice on 27th September, 2014, for payment of Rs.28.09 lakhs as an advance for consultancy charges including service tax. It is important to note that the said invoice was addressed to one M/s Process Construction and Technical Services Pvt. Ltd. (hereinafter referred to as “Process”) and makes reference to an agreement entered into between the Respondent and Process. Also, on 24th April, 2016, the Respondent alleged that it raised yet another invoice on the Appellant. This invoice was also addressed to Process and makes reference to an agreement between the Respondent and Process. Ledger accounts that were produced in the normal course of business by the Respondent reflects transactions with Process and not the Appellant. Finally, vide an email dated 30th June, 2017, the Respondent attached the final invoice to the Appellant claiming an amount of Rs.5.54 crores under the alleged Consultancy Agreement dated 7th July, 2014.

This was followed up by a demand-cum-legal notice dated 9th March, 2018, seeking payment of Rs.5,54,14,318/-from the Appellant as being due under the alleged Consultancy Agreement dated 7th July, 2014. Vide its reply dated 22nd March, 2018, the Appellant recorded its surprise on receiving such demand notice and flatly denied that any agreement dated 7th July, 2014, was ever entered into between the parties. The Appellant further requested the Respondent to provide a copy of the alleged Agreement dated 7th July, 2014 and payment details referred to in the legal notice.

5. On 26th April, 2018, the Respondent invoked Article 14 of the alleged Consultancy Agreement dated 7th July, 2014, in which they nominated one Kameshwar Choudhary as Sole Arbitrator to adjudicate differences between the parties. On 3rd May, 2018, the Appellant denied execution of the Agreement dated 7th July, 2014 and, therefore, stated that the matter could not be referred to arbitration. We are informed that on 14th May, 2018, the Respondent’s Advocates finally supplied a copy of the all