JUDGMENT :

1. The present application is fled under Section 11 of the Arbitration and Conciliation Act, 1996 (for short, “the Act of 1996) by the authorised representative of Bajaj Electricals Limited, a company incorporated and registered under the provisions of the Companies Act, 1956, seeking appointment of sole arbitrator for the purpose of adjudication of disputes and differences prevailing between the applicant and the respondent.

2. Heard the learned counsel Mr.Mayur Khandeparkar for the applicant and the learned counsel Ms.Maya Majumdar for the respondents. Before I appreciate the contentions advanced on behalf of the rival parties, it is necessary to refer to the brief facts in the background.

The applicant, is a company engaged in the business of manufacturing, marketing and supply of consumer electrical equipment, including various Appliances, Fans, Lighting, High Mast and Poles etc. and it also undertakes the work of electric/power infra projects and claim to possess good reputation in the market. The respondents are the proprietor and authorized signatories of the Firm engaged in the business being carried out under name and style ‘M/s.Windson International’ and are engaged in the business of manufacturing and supply of overhead high tension cables, low tension cables, transmission and distribution line products, which includes hardware fittings, earth pipes, spikes, pins, stay sets, coils etc.

3. The dispute between the parties occurred when somewhere between 2018-19, the applicant issued Purchase Orders (POs) in favour of the respondent for procurement of goods/materials intended to be used for their distinct project(s) MVVNL Project, PuVVNL Project and MP projects. The details of the distinct POs are compiled in the application. On the POs being issued, the applicant and the respondents agreed to abide by the terms and conditions stated therein and act accordingly for the purpose of smooth transaction of business. The agreement of abiding vital terms and conditions created a binding contract between the parties. The prominent term in the PO pertain to delivery, payment terms and dispatch of documents alongwith other clauses in form of recitals.

4. The POs contain a specific provision for arbitration under recital/clause 12 for resolution of disputes and differences arising therefrom through and by mode of arbitration and it read as under :-

“Arbitration Any differences or disputes arising out of or in connection with this order shall be settled by an amicable effort on the part of both parties. An attempt to arrive at a settlement shall be deemed to have failed as soon as one of the parties to this Order so notifies to the other party in writing. The place of arbitration shall be MUMBAI, India. The language to be used in the arbitration proceedings shall be English.”

The aforesaid clause thus makes it imperative for the parties to resolve the disputes/differences arising from the POs through the process of arbitration and the clause stipulates that the arbitration shall be in Mumbai.

5. Between 2018-19, the respondents supplied goods to the applicant in pursuance of the POs and raised the invoices, which are tabulated in the application. On certain occasions, it is alleged that there was excess or over supply of the goods by the respondents. Pursuant thereto, the respondents issues credit notes of Rs.17,41,473.82 to the applicant to offset the amount of the excess or over supplied quantity. It is alleged that on other occasions, there was short or deficient supply by the respondents and, accordingly, the amounts of the invoices raised were adjusted by the amount of the short or deficient supply and penal charges were also levied as per the terms of the POs to the extent of Rs.10,86,184/-. The tabulation of the invoices raised by the respondents and payments made by the applicant and the credit notes issued by the respondents is mentioned in the application.

6. The applicant, however, contends that the respondents sough