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2022 Supreme(Del) 1508

MUKTA GUPTA
Gail (india) Limited – Appellant
Versus
Kesar Alloys & Metals Private Limited – Respondent


Advocates appeared:
Mr. Sidharth Bhatnagar, Senior Advocate with Ms. Samiksha Godiyal, Ms. Pracheta Kar & Mr. Aditya Sidhra, Advs., for the Appellant; Mr. Saurabh Kirpal, Senior Advocate with Mr. Vivek Jain & Ms. Suchitra Kumbhat, Advs., for the Respondent.

JUDGMENT

Mukta Gupta, J. - By this petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 (in short the Act), the petitioner seeks appointment of a sole arbitrator to adjudicate the disputes arising between the parties in connection with the Gas Sale Agreement dated 26th June, 2010 (in short the GSA) for the yearly supply of 33.718 BBTUs of Regasified LNG (in short RLNG) by GAIL to Kesar Alloys plant at Pithampur until 30th April, 2028.

2. According to the petitioner, in terms of Article 6.1 of the GSA, GAIL was bound to deliver and Kesar Alloys was bound to receive the Annual Contract Quantity of RLNG until 2028. As per Article 14 of the GSA, in case Kesar Alloys was to take delivery of quantity of RLNG lower than the quantity agreed under Article 6.1, the shortfall would still be charged to its account and Kesar Alloys would be liable to pay 90% of the agreed Annual Contract Quantity. This obligation to pay 90% of the contracted quantity was irrespective of the actual quantity received at the Delivery Point. According to the petitioner, it continued to make available the agreed Annual Contract Quantity of RLNG to Kesar Alloys at the Delivery point without any p

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