IN THE HIGH COURT OF DELHI AT NEW DELHI
CHANDRA DHARI SINGH, J.
UBTECH PVT. LTD. – Petitioner
Versus
PASHCHIMANCHAL VIDYUT VITRAN NIGAM LIMITED – Respondent
ARB. PET. No. 963 of 2022
Decided On : 16-01-2023
Arbitration and Conciliation Act, 1996 – Section 11 –Indian Contract Act, 1872 – Section 28 – Petition has been filed on behalf of petitioner seeking appointment of a Sole Arbitrator under provision of Section 11 of Arbitration and Conciliation Act, 1996 qua dispute arising out of letter of intent as well as agreement – Held, Court finds force in arguments of learned counsel for petitioner that the objection raised on behalf of respondent under section 28 of Indian Contract Act, 1872 cannot come to its rescue and further is of view that dispute in question is arbitral in nature – In view of request made by petitioner, to resolve dispute arising under letter of intent as well as agreement, said disputes and differences arising between parties are referred to arbitration, by appointing a Sole Arbitrator – Petition is disposed of.
ORDER :
1. The present petition has been filed on behalf of the petitioner seeking the appointment of a Sole Arbitrator under the provision of Section 11 of the Arbitration and Conciliation Act, 1996 qua the dispute arising out of the letter of intent dated 14th August, 2014 as well as agreement dated 30th May, 2015.
2. Learned counsel appearing on behalf of the petitioner submitted that the petitioner company was founded in 1983 as an electrical engineering and contracting firm. Furthermore, with its strategy of quality, safety, dependability, and timely project completion, the petitioner has successfully carved out a name for itself in the electrical engineering and contracting of EHV Substation and Transmission Lines across India.
3. It has further been submitted on behalf of the petitioner that the work was assigned to the petitioner in accordance with LOI 7324/PVNL/MT/RGGVY-II/1231/2013-14 (12th Plan) dated 14th August, 2014 and LOI 137781 PVVNL/MT/SAUBHAGYA/17-18 dated 30th November, 2017. The work was to be finished by 14th August, 2016 of the first LOI and by 30th December, 2018 of the second LOI.
4. It has been submitted on behalf of the petitioner that in accordance with the requirements mentioned in the said Letter of Intent dated 14th August, 2014, the petitioner was required to complete the assigned work under the said LOI within 24 months from the date of its issuance, i.e. by 3rd March, 2016. The work was to commence upon the Respondent's execution of the agreement in favour of the Petitioner, and the submitted work was to be made accessible to the Petitioner. To the contrary, the agreement was not completed by the respondent in favour of the petitioner until 30th May, 2015, after the respondent's protracted delay had harmed the petitioner's interests.
5. It has further been submitted on behalf of the petitioner that in accordance with the aforementioned LOI dated 14th August, 2014 and the agreement dated 30th May, 2015, the petitioner was assigned the Rural Electrification work to be carried out in the villages falling within 11 Blocks of the District Bijnor, including the erection and commissioning of 33/11 KV Sub-Station and its associated works. According to the agreement dated 30th May, 2015, the petitioner was also responsible for the 11 KV Line works and the release of service connections to BPL Card users.
6. Learned counsel for the petitioner submitted that petitioner conducted numerous foot surveys in the various villages falling within the 11 Blocks of the District Bijnor and discovered that some works were to be completed by another company under the same plan prior to the assignment of work to the Petitioner under the said agreement. The petitioner also discovered that the necessary works were not completed by the contractor in whose favour the initial work was done. Pursuant to conducting foot surveys regarding the work field, the petitioner submitted a number of letters updating the respondent on the condition of the work field and requesting that issues resulting from the previous company's incomplete work be resolved as soon as possible so that the petitioner may begin its assigned works.
7. It has been submitted on behalf of the petitioner that the Chief Engineer of the respondent issued a letter dated 22nd July, 2016 annexing two copies of the agendum agreement to the original/initial agreement dated 30th May, 2015, which was said to have been approved by the state Level Standing Committee of the holding company, in consideration of the request made by the petitioner via letter dated 14th January, 2016, and the petitioner was asked to sign the said two agendum agreements. The Chief Engineer of the respondent indicated in the aforementioned letter dated 22nd July, 2016 that the petitioner is only needed to finish electrifying 158 habitations in Block Noorpur, District Bijnor.
8. It has been submitted on behalf of the petitioner that the petitioner was required to complete the assigned work up until 13t
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