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SACHIN DATTA
Ion Exchange (india) Ltd. – Appellant
Versus
Doosan Power Systems India Pvt. Ltd. – Respondent
JUDGMENT
Sachin Datta, J. (Oral)
1. The present petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 seeking appointment of a Sole Arbitrator to adjudicate the disputes between the parties. The disputes between the parties have arisen in the context of:
(i) Contract bearing No.2017001270 for supply of material and equipment (hereinafter referred to as the "Supply Contract") for a consideration of Rs.39,05,00,000/- (Rupees Thirty-Nine Crores Five Lacs only) dated 12.01.2018.
(ii) Contract bearing No. 2017001271 for erection, commissioning, testing and performance guarantee test (hereinafter referred to as the "ECOM Contract") for consideration of Rs.3,90,00,000/- (Rupess Three Crore Ninety Lacs only) dated 12.01.2018.
2. The Arbitration Clause in the "Supply Contract" is in the following terms:
"Article 19 DISPUTES AND ARBITRATON
19.1 Except as otherwise provided in the Contract, any dispute concerning a question of fact arising under the Contract shall be mutually agreed upon and amicably settled by the Parties. Any other disputes, disagreements, questions or breach besides a question of fact which shall arise as to the obligation of any Party under t
The court emphasized the need to give full effect to the arbitration agreement between the parties and clarified the permissibility of appointing the same sole Arbitrator for multiple contracts.
The conciliation process in the contract agreement was not mandatory, and non-compliance did not bar the petitioner from invoking arbitration.
The court confirmed the existence of an arbitration agreement and mandated the appointment of a sole arbitrator to adjudicate contract disputes, highlighting the necessity of complying with contractu....
The court's decision was based on the interpretation of the Dispute Resolution clause in the Contract Agreement and the provisions of Section 11 of the Arbitration and Conciliation Act, 1996.
The court emphasized the necessity of appointing an independent Sole Arbitrator for arbitration disputes, following the principles established in prior Supreme Court judgments.
An arbitration clause that mandates referral to arbitration constitutes a binding arbitration agreement, regardless of discretionary language used; parties are required to adhere to the arbitration m....
The court appointed an arbitrator as the parties consented to arbitration under the existing arbitration clause, complying with statutory requirements.
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