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2023 Supreme(Del) 2066
IN THE HIGH COURT OF DELHI AT NEW DELHI
Chandra Dhari Singh, J.
Energy Efficiency Services Ltd. – Appellant
Versus
Ms Vap Infosolutions – Respondent
Arb.P. 1372 of 2022
Decided On : 06-02-2023
Mr. Rajan K. Singh, Advocate, for the Petitioner.
Mr. Amit Pawan, Mr. Hassan Zubair Waris, Ms. Shivangi and Mr. Aakarsh, Advocates, for the Respondent.
The court's decision emphasizes the enforceability of arbitration clauses and the appointment of a Sole Arbitrator in resolving contractual disputes.
Headnote:
Arbitration - Dispute Resolution - Arbitration and Conciliation Act, 1996 - Section 11
Fact of the Case:
The petitioner, a body corporate, sought constitution of an Arbitral Tribunal to adjudicate disputes with the respondent, a private limited company, arising from a contract for large-scale distribution of energy-efficient appliances.
Finding of the Court:
The court appointed a Sole Arbitrator to adjudicate the disputes between the parties in accordance with the Arbitration and Conciliation Act, 1996.
Issues: Disputes arising from the contract, non-compliance with contractual obligations, and failure to resolve the issues amicably.
Ratio Decidendi: The court's decision was based on the parties' agreement to refer the dispute to arbitration, appointing a Sole Arbitrator, and ensuring compliance with the Arbitration and Conciliation Act, 1996.
Final Decision: Appointment of Justice Vineet Saran as the Sole Arbitrator to adjudicate the disputes between the parties, with directions for compliance and appearance before the arbitrator.
ORDER
Chandra Dhari Singh, J. (Oral)
1. The present petition has been filed by the petitioner under Section 11 of the Arbitration and Conciliation Act, 1996 seeking and praying for constitution of an Arbitral Tribunal comprising of an independent Sole Arbitrator in order to adjudicate the disputes between the parties.
2. Learned counsel appearing on behalf of the petitioner submitted that the petitioner M/s Energy Efficiency Services Ltd. (EESL) is a body corporate and joint venture of 4 (four) Public Sector Undertakings of Ministry of Power, Government of India, namely NTPC Limited, Power- grid Corporation of India Ltd. (POWERGRID), Power Finance Corporation (PFC), and Rural Electrification Corporation (REC), with one of its lead projects being "UJALA" which is a programme for "Unnat Jyoti by affordable LEDs for all". It has been further submitted that EESL was established with the intention of directing the market-related actions of the National Mission to Enhance Energy Efficiency (NMEEE), which is one of the eight National Missions under the Prime Minister's National Action Plan on Climate Change. This project of the Indian government is being exclusively undertaken and executed by EESL.
3. It has been submitted on behalf of the petitioner that the respondent, M/s. VAP INFOSOLUTIONS, is a private limited company incorporated under the Companies Act, 1956, with its registered office located at Lucknow-3/315 Vishwas Khand, Gomti Nagar, Lucknow-226010, that provides a vast array of services, including Solid Waste Management, Solar Energy Procurement, Skill Development, Human Resource Management, and IT enabled services.
4. It has been submitted on behalf of the petitioner that the genesis of the dispute between the parties lies back when the petitioner company solicited bids for "Hiring of agency for large scale distribution, storage, and inventory management of LED bulbs/BEE 5 Star Ceiling fans/ Energy Efficient Tube Lights and data base preparation etc., replacement of defective LED bulbs as per scope of work for DELP (Domestic Efficient Light Programme) for the state of Haryana, Madhya Pradesh, Delhi, Uttar Pradesh, Bihar, and Pan India."
5. It has been submitted on behalf of the petitioner that the respondent participated in the aforementioned tenders and submitted a bid after meeting the qualifying conditions outlined in the solicitation notice. The respondent was declared the winning bidder. Consequently, the respondent received LOAs for contract work for the states of Haryana, Madhya Pradesh, Delhi, Uttar Pradesh, Bihar, and Pan India.
6. It has been submitted on behalf of the petitioner that in accordance with the aforementioned LOAs and subsequent contract documents signed between the parties viz. the contract agreement, GCC and the Special Conditions of Contract ("SCC"), the respondent was contractually obligated to carry out large-scale Distribution, Storage, and Inventory Management of Energy Efficient appliances, namely LED bulbs, BEE 5 Star Ceiling fans and Energy Efficient Tube Lights & Data Base Preparation etc. replacement and etc. as per the scope of work within the stipulated time frame. The aforementioned deposits were to be made every other day, and the respondent was expected to produce periodic deposit slips. It is further submitted that the respondent was compelled to issue invoices with proof of depositing funds earned through such distribution into the petitioner's bank account.
7. It has been submitted on behalf of the petitioner that, in accordance with the management information system, the respondent was supposed to produce a weekly reconciliation of the stocks received from the petitioner, however, the respondent failed to do so.
8. It has been submitted on behalf of the petitioner that the respondent failed miserably to deposit the total amount of money acquired from the sale and failed to reconcile the stocks it was given and dispersed. The petitioner, through e-mails and other communi
