The court found that an arbitration agreement exists between the parties, permitting disputes from multiple MoUs to be addressed in arbitration, emphasizing the limited judicial review role in such matters.

JUDGMENT

V. Kameswar Rao, J.

I.A. 5437/2022 (for condonation of delay)

For the reasons stated in the application, the same is allowed and the delay is condoned. Application is disposed of.

ARB.P. 1185/2021

1. The present petition is filed seeking appointment of an Arbitral Tribunal under Section 11(6) of the Arbitration and Conciliation Act, 1996, with the following prayers:

"In light of the facts and circumstances narrated above, the Petitioner respectfully prays that this Hon'ble Court may be pleased to:

(i) Appoint an appropriate arbitral tribunal to adjudicate the disputes that have arisen between the parties; and

(ii) Pass such other or further order(s) as may be deemed fit and proper in facts and circumstances of the present case."

2. An invocation notice dated October 20, 2021 was sent by the petitioner invoking Article IV (Arbitration) of the Memorandum of Understanding (hereinafter "MoU") dated July 10, 2012 read with MoU dated February 01, 2013, due to the failure to resolve issues with regard to willful non-adherence of contractual obligations and responsibilities, breach of Gross Contribution Sharing Terms and the resultant unjust enrichment of the respondent. The arbitration clause is reproduced as under:

"ARTICLE IV

ARBITRATION

Either Party may cause to be submitted to arbitration all disputes, controversies or questions of interpretation arising out of this MOU or any breach or default hereunder by giving to the other Party notice to that effect. The Arbitration shall be held in New Delhi, India and shall be conducted in accordance with the rules set out by the Indian Arbitration & Conciliation Act of 1996 as in effect at the time of such arbitration except as follows. The Party desiring arbitration shall include in its notice to the other Party the name of the arbitrator chosen by it. Within twenty days after receipt of such notice the Party receiving notice shall, by written notice to the Party desiring arbitration, name the Arbitrator chosen by it and within 20 days of the appointment of the second arbitrator an "additional arbitrator shall be selected by the two arbitrators theretofore appointed. No Arbitrator shall be an employee or former employee of the CTL, either Party, or an Affiliate of either Party................"

3. The petitioner, Coral Telecom Ltd. (`Coral Telecom' for short), is a company duly incorporated and registered under the provisions of the Companies Act, 1956;having its registered office at 404, 2 Electronic Complex Charnbaghat, Distt Solan, Solan Himachal Pradesh 173213 and corporate office at E2, Sector 93, Noida 201301, UP. The petitioner is engaged in the business of designing, developing, manufacturing, marketing and/or sale of telecommunications related products which support some of the most demanding, mission critical and sensitive installations that include Indian Army Head Quarters, Indian Navy Head Quarters, various core and command centers of Indian Defence Forces.

4. The respondent No.1, Elcom Innovations Pvt. Limited (hereinafter referred to as `respondent No.1') is a company incorporated under the provisions of Companies Act, 1956 having its registered office at M41/4&5 Speed Bird House, Connaught Circus, New Delhi 110001. The respondent No.1 is part of Elcom Group of Companies constituted of Elcom Systems Pvt. Ltd. (under aegis of SUN Group of Companies) and engaged in the business of Aerospace, Communications and Electronics particularly in the area of avionics, tactical communications and homeland security, amongst others.

5. The respondent No.2 is the Managing Director of the respondent No.1 and is one of the first/founder Directors of the Respondent No.1. The respondent No.2 is a signatory of MoUs dated July 10, 2012.

6. The petitioner in the year 2010 collaborated with a Norwegian Company involved in the field of Defence equipment by the name of Kongsberg Defence & Aerospace AS (hereinafter 'KDA') by entering into a Non-Disclosure Agreement (NDA) dated M