The arbitration proceedings can only be challenged on jurisdictional grounds established under the Arbitration and Conciliation Act, and timeliness in raising such challenges is critical.

ORDER

Chandra Dhari Singh, J. (Oral)--The instant petition under Section 14 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the "Act 1996") has been filed on behalf of the petitioner seeking termination of the mandate of the sole arbitrator appointed by the Delhi International Arbitration Centre vide notice dated 16th June, 2022 referred by the MSME Council in Case No. DL/10/M/SWC/00031.

2. The brief facts leading to the present petition are that the petitioner is a company registered under the Companies Act, 1956 and its functioning includes procurement, transmission and supply of electricity within the State of Uttar Pradesh.

3. On earlier occasion, distribution and transmission of electrical energy was in the hands of U. P. State Electricity Board (UPSEB), a statutory body constituted under Section 5 of the Electricity Supply Act, 1948. With the expansion of the generation unit, a government company namely, Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited, was incorporated under the Companies Act, 1956. It was wholly owned by the State of Uttar Pradesh. Thereafter a major reform was introduced by promulgation of the Uttar Pradesh Electricity Reforms Act, 1999 (hereinafter referred to as the "Reforms Act, 1999"). Section 13 of the Reforms Act, 1999 provides for the formation of a company namely Uttar Pradesh Power Corporation Limited (UPPCL) registered under the Companies Act, 1956 which was required to undertake planning and coordination with respect to transmission, to determine electricity requirement in the state and be a legal successor of UPSEB in relation to all the power purchase and transmission agreements. Section 23 of the Reforms Act, 1999 provides that all the properties, interest, rights of UPSEB shall be vested in the State Government and thereafter, shall be re-vested in UPPCL and its subsidiaries.

4. The petitioner is a subsidiary of UPPCL and was constituted on 5th July, 2003, which aimed for distribution of electric power in Eastern U. P. covering 21 Districts.

5. A letter of intent dated 3rd March,2016 bearing no. 611/PuVVNL(V)/MM/EAV-53/RADRP-B/15-16 was issued in favour of the Respondent awarding tender for an amount of Rs.6,81,80,795.78/- (Six crore eighty one lakh eighty thousand seven hundred ninety five and seventy eight paise) for Kopaganj Town under R-APDRP Part-B Scheme allotting total package value of Rs.6,21,51,546.36/- for supply of material vide order No. 783/MD/PuVVNL(V)-MM/EAV-53/RAPDRP-B/15-16 dated 21st March, 2016 and order no. 784/MD/PuVNNL(V)-MM/EAV-53/RAPDRP-B/15-16 dated 21st March, 2016 for a value of Rs.60,29,248.43/- for erection of material, testing and commissioning in respect of Kopaganj Town by the petitioner.

6. Similarly, Letter of Intent (LOI) vide letter no. 1127/PuVVNL(V)/MM/EAV-55/RADRP-B/15-16 dated 27th April, 2016 was issued in favour of the respondent awarding tender for an amount of Rs.5,37,84,634.84/- for Ghosi Town under RAPDRP Part-B Scheme in favour of Respondent for total package value of Rs.4,81,67,687.59/- for s