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SUNITA AGARWAL
Adani Enterprises Limited – Appellant
Versus
Gujarat State Electricity Corporation Limited – Respondent
JUDGMENT :
(Sunita Agarwal, CJ.) :
1. The instant petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 (in short as "the Act, 1996) raises a question with regard to the applicability of the Arbitration Clause 3.4 contained in the Request for Proposal (RFP) document for selection of Mine Developer and Operator (MDO) for development and operation of Gare Palma Sector-I, Coal Block, Mand Raigarh Coalfield, Dist. Raigarh, Chhattisgarh. The claim of the petitioner is against the Gujarat State Electricity Corporation Ltd. (GSECL), incorporated under the provisions of the Companies Act, 1956.
2. Upon a notice under Section 21 of the Act, 1996 received by the respondent GSECL, they have taken a stand that no Letter of Acceptance (LOA) was issued to the petitioner and the conditional LOA does not create any right or liabilities of the parties. The claim of the petitioner to refer the dispute under Section 11 of the Act, 1996 is, thus, unacceptable.
3. The petitioner is claiming reference of the dispute arising out of the conditional Letter of Acceptance (LOA), issued by the respondent GSECL dated 15.12.2018, which was issued with reference to RFP bid document, as noted
A conditional Letter of Acceptance does not create a binding contract or arbitration agreement if its conditions remain unfulfilled.
The existence of an arbitration agreement under Section 11 requires clear indication of a binding contract, which was absent in this case; the Letter of Intent was merely a precursor to an actual con....
The main legal point established in the judgment is that the acceptance of a Letter of Intimation (LoI) can create a contractual relationship, and the obligations of the selected bidder, as per the t....
Appointment of Sole Arbitrator – When there is a reference in second contract to terms and conditions of first contract, arbitration clause would not ipso facto be applicable to second contract unles....
Court affirmed that the existence of an arbitration agreement can be inferred from parties' conduct and correspondence, even absent formal signing of the contract, emphasizing the binding nature of a....
The judgment establishes the requirement of a written agreement for arbitration, the interpretation of settlement of disputes clauses, and the significance of party conduct in determining the existen....
The absence of a concluded contract precludes the invocation of arbitration under the Arbitration and Conciliation Act, affirming the need for absolute acceptance in contract formation.
Point of Law : In terms of Section 11(6A) of the A&C Act, the scope of examination under Section 11 of the A&C Act is limited to the existence of the arbitration agreement
Arbitration – Appointment of Arbitrator - Parties though had agreed to submit the jurisdiction of the High Court of Gujarat, they had not agreed to the procedure for the appointment of an Arbitrator.....
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