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2025:APHC:61778

APHC010607742025 IN THE HIGH COURT OF ANDHRA PRADESH Bench

Sr.No:-27

AT AMARAVATI

[3441]

ARBITRATION APPLICATION NO: 41 of 2025

Sunshine Electricals ...Applicant

Vs.

The New and Renewable Energy Development Corporation of ...Respondent

Andhra Pradesh Ltd.

**********

Advocate for Applicant: Mr. P.A.K. Yadav appearing vice

Mr. Sricharan Telaprolu

Advocate for Respondent: None

CORAM : T HE CHIEF JUSTICE DHIRAJ SINGH THAKUR

DATE : 26^th December, 2025.

P C :

This is an application filed under Section 11(5) of the Arbitration and

Conciliation Act, 1996, seeking the appointment of an arbitrator for purposes

of adjudicating the disputes arising out of and in connection with Agreement

dated 30.10.2017.

2. The applicant claims to be a proprietary concern and states to have

entered into an Agreement dated 30.10.2017 with the respondent-

Corporation, inter alia for ensuring supply and installation of energy efficient

LED streetlight fixtures complete with all accessories, in four revenue divisions

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of the erstwhile Visakhapatnam District namely, Paderu, Visakhapatnam,

Anakapalli and Narsipatnam, as per specifications.

3. The applicant, according to the Agreement, was to replace the

conventional streetlights with LEDs of suitable capacities which were indicated

more elaborately in Annexure-3 of the said Agreement. The applicant was

required to not only install but also maintain the installed LED streetlight

fixtures for the contracted 10 year period.

4. The Agreement further envisaged that in the event of a dispute between

the parties the same was to be resolved through the mechanism of arbitration

in terms of Clause 19.3, which reads as under:

“19.3. Arbitration or Adjudication

In the event that the parties are unable to resolve the Dispute

through Direct Discussion under Article 19.2, the Parties shall

submit the Dispute for arbitration in accordance with the

Arbitration and Conciliation Act, 1996. Sole Arbitrator on mutual

consent shall be appointed in accordance with the provisions of

Arbitration & Conciliation Act, and its subsequent amendments.

ii. The arbitration proceedings shall be conducted in the English

language only.

iii. The cost incurred on the process of arbitration including inter

alia the fees of the arbitral tribunal and the cost of the

proceedings shall be borne by the parties in equal proportions

M/s Sunshine Electricals .Each Party shall bear its own legal

fees incurred as of any Dispute under this Article.

iv. The arbitrator shall make a reasoned award. Any Award

made by the Arbitral Tribunal shall be final and binding on the

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parties as from the date it is made, and the parties agree and

undertake to carry out such Award without delay

v. The arbitration proceeding shall be conducted at Vijayawada,

Andhra Pradesh.

vi. If any dispute goes to the court of law, the jurisdiction of the

court shall be the District Court, Vijayawada.”

5. The applicant claims that payments due to it as per the terms and

conditions of the Agreement were not made, which forced the applicant to

terminate the contract vide communication dated 03.07.2023.

6. Subsequently, the applicant invoked the arbitration clause by serving

upon the respondents a notice, dated 11.08.2025, which did not elicit any

response from the respondents.

7. Be that as it may, since disputes have arisen between the parties, the

same are required to be resolved through the mechanism of arbitration, the

present arbitration application is accordingly allowed. Justice G. S. Sistani,

former Judge of the High Court of Delhi, is appointed as an Arbitrator, who

shall enter upon the reference and adjudicate upon the disputes arising out of

and in connection with the Agreement, dated 30.10.2017, and render the

Award within the statutory period. The parties shall be free to file detailed

claims and counterclaims, before the learned Arbitrator. The learned Arbitrator

shall also be entitled to claim the fee in consultation with the parties