$~J * IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment pronounced on: 08.07.2025 + ARB.P. 1267/2024 VIRTUOUS ENERGY PRIVATE LIMITED ..... Petitioner Through: Mr. Shivam Goel, Ms. Ramya S.

Goel, Ms. Sanya Sharma, Advs.

versus SMART POWER GRID LIMITED & ANR. ..... Respondents Through: Ms. Anusha Nagrajan, Ms. Aakansha Bhola, Advs. For R-2.

+ ARB.P. 1268/2024 VIRTUOUS ENERGY PRIVATE LIMITED ..... Petitioner Through: Mr. Shivam Goel, Ms. Ramya S.

Goel, Ms. Sanya Sharma, Advs.

versus SMART POWER GRID LIMITED & ANR. ..... Respondents Through: Ms. Anusha Nagrajan, Ms. Aakansha Bhola, Advs. For R-2.

CORAM:

HON'BLE MR. JUSTICE SACHIN DATTA

JUDGMENT

1. The present petitions filed under section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred as ‘A&C Act’) seeks appointment of a sole arbitrator to adjudicate the disputes between the parties.

2. At the outset, it is noticed that these petitions are predicated on the same factual conspectus, in the backdrop of two separate Letters of Award issued in favour of the petitioner. Since there are two Letters of Award, separate petitions have been filed qua each.

RELATIONSHIP BETWEEN THE PARTIES

3. The petitioner in the present petition is a ‘Micro Enterprise’ under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) and is engaged in the energy sector for providing Project Management Consultancy (PMC) and Operation and Maintenance Services (O&M) in respect of substations and transmission lines across India.

4. It is averred in the petition that at the time when the Letter of Awards and subsequent work orders for Operations and Maintenance (O&M) of the substations and associated transmission lines of projects owned by the respondent no.2 (transmission licensee under Section 14 of the Electricity Act, 2003) were issued by respondent no.1 in favour of the petitioner, respondent nos. 1 and 2 were part of the Essel Group and had a common majority shareholder i.e., Essel Infraprojects Ltd. However, as of 28.05.2019, the shareholding in respondent no.2 has been taken over by M/s Sekura Energy Ltd (now SEPL Energy Pvt. Ltd).

5. It is the case of the petitioner that the aforesaid takeover happened after work orders and subsequent handing over formalities culminated. It is further contended that only 49% of the shareholding of respondent no.2 was transferred to M/s Sekura Energy Ltd (now SEPL Energy Pvt. Ltd) and the remaining shareholding still remains with Essel group.

6. The two Letters of Awards dated 04.05.2017 (hereinafter referred as ‘LOAs’), were issued in favour of the petitioner by respondent no.1 for the Operations and Maintenance (O&M) of the substations and associated transmission lines of projects owned by the respondent no.2.

7. LOA/SPGL/ VEPL/ ERSS/ O&M / Transmission /130 (subject matter of ARB P. 1267/2024) was issued by respondent no.1 for ‘O&M work of 400 KV transmission line and Substation for "Eastern Region System Strengthening Scheme – VI” project’. The said project included the following transmission lines:

8. LOA/SPGL/VEPI/NRSSXXXIB/O&M/Transmission/131 (subject matter of ARB P. 1268/2024) was issued for ‘O&M work of 400 KV transmission line for "Northern Region System strengthening scheme- NRSS XXXIB” Project’, and included the following transmission lines:

9. Subsequent to the issuance of the aforesaid LOAs, work orders dated 24.07.2017 were issued in favour of the petitioner which were subsequently extended vide orders dated 03.07.2018 (in ARB. P 1267/2024) and 30.07.2018 (in ARB. P 1268/2024). The said work orders contain an arbitration clause, which reads as under:

“28. Governing Law & Dispute Resolution:

The applicable laws of India shall govern the PO with the Supplier/Seller, difference, which may arise out of the PO and cannot be settled in an amicable way between the parties, shall be settled by arbitration in Mumbai/Delhi, as per the provisions of the Arbitration and Conciliation Act 1996 and the language of arbitration shall be English.