MADHYA PRADESH HIGH COURT
, J
Deepak Cables (India) Ltd. Bengaluru v. Madhya Pradesh Power Transmission Co. Ltd. Jabalpur
I.A. No. 6100/2019
| Table of Content |
|---|
| 1. application for appointment of arbitrator under arbitration act. (Para 1 , 2) |
| 2. argument on dispute resolution through dispute board. (Para 3 , 4) |
| 3. court’s observations on applicable laws and prior judgments. (Para 5 , 6 , 7) |
| 4. arbitration case not maintainable based on statutory provisions. (Para 8) |
| 5. petitioner can approach the appropriate forum. (Para 9 , 10) |
1. Applicant has filed this application under S.11(5) read with S.11(6) of Arbitration and Conciliation Act, 1996 for appointment of Sole Arbitrator namely Hon'ble Justice (Retired) Shri P.P. Naolekar.
2. It is submitted that applicant company is incorporated under the Companies Act, 1956 and having registered office at 7, N.S. Iyengar Street Sheshadripuram, Bengaluru Karnataka. Company offers aluminum conductors for power utilities. It designs engineers, procures, constructs and installs transmission and distribution lines, electrical substations for Central Power Companies, State Electricity Boards and private organizations. Applicant company was admitted to corporate insolvency resolution process under the provision of Insolvency and Bankruptcy Code 2016 by order of National Company Law Tribunal, Bangalore dated 23.08.2018 and Mr. Ravi Shankar Devarakonda has been appointed as Interim Resolution Professional. Subsequently, Committee of Creditors has appointed him as Resolution Professional. Respondent i.e. M.P. Power Transmission Company Ltd. had issued tender notification for construction of transmission line Indore Circle on turnkey basis. Contract was awarded to applicant. Agreement was signed between the parties on 01.02.2012. It is submitted that respondent by violating conditions of the contract agreement had issued final notice for termination of contract. Applicant company has raised dispute with Dispute Board under general conditions of contract, but Dispute Board was not constituted as per terms of agreement between the parties. Contract with company was terminated vide letter dated 27.07.2015. In view of aforesaid circumstances, provision of Arbitration and Conciliation Act, 1996 is evoked for appointment of Sole Arbitrator. Respondent failed in its duty to appoint Arbitrator as per agreement.
3. Counsel appearing for respondent submitted that dispute of any kind which arises between the parties is to be referred in writing to Dispute Board for its decision. Dispute Board shall give its decision in 84 days. Decision is binding on parties. If any parties dissatisfied by Dispute Board's decision, then within 28 days the aggrieved party may give notice to other party regarding dissatisfaction with decision of Dispute Board and its intention to commence arbitration. It is submitted that show cause notice for termination of contract of agreement was issued and after considering the representation contract was terminated. Bank guarantees were encashed on 27.04.2015/08.05.2015, therefore, any dispute which exist between parties ought to have been raised by applicant. Contract has been terminated on 01.05.2015/25.05.2015. Time limit for three years expired on 30.04.2018/24.05.2018. Instant application has been filed on 10.12.2018 which is barred under Limitation Act.
4. Respondent had also filed I.A. No.6100/2019 for dismissal of application under S.11(5) read with S.11(6) of Arbitration and Conciliation Act, 1996 . It is submitted that Full Bench of High Court in case of Viva Highways Ltd. v. Madhya Pradesh Road Development Corporation Ltd. , reported in 2017 (2) MPLJ 681 : (AIR 2017 MP 103) has held that appropriate forum for adjudication of dispute arising out of works contract is Arbitration Tribunal constituted under S.3 of M.P. Madhyastham Adhikaran Adhiniyam, 1983 and prayer is made for referring the matter to Arbitration Tribunal.
5. Heard the counsel for the parties.
6. Applicant has made a bid for construction of transmission lines in Indore city on turnkey basis which falls within the definition of works contract. Full Bench of this Cou
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