2022/DHC/004781

Page 1 of 17

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IN THE HIGH COURT OF DELHI AT NEW DELHI

Date of decision: 09^th November 2022

+ O.M.P. (T) (COMM.) 63/2020

RAM KRIPAL SINGH CONSTRUCTION PVT. LTD ...... Petitioner

Through:

Mr. Amit Pawan, Mr. Hassan Zobair

Waris, Mr. Aakarsh & Ms. Shivangi,

Advocates.

versus

NTPC

..... Respondent

Through:

Mr. R. Sudhinder, Advocate with Mr.

Nikhil Kumar Singh, Advocate.

CORAM:

HON'BLE MR. JUSTICE ANUP JAIRAM BHAMBHANI

J U D G M E N T

ANUP JAIRAM BHAMBHANI J.

By way of the present petition under section 14 of the Arbitration

& Conciliation Act 1996 („A&C Act‟, for short), the petitioner seeks

termination of the mandate of the learned Sole Arbitrator appointed by

the respondent vide communication dated 14.05.2020 in relation to

disputes that are stated to have arisen with the respondent from Letter of

Award dated 17.12.2010, which related to the setting-up of a township

for the respondent‟s Super Thermal Power Project at Barh, Bihar; the

issuance of the letter of award having culminated in the parties signing a

Contract Agreement dated 01.02.2011 („contract‟). For completeness, it

is necessary to mention that prior to appointing the arbitrator whose

termination has been sought by way of the present petition, the

Digitally Signed

By:NEERAJ

Signing Date:11.11.2022

17:09:35

Signature Not Verified

2022/DHC/004781

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respondent had also appointed an arbitrator earlier, who had terminated

the proceedings for the reasons as detailed below.

2.

Notice on the termination petition was issued on 23.10.2020; whereupon

the respondent filed a reply dated 11.12.2020; which was followed by

the petitioner‟s rejoinder dated 26.03.2021.

3.

In support of the plea for termination, Mr. Amit Pawan, learned counsel

for the petitioner submits as follows :

3.1

That the petitioner first invoked arbitration vide notice dated

27.01.2014; whereupon the respondent appointed the Joint

General Manager, NTPC Ltd. Barh as the sole arbitrator („1^st

Arbitrator‟). However, the 1^st Arbitrator terminated the

proceedings under section 25(a) of the A&C Act on 22.06.2016

for want of the petitioner filing a statement of claim before him.

Thereafter, on 11.02.2020, the petitioner filed an application for

recall of order dated 22.06.2016; whereupon the Chairman &

Managing Director („CMD‟), NTPC appointed Mr. Asit Kumar

Mukherjee as the arbitrator („2^ndArbitrator‟) to decide the recall

application;

3.2

On 16.09.2020 the petitioner wrote a letter to the respondent‟s

CMD objecting to the appointment of the 2^nd Arbitrator, since the

said person was the Regional Executive Director of the

respondent, apart from being the Project Head of the project in

relation to which disputes had arisen. The petitioner‟s contention

was that the disclosures made by the 2^nd Arbitrator so appointed

under section 12 of the A&C Act, showed that his appointment

was not in conformity with the extant position of law post the

Digitally Signed

By:NEERAJ

Signing Date:11.11.2022

17:09:35

Signature Not Verified

2022/DHC/004781

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coming into force of the Arbitration & Conciliation (Amendment)

Act, 2015 (Act No. 3 of 2016) („Amendment Act-2015‟); and

hence the petitioner sought appointment of another arbitrator;

3.3

It is stated on behalf of the petitioner however, that the respondent

forwarded the petitioner‟s objection to the 2^nd Arbitrator himself;

who, on 21.09.2020, held that the Amendment Act-2015 would

not apply to the proceedings, which had been invoked prior to the

coming into force of the amendment; and that therefore, it was

within his remit to deal with the disputes. Thereafter, on

05.10.2020, the petitioner requested the 2^nd Arbitrator to keep the

arbitral proceedings pe