Sikkim High Court
Sikkim Power Development Corporation ... vs M/S Amalgamated Transpower(India) Ltd on 10 May, 2023
Bench: Chief Justice, Bhaskar Raj Pradhan
THE HIGH COURT OF SIKKIM : GANGTOK
(Civil Appellate Jurisdiction)
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DIVISION BENCH: THE HON'BLE MR. JUSTICE BISWANATH SOMADDER, CHIEF JUSTICE
THE HON'BLE MR. JUSTICE BHASKAR RAJ PRADHAN, JUDGE
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I.A. No. 9 of 2023
in
Arbitration Appeal No. 1 of 2020
1. Sikkim Power Development Corporation,
Through its Managing Director,
31 A, National Highway,
Gangtok, Sikkim - 737101.
2. The State of Sikkim,
Through its Secretary,
Power Department,
Government of Sikkim,
Kazi Road,
Gangtok, Sikkim - 737101. ..... Appellants
versus
M/s Amalgamated Transpower (India) Ltd. (ATPL),
Through its Managing Director,
Office No. 1,
Motia Khan,
New Delhi. ..... Respondent
and
M/s Velankani Renewable Energy Private Limited,
43 Electronics City,
Hosur Road,
Bangalore - 560100,
Karnataka. ..... Applicant
Application under Order 1 Rule 10(2) Code of Civil Procedure, 1908
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Appearance:
Mr. Jishnu Saha, Senior Advocate with Mr. Tarun Johri, Mr. Aarohi Bhalla,
Ms. Tamanna Chhetri, Mr. Tenzing Thinlay Lepcha, Mr. Vidhan Vyas, Mr.
Tanish Ganeriwala and Mr. Vishwajeet Tyagi, Advocates for the appellants.
Mr. Prasanna Kumar Das, appearing in-person as representative of the
respondent.
Mr. Jorgay Namka, Senior Advocate with Mr. Simeon Subba, Advocate for the
applicant.
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I.A. No. 9 of 2023 2
in
Arb. A. No.1 of 2020
Sikkim Power Development Corporation Ltd. & Anr. vs. Amalgamated Transpower (India) Ltd.
Date of hearing: 10.03.2023, 13.03.2023, 14.03.2023, 15.03.2023,
16.03.2023, 20.03.2023, 21.03.2023, 22.03.2023,
23.03.2023, 29.03.2023 & 19.04.2023
Date of order : 10.05.2023
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ORDER
1. The applicant, Velankani Renewable Energy Private Limited, has moved this application seeking impleadment as one of the appellants in the appeal preferred by Sikkim Power Development Corporation Limited (SPDC) and State of Sikkim (SoS) under section 37 of the Arbitration and Conciliation Act, 1996.
2. According to the applicant, a letter of intent was issued to them by the SoS dated 31.10.2010, for development of Rolep, Ralong and Chakungchu Hydroelectric projects under joint venture with its subsidiary company - SPDC. It is asserted that the applicant was issued the letter of intent after termination of the Second Agreement dated 21.12.2002, which was accepted by them and after which they have made substantial capital expenditure in the execution of the projects. It is further asserted that the applicant has made considerable progress on the three projects awarded. The applicant also asserts the various other acts performed by them pursuant to the letter of intent. According to the applicant, SPDC and SoS failed to act in time due to which they had to approach this Court by filing WP(C) No. 6 of 2011 on 01.02.2011, seeking directions on the appellants to immediately execute the I.A. No. 9 of 2023 3 in Arb. A. No.1 of 2020 Sikkim Power Development Corporation Ltd. & Anr. vs. Amalgamated Transpower (India) Ltd. implementation agreement. The Writ Petition was disposed of with a direction upon the appellants to treat the Writ Petition as the applicant's representation. The applicant also pleads various grievances against SPDC and SoS. According to the applicant, the SoS has now informed them that they would not be able to sign the implementation agreement if the judgment delivered by this Court in the appeal under consideration goes against the SoS. It is in this background that the applicant seeks impleadment.
3. The appeal, wherein the applicant seeks to be impleaded, arises out of the arbitration proceedings under the Second Agreement between SPDC, SoS and ATPL. The applicant was not party to the Second Agreement and therefore not party to the arbitration proceedings as well. The Sole Arbitrator had examined and rejected the plea of impleading the applicant as a necessary party by his Award dated 30.9.2017. The issue was re-examined by the Commercial Court as well, in its judgment dated 26.12.2019, by which it upheld the view of the Sole Arbitrator. The applicant did not seek to implead itself in both the proceedings before the Sole Arbitrator as well as the Commercial Court.
4. Under section 37 of the Arbitration & Conciliation Act, 1996, an appeal shall lie only from the orders specified therein and from no other. As the applicant was not a party to the Second Agreement containing the arbitration clause and consequently, not a party before the Sole Arbitrator and the Commercial Court, we are I.A. No. 9 of 2023 4 in Arb. A. No.1 of 2020 Sikkim Power Development Corporation Ltd. & Anr. vs. Amalgamated Transpower (India) Ltd. of the view that the applicant cannot be made a party in the present proceeding. Consequently, the application is liable to be rejected and stands accordingly rejected.
( Biswanath Somadder ) ( Bhaskar Raj Pradhan )
Chief Justice Judge
Approved for reporting : Yes/No
Internet : Yes/No
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