Supreme Court - Daily Orders
Telangana State Power Generation ... vs Tecpro Systems Limited on 29 November, 2021
Bench: Uday Umesh Lalit, S. Ravindra Bhat
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IN THE SUPREME COURT OF INDIA
Civil APPELLATE JURISDICTION
CIVIL Appeal NO. 7119 /2021
(ARISING OUT OF SLP (CIVIL) NO. 28937/2019)
TELANGANA STATE POWER GENERATION CORPORATION
LIMITED Appellant(s)
VERSUS
TECPRO SYSTEMS LIMITED Respondent(s)
WITH
CIVIL Appeal NO.7120 /2021
(ARISING OUT OF SLP(C) No.30368/2019 (XII-A)
CIVIL Appeal NO.7121 /2021
(ARISING OUT OF SLP(C) No.30369/2019)
O R D E R
Leave granted.
These appeals arise out of the judgment and order dated 25-
09-2019 passed by the High Court for the State of Telangana at
Hyderabad in ARBA No. 106/2018.
The relevant facts leading to the application filed under
Section 11 (6) of the Arbitration and Conciliation Act, 1996 by M/s Tecpro Systems Limited have been set out by the High Court in paragraphs 2 to 23 of its order which need not be reproduced here. Signature Not Verified Digitally signed by Indu Marwah Date: 2021.12.04 13:47:05 IST Reason:
Two agreements came up for consideration before the High Court which were detailed in paragraph 2 as under: 2
“2. Two agreements fall for consideration in this case:
(i) The agreement dated 17.08.2010 amongst members of Consortium consisting of (a) the applicant M/s Tecpro Systems Limited, (b) M/s Gammon India Ltd and
(c) M/s VA Tech Wabag Ltd.; and
(ii) Letter of Intent dated 13.10.2010 issued by the respondent-Telangana State Power Generation Corporation Limited to the applicant, M/s Tecpro systems Limited (as leader of the above Consortium) together with the Bid Document and General Conditions of Contract, on behalf of the Consortium.” The important point for consideration raised by the High Court was point No.(c):
“(c) Whether the applicant as a member of the Consortium (and not as a leader of the Consortium) can invoke the arbitration clause?” Accepting that Tecpro Systems Limited was entitled to maintain the application under Section 11(6) for appointment of an Arbitrator in terms of Clause 22(2) of the General Conditions of Contract Act signed by the parties, the High Court appointed a retired Judge of this Court as an Arbitrator on behalf of the respondent and Justice M.B. Lokur, former Judge of this Court as the presiding Arbitrator.
We have heard Mr. Rakesh Dwivedi, learned Senior Advocate for Telangana State Power Generation Corporation Limited, Mr. Sachin Puri, learned Senior Advocate appearing on behalf of Tecpro Systems Limited and Mr. K.V. Viswanathan, learned Senior Advocate for Va Tech Wabag Ltd.
Without going into the question whether the reasoning which 3 weighed with the High Court was correct or not, in our view, the ends of justice would be met if there be comprehensive arbitral proceedings before a sole Arbitrator which would encompass claims arising out of the agreement amongst members of Consortium consisting of (a) M/s Tecpro Systems Limited, (b) M/s Gammon India Ltd and (c) M/s VA Tech Wabag Ltd. and the claims arising pursuant to letter of Intent dated 13.10.2010. It is therefore directed that:
(a) A sole arbitrator shall consider all the claims arising out of both the agreements.
(b) Mr. Justice M. B. Lokur, former Judge of this court shall be the sole arbitrator.
(c) M/s Telangana State Power Generation Corporation Limited, M/s Tecpro Systems Limited, M/s VA Tech Wabag Ltd and M/s Gammon Engineers & Contractors Pvt. Ltd. shall be parties to the arbitration.
(d) Let a claim statement be filed by M/s Tecpro Systems Ltd.
within 15 days from today before the learned Arbitrator.
(e) M/s Telangana State Power Generation Corporation Ltd. and other members of the Consortium shall be entitled to put in their counter statement/response and/or raise fresh claim/counter claims, if any.
(f) The parties shall appear before the learned Arbitrator on such date as the learned Arbitrator may choose. A communication in 4 that behalf shall be sent to the learned Arbitrator by the Registry of this Court immediately alongwith a copy of this order. The afore-stated directions are in substitution of the directions issued by the High Court. All the appeals are disposed of accordingly. No costs.
………………………………J. [UDAY UMESH LALIT] ………………………………J. [ S. RAVINDRA BHAT] NEW DELHI, NOVEMBER 29,2021.
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ITEM NO.28 Court 2 (Video Conferencing) SECTION XII-A
S U P R E M E C O U R T O F I N D I A
RECORD OF PROCEEDINGS
Petition(s) for Special Leave to Appeal (C) No(s). 28937/2019
(Arising out of impugned final judgment and order dated 25-09-2019 in ARBA No. 106/2018 passed by the High Court For The State Of Telangana At Hyderabad) TELANGANA STATE POWER GENERATION CORPORATION LIMITED Petitioner(s) VERSUS TECPRO SYSTEMS LIMITED Respondent(s) (FOR ADMISSION and I.R. ) WITH SLP(C) No. 30368/2019 (XII-A) (FOR ADMISSION and I.R. and IA No.189814/2019-EXEMPTION FROM FILING C/C OF THE IMPUGNED JUDGMENT and IA No.189813/2019-PERMISSION TO FILE PETITION (SLP/TP/WP/..)) SLP(C) No. 30369/2019 (XII-A) (IA No.191088/2019-EXEMPTION FROM FILING C/C OF THE IMPUGNED JUDGMENT) Date : 29-11-2021 This petition was called on for hearing today. CORAM :
HON'BLE MR. JUSTICE UDAY UMESH LALIT HON'BLE MR. JUSTICE S. RAVINDRA BHAT For Petitioner(s) Mr.Rakesh Dwivedi, Sr. Adv.
Mr.Y Rama Rao, Adv.
Mr. D. Abhinav Rao, AOR Shri K.V.Viswanathan, Senior Advocate Mr.Venkita Subramoniam T.R. AOR Mr.Neeraj Kumar, Adv.
Ms.Meenakshi Jha, Adv.
Mr.Rahat Bansal, Adv.
Mr.Sushmit Chouhan, Adv.
For Respondent(s) Sri.Sacchin Puri, Sr.Advocate Sh.A.V.S.Subramanyam,Adv.
Ms.Mehak Tanwar, Adv.
Ms.Jasvin Dhama, Adv.6
Ms.Sweta Arora., Adv.
Ms. Nidhi, Advocate Mr. T. R. B. Sivakumar, AOR (R-1) UPON hearing the counsel the Court made the following O R D E R Leave granted.
The appeals are disposed of in terms of the signed order. Pending applications, if any, shall stand disposed of.
(INDU MARWAH) (VIRENDER SINGH) COURT MASTER (SH) BRANCH OFFICER
(SIGNED ORDER IS PLACED ON THE FILE)