Calcutta High Court
Coal India Limited vs Svaryu Energy Limited on 26 June, 2025
Author: Shampa Sarkar
Bench: Shampa Sarkar
OCD 10 ORDER SHEET
IN THE HIGH COURT AT CALCUTTA
ORIGINAL SIDE
(COMMERCIAL DIVISION)
AP-COM/473/2025
Coal India Limited
VS
Svaryu Energy Limited
(Formerly known as Refex Energy Limited)
BEFORE:
The Hon'ble JUSTICE SHAMPA SARKAR
Date : 26th June, 2025 Appearance:
Mr. Ayan Poddar, Adv.
Mr. Soham Dutta, Adv.
Ms. Anjali Shaw, Adv.
.... for the petitioner
Mr. Devasis Mitra, Adv.
Mr. Prasant Malik, Adv.
Mr. Rajesh Upadhyay, Adv.
...for the respondent
The Court:- This is application for appointment of a learned
Arbitrator for settlement of a dispute which arose out of a contract dated
August 25, 2021 entered into between the parties.
The contract was executed in relation to the work of “Acquisition
and Handover of Land, Design, Engineering, Supply and Procurement,
Construction, Erection. Testing, Commissioning, Operation and Maintenance
of Solar Photovoltaic Grid-Connected Power Plant of capacity 100 MW(AC)
including Evacuation Infrastructure in Gujarat”.
Disputes and differences arose between the parties with regard to
the delay in execution of the work and termination of the contract. The
petitioner inter alia, claims damages for alleged breach committed by the
respondent. The respondent has a counter-claim for unpaid dues and also
challenges the decision of the petitioner to blacklist the respondent. There
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are allegations and counter allegations. Both the parties invoked the
arbitration.
The petitioner has approached this Court for appointment of a
learned Arbitrator. The Arbitration Clause is quoted below:
“In the event of any question, dispute or difference arising under
these terms & conditions or any condition contained in this contract
or interpretation of the terms of, or in connection with this Contract
(except as to any matter the decision of which is specially provided
for by these conditions), the same shall be referred to the sole
arbitration of a person, appointed to be the arbitrator by the
Competent Authority of CIL/CMD of Subsidiary Company (as the
case may be). The award of the arbitrator shall be final and binding
on the parties of this Contract.”
The contract provides that the Calcutta High Court shall have the
exclusive jurisdiction in all matters arising out of the contract.
As the mechanism for appointment of an arbitrator is no longer
available in law in view of the provisions of section 12(5) of the Arbitration
and Conciliation Act 1996, this application is maintainable. Under such
circumstances, the application being AP No. 473 of 2025 is allowed and
disposed of by referring the disputes to arbitration of the sole Arbitrator,
Justice Girish Chandra Gupta, former Chief Justice of this Court.
The learned Arbitrator shall comply with the provisions of Section 12 of
the Arbitration and Conciliation Act, 1996. The learned Arbitrator shall be at
liberty to fix his remuneration as per the Schedule of the Arbitration and
Conciliation Act, 1996.
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The respondents are given liberty to file the Vakalatnama and affidavit
of competency in the department within two weeks.
(SHAMPA SARKAR, J.)
JM/pa