Selection of foreign-seated institutional arbitration doesn’t exclude applicability of section 9 of A&C Act

Shanghai Electric Group Co Ltd Vs Reliance Infrastructure Ltd (Delhi High Court)

Held that just because the parties have chosen a foreign-seated institutional arbitration under the UNCITRAL Law, it cannot be presumed that an agreement is excluded from the applicability of Section 9

Facts-

SEGCL Electric Group Co. Ltd. (Petitioner) and Reliance Infra Projects (UK) Ltd entered into an ‘Equipment Supply and Service Contract’ dated 26th June 2008. Accordingly, the petitioner was to supply equipment, erect the main body of the turbines and generators, and provide supervision services to Reliance UK in relation to an ultra-mega power project in Madhya Pradesh.

Under the contract, the respondent was obliged to pay Rs. 9461 Crores to the petitioner. With a view to secure performance of obligations of Reliance UK, Reliance Infrastructure Limited (Respondent) issued a Guarantee Letter dated 26th June 2008.

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