Damodar Valley Corporation Vs Debeanjana Hard Coke Private Limited (Calcutta High Court)
The Calcutta High Court considered a petition under Section 11(6) of the Arbitration and Conciliation Act, 1996 seeking appointment of an arbitral tribunal to resolve disputes arising from a Power Supply Agreement dated 6 June 2006. The petitioner claimed that, following tariffs determined by the West Bengal Electricity Regulatory Commission, it raised a differential tariff claim for the period from 2006 to 2013 through a final bill dated 1 January 2021, which remained unpaid. The petitioner also asserted that additional electricity consumption dues remained outstanding, leading to a disconnection notice, disconnection of electricity supply, and initiation of proceedings under Section 9 of the IBC, 2016 before the NCLT, Kolkata. Subsequently, the petitioner invoked the arbitration clause under Section 21 of the Arbitration and Conciliation Act, 1996. Although the respondent did not nominate its arbitrator, it did not dispute the existence of the arbitration agreement. During the proceedings, both parties consented to the appointment of a sole arbitrator instead of a three-member tribunal contemplated under the agreement. The High Court appointed Mr. Mainak Bose, Senior Advocate, as the sole arbitrator, subject to compliance with Section 12(5) of the Arbitration and Conciliation Act, 1996, with remuneration to be fixed in accordance with the Fourth Schedule. The Court expressly kept all questions relating to arbitrability, admissibility of claims, limitation, and other issues open for determination by the arbitral tribunal and disposed of the petition accordingly.
