M/S Power Electro Mech Pvt Ltd vs M/S Lanco Infratech Ltd And Others

Mohammad Rafiq, CJ

This application has been filed by M/s Power Electro-Mech Pvt. Ltd. way back on 12th April, 2017, inter alia with the prayer that the Arbitrator be appointed to adjudicate upon the dispute between the petitioner and the respondents.

The application is based on the arbitration Clause contained in 5.10 of the agreement executed between the petitioner, on one hand, and respondent No.1, M/s Lanco Infratech Ltd. on the other hand. On the own showing of the petitioner, the contract was awarded to it for the work relating to the “Hiring of manpower for Budhil HEP” vide letter dated 01.08.2012 by respondent No.1, M/s Lanco Infratech Ltd. The petitioner had served notice, invoking the aforesaid arbitration clause, on respondent No.1 only but now in the course of arguments, learned counsel for the petitioner has submitted that the Budhil Hydro Electric Project has been taken over by respondents No.2 to 4 and therefore they have stepped into the shoes of respondent No.1.

Mr. K.D. Shreedhar, learned Senior Counsel appearing for respondents No.2 to 4 has, however, submitted that respondents No.2 to 4 are not privy to the agreement executed between the petitioner and respondent No.1 inasmuch as notice invoking arbitration was served by the petitioner only on respondent No.1 and not on respondents No.2 to 4. It is therefore, argued that the impleadment of respondents No.2 to 4 was wholly uncalled for, hence they may be ordered to be deleted.

At this stage, learned counsel for the petitioner submitted that he may be permitted to serve a fresh notice on respondents No.2 to 4 as per Section 11 of the Arbitration and Conciliation Act, 1996 and file a fresh application, in accordance with law.

In view of the above, the arbitration case is disposed of with the said liberty. However, it is made clear that this Court has not expressed any opinion on the merits of the case either way.