Punjab-Haryana High Court
M/S Parshotam Industries Ltd vs Punjab Energy Development Agency Peda ... on 18 April, 2024
Author: Suvir Sehgal
Bench: Suvir Sehgal
Neutral Citation No:=2024:PHHC:051817
ARB-196-2018 -1- 2024:PHHC:051817
IN THE HIGH COURT OF PUNJAB & HARYANA AT
CHANDIGARH
(136-1) ARB-196-2018
Date of decision:- 18.04.2024
M/s Parshotam Industries Ltd. ... Petitioner
Versus
Punjab Energy Development Agency (PEDA) and anr ... Respondents
(136-2)
ARB-197-2018
M/s Vivaan Solar Pvt. Ltd. ... Petitioner
Versus
Punjab Energy Development Agency (PEDA) and anr ... Respondents
CORAM: HON'BLE MR. JUSTICE SUVIR SEHGAL
Present:- Mr. Tajender K. Joshi, Advocate
for the petitioner(s) in both the cases.
Mr. N.S.Boparai, Advocate
for the respondent No.1 in both the cases.
Respondent No.2 deleted from array of parties vide order dated
16.04.2024.
****
SUVIR SEHGAL, J. (ORAL)
1. This order shall dispose of two cases bearing Nos. ARB-196-
2018 titled as "M/s Parshotam Industries Ltd. Versus Punjab Energy
Development Agency (PEDA) and another" and ARB-197-2018 titled as
"M/s Vivaan Solar Pvt. Ltd. Versus Punjab Energy Development Agency
(PEDA) and another".
2. For the sake of convenience, factual position is being noticed
from ARB-196-2018.
3. Petitioner has approached this Court under Section 11 of the
Arbitration and Conciliation Act, 1996 (for short "the Act") for
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appointment of a sole Arbitrator to adjudicate the dispute between the
parties.
4. Counsel for the petitioner submits that the petitioner entered into
an Implementation Agreement dated 20.03.2015, Annexure P-1, with
respondent No.1 and Article 14, thereof, provides for resolution of disputes
between the parties by appointment of an Arbitrator. He submits that
subsequently, a Power Purchase Agreement dated 31.03.2015, Annexure
P-2, was entered into between the petitioner and the Punjab State Power
Corporation-respondent No.2, who has been deleted by this Court on his
request. Counsel submits that a dispute arose between the petitioner and
respondent No.1 and notice dated 17.02.2018, Annexure P-3, was served
upon respondent No.1 invoking the Arbitration Clause, however, it has
remained unattended.
5. Petition has been contested by respondent No.1 by filing a reply.
Counsel representing respondent No.1 has contended that respondent No.2
is a necessary party and in its absence, the dispute cannot be referred to and
determined by an Arbitrator. He submits that the agreement, Annexure P-2,
with respondent No.2, is an integral part of agreement, Annexure P-1. He
has referred to the recitals of both the agreements to support his contention.
He submits that deletion of respondent No.2 has changed the entire
complexion and it is obligatory for the petitioner to file a fresh petition. It is
his argument that the dispute has to be referred to the Punjab State
Electricity Regulatory Commission (for short "the Commission") under
Section 86 (1) (f) and other provisions of the Electricity Act, 2003 as both
the parties have covenanted to adhere to the provisions of the statute.
6. I have heard counsel for the parties and considered their
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respective submissions.
7. All the contentions raised by counsel for the respondent No.1
deserve to be considered by an Arbitrator. In so far as the objection
pertaining to the jurisdiction of the Commission is concerned, suffice is to
notice is that as the petitioner has deleted respondent No.2, which is the
licensee, the jurisdiction to adjudicate the dispute no longer lies with the
Commission. The judgment of the Supreme Court in Chief General
Manager (IPC), Madhya Pradesh power Trading Company Limited and
another Versus Narmada Equipments Private Limited, (2021) 14
Supreme Court Cases 548 would not come to the aid of respondent No.1.
8. Accordingly, both the petitions are allowed. Mr. Justice Tejinder
Singh Dhindsa (Retd.), a former Judge of this Court, resident of House No.
123, Sector 8, Chandigarh, Mobile Nos. 7837049208 & 9815308888, is
requested to act as an Arbitrator to adjudicate the dispute between the
petitioner and respondent No.1, subject to compliance of statutory
provisions.
9. Parties are directed to appear before the learned Arbitrator on
date, time and place to be fixed by him at his convenience.
10. Liberty is also granted to the parties to raise all the pleas, claims,
counter-claims, defences, preliminary objections etc. before the Arbitrator.
11. A request letter alongwith a copy of the order be sent to Mr.
Justice Tejinder Singh Dhindsa (Retd.).
18.04.2024 (SUVIR SEHGAL)
Kamal JUDGE
Whether Speaking/Reasoned Yes/No
Whether Reportable Yes/No
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