NTPC LTD. Vs. M/S SPML INFRA LTD

JUDGEMENT

(1.) The present appeal arises out of a decision of the High Court of Delhi[In ARBP No. 477/2020, dtd. 8/4/2021.], allowing the Respondents application under Sec. 11(6) of the Arbitration and Conciliation Act, 1996[hereinafter the Act.] for the constitution of an Arbitral Tribunal. It is the case of Appellant NTPC that there were no subsisting disputes between the parties in view of the Settlement Agreement dtd. 27/5/2020 and that the application for arbitration is an afterthought and abuse of the process.

(2.) By an order dtd. 15/7/2022, this Court, while granting leave, stayed all further proceedings before the Arbitral Tribunal. Short facts giving rise to the filing of the petition under Sec. 11 of the Act and leading to the impugned decision of the High Court are as follows.

(3.) Facts: The Appellant and Respondent, hereinafter referred to as NTPC and SPML respectively, entered into a contract for "Installation Services for Station Piping Package for Simhadri Super Thermal Power Project Stage II at NTPC at Simhadri, Vishakapatnam". In terms of the contract agreement, SPML furnished Performance Bank Guarantees and Advanced Bank Guarantees[hereinafter referred to as Bank Guarantees.] for Rs.14,96,89,136.00 to secure the Appellant.