AMEET LALCHAND SHAH Vs. RISHABH ENTERPRISES

JUDGEMENT

(1.) This appeal arises out of the judgment dated 17.04.2017 passed by the Delhi High Court in FAO(OS) (COMM) No.85 of 2017 in and by which the Division Bench affirmed the order of the Single Judge dismissing the application filed under Sec. 8 of the Arbitration and Conciliation Act, 1996 (the 'Act') by holding that the agreements between the parties are not inter-connected with the principal agreement dated 05.03.2012 and therefore, the parties cannot be referred to arbitration as per the decision in Sukanya Holdings (P) Ltd. Vs. Jayesh H. Pandya and another 2003(3) R.C.R.(Civil) 647 : (2003) 5 SCC 531.

(2.) Brief facts which led to filing of this appeal are as follows:- On 01.02.2012, the first respondent - Rishabh Enterprises (the 'Rishabh'), the sole proprietorship concern of the second respondent - Dr. A.M. Singhvi entered into two agreements with M/s Juwi India Renewable Energies Pvt. Ltd. (Juwi India) namely:- (i) Equipment and Material Supply Contract for purchase of power generating equipments to the tune of Rs. 8,89,80,730.00; and (ii) Engineering, Installation and Commissioning Contract for installation and commissioning of the Solar Plant for Rs. 2,20,19,270.00. Both these agreements contain arbitration clause.

(3.) The first respondent - Rishabh entered into Sale and Purchase Agreement dated 05.03.2012 with the second appellant company - Astonfield Renewables Private Limited (Astonfield) for purchasing CIS Photovoltaic products to be leased to appellant No.3 - Dante Energy Pvt. Ltd. (Dante Energy) to be installed at the Solar Plant at Dongri, Raksa, District Jhansi, Uttar Pradesh. As per the agreement, these products were valued for Rs. 25,16,00,000.00. The second appellant - Astonfield received Rs. 21,40,49,999/- from the respondents under various cheques issued by the Rishabh. This agreement dated 05.03.2012 does not contain the arbitration clause. According to the appellants, an amount of Rs. 10,00,00,000.00 by cash was paid back to the sons of Dr. A.M. Singhvi i.e. Rs. 2,50,00,000.00 to Mr. Avishkar Singhvi and Rs. 7,50,00,000.00 to Mr. Anubhav Singhvi. An Equipment Lease Agreement (ELA) dated 14.03.2012 was entered into between the Rishabh and Dante Energy whereby Dante Energy agreed to pay the Rishabh Rs. 13,50,000.00 as lease rent for March, 2012 and from April, 2012 onwards, the said rent payable was Rs. 28,26,000.00. The Solar Plant at Jhansi has been commissioned and energized on 16.03.2012.